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Cory Wallenstein Servprise International, Inc. 447 Rawson Street Leicester, MA 01524 1-800-832-3823 www.servprise.com cory@servprise.com River Valley Investors June 21, 2006
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Recovering from a crash Call tech support –$100 per incident Drive to datacenter Remotely cycle power
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Market 29 million worldwide servers – 70% available remotely 24/7 – $2.1 billion market opportunity 2004 revenues of $180M – APC, Avocent, BayTech, etc.
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Product Roadmap WebReboot 8-port IT Consultants Small ISPs Fringe of Enterprise WebReboot Enterprise Enterprise IT ISPs & Web Hosts Government Servprise Intuity IT problem-solving software Significantly grow market
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2004: Retail sales
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2005: Regional distributors
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Customers 2006+: Global distributors Distributors
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Team Cory Wallenstein, President –Serial entrepreneur in IT Kevin Menard, Vice President –Background in web hosting, Cisco Robert Chipman, VP Business Development –Enterprise engineering at BAE
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Current Financials Sales –Retail sales started mid-’04 –$7k/month revenue on initial 8-port product, 42% margin – No marketing Margins –WebReboot 8-port – $489 retail, $200 cost; 59% margin – WebReboot Enterprise 24-port – $1500 retail, $400 cost; 73% margin
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Projected Financials Break-even with full-time staff in 2Q07 –$497K quarterly revenue, $305K gross margin, $249K operating expenses Profitable in 2008 –$10.2M annual revenue, $7.7M gross margin, $5.9M operating expenses –Potential $5M 2 nd round for Intuity stand-alone Projected exit in 2009: Strategic acquirer –$20.9M annual revenue, $17.2M gross margin, $11.1M operating expenses –$3.6M net income after taxes
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Timeline
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Funding $600K 33% Equity 4Q06
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