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Interspace Enterprises Inc., which was founded in 1998, created PlanetLotto.com, to erase the geographic boundaries that currently fragment the world lottery market, generated $130 Billion in sales in 2001. PlanetLotto.com became operational in December of 2001 and currently has registered players from over 100 countries. By visiting the (http://www.planetlotto.com) Web site and purchasing a lottery ticket, people from around the globe have the opportunity to participate in an online lottery with the chance to win millions of dollars. Interspace Overview Interspace Enterprises; Inc. is a Colorado Corporation publicly traded on the Nasdaq OTCBB - symbol (ITET). The company's core business is the operation and marketing of PlanetLotto.com, a global Internet lottery. Through strategic alliances with global industry leaders, governments and charitable organizations, PlanetLotto will distribute tickets to the Internet's lasrgest jackpot lotteries. Interspace invests substantial financial and other resources in the implementation of its comprehensive marketing plan to become the leading supplier and distributor of global lottery products. planetlotto.com intends to expand the boundaries and redefine the depth and scope of online gaming making it the dominant Global Internet Lottery. Goals Lotteries are the most popular and profitable form of gaming in the world and are played by people from all walks of life on every continent. PlanetLotto's products have broad international appeal, a low price point, and are highly accessible through the Internet. PlanetLotto is implementing an aggressive marketing strategy which includes direct opt-in email campaigns, an innovative proprietary affiliate program, co-branding and marketing partnerships, reseller networks, established brink and mortar distribution channels, traditional Internet marketing tactics, radio, print, television and ultimately a branded game show. Interspace plans to become the largest global lottery, the first publicy traded lottery and among the highest trafficked websites on the Internet. Worldwide Statistics * In 2000 worldwide lottery ticket sales were $130 billion (USD). * By 2004 the online lottery market will amount to more than $4 billion (USD). Source: Datamonitor * By 2005 there will be over one billion global Web users. Source: IDC * US and European revenues from online gambling will soar to $20 billion (USD) by 2005. Source: Datamonitor Planetlotto Lottery Infrastructure Lottery License Partner The company's lottery partner is the International Lottery in Liechtenstein Foundation (ILLF), is licensed by the Government of Liechtenstein tu run the company's Lottery. The license is highly regulated, with auditors Ernst & Young appointed by the government to oversee all aspects of the operation. As a European License it has the added advantage in that under the Treaty of Rome free trade of goods abd services, the sale of lottery tickets is permitted between all European states. Payment Processing Partnership Through our partnership with (ILLF), the Company has an established relationship with the largest acquiring banks in Germany, and backup facilities in Switzerland and the UK, to provide the company with a high capacity, robust acquiring ability. Credit card transactions will generally authorize in under 10 seconds. Bank transfers into the corporate accounts in Liechtenstein will be quick and cost effective due to the sophisticated nature of the Liechtenstein/Swiss banking system- so players have the ability to send cash direct through traditional banking methods and not use their credit cards. Deposits are held in trust accounts at the Liechtensteinische Landesbank, owned by the government of Liechtenstein. Revenue and Demographics Statistics In order for the Company to be able to measure how successful our marketing and promotion program will be, the Company will utilize an advanced statistics system, which will enable the Company to: Monitor sales and site traffic in real time Track data per advertisement banner including hits, signups, conversion rates Monitor average spending and total revenue Extrapolate detailed sales and costumer information about our most active players Gather Geographical information by sales and sign ups Monitor detailed information about click-throughs Gather in-depth information about player paths through the website and most accessed pages Server Room Capacities The Company's server room will be a purpose-built Grade 1 computing environment. It will have dual, high-capacity, under-floor air conditioners keeping the temperature stable, and Inergen (Argonaut) fire protection systems. Power supply will be ensured with dual uninterruptible power supplies linked to a 30Kw diesel generator. Disaster Recovery A fully functional off-site disaster recovery facility is in place 10 km from the main server center. This facility will have up-to-date copies of all data and is linked via wireless network to the primary site. As an autonomous system with 3 independent backbones (UUNET, GlobalOne and IP Plus), The Company lottery partner will manage its own BGP (Border Gateway Protocol) sessions with the backbones giving it the ability to react to localized problems on the Internet by rerouting traffic where necessary. Each line runs at E1 (2Mb) speed, and further capacity will be available at short notice. Graphics are served through a network of 8000 servers around the world provided by Akamai TM. This ensures that customers always receive their graphics and other "heavy" content from the closest server to them. This includes firewalls, routers, utility and database servers. Web servers are accessed through a pair of Big IP2 load balancing systems that will enable the Company to add new servers very quickly, and load balance across multiple servers. Data Storage Compaq Storageworks RA8000 FC Fiber Channel RAID will be used for critical data storage. This system will have redundancy throughout and will extremely fast due to its 64Mb read-write cache unit and high-speed fiber channel connectivity. The