1. Case Studies Netstar Solution ImagicTV Inc. Delano Technology Corp. FloNetwork Inc.

2. Netstar Solutions Netstar Solutions incorporated in 1996 Netstar is an information technology (IT) services company. They offer a full range of services including architectural consultancy, software design and development, technical writing, application maintenance and operational support. With their experience in legacy applications and their skills in leading-edge technology, they help their customers to bridge the data processing gap and implement new applications with internet or network computing in their existing computer environment. 95% of revenues come from services annual revenues $ 9 million

3. Netstar Solutions Total Revenues: 1996: $ 500,000 1997: $ 2.5 million 1998: $ 5 million 1999: $ 9 million Employees: 15 in 1996 35 in 1997 50 in 1998 75 in 1999

4. ImagicTV Inc. ImagicTV Inc. Incorporated in December 1997, began operations in January 1998 They develop and license infrastructure software products and provide related services that enable telephone companies and other service providers to deliver multi-channel digital television and interactive media services to their subscribers’ televisions and personal computers over a broadband or high- speed communications network. They derive revenues from 3 primary sources charge license fees to customers who license their software products customers pay royalty fees on a per subscriber basis generate services fees from professional services and maintenance and technical support services

5. ImagicTV Inc. 160 employees 4,750,000 shares offered Total revenue: February 28, 1999 had $ 479,000 February 29, 2000 had $ 2,098,000 August 31, 2000 had $ 3,569,000 Gross Profit lost $ 125,000 at February 28, 1999 earned $ 1,110,000 at February 29, 2000 earned $ 1,866,000 at August 31, 2000

6. ImagicTV Inc. As of August 31, 2000 Actual total assets is $ 6,032,000 Actual total shareholders’ equity is $ 754,000 They have a history of significant losses and have never generated positive operating income $ 110,000 from December 24, 1997 to February 28, 1998 $ 3.1 million in fiscal 1999 $ 5.6 million in fiscal 2000 $ 5.0 million for the six months ended August 31, 2000 They had an accumulated deficit of approximately $ 13.8 million

7. Delano Tech. Corp. Delano Technology Corp. incorporated on May 7, 1998 They provide communications software that enables companies to use e-mail and the internet to automate business processes and to personalize and manage interactions with their existing and prospective customers, partners, suppliers and employees. Companies can use their software to rapidly develop and deploy applications for business interactions over the Internet, or e-business communications.

8. Delano Tech. Corp. 159 employees as on February 8, 2000 5,000,000 shared offered Total revenue at December 31, 1999, $ 5,357,000 Gross Profit at December 31, 1999, $ 4,636,000 Actual total assets at December 31, 1999 is $ 16,590,000 They have incurred substantial operating losses in every quarter, resulting in an accumulated deficit of $ 6.2 million at December 31, 1999

9. FloNetwork Inc. FloNetwork Inc. incorporated in Toronto, Ontario in August 1993 under the name Media Synergy Inc. and in November 1999 changed their name to FloNetwork Inc. They provide Internet direct marketing and communications services. Also provide a full range of e-marketing services on an outsourced basis to assist their clients in the development, execution and assessment of their e-mail campaigns. They have provided e-mail messaging services to over 100 clients since May 1998. Their percentage of revenue derived from e-mail messaging has increased from 42.1% of their total revenue on December 31, 1998, to 99.8% on December 31, 1999

10. FloNetwork Inc. 91 employees as on May 31, 2000 3,750,000 shares offered Total revenue: on July 31, 1998, $ 748,000 on July 31, 1999, $ 777,000 on December 31, 1999, $ 1,194,000 As of December 31, 1999 Actual total assets is $ 17,005,000 Actual total shareholders’ equity is $ 13,507,000

11. FloNetwork Inc. They have a history of significant losses and have never generated positive operating income $ 811,000 in fiscal 1998 $ 2,429,000 in fiscal 1999 $ 2,384,000 at December 31, 1999 They had an accumulated deficit of approximately $ 6.0 million

12. Reference www.alert-ipo.com www.netstarsoln.com www.imagictv.com www.delanotech.com www.flonetwork.com