To: Mike Sawyer who wrote (253 ) 1/20/1999 10:30:00 PM From: t.gawarecki Respond to of 1877
From the Form S-8 filed last week......what TRKR has to offer: Applications Inventory Control. The Company believes that The Tracker(TM) System provides an efficient method for tracking inventory and accessing related information. On July 1, 1998, the Company signed a two-year agreement with Warrantech Additive, Inc. ("Warrantech"), a wholly-owned subsidiary of Warrantech Automotive, Inc., to provide personal property identification labels and global recovery services to automobile dealers participating in Warrantech's vehicle service contract business. Through the labels, the Company will provide immediate access to vehicle service information contained in the Company's relational database. Fixed Asset Management. The Company also believes that The Tracker(TM) System can provide an efficient method for tracking and managing fixed assets. Currently, the Company is negotiating with Sony Corporation ("Sony") to provide fixed asset management services by linking labels affixed to certain of Sony's physical assets to information contained in the Company's relational database and recovery network to the Company's worldwide 24 hour recovery network. Although the Company would promote utilization of The Tracker(TM) System for fixed asset management by reference to the agreement it hopes to complete with Sony, the Company can provide no assurances that it will successfully conclude such an agreement. Point of Manufacture. Manufacturers of products, such as computer chips, bicycles, power tools, electronic equipment, cameras and auto parts, can use The Tracker(TM) System by laser etching or otherwise applying a serial number containing specially coded insignia directly onto or into products during the manufacturing process. The Company believes that the coded insignia adds value to a product by increasing the likelihood of recovery in the event of loss or theft and provides an additional tool for combating retail and warranty fraud. The Company anticipates that if such contracts are procured, the manufacturers will absorb the cost of laser etching either directly or indirectly (i.e. in the unit price charged to the manufacturers by the Company). Currently, however, the Company does not have a contract with any manufacturer to laser etch or otherwise apply coded insignia at the point of manufacture. Niches The Company's long-term strategy is to introduce applications of The Tracker(TM) System in select market niches and establish the system as a dominant brand-name therein. Currently, management is identifying market niches it believes will prove most responsive to the Company's initiatives. Among the niches the Company is considering are an international pet registry lost and found, a key return service and a bike registration program. In addition, the Company intends to market The Tracker(TM) System as an inventory control and fixed asset management program to Fortune 1000 companies.