Sample Business Plan Rdental

ental Business Plan ' ' dental TABLE OF CONTENTS 1 EXECUTIVE SUMMARY .................................................................... 1 2 THE DENTAL MARKET AND THE INTERNET ............................ 5 3 THE COMPANY AND ITS BUSINESS STRATEGY ....................... 7 A. rdental.com for the Professional .......................................................... 7 B. rdental.com for the Consumer ............................................................. 9 4 TECHNOLOGY ..................................................................................... 11 5 MANAGEMENT .................................................................................... 12 6 FINANCIAL PROJ ECTIONS ............................................................. 1$ Confidential November 7, 2000 '[/dental 1. EXECUTIVE SUMMARY rdental.com, L.L.C. ("rdental") is currently taking advantage of the multi billion-dollar opportunity that exists in the dental marketplace by exploiting its proprietary technology to provide an integrated desktop solution for practitioners. The rdental solution matches dental product companies with potential purchasers, connects practices with potential patients, provides continuing education for practitioners and their staffs and patient education for consumers and Web-enables business and insurance transactions. Since its inception in May of 1999 rdental has achieved every milestone that management and the Board have set and has entered into exclusive agreements, including those with WebMD, the American Dental Association (ADA) and Dental Products Report (DPR), that have created significant competitive advantages for the Company in the form of effective barriers to entry. The Company recently completed the vast majority of its development efforts with each individual component being completed on time and at or under budget. The Company is now strictly focused on its plan to reach profitability by the end of 2001. In this connection, rdental is exploiting the following market opportunities, which are already producing revenue: a. Continuing Education-Market Size--S360 million (worldwide) Company Products--Online, Video and CD-Rom lectures Market Position--Leader based upon exclusive agreements with top thought leaders in dentistry and the ADA, the Academy of General Dentistry and the Michigan Dental Society b. Dental Directory-Market Size--$355 million (US) Company Product--Digital Dental Directory Market Position--Only viable online directory due to exclusive relationship with WebMD, which provides consumers users c. X-ray Attachments Market Size--S97 million (US) Company Product--Tigerview Market Position--Leader due to Tigerview's position as the leading technology as determined by third party research d. Product Showcase Market Size--S38 million (US) Company Product--Online Product Showcase in conjunction with DPR Market Position--Only viable online showcase due to exclusive deal with DPR Confidential page 1 ' ' dental In addition, the Company will release its beta version of PreceDent, the most sophisticated ASP product in the dental field in November. The dental ASP market is in excess of $240 million in the US alone. rdental is poised to capture a substantial portion of each of the above markets as well as other ancillary markets because it has positioned itself through exclusive alliances and top rated technology to be the dominant force in the dental field. Agreements with WebMD, the ADA and DPR give the Company exclusive opportunities that effectively prevent our competitors from making inroads into a number of our major revenue opportunities. Specific financial projections can be found in section six below. rdental is the exclusive provider of oral healthcare content to WebMD and WebMD has agreed to work exclusively through rdental to begin penetrating the dental market. WebMD has significant relationships with payers through its MedeAmerica and Envoy units and provides rdental with a distribution system for its insurance transaction products, including its Tigerview x-ray attachment product. Additionally, WebMD and its Onhealth subsidiary are viewed by in excess of 10 million unique users monthly thus creating substantial additional value for the rdental dental directory and practitioner websites. rdental and the American Dental Association ("ADA") have entered into a far-reaching partnership under which the parties have agreed to work together on an exclusive basis with respect to all of rdental's products and services. The agreement provides rdental with the professional imprimatur of the ADA, a significant "bricks and mortar" distribution system and marketing from the leading professional association in dentistry in the world with over 70% of all US dentists as members. rdental has the exclusive rights to provide online lectures from over twenty-five of the most widely recognized speakers in the international dental community. Each of these individuals, who comprise the Company's Board of Advisors and Dental Leadership Council, speaks internationally on a regular basis, and each commands a substantial speaking fee. When the Company completes the process of building its Dental Leadership Council it will have exclusive online rights to provide lectures and courses from over 40 of the absolute top practitioners and speakers in the world of dentistry. The Academy of General Dentistry (AGD) and the State of Michigan have chosen rdental as their exclusive provider of online