Sample Business Plan unplugin

, & unplugin BusinessPlan unplug/n, Inc. 121 East 24th St., 6thFloor New York, N.Y. 10010 Gary Macleod Chief ExecutiveOfficer emaih garym@unplugin.com voice: (212) 475-7100 x106 fax: (212) 982-4724 Document Number: A009-2-3 Date: 03/07/01 Distributedto: Name: AileenKeenan Company:Lycos,Inc. Phone: Emaih akeenan@Iycos-inc.com Proprietary and Confidential Page i February 2002 Table of Contents EXECUI3VESUMMARY DZSTINCTIVEOSI"I'ZONTNG P OVERVIEW OF SERV;CES AND PROmJCrS BUSINESS HODEL PARTNERSHZPS MARKET SXZE CoMPANY BACKGROUND 1 1 1 2 2 2 3 HANAGEMEHT I=ZNAN(:NGOUGHT S SUMMARYOF F][NANC2ALPReOEGrXoNs 3 4 4 THE MARKET MARKET NEEDS MARKET SXZE SERVICESANO PRODUCTS CORE SERWCES SOFTWAREROOUCrS P REVENUETruMS S COMPETITION MANAGEMENTTEAM BRUCE HOERNEC]C_ CHAIRMAN CEO NmL 3ACOBSOq, CHIEFTECHNOLOGY O_ GARY MAQ.EOI_ PRESIDENT AND MJCCHAEL HOERNECKF.r EXEQJTIVE VZCE PRESENT 5 5 6 7 7 9 10 11 19 19 19 20 21 IMPLEMENTA'I'ION PLAN TECHNOLOGY DEVELOmEHT OPERA_OMS _ ANo S/U.ES _NG SOUGHT USES OFINVESTMENT Fu_ms FINANCIAL PROJECTIONS INCOME STATEMEm BALANCE SHEETS CASHFLOW STATEMENTS ASSUMPTZONS AND METRZCS 22 22 24 24 25 25 26 26 27 28 29 Proprietary and Confidential 4 Page 1 February 2001 ul_ph_in Summary has positioneditselfto seizethe opportunity owncustomer to relationshipsin the explodingfield of wireless access to enterpriseinformation. unpluginis becoming the "wireless gateway" for its enterprise customers by providing them with a one-stop solution to their needs for wireless data communications. unplug/n, Inc. ("unplug/n") The company has developed propdetaw technology that enables enterprisesto provide their employees, business partners, and customers with wireless access to various types of internalinformation,includingemail, Web sites, intranets, databases and applicationfiles, and to use third-partyand propdetaw applicationsthrough wireless devices. The Beta version of the unplugin KnowledgeAccess Suite (UKAS)is currentlybeing deployed in several Fortune 50 companies including,Chase, ]ohnson and 3ohnson, Amerada Hess, and Cigna. unpluginprovidesa one-stop solution by offering software, development services, implementation, hosting, training,and customer service that includesconfigurationand delivew of wireless devices as well as ongoing support and consolidated billing. Distinctive Pcmilimtimj The company hasdistinguish itselffromothersthat provide wireless access to enterprise information through: • • thebreadth its one-stop of solution puffing theemphasis onthe business dvantages, a ratherthanthe technological benefits itssolution, articularly of p thefulfillment f ordersfordevices, ustomer o c support, ndconsolidatedilling a b an initialfocus andexpertisein,developingpplications handheld on, a for wireless devices (PDAs) ndwireless a handsets including Research Motion's in immensely popular BlackBerry wireless emailplatform • Overviewof Seruicesand Products unplugin's basic serviceprovides enterprises ithsecure w and reliable wireless email, Webaccess, aging, dministrativeools,and consolidated onthly p a t m billing encompassing various carriers anddevices. Thistechnology illmaketransparenthe w t differences between wirelessnetworks anddevices, uchasBlackBerry, s Palmhandhelds andotherpersonal digitalassistants(PDA's), ndsmart phones. a unpluginservices nableenterprises allowusersof various e to wireless devices access to additional internalinformation. Theyare ableto: • browse orsearchdirectoriesndotherdatabases, a including calendars, tasksand contacts MicrosoR in Exchange, otusDomino, ndenterprise L a IMAP/POP3ystems s and Confidential Proprietary A Page 2 February 2001 • browse search or filedirectoriesndretrieveandviewapplication a files • usewireless versions applications, of including ispatch d applicationssedbycompanies u intransportation, construction, utilities, ieldservice, ospitality, homehealthcare f h and BusinessNodei unplugin offersorganizations wireless access theirinternalinformation to fora monthly fee. Unpluginwilllicense itsproprietary softwareto enterpriseshatchoose operate t to the software ontheir ownserversin a protected/secure environment. Asan alternative solution, nplugin u alsooffersorganizations wireless access theirinternalinformation to for a monthly servicefee asan ApplicationerviceProviderASP). S ( Undereithermodel,unplugin willgeneratea combinationf one-timeandrecurring o revenue streams,including ne-timefeesfordevelopment o services, etup of ASP s services, esaleof wireless r devices, ndsoftware a licensing, andrecurring revenues for softwaremaintenance, network airtime,andASPservices. Parl_emhips To provide one-stop its solution, articularlyhe integration wireless p t of carders and devices, nplugin u hasestablishedtrategic