To: Charger who wrote (851 ) 5/10/1998 8:24:00 PM From: Mark[ox5] Respond to of 3129
***Genesis Business Strategy*** Genesis is strategically positioned to be one of the industry's leaders in low-cost production entertainment programs. The quality of our management team, coupled with the high caliber of our direct industry experience, makes Genesis a force to reckon with for the future. Strategies play an important role in the Company's expansion process. Genesis believes that certain strategies will enable the Company to produce, develop, and distribute any one new project or product with lower budgets, and substantial efficiency. Some of the principal elements of the Company's operating strategy include the following: 1. Identify and develop creative new talent, new projects, and products, with high revenue producing potential. 2. Combine such material with established producers, distribution avenues, and other key production personnel, such as directors and actors, to enhance value, and provide experience to these emerging new opportunities. 3. Control development, production, and distribution costs of its projects or products, and limit the financial risks inherent to any one project. 4. Offer better terms and realistic profit participation for new projects and products, thereby reducing the negative cost risks that can be involved. 5. Enter into strategic alliances with multi-media and interactive companies to develop new projects and products. Interactive Multi-Media is another important part of the Genesis infrastructure. Genesis primarily produces CD-I (compact disc interactive) software titles for clients on a contract basis, which also has the capability of producing multi-media products on 3D and CD ROM platforms. Management expects that the Company's film and music library will generate the opportunity for software applications, such as video games, and interactive multi-media. The acquisition of an interactive multi-media producer and distributor, with a management group experienced in the design of interactive multi-media software applications, will offer a means to realize the potential of the multi-media applications arising from its film production activities. It is believed that the Company's film and music library will generate significant revenues from interactive multi-media applications. Genesis is pursuing strategic alliances with other independent producers. Such alliances could enhance the Company's ability to develop, finance, and produce other interactive multi-media applications. Such alliances will enable the Company to share the risk of certain segments of its business with others that may have the experience related to any one project. Genesis believes that pursuing alliances such as these will provide the Company with access to expand its scope for this area of the Company's business much quicker, and with less risk. Genesis, as a software provider, with a strategy of entering distribution through innovative alliances, intends to capitalize on this opportunity for software providers, and capture a greater share of the revenues from the distribution process. Genesis, with the use of its in house studio facilities, has full production capabilities. The Company is able to produce film, video, and music projects, as needed. These facilities will enable Genesis to provide a superior look to our independent production by controlling the production process. Major studios have reduced their development activity even as the motion picture industry has grown. The Hollywood after market or post-theatrical markets has expanded to include film entertainment on videocassette, pay-per-view television, video on demand, and interactive multimedia. The merger of software products, computers, and telecommunications is revolutionizing the way audiences all over the world are entertained, communicate, learn, and conduct business. We at Genesis have a working "motto" "Moving Towards The Future With Certainty"