continuing education ("CE") to their membership. AGD has in excess of 36,000 members and Michigan's state dental society has in excess of 5,500 members. According to AGD, many of its members take in excess of 75 hours of CE annually. These agreements will allow rdental, to penetrate the online CE market to a significant degree. rdental has entered into an exclusive agreement with Dental Products Report ("DPR"), the leading product journal in dentistry, under which rdental has gained access to the DPR database of products, a one of a kind aggregation of product information that is ideally suited to Internet delivery. The parties jointly offer the database in conjunction with the rdental/Dental Products Report product showcase that enables manufacturers to have an online Confidential page 2 dental showcase through which to reach their audience. Practitioners have ranked a product showcase as among the most desired features of the Internet. Through its acquisition of the dental assets of Televere, rdental now offers dental professionals Tigerview, the premiere electronic x-ray package available today. Tigerview, which has Food and Drug Administration (FDA) 510k clearance as a diagnostic quality device, enables practitioners to scan x-rays into their computers, enhance and view the xrays and transmit them electronically through the Internet. Tigerview's applications include electronic claims filing and sharing of x-rays with respect to referrals. rdental has entered into an agreement with Dentsply lnfosoft ("lnfosoft') under which Infosofl has agreed to embed Tigerview into the next release of Infosoft's Softdent practice management software that currently has a user base of 14,000. In addition, the next release of Softdent will include an Internet browser that will open to the rdental.com homepage thereby linking Softdent users to rdental's lnternet offerings. Through its exclusive relationship with Dental Business Intelligence (DBI), rdental will provide the dental community with PreceDent, the first truly integrated Application Service Provider (ASP) model Internet practice management and business intelligence software product. PreceDent will incorporate many of rdental's Internet offerings, and will allow users to make informed business decisions based on its use of On Line Analytical Processes. (OLAP). PreceDent will be available to the general dental community in April of 2001. In addition to the services noted above, rdentai.com offers: 1. a dental directory linking consumers to practitioners through WebMD and rdental.com; 2. professional website development and hosting tied into the directory and rdental.com's highly credible consumer information; 3. CE lectures on videotape; and 4. a number of different content areas including international, women and senior's sections. According to the 1999 Dental Technology Census conducted by Dental Practice & Finance and Dental Product Review, 85% of all dentists have Internet access. Because they practice with equipment that is constantly changing and being upgraded, dentists are early adopters of new technology. In addition, nearly 70% of all dentists practice alone, and an additional 20% practice with only one other dentist. Thus, dentists are isolated from their peers on a regular basis and the Intemet is an ideal way for them to maintain contact and operate their offices more efficiently and less expensively. rdental allows dentists to save time and money while upgrading their practice skills and their office productivity. It provides manufacturers of dental equipment and products with ready access to qualified sales leads. And it provides connectivity between insurance companies and their providers. The site is a private, personalized environment where dental professionals and consumers can utilize services, obtain information, interact with others and conduct transactions. Because its Board of Advisors and Dental Leadership Council is so uniformly Confidential page 3 dental recognized, and because the Company is steeped in dentistry, rdental has quickly become the trusted brand for dental services, products and content on the Web. The Company primarily earns revenue from transaction fees related to the purchase products and services by practitioners and their staffs as set forth below: • of • • Continuing education courses - Each member of the Board of Advisor lectures regularly as does each member of the Dental Leadership Council. Dentists, hygienists and staff take lectures and the CE tests associated with them for a fee. A typical two-hour lecture is sold in online form for $50 or in video form for $100. The ADA will be offering these courses through its one-of-a-kind product catalogue that currently generates millions of dollars per year in sales, yet is woefully inadequate in the area of CE courses. This offering also is of particular interest to the international dental community. Dental directory preferred listing - rdental allows a practitioner in each zip code to obtain a preferred listing in the dental directory in return for a monthly payment. The directory is set up in a similar fashion to the Yellow Pages. Given that the dental directory is accessed through WebMD, which has in excess of 10 million unique visitors per month, dentists seeking new patients have been aggressively responding to this offering. Tigerview - As electronic claims processing expands, the need to file claims with xrays electronically is growing as well. Tigerview is the premiere sofhvare