s relationships withcarriers andhardware manufacturers. Initialpartnersinclude: • Research Motion,asa Wireless in Solution Provider ndBlackBerry erviceProvider, a S whichenablesthecompany offerResearch Motion's to in enterprise emailsolution to clients • BellSouth ireless W Data, the U.S.operator f MobitexDataNetwork o asTier 1 Reseller anda CE+ distributor • Motient Corp.,the U.S.operator f the DataTAC o wireless networkas a Tier 1 Reseller • AT&TWireless Services asa Tier 1 Reseller • • Ricochet Wireless DataNetworkasa Tier 2 Reseller Nextelasa DealerandDevelopment Partner Narket Size Cahners In-Stat Group,a marketresearch firm, forecasts thatthe numberof wireless datauserswithinenterprises the UnitedStateswillgrowfrom784,000in 1999to in nearlyninemillion 2003.Cahners in In-Stat Grouppredicts stronggrowthfor the marketin boththe largeenterprise andsmallbusiness egments s (WirelessData Market SegmentationForecasts,November 999). 1 unplugin anticipates receiving monthly airtimecharges $85 forend-users its of of complete suiteof services. pplying Cahners A the In-Statforecasto that chargeimplies t Proprietary and Confidential a 4 Page 3 February 2001 a potentialU.S.marketforthe company's ervices $9.2 billion airtime charges s of in alone.Thisprojection doesnot takeintoaccounthe company's rofitable t p reselling of wireless devices,tsrevenues i fromdevelopment services andfromlicensing its softwareto enterprises operateit in-house, rcustomers that o outsidethe UnitedStates. CompanyBackground unplug/n, a DelawareC corporationfounded July 10, 2000, is an affiliatedcompany of BBHSolutions, Inc. a 12-year-oldnetworkintegratorwith expertise in Internet connectivity, computer networkdesign, installation,maintenance, and troubleshooting. BBHSolutions, Inc. is a certified solution providerfor Hicrosoft,Cisco,3Corn, Lucent, IBM,Novell, and Compaq, and a certified Wireless SolutionsProviderfor Research in Motion.The company has providedwireless email solutionsfor companies that include GoldmanSachs, Con Edison,and RareMedium.These customers and others expressed repeated demand for more flexiblewireless access to enterprise informationand applications,which has resulted in the creationof unplugin. Evolvingfrom a successful and well-established networkintegratorwith expertise in wireless technology, unplugin has been able to attract managers and technical professionals with highly sought-after experience in wireless communications technology, mobile computing, software development and management, as well as proven records of accomplishmentand key industryrelationships. NanagBnem Bruce Hoernecke, Chairman - Bruceis the founder, President,andChiefExecutive Officerof BBHSolutions, Inc., a 12-year-old networkintegration firmproviding infrastructure evelopment d andongoing supportwitha clientretention rateof 98%. He brings .npluginprovenexperiencen establishing valuable to i the strategicrelationships necessaryo deliverenterprise-scale t system solutions. Brucehasdelivered network integration servicesorover15 yearsandwireless f datacommunications since1995. UnderBruce's leadership BBHSolutions, Inc. hassuccessfully builta clientbaseof over 400 activeaccounts. Gary t4adeod, President and CEO- Garybrings unplugin morethan 15yearsof experiencen strategic i planning, usiness evelopment, b d marketing, andfinancial managementn the softwareindustry.Priorto joining,npluginhefoundedandserved i nineyearsas President ndCEOof Courtroom a Technologies, (C'I-I),a developer f Inc. o litigation support andproduction software andrelatedservices. nderhisleadership, U CTI became leadingprovider fvideo-to-text ynchronization the o s software,gaining a 40% marketshareandmaintaining forthe lastfouryearsin a highly it competitive business. Heassembled results-oriented a operating team,licensed proprietary production software technology 50 vendors, nddevised to a innovative salesand Proprietary and Confidential • 8 Page 4 February 2001 lini_ll_iu business evelopment d initiatives that resulted annualrevenue in growthof 35% over the lastfiveyears. Nell Jacebson, Chief TechnologyOfficer - Nellbrings unplugin decadeof to a experience ithmobile w computing, having developed andemployed automated toolsto solvethe realworldproblems mobileprofessionals. of Hissolutions recurrently use a in bydoctors, urses, ocial orkers,infrastructure n s w inspectors, engineers, andarchitects. Priorto joiningunplugin, eco-founded h theconsulting firmWarshaw .]acobson roup G (nowWJG,Inc.) andthe software company DoxPad,nc.,whichdeveloped unique I a mobile datacollection engine allowing rapiddeployment mobile of datacollection applications handheld on computers. heseapplications T havebeensuccessfully integrated intoenterprise-scale applications