NOVER,US
financial planning systems MISSION -p_'r,_onal./hlctncial management ,_Tstems and products that guide users to a more secure., prosperotts fttture. To bec'ome America's I:"inancial Parmer _ by providing aJ]ordable access to
NOVERUS is a financial publishing and information technology company dedicated to providing the information and advice people need to organize, simplify and strengthen the management of their personal finances. Since 1995 we have provided intelligent solutions to the financial service industry while developing a proprietary approach to managing personal finances, For consumers, the $25 trillion US financial services industry has historically been confusing, technically complicated, and intimidating. Conversely for providers of financial products and services, it has been distinguished by high customer acquisition costs, complex distribution,and limited pricing flexibility, To address these market inefficiencies and the significant amount of financial illiteracy, Noverus is developing the Financial Partner '_ system that • Motivates, educates, and empowers individuals to improve their financial situation by providing an easy-to-use, systematic approach to financial planning and management, • Organizes, tracks, and helps to proactively manage personal finances with leading-edge technology and financial tools, • Provides a transaction platform that becomes a robust e-commerce site, designed to serve the needs of both consunlers and financial product providers, Financial Partner is comprehensive and offers the user not only objectivity but also, advocacy, confidentiality and financial product neutrality - a combination not commonly seen in today's marketplace. M',uketing efforts will initially be focused on the 100 million people who are corporate employees in the U.S. We plan to access them through their employers and especially via employment benefit providers. Employment benefit providers have preexisting relationships with employer decision makers and have shown a strong interest in our offering.
With group financial planning being one of today's most requested corporate benefits, employees want greater general understanding of employment benefits and, in particular, assistance with retirement planning. Employers want help communicating their employment benefits and for their employees to succeed financially. Employment benefit providers want to retain business and attract new companies and e-Financial Partner provides them with a very attractive solution, creating a strong win-win-win. To complete the next stage of development on Financial Partner, Novems is seeking $5 million of equity financing. With appropriate resources it will take 3 to 6 months to bring release one of the e-Financial Partner to market. During this development period NOVERUS intends to generate revenues through user fees from our existing site, www.fpgold.com, along with sales of existing auxiliary Financial Partner products. Benefit providers, employers, and / or users will pay these fees. Once e-Financial Partner is competed, existing users will be upgraded to the new site. At that time additional revenues will be obtained from the licensing of our systems to distribution partners.
RIK:I_n"KEYDE_ItOi_i_I'_
2001 - Noverus releases its beta Web site under the www.fpgold.com URL. 2000 - Noverus accepts Treasury Secretary Summers' invitation to join National Partners for Financial Empowerment (NPFE) a nonpartisan coalition to address financial literacy. 1999 - Noverus designs financial calculators and content used by Aon, the world's second largest insurance broker and employment benefit consulting fima. 1999 - Noverus completes development ofNetWealth
TM,
a desktop financial planning software application, for Kiplinger/Block Financial, a subsidiary of H&R Block.
Direct all inquiries to Valentino Sabuco, Chairman and CEO, at NOVERUS, INC., 979 Golf Course Drive, #273, Rohnert Park, CA 94928, USA; telephone (707) 586-8620, Direct line (707)-322-1597, e-mail vsabuco_,noverus.com, Web site www:noverus.com.
OPPOR1UINOmgBs :]_Bprr FOR
1N NOVERUS
NOVERUS is seeking equity financing in the amount of $5 million from investors or strategic partners who understand the substantial opportunities presented by merging technology with financial services. The following tables present projected users, revenues, investment potential, and current capitalization. Full details and assumption can be found in the Novems Business Plan.
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User Revenue Recap Revenue Users Revenue/Users $ $
Year I 1,619,050 $ 22,333 72.49 $
Year 2 17,091,526 $ 2,060,654 8.29 $
Year 3 71,161,266 $ 7,643,617 9.31 $
Year 4 201,672,146 16,567,290 12.17
NOVERUS
Revenues Yr 1 Yr 2 Yr 3 Yr 4 (inmillions) $ 1,619,050 17,091,528 71,161,266 201,672,146
Projected
Cost of Goods $ 285,000 4,739,798 20,515,160 58,807,664
Revenues
Alter-Tax Income $ (5,127,673) 1,955,166 17,689,308 55,336,913
NOVERUS
Series
Pre-SedesD Investment Pos_on
D Preferred
Total Individual Post-lnveslment Investment Position $5,000,000 $1,000,000 $3.25 1,538,462 28.82% 5,338,416 $17,349,851 (2) $3.25 307,692 5.76%
SeriesD-Sizeof Investment SeriesD.Price PerShare SeriesD-Sharas urchased P Series D-Percentage Ownership 100% of Total SharesOutstanding 4,539.654(1) $12,349,851
I
Pro For ma Income Statement
_
Company Valuation s25o,ooo.ooo S200.O00.O00 s15o,ooo.ooo smo.ooo.ooo $5o,ooo.ooo :: • IRL¢:_;_: • :. : •.
Year 2
EstimatedValuationsBased on Profits (ValuationMultiplier of 15) 4th.Year Afl_-Tax Profits Company Investor(s) Investor $55,000,000 -timesOriginal Investment ; _ Founders (3) Common StockTradefor Sc:wices SeriesA Preferred12i95 SeriesBPreferred-12/96
Year I Year 3 Year 4
$825,000,000
$237,754,207 47.6
$47,550,841 47.6 Price/Share
NOVF.RUS Capitalization Investment Shares -$250.000 3.000,300
I;i
:
so _,_., ($5o,ooo,ooo)
~$121,000 $181,000 $275,000 $300,000 $1,240,787
-326,000 218,072 158,961 96,923 381,781
$0.83 $1.73 $2.50 $3.25
SenesC Preferred-3/99 SeriesD Preferred
(1)Shares p/us issued unexerdsed opgons wa,'rants _ck and (2)Based onMshams at$3 perd_m vatued 25 (3)PteWovems Found_s of_Tte#edu_ cost pmpe_deve_pmed
The &formation contained herein was developed by NOVERUS, INC. and obtained from various public sources. Management believes that this information is accurately presented; however, no representation or warranty is made as to the accuracy or completeness of this information. The material and information contained herein are confidential and are not to be released to any other parties or copied without the written consent of NOVERUS. INC. THIS IS NOT TO BE CONSIDERED AN INVESTMENT SOLICITA TION. 6/ol