package available today that enables x-rays to be scanned, digitized, shared and stored on the lnternet. Product showcase - Many of the in excess of 2,000 manufacturers of dental products have already signed up for the product showcase on rdental.eom. These manufacturers have the right to showcase and offer for sale their products in return for an annual fee. Web site development and hosting - The dental community has embraced the concept of individual practice websites as a means of marketing to potential patients. The Company offers web sites to practitioners with a link to our trusted consumer content. This provides the practitioner with a differentiator as he/she seeks new patients and tries to retain existing patients. Advertising and preferred partnership fees - Because the users of rdental.com are an extremely desirable demographic to many dental companies, the Company is able to offer advertisers and strategic partners a prime opportunity to reach their audience in an effective manner. • • • In addition, the Company will earn revenue from its ASP model software, which will help drive revenue of all of its other offerings beginning in mid 2001. Confidential page 4 dental 2. THE DENTAL MARKET AND THE INTERNET Professionals and consumers alike are tuming to the Intemet as a source of information, and as a method of conducting transactions. According to the 1999 Dental Technology Census conducted by Dental Practice & Finance and Dental Products Report, eighty-five percent of all dentists surveyed use the Internet. Over one-half of those using the Intemet access it over ten times per month. Among the chief reasons cited on the professional side were obtaining dental research information, obtaining dental product information and for continuing education. In addition, according to Cyber Dialogue, 6 million U.S. adults indicate that they have used the Internet to retrieve dental content. Moreover, nearly 16 million U.S. adults have indicated that they would be extremely or very likely to visit rdental.com in the next six months. (rdental.com Market Sizing Study, Cyber Dialogue 1999). There are currently 155,000 dentists practicing in the United States and three times that number in Europe, Asia and South America. Sixty-eight percent of all U.S. dentists practice alone and another twenty percent practice with one other dentist. As a result, the vast majority of U.S. dentists work in isolation from their peers on a daily basis. As highly educated individuals who need knowledge about a wide variety of topics to conduct their practices, the Internet is the perfect medium for these professionals to enhance their daily professional lives. It is easy, nonconfrontational, interactive, and inexpensive. In a study conducted by 3M and reported on by Joseph Blaes, DDS in the June 1999 issue of Dental Economics, dentists indicated that they need help with five items including: 1) 2) 3) 4) 5) how to obtain more fee for service patients; how to differentiate among products; how to contain costs and manage the practice; patient education; and recruitment, training and retention of staff. rdental provides significant information and services related to each of the above five areas of interest to dentists. The digital dental directory and practitioners' web sites are both among the most efficient methods of directing patients to practitioners. Because of its exclusive relationship with WebMD, rdental is the only dental directory with true access to tens of millions of consumers all of whom are seeking health related information. The Product Showcase enables practitioners to learn about new products and to differentiate among them. PreceDent, rdental's ASP product has been developed by Eugene Asahara, a leading software developer from Microsoft who specializes in business intelligence applications. Thus, Precedent will be the leading ASP for practice management and cost containment. The consumer side of rdental.com is one of the best patient education tools available to practitioners today since it is the product of the collective wisdom and experience of the Confidential page 5 dental rdental.com Board of Advisors and Dental Leadership Council. In addition, the Company's relationship with the ADA will enable it to provide even more high quality consumer information. Finally, the rdental.com career center is the most comprehensive in the dental industry as a result of the Company's partnership with Careerbuilder.com. Confidential page 6 dental 3. THE COMPANY AND ITS BUSINESS STRATEGY rdental.eom currently combines a variety of Internet based applications for the dental community as well as videotape CE lectures from some of the top names in dentistry. In addition, the site provides consumers with the most credible dental information on the Web as a result of the Company's exclusive Board of Advisors and Dental Leadership Council.. Because of the strong retail aspects of dentistry, achieving a significant penetration in the consumer market is critical to providing the dental professional with something he/she wants very badly: a source of new patients. A. rdental.com for the Professional for dentists and other dental professionals: The following are the main areas of rdental.eom 1. Continuing Education Unlike traditional continuing education opportunities, the Company does not aggregate dozens of outdated or conventional courses. Rather, the Company has retained the top practitioners in each field of dentistry to provide lectures on topics of major interest either on new developments or controversial issues. The quality of the presenters is already attracting dentists to the site. In addition, practitioners are able to take a test online and obtain continuing education units for having viewed the lecture. This opportunity is available to all users of the site for a fee. Moreover, many of the CE lectures are available through videotape as well. As part of its transaction with the ADA, the Company will be selling videotapes through the ADA catalogue, the leading sales vehicle of its type in all of dentistry. 