forthe NewYorkCityBoard Education, of NewYorkCity Department f Healthandthe Wellness o Centerof National enefitFund. B Michael Hoernecke, Executive Vice President - Hichael rings yearsof b 10 networkintegration experienceo the teamandisresponsible t fortheimplementation andintegration the unplugin of infrastructure. Heis alsothe Executive icePresident V anda shareholder since1995of BBHSolutions, Michael asledlarge-scale Inc. h infrastructure rojects, hichinclude p w design andconfiguration systems of utilizing equipmentromvendors f suchas Cisco, ortelandLucent. ichael ecently N M r completed the design andimplementationf a complete o wireless solution forthe Bronx Zoo.He hasbeenan integralpartof the40% annualgrowthfactorwhichBBHSolutions, Tnc. hasexperiencedincehejoined. s Rnandng Sought unplug/n isseeking equityinvestment $10million. an of Summaryof Rnandal Revenues EBI"I'DA Net Income CashRow BeforeRnancing 2001 7,961,253 (9,969,789) (10,675,967) (15,463,051) 2002 58,661,198 (3,232,973) (4,773,995) (9,766,443) 2003 210,572,341 29,171,598 23,482,479 6,978,150 2004 463,032,809 122,012,470 77,932,302 49,457,891 2005 821,570,209 252,651,365 162,758,040 124,702,752 Proprietary and Confidential i Ulilllul,,lill Page5 February2001 Market Needs Asinformation technology becomes morecomplex, nterprisesreincreasingly e a outsourcingotonlydevelopment systems operations ndmaintenances well, n of but a a astheytry to reduce costsandfocusontheircorebusiness. Outsourcing particularly ompelling ptionwhenconsidering ireless isa c o w data solutions. Enterprises tryingto provide wireless access information to encounter numberof a difficulties often proveinsurmountable. that Theyinclude lackof available a expertise, the needto reachmultiple wireless devices overmultiplenetworks, ndsignificant a capitalcosts. Specialized Skills.Designing anddeveloping ireless w systems requires specialized expertise that mostcorporations lack.Hiring appropriate taff mightnot becostthe s effective andwoulddramatically elaythe rolloutof wireless d capabilities, whichisoften a strategic initiative,unplugin notonlyhasthe necessaryxpertise e in-house, ut isalso b developingoftware s that willmakemuchof thisdevelopment workunnecessary. Needfor MultipleDevices.Enterpriseseeking competitive s a edgerecognizehe t importance offering of immediate access criticalnformation theiremployees, to i for business artners p andcustomers. accomplish To this,enterprises ustmaketheir m information available through differentwireless devices,ncluding agers, DAs,cellular i p P phones andlaptopcomputers. Thisneedaddsto the demand highlyspecialized for programmingndrequires a repeatedupdating reachnewdevices to astheycomeinto use.Again,unpluginwill providethe necessaryxpertiseandobviatethe needfor much e of it throughproprietary oftware. s Needfor Multiple Carriers.Wireless solutionselyon public r cardersto reachmobile workers,partners,andcustomers.n orderto reachvarious I devices various in locations the solutions oftenmustsupportmultiple carriers.t istimeconsuming I for organizations engineerhe appropriate to t interfaces ndnegotiate necessary a the businesselationships r withcardersthemselves, unplugin hasthetechnology nd a relationships place,including holesale in w airtimepricing,hatenables t fiat-rateairtime agreements ithcustomers. w Economies Scale.Developers f wireless of o applications mustprovide securelinks betweenenterprise information andthe public networks,andsupportlargenumbers of end-users. o do sothey mustmaintain T datacentersfor hosting information is the that available mobileend-users,ulfillment perationsorproviding to f o f theend-userswith properly configured devices, ndcallcentersforsupporting end-users. kethe a the U costs enabling of applications runon multiple to devices overvarious networks,he t costsof building andstaffing thesefacilities canbe prohibitiveoran enterprise. f Service providers likeunplugin candefraythecostsovermanyapplications andorganizations. Proprietary and Confidential & • Page 5 February 2001 unph_in Enterprisesncounter llof thesedifficulties in tryingto provide e a just wireless access to email,whichhasledto the rapidgrowthof Research Motion's in BlackBerrymail e solution. Needfor Applications.Enterprises encounter tillmoreobstacles tryingto deploy s in otherwireless applications, including following: the • • • manydevicesolutionsor enterprisesnlyprovideemailservices f o enterprises thatwantto runproprietary pplications devices a on oRenmustmaketheir ownfinancial arrangements ithcarriers services w for theseenterprises ftenfindthe carder o they mustuseslowto respond theirneeds,or to unresponsive them. to Theseobstacles releading a enterprises turnto third-parb/service roviders to p like uapluginto solvetheirneeds wireless for data. unplugin hasdesigned technology its and services responseo interestfromclients its affiliated in t of company, BH B Solutions, Inc. Market Size Cahners In-Stat Group,a marketresearch firm, forecasts that the numberof wireless datauserswithinenterprises the UnitedStates in willgrowfrom784,000in 1999to nearly9 million 2003.Cahners in In-StarGroup predicts stronggrowthforthe marketin both the largeenterprise andsmallbusinessegments(WirelessDataMarket s SegmentationForecasts,November 999). 