To: $Mogul who wrote (14 ) 5/18/1999 2:33:00 PM From: Joe Copia Read Replies (1) | Respond to of 684
Exhibit A INTERNET STORE: SELECT-SHOPPER.COM: Select-Shopper is an online retailer that offers that offers over 40,000 products from more than 400 manufacturers through its online stores on the internet. The Company seeks to provide an online shopping experience that incorporates traditional department store and mail-order features into an interactive, easy-to-use and compelling online environment. The Company believes that online technology, and the internet in particular, is an advantageous medium for the selling of merchandise relative to traditional retail stores and mail-order catalogs. Leveraging online technology and the global reach of the internet, the online retailing model provides Select-Shopper with virtually unlimited online shelf space and the ability to reach a geographically unlimited consumer base, without the costs associated with constructing traditional retail stores and distributing mail-order catalogs. The Company's strategy is to offer quality merchandise, provide effective customer service, and capitalize on the inherent economies of the online retailing model.The Company, which launched its Internet store in March 1999, is still in early stages of development. The Company believes that its ability to achieve profitability will depend primarily on its ability to increase revenues generated by transactions relating to sales of merchandise through its online stores. Select-Shopper management team has experience in a broad range of retailing environments, including department stores, specialty retailing stores, television merchandising and direct mail. Select-Shopper's online stores are accessed at Select-Shopper.com on the Internet. Select-Shopper's online stores provide high quality color pictures and detailed information relating to products that are conveniently organized into departments by brand and category such as housewares, consumer electronics, gifts and gourmet food, similar to those of traditional department stores. Shoppers can search for, browse and select products throughout the store and place selected merchandise in a virtual shopping bag that facilitates the process of collecting items, subtotaling purchases and reaching the purchase decision. Furthermore, Select-Shopper has established strategic relationships with manufacturers which allow most products to be rapidly shipped directly from the manufacturer. Manufacturer direct shipping enables the Company to avoid inventory related risks, limit overhead costs and provide prompt delivery. As part of its marketing strategy, the Company has formed a strategic alliance with AOL pursuant to a marketing agreement. This agreement provides for Select-Shopper to be featured on the AOL Shopping Channel as one of the three anchor tenants within the Department store area and to be prominently featured in the Gift area. In addition, the Company plans to establish strategic alliances with other online companies and begin a targeted advertising campaign to attract additional customers to the online stores. The Company believes both online and traditional media exposure are critical to maximizing brand recognition and driving traffic to its online stores.