2. Connectivity The Company currently markets the Tigerview x-ray attachment product to practitioners in a variety of ways including retail, at dental shows and through practice management software companies such as Softdent. In addition, the Company is working with WebMD to put together a suite of insurance connectivity offerings for practitioners. The package includes electronic claims processing being offered through the WebMD Envoy and MedeAmerica divisions, eligibility verification, which is currently being beta tested, the Tigerview x-ray attachment product and automatic adjudication products. 3. Product Showcase Through its exclusive agreement with Dental Products Report, rdental.com has developed the rdental/Dental Products Report Product Showcase. The Product Showcase allows manufacturers to provide online demonstrations of product and to post content about their products. Each manufacturer has an opportunity to set up an online storefront for practitioners and staff to view new and existing product intbnnation. The Product Showcase is fully integrated into the CE lectures to allow speakers to refer to products that viewers can then learn more about. Confidential page 7 dental 4. Dental Directory The Company offers practitioners a dental directory that consumers can access by zip code, name, and specialty through WebMD. Because consumers will come to the directory through WebMD, the directory will take advantage of the more than 10 million unique visitors that access WebMD monthly. This will offer practitioners a true chance to reach new patients in a meaningful way. 5. Web Site Development and Hosting rdental offers practitioners a variety of individual web sites for their practices. Unique to rdental.com is the inclusion in such web sites of the consumer content on rdental.com. The consumer content is all edited and approved by the rdental.com Board of Advisors, which makes it highly credible. For practitioners, having the opportunity to offer such information to their current patient base as patient education material is a critical point of differentiation. Additionally, practitioners can use such information as a means of attracting new patients. Finally, all practitioners who build a web site through rdental will have that web site linked to the rdental directory. 6. ASP Model Practice Management Software Through its exclusive agreement with Dental Business Intelligence (DBI), the Company has licensed the underlying software for PreceDent, which will become a leading ASP dental application. The Company has hired DBI's president, Eugene Asahara, as its Chief Software Architect to continue the development of PreceDent and other software applications. PreceDent will integrate most of the top features of rdental.com, including the Interactive Management Tools currently available on the site, to bring practitioners a full service product that will enable them to efficiently manage their offices while taking advantage of professional opportunities relating to CE, the product showcase and marketing through their own web sites and a listing in the dental directory. Confidential page 8 dental B. rdental.com for the Consumer The following are the main areas of rdental.com for consumers: L Patient Information Center One of the largest uses of the Internet to date has been tbr the retrieval of healthcare information. As noted above, six million American adults indicated that they have searched online for dentalrelated information. Furthermore, based on the projected growth of health retrievers online this number should grow to as much as eight million by the end of the year 2000. According to the Yankelovich Monitor, 76% of U.S. adults believe that people should take primary responsibility for their health and not rely so much on doctors. Those who use the Internet to retrieve health and dental related information feel empowered and self-reliant. rdental.com provides consumers with the means to learn all they need to about particular dental conditions or procedures. An adult seeking information about tooth whitening or about her child's orthodontic needs will turn to rdental.com for easy answers. To the extent the Frequently Asked Questions section fails to provide sufficient information, the consumer can retrieve more detailed information in the "articles" section. 2. The Dental Directory As noted above, rdental.eom contains a directory of dental providers by specialty and by location. The directory can be accessed through WebMD and through rdental.com. Thus, when a consumer conducts a search for information about a specific procedure, he or she will be immediately directed to dentists located nearby who perform the type of dentistry being sought. Once the consumer obtains information about the dentists who can perform the required work, the consumer can visit the dentist's web site to learn more about the practice and the dentist and obtain information such as office hours and directions to the office. Prospective patients also will be able to e-mail directly to the office seeking further information or requesting an appointment. 