1 unplugin anticipates receiving monthlyairtimecharges $85for end-users its of of complete suiteof services. pplyinghe Cahners A t In-Starforecasto thatchargeimplies t a potential .S.marketforthe company'services $9.2 billion airtimecharges U s of in alone.Thisprojection doesnot take intoaccounthe company's t profitable reselling of wireless devices,ts revenues i fromdevelopment services andfromlicensing its softwareto enterprises that operateit in-house, rcustomers utsidethe UnitedStates. o o Additionalorecasts f suggest hugepotential pside unplugin's a u to calculation f its o projected market.Cahners In-StatGroup estimates that the totalnumberof wireless datasubscribers, business andconsumer, ona worldwide basiswillgrowfrom more than 174million 2000to morethan1.3 billion in bythe endof 2004.Asa result,more than 1.5 billionhandsets, DA's, ndInternetappliances reexpected beequipped P a a to withwireless capabilitiesytheendof 2004 (WirelessData/Intemet Market Gains b Momentum:Five-yearSubscriberForecast, ugust2000). A Proprietary and Confidential • J Page 7 February 2001 Overthe nextyear unplugin islaunching fourservices, of whichwillalsobeavailable two as softwarepackageshatenterprisesanlicense t c andoperateon theirownservers working directly withnetworkcarriers. The firstservice,whichis intended generate to near-termrevenue andisalreadyavailable, istranscoding ebsitesfor display W onwireless devices. Thisserviceeliminates nnecessary u contentandensures thatdeviceusersbrowsing wireless a Websitecanfind whattheyare looking quickly. includes n initialconversionndongoing for It a a services convert ew to n content. hreelevels serviceareavailable: T of • • • Level1 - basic initialWebsiteconversion Level2 - in-depthcontent onversion, c including relevantgraphics Level3 - complete conversionndmaintenance, a includingiteupdates a weekly, s on monthly, ryearlybasis. o CoreSereices Wireless Virtual Networl_ unplugin's basicservice, illenableenterprises provide w to employees ithwireless w access email,Websites,andpaging to across various carriersand devices, ithconsolidatedilling w b andadministration tools.Connectionsre secure a and sessionsre managed thattheyare not lostif theyareinterrupted. a so unplugin willbillcustomers single a monthly forthecarrierairtimeusedandforthe use fee of wireless emailservices, ireless w access the Internet(using to third-partybrowsers such as GoAmericandNeomar),andpagingservices. he company a T maydevelop callcenter a enabling to provide moreadvanced it a proprietary paging service. unplugin willalsogeneraterevenue byreselling wireless devices andre-licensing client the software third-party for services. Therewillbea minimum commitment defraycosts to of settingupthe service.Anticipated feesareshownin the "RevenueSources unplugin for Services andProducts" tableon page10. Wireless VirtualNetworkisa required enablerof unplugin's other coreservices, hich two w let enterprises rovide p employees ithwireless w access internalinformation to andsoftware applications. KnowledgeAccesswillenableorganizations provide to employees ithwirelessaccess w to internalinformation standard in formats,induding: • • • queries directories ndotherdatabases of a queries calendars,asks,andcontacts Microsoft of t in Exchange, LotusDomino, nd a IHAP/POP3 emailsystems browsing andsearching file directories of Proprietary and Confidential A Q Page 8 February 2001 • conversionnd retrieval f applicationiles. a o f Knowledge ccess ustomers ancompose A c c andsendmessages rompting p users wireless of devices requestnformation anyof theseforms.Deviceuserscaninitiate to i in their own inquiries s well.unplug/n's a technology illautomatically w retrieve requested the information, package fordisplay it onthe appropriate ireless w device, ndsendit to the a user. Useof the Knowledge ccess A service willrequireuseof unplugin's Wireless VirtualNetwork. Customers illbecharged the samemannerascustomers f theWireless w in o Virtual Network,butwillpay higherprices airtimereflecting additional for the services thattheyare receiving. Anticipated feesareshownin the"Revenue Sources unplugin for Services and Products"ableon page10. t Wireless Dispatch will"mobilize" pplications organizations a