GRPV update from the Prez:
COMPANY UPDATE FROM GRPV PRESIDENT
San Francisco, CA—May 3, 1999 : Effective May 15th 1999, Group V Corporation will become TotalAxcess.com. On April 29, 1999, a majority of the Company stockholders held (via written consent in lieu of) a special meeting that voted to change the Company name to TotalAxcess.com Inc. The new stock symbol will be TXCI. Also on the same date the Company filed its first Quarter statement ending September 30, 1998.
On June 30 1999, the Company will consolidate the following subsidiaries, Academy Network Services, Lottery Publications Corporation and National Pools Corporation into TotalAxcess.com Inc. The consolidation will spearhead the Company's focus on its business plan to develop and market all aspects of telecommunication services and products to specific niche markets.
In preparation for the consolidation, the Company began moving its telecommunication operation to California in early April, beginning with the relocation of the Company switches and telephone debit platform equipment. The Company anticipates that the relocation and the re-commission of all its equipment will be completed in this Quarter. During this transition, the Company is leasing equipment and circuits from other carriers to maintain continuity in traffic for our existing customers.
The primary benefit to the Company from this relocation is significant cost reduction, availability of least cost routing, and a variety of carriers to select from for international long distance rates. The most significant benefit for our expanding pre-paid customer base is competitive pricing.
The Company's pre-paid customer base is currently a growing source of revenue for the Company. We look to expanding our distribution base nationwide by offering the best rates coupled with reliable service. The Company will position itself to pass through the resultant savings to our distributors who will in turn remain competitive, and thus become loyal to the Company's products and services. As our customers and distributors enjoy continued success we seek to secure a growth position in the rapidly expanding pre-paid telephone card market. Additionally, what the Company will enjoy above and beyond the profitability of our customers, are very competitive rates for the variety of proprietary pre-paid phone card products that are being distributed through our in-house representatives.
In Northern California, the Company has started hiring distributors for these pre-paid phone cards, and HitLoTTo® Club Cards, and plans to begin distribution in Southern California in approximately 60 days. Our goal is to hire 50 Sales Representatives by year-end; each expecting to visit between 20 to 30 retail stores per day. Each representative's personal goal requires they generate approximately $20,000 to $30,000 per month in retail sales. This distribution program is anticipated to generate significant revenue and profit for the Company.
Staying competitive in the dynamic telecommunications market means staying on top of trends and technology. Under the direction of corporate headquarters in San Francisco, a new telecommunications management group has been established to support the growing sales & marketing team. The primary objective of the new sales and marketing team is to develop a new customer base for pre-paid products to complement our existing customers. This will enable the Company to better provide a greater range of wholesale and retail telecommunications products and services. The current product line includes: one plus long distance, customer calling cards, discount long distance to businesses, and the Worthy Causes long distance fund raising program.
As a facilities based long distance carrier, our growth in the pre-paid debit card market is bolstered by offering rates at a substantial discount. In this vein, we have taken steps to secure dedicated leased lines around the world. By year-end, TXCI plans to have dedicated circuits worldwide through long term agreements with leading carriers.
Our short-term goal is to establish in the next 60 days, a new division within TotalAxcess.com. Inc, to further develop a wholesale business segment providing discounted minutes to large users of phone/data traffic.
Generally speaking, the consolidation provides Group V with a more secure position within the telecommunications industry. By entering into other profitable business segments such as, pre-paid cellular sales and distribution and pre-paid one plus long distance we will seek to complement our existing one plus customer base. Like pre-paid phone cards sales of the mid 1990's pre-paid cellular is one of the fastest growing segments of the wireless market today.
The following 6 points are the key to the Company's pre-paid phone card program mission statement.
1. Control the carriers of the Company's traffic either through leased lines or contract carriers.
2. Contract with reliable suppliers.
3. Switch all our own traffic on Company switches and circuits to ensure maximum reliability and the lowest costs possible.
4. Maintain a Company sponsored distribution network, eliminating the dependency on independent distributors.
5. Generate loyal and reliable customers.
6. Price our products competitively and insure a reasonable profit for the distributors as well as the Company.
The Company is well on its way to completing each of the 6 steps outlined above.
Looking to the Company's future in Internet commerce, in just a few months the Virtual HitLoTTo Club Card will be available. The Virtual HitLoTTo Club Card will enable lottery players worldwide to join a U.S. lottery HitLoTTo clubs via the web. The Company will concentrate on furthering its position within the lottery market with increased marketing activities for the HitLoTTo Club Card through cross promotional activities with Lottery Publications Corporation, publisher of the Lottery Insider Magazine, and enhanced functionality of the web site www.lottoworldmagazine.com. The Company's web based merchandising plans include the exposure of the HitLoTTo Club Card and Lottery Insider Magazine through CPNM/Internet Marketing Consortium's affiliation of leading web retailers currently receiving more than 170 million monthly hits. HitLoTTo will be appearing on the first of 10 new portal sites shortly. The Company will announces the 10 sites in a press release in the next few weeks.
On April 26, the Company unveiled plans to support Internet based on-line lottery ticket sales through www.lottoticket.com. In addition to this site the Company has acquired PowerBallTicket.com, PowerBallJackpot.com, BigGameTicket.com, and BigGameJackpot.com strategically positioning itself for the future of on line lottery ticket sales. As background, in 1992 when the HitLoTTo concept was first conceived, a considerable amount of discussion revolved around the possibility of selling lottery tickets via the telephone, however lottery rules did not allow the sale by telephone. Again in October of '96, when the HitLoTTo Club Card at www.hitlotto.com went on line, consideration was given to the possibility of selling individual lottery tickets via the web, and similar restriction applied to this form of sale. HitLoTTo is the only program playing multiple state lotteries on line today, and HitLoTTo lottery club memberships are FREE. See details on www.HitLoTTo.com
Presently no state lotteries are offering on-line lottery ticket sales. It is our belief that in the future state lotteries will need to provide this service to the public in order to increase interest and participation in state games. The Company anticipates that a number of state lottery suppliers such as GTECH, Scientific Games, and eLottery will be interested in pursuing this opportunity. Group V plans to fully explore the potential of this development and we will continue to evaluate the profitability and scope within this market.
Over the next few weeks we will be updating all of our web sites. Please visit them and give us your suggestions.
In addition to Academy Network Services and National Pools Corporation consolidation to TotalAxcess.com, Inc., we will also incorporate Lottery Publications Corporation, publishers of the Lottery Insider Magazine. After some delay in reestablishing the magazine, LottoWorld magazine will once again be published monthly under its new name, Lottery Insider. We are convinced that this new magazine dedicated to lottery players will play a significant role in TotalAxcess.com's future. The Magazine will support the HitLoTTo® Club Card, the HitLoTTo Virtual Card, and all of the telecommunication products currently being marketed by TXCI (Group V).
As the Company prepares itself to take full advantage of the future, we also look to pursue the greatest revenue opportunities in a variety of telecommunication market segments and developing Internet based market opportunities. In just a few days we will change our name and move on to what has already become a very different Company.
The Company is extremely optimistic about its future. We have a solid business plan, proven management and adequate working capital to execute the business plan.
Signed,
Joseph Monterosso
President & Chairman
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