3. Children's Site Pre-teens about to get braces or young children about to lose a tooth are but two of the target audiences for this area of rdental.eom. The children's site will be highly interactive and graphically oriented, yet it will be informative as well. The single most important goal of the site is to impress upon children the importance of oral hygiene in a non-threatening manner. Parents of young children will be able to educate them in a fun and interactive manner. 4. Women's Site Women seeking dentistry have certain unique issues. Dental work during pregnancy, dental work after menopause and cosmetic dentistry are but a few of the issues facing women who seek dental Confidential page 9 ' dental care. The site will contain resources aimed at the population of women seeking information on these topics. 5. Senior's Site Senior citizens are using the Web with increasing frequency and one of the biggest reasons is to locate health and medical information, rdental.eom will provide seniors with a comprehensive, objective set of dental resources thereby making the search for dental information easy and effective. The senior's page will include the latest information related to dental care for that population and also will include comprehensive links to other sites of interest to senior citizens. Confidential page Io ' dental 4. TECHNOLOGY Through the Company's recent agreement with Dental Business Intelligence, it has obtained three top ASP model software applications, PreceDent, Practice Surveillance Center and Incisor. These represent the most sophisticated ASP products in the dental field. In addition, the Company obtained the services of Eugene Asahara who has become the Company's Chief Software Architect. Mr. Asahara is a former Microsoft software development specialist with substantial experience in the dental field. Mr. Asahara is leading a growing team of in-house experts in the development of new applications for the Company including the ASP model products noted above. As noted elsewhere, the Company owns the rights to the Tigerview x-ray attachment technology in the dental field. Tigerview is based on Department of Defense technology that provides the clearest image in the dental field as well as allowing practitioners and insurers to enhance and manipulate images for diagnostic and payment purposes. In developing its product showcase the Company has partnered with the interactive agency Cramer located in Boston and with Navisite of Andover, MA, which will be hosting the product showcase. The Company owns the underlying code for the Product Showcase applications, which are the only applications of their type in the dental field. The Company also has developed the proprietary Enhanced Educational Interface for use with its continuing education lectures. This state of the art technology allows users to surf to other sections of rdental, most particularly the Product Showcase, while taking a lecture, and to view other related items. This technology differentiates rdental from all of its competitors that have text based or audio continuing education courses online. The Company has entered into a strategic partnership with USinternetworking ("USi") for the development, hosting and management of the main components of the Web site. USi is a leading application service provider that builds dynamic web pages using a technology known as Active Server Page. Active Server Page allows for the creation of web pages that are customized and individualized thus giving each user the freedom to choose certain applications and information. The Company has retained the services of Planit Advertising out of Baltimore to develop the dental directory and the web site developer. In addition, the web site developer is being hosted at PC Bank. As the Company continues to mature it is bringing portions of its development efforts in-house. A critical component of any Internet site such as rdental.com is the ability to rapidly change the content and the services offered on the web site. This effort initially was undertaken through outside contractors. However, the need for speed, accuracy and fiscal responsibility has caused this effort to be brought in house. Confidential page II ' i dental 5. MANAGEMENT The Company's President and Chief Executive Officer is Robert L. Fleshner. Other key employees include Executive Vice President of Marketing and Professional Development, Louis S. Shuman, D.M.D., Senior Vice President and Chief Financial Officer, Richard J. Donnelly, Senior Vice President of Strategic Operations, Paul S. Intlekofer, Vice President and Chief Software Architect, Eugene Asahara, Vice President of Sales, Mark Thompson, Chief Technology Officer, Damian Danowski, Vice President of Site Content, Michael B. Kanaley, and Director of Clinical Information, Brian Gray, D.D.S. Mr. Robert Fleshner, as President and Chief Executive Officer of the Company, is one of the architects of the Company's Web site. He is responsible for all functional areas, and he has full profit and loss accountability. Mr. Fleshner brings significant experience related to the formation of strategic alliances in general and the dental community in particular, to rdental. Prior to joining the Company, as a partner in the law firm of Ginsburg, Feldman and Bress, and as Chief