that useto stayin touchwith workersin the field,whichunplugin willhostat its datacenter.Targetusersof the applications include organizations transportation, in construction, utilities,ieldservice, f hospitality, andhomehealthcare. WithWireless Dispatch, userscannot onlyretrieveinformation butalsoupdateit. A field servicerepresentative, forexample,canreceive andacknowledge workordersand update records regarding statusof projects, uchas indicating onehasbeencompleted. the s that will"mobilize" enterprise-specific applications a custom on basis, ithWireless w Dispatch customers paying forthe professional services that are required. therwise, s O a withthe Knowledge ccess A services,heironlycosts t willbefor buying devices the and licensing thethird-party softwareinstalled them, andmonthly on airtimecharges. Anticipatedeesareshownin the"RevenueSources unplugin f for Services andProducts" tableon page10. unplugin Overview of unplugin Services and Products Wireless Virtual Network wireless infrastructure integratingvarious carriers and devices hosting reliable,secure connectivity sessionmanagement • consolidatedbilling • administrationtools • • • • • Knowledge Access queryingdirectoriesand other databases querying calendars,tasks and contacts browsingand searchingfile directories conversionand retrieval of files • Wireless Dispatch accessto dispatch applications Proprietary and Confidential 4 I Page9 February2001 unllliltlili The Solution: unplugin o__ it I Software Products unpluginwill license Knowledge ccess ndWireless A a Dispatch software enterpriseshat to t preferto operateit on theirownservers.t isexpected I that thesecustomers enerally g will useunplug/n's Wireless VirtualNetwork forintegration cardersanddevices, onsolidated of c billing, ndadministration, a andwillbuywireless devices fromunplugin. heymay,however, T make their own arrangementsfor these services. In either case, unplug/n's proprietary software can be used. Customers of these enterpriseversions of unplugin's solutions will pay unplugin for: • professionalservices requiredfor implementationof KnowledgeAccess and each application mobilizedwith WirelessDispatch • a one-time software license includinga base charge and an additionalamount varyingwith the number of devices authorizedto access information • annual software maintenancecontracts providingupgrades and support • • purchase of devices, when necessary, and licensing of unplugin's proprietaryclient software use of the WirelessVirtualNetworkthrough monthly bills. Proprietary and Confidential a • Page 10 February 2001 lu_phlgi_ RevenueStreams Thetable belowillustrates sources revenue unplugin's servicesandproductswith the of for the anticipatedaveragelevelsof pricing. Revenue Sourcesfor unplugin Servicesand Products one-time develop ment services one-time base server software license one-time per device server software license resaleof each device and installed software monthly airtime and thirdparty services 1 annual maintenance transcoding $10,000 $20,000 $30,000 $400 $400 $6,000 $12,000 $20,000 $50 $400 $400 $65 $75 $85 $75 25% of initial fees WirelessVirtual Network KnowledgeAccess service z Wireless Dispatch service z KnowledgeAccess software Wireless Dispatch software $18,000 $30,000 $100 $400 $85 20% of license fee 20% of license fee 1 - third-party enterprise email and World Wide Web services 2 - requires use of WirelessVirtual Network Proprietary and Confidential a • Page 11 February 2001 compolm unpluginwilldistinguish itselffromothercompanieshat provide t wireless access to enterprise information by: • the breadth its one-stop of solution • putting theemphasis the businessdvantages, on a ratherthanthe technological benefitsof its solution, articularly p thefulfillment f ordersfordevices, ustomer upport,and o c s consolidated billing an initialfocuson,andexpertise developingpplications Research Motion's in, a for in BlackBerry wirelessemailplatform. • One-stopSolution.unplugin expects offera broader rrayof serviceshananyother to a t provider f wireless o access enterprise to data.Theservices willinclude development, implementation, hosting,raining, ndcustomer ervice t a s that includes onfiguration c and deliveryof wirelessdevices aswellasongoing supportandbilling. Business Advantages.In marketing itself,unpluginwillputthe primary emphasis its on abilityto solvetheadministrativeeadaches enterprises ncountern deploying h that e i a wireless datasystem,evenwithotherthird-party service providers. Chiefamongthese difficultiesrethe company-wide a needto procure devices,eachsupportservices, nd r a process billsfromnumerous providers. Anenterprise,orexample,mightreceivebillsfrom f Research Motionforwireless in email,GoAmerica forwireless Webaccess, paging a service,multiple