database will run on an 8 processor Compaq Systempro 8500 server with 4Gb main memory. Internet Security There will be a high level of physical security on site. Access will be controlled to all areas and alarms will be monitored 24/7/365 by an on-site security control room. In addition, firewalls and systems will be configured to provide the highest level of security, and will be tested in both internal and external penetration tests. Three hardware engineers will aslo be available 24/7/365 to solve problems if they occur. A sophisticated alerting system will be in place to notify support staff when there are problems. Lottery Draw Controls The Planetlotto weekly draws will be attended by two scrutineers from Ernst & Young AG, Vaduz. They will supervise the pre-draw procedures and take possession of a CD-ROM containing data on entries for the draw. This record is the definitive record used to verify the winners, and is validated against the database before the draw can take place. Draws are performed using one of two mechanical ball machines manufactured by Editec. Prior to the draw a ball set is selected at random and test draws are carried out to ensure that the machine and ball sets have not been tampered with. After the draw an independent program is run by the auditors and the results compared to the database to verify that the data is correct and there are no errors. Jackpot Insurance Planetlotto's weekly draw will features one headline jackpot, which will be insured by a consortium of Lloyds of London insurance underwriters. Live Interenet Broadcast The Planetlotto draw will be filmed and broadcast live on the Internet using Real Video. Players can aslo watch archive copies of the draws on the Planetlotto website. Plans are in place to add an uplink to the European satellite network. Feeds can be provided on demand if you have broadcasting capacity. Draws will be filmed using multiple broadcast-quality cameras. First Tier Support The company will use the services of Aqua Online 24/7/365 first tier support. Operators are multi-lingual and trained to respond to e-mails and phone calls making use of an extensive knowledgebase. E-mails are assigned a tracking number via an auto-reply function and are answered personally within 1 hour. Second Tier Support In circumstances where support queries e-mails cannot be answered by Aqua Online, the player will be informed that the query has been on to a manager and the query is forwarded to our team in Liechtenstein. Liechtenstein support is available 08.00 to 19.30 CET weekdays and reduced hours over the weekend and public holidays. Support staff will have access to an extensive CRM database, which will enable them to answer customer queries efficiently and effectively. Email Program The company will use a state-of-the-art e-mail system thet will integrate with its database and enable it to send e-mails to selections of played based on a wide variety of criteria. E-mails will be formatted in such a way as to display coeectly in all mail clients and are multilingual and able to incorporate customer information such as name and account number. PLanetlotto newsletters will also be sent out weekly to all players who have requested weekly information regarding the lottery. PlanetLotto Marketing Rollout The PlanetLotto Marketing plan will incorporate a three-tiered rollout, with separate marketing campaigns specific to each market. The first phase will cover the Latin American Region - Mexico, Central and South America. The second phase will focus on Asia, Middle East, Australia and New Zealand and the third phase will include Europe and Africa. Each phase will incorporate marketing methods specific to that particular region, based on research that will include Internet population size, projected increases in the Internet Population and lottery sales. The allocation of marketing dollars in each region will be based on research regarding radio listener population, television viewership, Internet chat room usage, cyber café and Billboard cmpaigns. Competition PlanetLotto feels that it can position itself to be synonymous with online lottery much as Amazon has become synonymous with online bookstores. Toward that end, PLanetLotto has developed a strategic plan that is much broader and exhibits a much deeper understanding of the needs of the customer in the online gaming space than any of its competitors. freelotto.com, iwon.com and luckysurf.com are all operating free lotteries based on revenues from advertising only. The free lottery model illustrates the ability of lotteries to generate revenues by the possibility of large cash prizes. This is really a marketing tool to drive eyeballs into their website. They do not appear to perceive themselves as a lottery site they simply are using the lottery attraction. Sources of Revenue 1. Lottery ticket sales 2. Advertising revenue through the lottery website 3. Corporate sponsorships 4. Licensing 5. Corporate Partnering 6. Merchandise sales Charities 10% of the PlanetLotto jackpots will be donated to multinational charities. Globally recognized charities such as the Make a wish Foundation, International Federation of Red Cross and Red Crescent Societies will be direct beneficiaries. Sales and Profit Projections - (Millions) By emphasizing with 2/3 of each expense dollar driving sales, the Company plans to increase gross revenues to $2 billion by the end of 2005, and to maintain a profit margin of at least 15%. Revenues for the Company are derived by estimating its potential as the world's largest and most accessible lottery. Summary The advent of the Internet has created a unique forum whereby innovative applications of business models can create global appeal. The InterSpace Enterprises has analyzed and refined the traditional lottery system and created an Internet model that overcomes the limitations of its offline competitors. Through an international marketing campaign, InterSpace Enterprises believes it can bring the vision of a truly global Internet lottery to reality. | ||||||||||||||
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