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Strategies & Market Trends : Stock Watcher's Thread / Pix of the Week (POW) -- Ignore unavailable to you. Want to Upgrade?

To: Stock Watcher who wrote (4714)	3/22/1999 8:20:00 PM
From: Sol W.	Read Replies (2) \| Respond to of 52051

VGCP Spoke with Bill Fossen at length. As someone who has experience in the computer science/interent/medical/insurance and legal areas, I was quite impressed. He was kind enough to forward a copy of an e-mail he sent to an potential investor who basically asked: "So, how are you going to make money" Here is what he responded: "Good questions. We are redoing our Web Site now so as to reflect our recent conclusions in software systems, marketing licenses and various contracts relating to the finalization of our business enterprises. You can find a press release on the following in most cases at our home Web Site - www.vcgi.com = Announcements First, VCGI (the parent Company - as compared to its trading symbol VGCP) is working to complete a $250M private preferred stock placement. These funds are for the purchase of four to six life insurance companies that will equal or exceed $1.5 billion in assets. We plan to accomplish this in 1999. Regardless of purchasing insurance companies of our own, we are now ready to offer our electronic services to other financial corporations and large marketing entities. VCGI is a Business to Business enterprise. Viking's services are unique in that the following listed services (individual user financial accounts)can be made to appear on one screen on an interactive bases, allowing the user to transact financially between his own accounts, see most of their entire financial netwoth day to day and link with other financial institutions for services and consumer products. Of course the users bank, employee benefit plan, securities firm and insurance company must reside on VCFN. These services are as follows: The following Services operate on Viking Capital Financial Network - A private secure, fast, worldwide fiber optic network. Use creates income. IP Banker - This middleware allows exisiting banks, S&Ls, Credit Unions and Investment Bankers to offer their depositors remote banking and remote bill pay. We also have the ability to provide a full service banking package from A to Z for those not yet in the commerical banking business such as for Investment Banking firms. This Service Product is called Virual Banking. We propose that the Bank hosting his own systems from us, has such system reside on VCFN. We charge apporxiamtely $100,000 for the remote banking package, remote billpay package, APIs, training and thier own Web Site. Should the bank choose to be on VCFN, they will automatically have access to our other services when they so choose. We charge an additional fee for each depositor, usually one dollar per month if they reside on our Network. The additional fee for our network per depositor includes their ISDN, TOne or TThree line and all it's associated charges, installations costs and continuing maintanence. We require a minimum of three years for this contract service if hosted by Viking Systems. IP Trader - This middleware allows existing Broker/Dealers to offer internet trading much like E-Trade. We offer this as a link to such firms for the depositors, policyholders etc. of our Corporate Customers. We receive a transaction fee on each order. We require a contract minimum of three years for this service. Benefits IP - This is a data processing system for Employee Benefit Plans of all kinds. We are able to offer this now. Once we own our own insurance company (TPA laws) we will also offer these customers the ability to oursource part or all of their employee benefit plan administration to Viking Administrators, Inc. (VAI). Thirdly, we will ulitmately offer this customer the ability to purchase specially designed insurance products manufactured at our own life company or those of other carriers via Viking Insurance Services, Inc.(VISI). We bid on these accounts and they vary in amounts depending on the size and locations of all of their operations as well as the extent of their needs and desires for the latest technology. We require a minium of a three year contract for this data processing link. Universal IP - This is our complete, A to Z life company system. We are finalizing all systems in preparation for our first insurance company acquisition and adding APIs for utlization with our Benefit IP systems. Therein, with this product we are able to offer A to Z life insurance company administration as well as just data processing. We bid on each account same as for Benefits IP. We require contracts for a minimum of seven to ten years depending upon the extent of the customers demands. Pricing is on a bid bases though we do not seem to have any competitors as of this writing. Viking Systems Banker's Service Bureau - This service offers those banks too small to host their own systems, to outsource their remote banking services to our Banker's Service Bureau. We handle all systems operations, security, technology updates and compliance updates for this customer at one central location which is at our Server Farm at 80 Pine NY, NY with two back-up identical systems. iXnet, our fiber optic backbone, simply installs a line of the customers choice (speed)which then runs to our servers and systems. We require a minimum of seven to ten years on this contract depending on services required. Contracts are on a bid bases. Viking Systems Insurance Service Bureau - This service is identical in its set up as above for banks. This allows smaller insurance companies or those wishing to provide insurance products of their own but not wishing to perform the back room administration functions of their own insurance company. This bureau gives the new player to insurance (such as banks and investment bankers)the ability to instantly be in the business without having to set up the entire back room operations of an insurance company. Today we only offer life company insurance operations. We are looking into Property and Casualty (P&C) as we have had some request for that service also (We have a P&C software operations in house now). Corporate customers, such as banks, plan to offer these products and services for their depositors via Viking Capital Life Insurance Company (VCLIC)once Viking has purchased its own insurance company. Some want their own life company once the 1933 Glass-Steagall law has been revised. It is expected to pass this coming fall. We require a minimum of seven to ten year contract. Pricing is on a bid bases, though we do not seem to have any competition yet. We of course charge a fee for each service which is determined by the number of depositors, participants or policyholders. We also receive a transaction fee from those vendors that we link our Corporate Customers to. We have had a demand for certain other unrelated products (as compared to electronic services) in technology and consumer products. Therein, we will provide two products in the technology area beginning in April of this year which are the WebNote and MAXpc (See press releases). You will be able to purchase these two products via our new Technology E-Commerce Web Site. These two products where chosen because of our orginal research into their use for enhancing our Corporate Customer Services listed above. We needed a cheap but reliable Web connection for our users that have many locations or a large sales force that they wish to link, such as an insurance company's sales force. We also needed a video connection that would allow our employee benefit plan customers the ability to link their worldwide employees via video to their human resource service center, saving them personnel at all of their locations. We choose these two to fulfill that ability. The demand was so great just by word of mouth that we decided we could not resist the profits and therein are offering these two products to the general public via the internet. Also, WebNote International, LLC the parent of WebNote, provides Viking with other technology achievements for a second level of added security for everyone using one of our systems. We also have been retained to provide various factories to sell their products on the Web using our network. Of course all vendors would like to be able to sell their wares to our many deposits, plan participants, policholders and sales forces. We are offering the technology for these insitutions on a very selective basis, only if they reside on our Network and we have complete control of the E-Commerce Systems. You will hear more about this area in the next few months. These E-Commerce operations are to us merrily an extension of the systems that we already have in house. Viking receives a % of each sales transaction and in some cases even the financing if such purchaser uses credit. These operations are an extension of our banking relations already in place and we will continue to provide additional services as our corporate customer demands. All E-Commerce Web Sites will of course be connected to exisiting offerings such as you see on point-cast etc. I hope that I was able to create an understanding of our rather complicated business enterprises. We are buying insurance companies because that is at the core of our operations as well as having those purchased insurance companies serve as a solid financial base under pinning all of our Electronic Services and Products operations. Each subsidiary first serves the parent company operations (about 20% of their resources as all operations will operate as in cookie cutter fashion)and then offers their services and products to unrelated corporate customers. The end results is that what is traditionally cost centers become profit centers and the in house operations become very cost effective. I hope that I was able to create a better understanding of our rather complicated business enterprises. Thank you for your interest in our 21st Century operations. Regards, William J. Fossen Chairman"