carriers,andproviders special pplications. of a Thesecomplexitiesreate c problemsor business f functions suchas procurement andaccountingswellas information a technology. Asa result,unplugin willprovide fulfillment f ordersfor devices, upportservices o s and consolidatedillingacross b allcarriers andotherproviders. company The willalsodirectits salesandmarketing messages managers the appropriate to of business functions wellas as seniorexecutives, including CEOs andCOOs,furtherdifferentiating itselffromcompetitors. Thisemphasis, reflecting foresightegarding r issues enterprises illbefacing,isevidentin w unplugin's allocationof $2 million its development of budgetfora highly scaleable, Enterprise Resource Planning system implementhe consolidatedilling to t b features. TheBlackBerryPlatform.Useof Research Motion's in BlackBerry ireless w emailplatform is growing rapidly, ndunplugin'smanagement a believes willbecome wireless it the deviceof choice corporate in America. owever, urrently H c there isa lackof additional applications for thisplatform, ndenterprisesncounter number obstaclesn tryingto develop a e a of i them inhouse,asdescribed Section The Market. in II, The tableonthe following pagesdescribeshemostprominent ompanies roviding t c p enterprises ithwireless w dataandidentifies howunplugin isdifferentiated fromthem. Proprietary and Confidential ,l J 0 C C ,4., :ID .m _,_' r,.' o 0 ,--_'_ m "_: _u.,=,_2 o u_°_ = o 0:_ " u ° '_ m u " .::IY ,--_ _1_ >-'_-"_ >-"_ "-'- l, _! | "r. ,4" . .. g _ "o 0,'_'_ F: ,.- .u __.>, • "_ ,1_ I"_ IE m ,._ ,._,_ o -•_ ¢" _ "- r,. _ ¢-'T_ _.--T... ._-I_= _,-,_ m_ =,--m'c_ olI._.'_ _ ,-._ m _ • ._.E_ "," u iO I_..p-._ r'_ U to._ _ ror', 0 C::q_. _ ul '= I_-_ _',= ® _ = _ =-_ ._'= g • ] 1 ,_- o_E E o c _too= 8,.. = "- _ ._>_ " •_ _o_o = c E -. _o-_ :_ooT:__.Sg _o_ _-__ _ _oo.___ o _c _-= -_-_ ._o._ =_"_,°8°° _ Q; ._ _®,-®®,-=® 0 e-- ® --- _. I_ • mc "0 " --,, _o _ ._._ _= -,- -_u_ .o 0' " _ = 0 ®_o_._'_m_ ..... _ ,, _-ab_ " U_ _,_o® _ .___ -_ o.o_ _"'m _ _ ®_o " _ .-- _ __ l_ ,- --o t-- ," .. o. "_-= _._ -'=o _- o m= e _ m_om_ _oo_ 0 1 _ _ _ _ _ _ c1 _E m m _._ o< _ _o_a _ _& _o - _ .o "_. 6 Q; 0 .I-. (n Q; ul c: ._) _. • • • • • • • Jw .&._ C _R ,,, ,__ u u_. .-. ,._, ,_ >, i -,.__ ,. -_, m _: _ _i_._o_,._ E _ _e _ E _- _ o _ _ _ l_ _ " ®'_'=- =_= _.® '-'- 8g "o-'°=,,, ,_ _ _:_ _'.._ " --_-" " _ _ z o i £ -_ "_ -'" _. ! 1 ! | Page 19 February 2001 IL, ph_iu lnageme Team In evolving from BBH Solutions, Inc., unplugin has assembledan initial management team with key industry relationships and provenrecordsof accomplishmentn i marketing, management,wirelesscommunications technology,mobilecomputing,and softwaredevelopment. Bruce Hoemecke, Chairman Brucehasmore than 12 years of experiencemanaginga successful etwork integration n firm, with sixyears in wirelessdata communications and over 15 years in the communications field. He bringsto uapluginprovenexperiencein establishingthe valuablestrategicrelationships necessaryto deliverenterprise-scalesystemsolutions. Bruceis the founder, President,and Chief ExecutiveOfficer of BBHSolutions,Inc. a 12year-old network integrationfirm providingservicesthat includeinfrastructure developmentand ongoingsupport.He foundedthe firm as a resultof the difficulties businesses were facing in implementingdata communications systems.Brucefocused on the value of long-term client relationships, hichtypicallyinvolveupgradesas well w as support. This focus has resultedin a 98% client retentionrate in a volatileindustry. BBHSolutions,Inc. has been involvedwith wirelessdata communications since1995, when it began implementingwirelessLANproducts.Today the companydesignsand implementswirelesssystemswith productsfrom companiessuchas Ciscoand Lucent and is a certified WirelessSolutionsProviderfor Researchin Hotion. Clientsfor wireless email solutionsbasedon Researchin Motion'sproductshave includedGoldmanSachs, Con Edison,and Rare Medium. Most recentlyBBHSolutions,Inc. was engagedto implementa completewirelessnetwork for AstodaFederalSavings. Brucehas a B.S. degree in ElectricalEngineering from DeVry Institute of Technology. Gary lUladeod, President and CEO Gary is responsible the overallvision,leadershipand directionof the company.He for bringsto unplugin more than 15 years of experiencein strategicplanning, business development,marketing, and financialmanagementin the softwareindustry. His expertise includesproduct planningand development,strategicalliances,and operations.With extensiveexpedenceat licensing software to vendors and users, he alsooffers excellent presentation,negotiation,and salesskills. Priorto joining unplug/n,Gary foundedand served nine years as Presidentand CEO of CourtroomTechnologies,Inc. (CTI), a developerof