Good evening to you all. Please find enclosed our latest corporate update with respect to Sideware Systems. In this update, we have placed more focus on actual questions from shareholders and investors, as opposed to a breakdown of topics by sub-heading. As usual, Sideware Systems has done it's best to answer your questions in as complete a manner as possible.
For your convenience, we have broken down this update on a question by question basis. The answers immediately follow each question.
1] Results of Beta Testing with Fortune 500 companies in 1997.
A: The results of the Beta tests can be summarized by breaking the companies into two different categories.
i) Fortune 500 Companies - These companies liked the features but the present version, not being an enterprise version, was not appropriate for their needs.
ii) Smaller companies with less than 50 users - These companies liked the features as well and found value in the product.
The feedback from these Beta tests helped develop SYD's target market focus. Specifically, the focus became smaller companies, or independent work groups within larger companies with fewer than 50 employees. A result of the Beta tests were actual sales to some of the smaller companies.
The enterprise version (50-500 users) is currently in development and is scheduled for release in September.
2] Financing. Will we need to raise money anytime soon? Is our cash still good into October?
A: Sideware has sufficient funds to get through to the end of 1998. The company also fully anticipates current outstanding warrants and options to be exercised through 1998, which would account for an additional $4 Million in cash.
3] Hot Notions - How is testing going with the "language" software? In our last update on this issue, we stated we were in testing phase with the hopes of conversations being able to take place between people of different languages.
A: Sideware tested the language software and found it to be promising. However, it is not a near-term product development priority. Near term can most accurately be defined as the period to October of 1998.
Currently, the company's near term priorities are a new 32-bit client, as well as, a super client for tutors guides and monitors.
4] What further details do we have regarding PC Expo?
A: The company plans to unveil an Alpha version of Dr. Bean, which has been a major focus of Sideware. The company anticipates a Beta version will be ready by September.
5] What is progress with Hot Notions? After a good start, it appears that activity has dropped off. Why and how are we going to increase traffic?
A: After a moderately successful initial phase, Sideware has concluded that maximum value for Hot Notions will be realized by providing a gateway to specific valuable destinations. Specifically, in it's next stage of development, Hot Notions will evolve as a gateway for specifically identified communities, defined as a pre-established group of people with a common interest.
The first such identified community will be the investment community. There are several other high traffic target communities available but efficient use of resources has meant that Sideware will focus on the investment community first, then expand to other uses as the Hot Notions database grows. Currently, Sideware has already received expressions of interest from public companies willing and interested in using Hot Notions for their own investor relations services.
It will be through this method that SYD plans to increase traffic to the Hot Notions site in the short term. The company fully anticipates attracting 7-10 public companies to it's service over the next 3-4 months and then continue adding companies on an incremental basis. The result of this traffic will be two-fold. First, the proliferation of Hot Notions users will then make it feasible to add on further destinations and communities. Secondly, the increased traffic will then allow revenue creation through banner advertisements on the web site and the Hot Notions chat box.
In the meantime, Sideware will focus on the new 32-bit client, which includes extended navigation, message management and intelligent advertising. The company anticipates these will be ready in September and will create a powerful Hot Notions service capable of fulfilling demand already being created for Hot Notions.
As a result of this evolution in the Hot Notions site, the company anticipates appropriate changes to be made to the Hot Notions site within the next week. Consequently, Deep Roots advertising to the site will be delayed and more attention will be focused on the storefront.
6] Storefront Update - Deep Roots initiatives.
The company anticipates the store front will be running under it's new format as of
June 1. To that end, the marketing campaign to attract customers to the storefront will begin on June 1. In addition to their own products, the company plans to sell third party products, including those of IBM. Further information with respect to the IBM products will be forthcoming at the time of the store's opening.
7] Techwest Update
The Techwest investor relations site is very near completion and is undergoing final modifications as we prepare this report. Unveiling of the new site is imminent and the company is very pleased with it's structure. As stated above, the company has already received expressions of interest from other public companies wanting to use the service.
The goal of the Techwest site is two-fold. Firstly, to increase and improve communications with Sideware investors. Secondly, to attract other public companies to the service along with their investors. As a result of these two initiatives, Sideware is aiming to proliferate Hot Notions as a gateway to the investment community, as well as, create a database large enough to then add additional communities with value.
8] Are we listed in Sunset Direct list of products? Shareholders have been to the site and say SYD products are not listed. Can you update us on progress with Sunset Direct?
URL: sunsetdirect.com
Sideware is pleased to announce that initiatives undertaken by Sunset Direct have shown early signs of success. Currently, the Sunset Direct team has been contacting 50 prospects per day, which has resulted in the generation of 80 qualified leads. Each of these companies fits the profile of 25-50 users as outlined above. The company has been told to expect sales from 15% of the qualified leads and to expect the first sales to take place within the next 4-6 weeks.
9] Investor's On-line. Do we have any plans of going on this show or is it too early?
Under current circumstances it has been a challenge balancing, on the one hand, the need to communicate with our own shareholders and, on the other hand, the duties and obligations of a public company to the exchange and to it's affiliates. When the company is more freely able to communicate with it's own shareholders, it will then also utilize the many vehicles available to communicate with the investment community as a whole.
10] Can we comment on whether we are dealing with Lotus "Smart Suite" Division?
At this time, Sideware Systems is unable to make any comments as they relate to their dealings with IBM/Lotus.
Regards,
Agora Internet Relations Corp.
DISCLOSURE STATEMENT
AGORA INTERNET RELATIONS CORP. receives a monthly monetary fee from Sideware Systems Inc. for the purposes of communicating with Internet shareholders - both current and prospective - to increase awareness of and interest in Sideware Systems Inc. AGORA INTERNET RELATIONS CORP activities are aimed purely at keeping their clients' shareholders and prospective shareholders informed about their company. These activities consist of providing investors with previously disclosed factual information concerning the company, comments from company principals, copies of material that has been filed with regulatory authorities, comments prepared by registered brokers or investment dealers and material published in newspapers, magazines or journals.
AGORA INTERNET RELATIONS CORP does not participate in the maintenance of an orderly market in their client's securities, nor is required, or receives an incentive for, the maintenance or achievement of a price or trading volume for their client's securities at a certain level, for a specified period of time or by a certain date. AGORA INTERNET RELATIONS CORP. may, at any time, own shares in the company.
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