SYD CORPORATE UPDATE
Good afternoon to you all. Pursuant to the Sideware Systems Press Release of June 1, please find enclosed SYD's corporate update. As usual, we have divided the update into sub-headings.
1] WHAT IS SIDEWARE'S STATUS AS AN IBM BUSINESS PARTNER?
As an IBM software business partner, SYD belongs to a special program created by IBM to link their e-commerce unit with a select number of business partners. Companies receive partnership status when they are able to provide value-added services that will support IBM's large e-commerce initiative and, therefore, extend IBM
e-commerce capabilities. In order to comprehend the level of IBM's commitment to
e-commerce, one needs to look no further than the huge marketing dollars being spent by IBM to market themselves as the premiere e-commerce specialist for business. For your convenience, IBM e-business links have been provided at SYD's on-line IR site at
www.techwestmgmt.com.
The IBM BESTeam program was developed to support Systems Integrators, Network Integrators, Value-Added Resellers, Consultants and Independent Software Vendor (ISV) in deploying strategic IBM software, providing certification-training programs, and technical and marketing support.
The "mutual benefit", as stated by Veronica Aimone, IBM Business Partner Manager, is that Sideware Systems, as an ISV, has unique products that add value to IBM's suite of
e-business software. As a result, Sideware will have the ability to build and market products under the IBM e-commerce umbrella. Quite simply, this would never be possible if IBM did not have complete confidence in Sideware's products. These instant credentials and credibility now allows for joint marketing of products to IBM customers interested in e-commerce. In supporting Sideware Systems, IBM will provide, among other things:
- Co-operative marketing programs;
- Certification training programs for SYD personnel; and
- Technical support
This has substantial impact on Sideware Systems in the short and long term. The latter will be discussed below. In the short term, for example, Sideware Systems will be one of a select few invitation only partners to be present at an IBM seminar on July 7. The seminar attendees will only be IBM customers.
2] SIDEWARE SYSTEM GOALS AS A RESULT OF THIS AGREEMENT
Short Term - To Become a Successful IBM Solutions Partner (Phase 1)
Sideware Systems has created a new division focused on marketing e-business solutions built with IBM middleware and one or more of Sideware products. The company is investing in developing expertise in order to sell, support, install, implement and customize complete e-business office solutions, including web services, IBM middleware, Microsoft applications, other third party applications and hardware.
As well, in an effort to maximize company resources, Sideware will concentrate on it's Sideware storefront and Techwest IR site in order to create referenceable sites built with IBM middleware and integrated with Sideware products.
The combined short-term investment advantage will be two-fold:
i) The creation of a revenue generating Software Solutions Division; and
ii) The creation of revenue generating web sites.
Long Term - To Achieve a Global Distribution Agreement with IBM (Phase 2)
Sideware Systems is now both a solutions provider and an independent software vendor (ISV). Each of these divisions supports the other. Clearly, Sideware's IBM partner status is the result of Sideware's unique products. Conversely, Sideware's success as an IBM solutions partner supports it's ISV business. Management believes that building a referenceable customer base through it's solution division, will put SYD in a position to distribute it's products on a global basis through the IBM sales network. This is a long-term objective and requires significant success by the solutions division in order to be realized.
3] REVENUES AND PROFITS
At this time, Sideware Systems is unable to discuss revenues and profits created in Phase 1 of their IBM business partnership.
CONCLUSION
E-Commerce is projected to grow from $US 16 Billion in 1998 to $US 200 Billion by 2002 and is now the core of IBM marketing initiatives. IBM has committed tremendous resources to e-commerce with the anticipation that millions of corporations will soon migrate to e-business. As a result of it's IBM relationship, Sideware Systems is positioned to reap significant revenues from it's unique mix of e-business solutions, services and products.
Dr. Bean is the flagship product at Sideware Systems. It is a virtual customer service product that allows suppliers and customers the ability to communicate and navigate interactively via real-time messages. IBM has identified virtual customer service as one of the six essential and necessary components to a successful e-commerce solution. As stated on past occasions, the company will be showcasing an advanced Alpha version of Dr. Bean at Expo '98 at New York, in mid-June. Then, as stated in the press release, "beginning in the fall of '98, the company will introduce Dr. Bean integrated with Domino, DB2 and Net.Commerce from IBM."
With respect to Hot Notions, the company now urges it's shareholders and prospective shareholders to go to it's virtual Investor Relations site at www.techwestmgmt.com and download the Hot Notions client. Despite it's current utility, this is just the beginning of what can now be developed. Specifically, using IBM products and support, this virtual IR site will be upgraded over the next few months to provide far greater utility and then sold globally to small and large public companies as an e-commerce solution.
In summary, Sideware Systems has successfully reinvented itself and is no longer a one-product post-it note company. The company faced with a changing landscape had the capacity and foresight to shift it's emphasis from purely ISV sales to a multi-division corporation generating revenues from product sales, solution sales and service fees.
This is comparable to the situation of Open Text Corporation, now a leading provider of intranet application software, tools and services. Specifically, Open Text's solutions are used by Global 2000 companies to find and manage information and documents and drive critical business processes. Though the company is now achieving success in this field, Open Text originally began as a search engine provider and boasted clients such as Yahoo! However, when it became apparent this was not going to provide long term success, Open Text quickly had to reinvent itself to survive. What was once a tailspin share price is now history.
Today, Sideware Systems is an IBM e-business Software Partner well situated to capitalize on the ballooning global e-commerce industry. This has given management the confidence to invest it's resources and focus it's energies on teaming with IBM and a means to provide shareholders with a return on their investment. Company president, Owen Jones, wishes to thank all the shareholders for their patience. He states, "We have done a lot of things right since taking control of Sideware but one thing has always eluded us, profitability. As an IBM BESTeam member, that is going to change. Companies need to have an e-business presence and IBM is the dominate provider with the best set of tools and the best partners delivering those tools to their customers."
Agora Internet Relations Corp. looks forward to any questions or comments you may have.
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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