Executive Officer of its consulting affiliate, Business Development International, Mr. Fleshner represented a variety of dental practices. In addition, Mr. Fleshner was a partner in the firm's Technology and Telecommunications Practice Group, where he represented a number of early stage technology and Internet companies in the formation of strategic relationships. These companies included small start-ups as well as more established companies in the vital Northern Virginia market. During this time, Mr. Fleshner served on the Program Committee of the Northern Virginia Technology Council, the leading trade association for technology companies in the region. From 1983 - 1991, Mr. Fleshner was an executive with Feld Entertainment Corporation the producer of Ringling Bros. Barnum & Bailey Circus, Walt Disney's World on Ice and Siegfried and Roy. During his tenure with the entertainment conglomerate, Mr. Fleshner negotiated numerous strategic relationships with promoters, vendors, licensees, performers and others. Mr. Fleshner was part of a small team of executives that obtained a license from Disney and helped to bring Walt Disney's World on Ice to Europe and South America for the first time. In building alliances with major promoters and sponsors in these parts of the world, Mr. Fleshner negotiated complex strategic transactions with business, legal and tax implications. In addition to his role as the Company's President and Chief Executive Officer, Mr. Fleshner sits on the rdental Board of Directors. Mr. Fleshner received his Juris Doctor from George Washington University School of Law and his Bachelor of Science in Communications from Boston University. Dr. Louis Shuman, who is one of the main architects of the Company's Web site, is responsible for the development and implementation of the IMTs, for building the clinical board of advisors and dental leadership council, and for all of the Company's marketing and promotion activities. Dr. Shuman, the Company's Executive Vice President of Marketing and Professional Development, brings in excess of twenty years of dental and management experience to rdental. For six years, through a series of rapid promotions, he held increasingly responsible roles in operations and marketing for Dedicated Dental Systems, a DPM focused on building new sites. Dr. Shuman was fully responsible for the creation of daily operational systems, development of Confidential page 12 " dental new patient growth strategies, and internal and external marketing campaigns. From 1985-1986 Dr. Shuman increased DDS's revenues 48%, increased company awareness from 6% to 52% and increased new patient flow by 54%. Dr. Shuman's expertise in these functional areas eventually led to the creation of the IMT. His expertise and development of proven hands-on proprietary operational, internal and external marketing systems led to his role as a consultant with companies such as Bausch & Lomb, advertising agencies including Arnold and Company and the Northridge Marketing Group and other DPMs. In 1988, Dr. Shuman co-founded Bader Shuman Dental Group, a multi-specialty practice in Peabody, Massachusetts. Apart from practicing orthodontics part time and supervising a staff of 35 people, he continued to fine tune and develop office operating systems, internal and external marketing programs, and staff development strategies. Under Dr. Shuman's guidance, Bader Shuman revenues nearly quadrupled from 1988 ($600,000) to 1998 ($2.4 million). Outside of Bader Shuman, Dr. Shuman created highly successful marketing cmnpaigns in dentistry in partnership with Walt Disney, the Marriott Corporation and CVS. One campaign resulted in Dr. Shuman's receiving Walt Disney's most distinguished award for "creating a new direction of purpose" for the company. In addition to his role as Executive Vice President of Professional Marketing and Product Development, Dr. Shuman sits on the rdental Board of Directors. Dr. Shuman received his Bachelor of Science, his Doctor of Dental Medicine and his Certificate of Advanced Graduate Studies in Orthodontics from Boston University. The Company's Senior Vice President and Chief Financial Officer ("CFO"), Richard J. Donnelly, is responsible for all accounting, finance, cash management, internal control and financial analysis matters. In addition, he oversees technology and administration. He also is directly responsible for investor and banking relationships. During the last twenty (20) years Mr. Donnelly has developed significant accounting and financial management, merger and acquisition and capital formation experience. For six years he was the CFO of a publicly traded company and was responsible for all SEC and stock exchange disclosure reporting, bank and investor relations, accounting and financial management and reporting and internal control issues. He most recently served as the CFO for a private equity venture fund where he worked with a variety of high-growth start-ups and in many cases acted as the CFO of such companies until they were mature enough to have in place their own CFO. Mr. Donnelly received his Masters of Science in Taxation from Villanova University School of Law and his Bachelor of Science in Accounting and Finance from LaSalle University. As Senior Vice-President of Strategic Operations, Mr. Paul Intlekofer is responsible for all activities related to the creation and implementation of strategic partnering relationships with companies that provide technical services, content, products, and