litigationsupport and production software and related services. Under his leadership,CTI becamethe leadingproviderof video-to-text synchronizationsoftware, gaininga 40% market share and maintainingit for the lastfour years in a highlycompetitivemarket. He assembleda results-oriented Proprietary and Confidential Page 20 February2001 operating team, licensed proprietary productionoftwaretechnology 50 vendors, nd s to a devised innovative salesandbusiness evelopment d initiatives that resulted annual in revenue growthof 35% overthe lastfiveyears. Priorto founding CI-[GarywasPresident f LegalVision o International,nc.,oneof the I nation's premiere digitalconversionnddemonstrativevidence a e services ompanies, c wherehe ledthe company'srowthfromthe development g stage.HewasalsoExecutive Director Athletes of Against rugs, hereheserved liaison D w as between organization the anditspolitical and professional supporters ndsolicited a fundingfrommajordomestic andinternational pharmaceutical companies. alsoformedstrategic He partnerships ith w TheNationalnstituteof DrugAbuse I (NIDA),The International lympic O Committee, andthethreemajorprofessional sports associations. Garyhasa B.S.degreein Business fromFranklin Pierce College. Neil_, ChiefTechnology Neil,whoisresponsible forthe overall ision, esign,anddevelopment uaplugin's v d of services andproducts, brings the company decadeof experience ithmobile to a w computing. Hefirst leda groupof mobile computer usersin performing engineering inspections 1989,andsincethenhasremained the forefrontof thefield, in at developingndemploying a automated toolsto solve realworldproblems mobile the of professionals. Hissolutions recurrently usebydoctors, urses, ocial orkers, a in n s w infrastructure inspectors, engineers, ndarchitects. a Priorto joiningunplugia, eilco-founded consulting N the firmWarshaw.]acobson roup G (nowW.]G,Inc.) andthe softwarecompany DoxPad,nc., whichdeveloped I and implemented applications focused mobile on computing. DoxPad uniquemobile The isa datacollection engine allowing rapiddeployment mobile of datacollection applications. It wassuccessfully integrated intoenterprise-scale applications developed byWJGfor the NewYorkCityBoard Education, of NewYorkCityDepartment f Health o andthe Wellness Centerof National enefit B Fund.W.]Gwasprofitable fromits inception 1996 in andhadrevenuegrowthaveraging 40% peryear. Neilisalsoa veteranleaderof large-scale technical rojects, aving p h servedasSenior ProjectManager theengineering at consulting firmParsons Brinckerhoff. WJGand At Parsons Brinckerhoff heledaward-winning initiatives suchas the $10 million Capital AssetEvaluation projector the NewYorkCityOfficeof Management Budget, nd f and a theCondition Assessment Surveyfor the NewYorkCity School onstruction uthority. C A He wasselected participate CORO's to in Leadership ewYork,a program N that identifies eliteexecutives. Neilhasa Mastersdegreein Business dministration A fromthe University Montana, of anda Hastersdegreein Architecturenda Bachelor egreein University a d Studies: Human Environments (cum laude)fromtheUniversityof Utah, Proprietary and Confidential i ! Page 21 February 2001 Lu_Ph_i_ Nichael Hoenmcke,ExeoJIm Vice President Michael rings b 10yearsof networkintegration experience theteam,andhe is to responsible forthe implementation andintegration the unplugin of infrastructure. Heis alsothe Executive icePresident V anda shareholder since1995of BBHSolutions, Inc. Michael asformedstrategic h partnerships withmanyof the industry leaders suchas Lucent ndCisco. a Michael asledlarge-scalenfrastructure h i projects, hichinclude w design and configurationf systems o utilizing equipmentromvendorssuchasCisco, orteland f N Lucent. Michael ecently r wasresponsible forthedesign andimplementation a complete of wireless LANsolution forthe Bronx Zoo.Asa result hissuccesshere,he isnow of t working theimplementationf a similar olution the NewYorkAquarium.n on o s for I addition, ichael esigned H d andimplemented wireless a solution the NewYork for Athletic Club.Healsowas responsible forthe fiberopticimplementation Corning's for newoffices NewYork. in Hichaelhasa BAfromStonyBrook University. Proprietary and Confidential ) ! Page22 February2001 uiq)lug/Iz Plan Techno jy unplugin's technology development strategy isto quickly launchbasic services, then continue development workto addfeatures andcompatibility ithadditional w wireless carriers anddevices, nplugin u willbegingenerating revenues fromtranscodingervices s immediately. The anticipated launch datesofthe initialversions the coreservices, ssuming of a financing isacquired byJanuary1, 2001, areasfollows: WirelessVirtual Network Knowledge ccess A Wireless Dispatch Harch 1, 2001 Hay 1, 2001 July1, 2001 