1. Otsi.ee Company Presentation Keith Siilats

2. Otsi.ee is a meta-engine Bridging paper media and Internet by making searches in newspaper archives fee based Making net versions of newspapers profitable Providing a database of internet users (bank details, credit cards) Additional activities based on the database (auctions, internet shops) Real-time translations allowing English language queries

3. Key investment attractions Rapidly growing sector Monopoly market segment Strong links to existing media for free (xxl.ee, all newspapers) Very little actual competition and first mover advantage Experienced creators Very little initial investment

4. Estonia and its internet market –The structure of the internet business market Rapidly growing (100%+) Aim: to turn technical expertise into simple usage Highly competitive –Factors affecting the development of the IT sector Economic growth (rapid in Estonia) Education level (extremely high) Computer penetration (comparable to western levels) Cost of use (rapidly falling)

5. Current Estonian users Target group - people who use internet for work and students who use internet more than once a week - 120 000+ growing 60% a year (oct 98 BMF) 53% read online newspapers 2% use internet shops 42% have an internet bank account 8000 people have paid for goods in the net, but 43 000 have registered to an online site 59% read more newspapers than an average Estonian 2000 read epl.ee daily, 850 search information 7000 and 3000 for Postimees.ee Otsi.ee beta attracts ~5 new registered users a day without any advertising

6. Competitive Analysis Competitors Newspapers themselves www.ee and www.neti.ee Strengths Newspapers - existing copyrights, extensive finance www.ee - Existing market share Weaknesses Newspapers - no flexibility, expertise and willingness www.ee - no connections to newspapers, not a comprehensive archive, no registration modules

7. Technology Description –SQL databases with Glimpse indexing, Perl scripts generating HTML front-end –English online translation service from ibs.ee Strategy –simultaneous searching of all newspapers and charging (1 month) –Reaching more than 500 searches a day and 10000 users (1 year) –Development of additional services and selling of the database (1 year)

8. Pricing and marketing policy Search is free, viewing of the actual article costs money 70% of the revenues from articles goes to newspapers, 20% of the other services (preliminary contracts) Charging –Internet bank accounts, bills by email, 900 phone numbers, extra fee for paper bills –Per article and per month plans

9. Description of the business Legal structure - AS Technocholics representing a Delaware company. No tax obligations for internet usage. Operational Structure - Management, Marketing (zero.ee) and Technology (javalogics.com) Estdata provides internet connection and receives 10% of profits Customers Professional researchers and companies Media monitoring Students Occasional interested parties and foreigners

10. Sales and Marketing Direct marketing from newspapers websites (the search box at epl.ee redirects to otsi.ee) Free ads in newspapers (they get 70% of revenue) Search engine registration Media hype for new product Banner exchange with yahoo Referral program (10% for referred customers)

11. Key Employer: Keith Siilats

12. Financial Projections –5 EEK a search, 50 EEK for translated documents –50 EEK a month for individual subscription –Multiple subscriptions from companies –500 searches for 22 days with half being from subscribers (10 000 searches a month) –1000 subscribers –Total Cash flow 100 000 EEK –80% away to newspapers and Estdata –50% revenue from extra services –Total revenue (0.2x100+0.5x100)x12 months = 1 milj EEK –Maintenance programmer costs 100 000 EEK a year

13. Related Documents Company: www.otsi.ee English interface www.otsi.ee/indexeng.html Extra Investor information and this presentation www.otsi.ee/investor Keith Siilats’ page www.ieg.ee/keith/demo