distribution for the Company. Mr. Intlekofer brings extensive experience to rdental related to acquisition, strategic alliance development, and integration. Prior to joining rdental, Mr. Intlekofer was Director of Strategic Operations/Business Development for Doctor's Health, which was the Mid-Atlantic's largest and fastest growing physician management company focusing on both practice and premium management. Over a two-year period, in his role as Director of Business Development, Mr. [ntlekofer was responsible for the design and implementation of each phase associated with acquiring over 90 physicians in two states, including market awareness and development, valuation, due diligence, legal and integration. Thereafter, he took on the role of Director of Confidential page 13 Strategic Operations in which he was responsible for integrating the operations of the acquired practices. Mr. Intlekofer received his Masters in Business Administration and Juris Doctor from the University of Maryland and his Bachelor of Arts from Johns Hopkins. The Company's Vice President and Chief Software Architect is Eugene Asahara. Mr. Asahara is responsible for the development of the Company's ASP model practice management software, PreceDent, and participates in all of the Company's other development efforts as well. Prior to joining the Company, Mr. Asahara developed dental software through Dental Business Intelligence where he was President and CEO. Prior to that Mr. Asahara was a senior developer with Microsoft where he worked with the highly regarded SQL Server 7.00LAP (On Line Analytical Processing) team. In addition, he worked with the Microsoft Research group, where he developed groundbreaking research on data mining algorithms. When Microsoft CEO, Steve Ballmer, introduced SQL Server 7.0 to the public at Comdex in 1998, he tapped Mr. Asahara to develop the live "demo." Prior to his tenure at Microsoft, Mr. Asahara held a number of development positions with major companies including lntel, Boeing and Wells Fargo. As Vice President of Sales, Mark Thompson oversees all activities related to the development and implementation of all sales initiatives whether focused on practitioners or manufacturers of dental equipment and supplies. Mr. Thompson will coordinate the overall sales function including strategic development of programs and implementation. Mr. Thompson has a strong background in sales and marketing having worked on both the agency and corporate sides. Prior to joining rdental, Mr. Thompson was a Group Director for BEN Marketing Group, a full service promotional marketing and communication company. During his tenure at BEN Marketing, Mr. Thompson worked with such clients as the National Basketball Association, Coca-Cola, Holiday Inn Hotels and Castrol Motor Oil. Before that Mr. Thompson was a Regional Marketing Director for Feld Entertainment, the producer of Ringling Bros. Barnum and Bailey Circus, Walt Disney's World on Ice and Siegfried and Roy. Mr. Thompson received his Bachelor of Arts degree from St. Lawrence University. As Chief Technology Officer, Mr. Damian Danowski will oversee all areas of technology related to the offerings on the rdental.com website as well as the delivery of the technology underlying the website itself. Mr. Danowski oversees all development efforts and determines what technology to use and what resources are required. Prior to joining rdental, Mr. Danowski was an Associate Director in the Ernst and Young tax consulting division. He received his bachelor's degree in Computer Science from Ohio University. Mr. Michael Kanaley is responsible for the development, integration and management of all content disseminated on rdental's site and licensed to third parties. As Vice President of Site Content, he utilizes his extensive experience in researching, evaluating and analyzing trends and needs in the health care field. Before joining the Company, Mr. Kanaley was Vice President of Incenter Strategies, Inc., a health care consulting firm that provides organizations in the pharmaceutical and biotechnology industries with strategic information products and services designed to develop and enhance business strategies. While at Incenter, he was responsible for the development and coordination of the firm's consulting efforts, which included identifying and analyzing market trends and opportunities, physician practice patterns, regulatory pathways and strategic alliance opportunities. In addition, Mr. Kanaley has provided clients with guidance in Confidential page 14 navigating the health advocacy arena, particularly involving medical professional associations, consumer and patient organizations and regulatory agencies. Mr. Kanaley received his Bachelor of Arts from Wittenburg University. The Company's Director of Clinical Information is Brian Gray, D.D.S. Dr. Gray, a practicing dentist in Washington, DC, has given over 150 lectures to practitioners on a variety of topics throughout the US, UK, Canada and the Caribbean. He has received over 2000 hours of continuing education since his dental school in 1986. In addition, Dr. Gray has been an instructor at the Tuft's University School of Dentistry Post Doctoral C.E. Program, the Texas Institute of Advanced Dental Studies and the Georgetown University School of Dentistry. Dr. Gray is a graduate of the Georgetown University School of Dentistry and Loyola University of Chicago. 6. FINANCIAL PROJECTIONS Financial projections are attached hereto. Confidential page 15