An outsourceddata centeris nearly complete,withservers,firewalls, ndrouters a installed andbandwidth reserved. ateway G software willbeinstalled following negotiation f resellerrelationships o withadditional arriers, hichare expected be c w to completed December 000. by 2 The company hasproduced detailed a schedule andbudget or thedevelopment its f of technology infrastructure. Projected expenditures forstaff,software,hardware, consultants, maintenancere shown the tablebelow.Projected and a in time framesfor specific projects shown the tableonthe following are in page. unplugin, Inc. Startup TechnologyDevelopment Budget Breakdown by Quarter and Type of Expense Q4 2000 Staff Software Hardware Consulting Maintenance Total 97,000 35,000 20,000 50,000 7,000 209,000 Q1 200t 390,000 500,000 500,000 460,000 60,000 1,910,000 Q2 2001 390,000 440,000 170,000 440,000 60,000 1,500,000 Q3 200t 390,000 130,000 170,000 330,000 60,000 1,080,000 Q4 2001 390,000 130,000 160,000 330,000 60,000 1,070,000 Year 2001 1,560,000 1,200,000 1,000,000 1,560,000 240,000 5,560,000 Proprietary and Confidential • | Page 23 February 2001 unplug/n, Inc. Startup Technology Development: Scheduled DuraUon of Major Projects Duration (weeks) Wireless Virtual Network Email Gateway Integration with Carrier Production ERP Wireless Enterprise Integration with CarrierAdministrative CRM 1 4 8 52 16 12 26 KnowledgeAccess Administration Authentication Preferences/VFSInterface Conversion Rendering Virtual File Storage KnowledgeAccessClient 12 8 8 4 4 8 16 Wireless Dispatch Administration Transaction Processing/Proxy Authentication Preferences Conversion Wireless DispatchClient 8 12 4 4 8 12 Proprietary and Confidential Page24 February2001 operations DataCenter.unpluginwill operatea datacenterto hostitsproductionnd a administrativeystems, longwithconnections wireless s a to carders andsource dataat enterprise customersndthird-party a information providers. In orderto control nitialcapitalinvestments, i bringits serviceso marketquickly, nd t a focusresources n development its coretechnology, o of unplugin hasdeveloped data its centerat Globix Corp.Fora monthly fee, Globix's NewYorkCityfacilitywillprovide the company witha high-security nvironment unplugin'servers,touters,and e for s gateways, longwithredundancyndan uninterruptible a a powersupply, nplugin u staff members willmonitorhe datacenter24 hoursa day,sevendaysa week. t CustomerService.unplugin's Customer ervice S organization illprovide w several capabilitiesriticalo the company's trategy providing one-stop c t s of a solution the to business roblemshat enterprises p t face in implementing ireless w datasystems. hey T include: • fulfilling ordersfor wireless devices end-users confirming for authorization, loading devices withthe propersoftware, onfiguring c thesoftware foran end-user's preferences, activating andtestingthe units,andpackagingndshipping a them • • • handling repairandwarrantyissues devices for responding inquiries to aboutthe devices, arrierservices, c andothercomponents fthe o wireless infrastructure billing customers and responding inquiries boutbills. to a t4a_ and Sales unplugin's initialtargetcustomers willinclude clientsof its affiliated company, BBH Solutions, Inc., starting witha groupthatrepresents significant a installed baseof BlackBerry devices. therstrongleadshavebeenacquired O through management contacts. Harketingwill target enterpriseswith a significantbaseof mobile employees, business partners,orcustomers, withan emphasis industries whichWireless on in Dispatch is likelyto be used- transportation, construction, utilities, ieldservice,hospitality, nd f a homehealthcare. marketing The initiatives illinclude w appearancest conferencesnd a a tradeshows. ublic P relations andadvertising willbe focused tradepublications. on Saleswillbegenerated throughtelemarketingnda directsalesforce.The salescycle a willvarybythe sizeof the prospectiveustomer ndthe scope c a andcomplexity the of service services be provided, lthough isanticipated it willaverageabout60 or to a it that days. Proprietary and Confidential i I Page 25 February 2001 lullJll_gilz Rnandng Sought unplugin isseeking equityinvestment $10 million. heusesof the fundsare an of T shownin thetablebelow. Management anticipateseeking additional s an roundof financing bythe middle 2001. of UWs of' Investment FUnds Tech/R&D - operating budget Tech/R&D - capital expenditures Data Center/CustomerSupport- operating budget Data Center- capital expenditures Salesand Harketing Facilities- operating and capital improvements Recruiting WorkingCapital $ 2,400,000 1,600,000 800,000 1,000,000 1,900,000 1,300,000 600,000 400,000 10,000,000 $ Proprietary and Confidential .i i IF • "o •-- v- O. T- v- tl. o_ 4 | " • C_