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_I i i |i Confidential Vizible BUSINESS The Information Software PT.AN First
June
Memorandum Inc.
SUPPLEMENT 9 Months
I I I I I I I I I I
(
2000
1
A
CASE
IN
POINT
......................................................................... 4
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2
a) b)
History BACKGROUND The New
....................................................................................................... 6 ............................................................................... 6 Paradigm
.......................................................................................... 6
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3
VI ZIBLEWORLDS
........................................................................... 8
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4
COMPETITION
............................................................................. 13
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,
5
a)
MANAGEMENT
Founding
...............................................................................................
Partners
........................................................................................ 1414
r
6
CONCLUSION
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Executive Summary
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Almost all of use a graphical two-dimensional (popularized in the early the The 1960s. computer
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the 269 million PCs installed worldwide user interface (GUI) based on a linear "desktop" paradigm. This technology "Windows" by Apple, and then Microsoft as 80s) was developed by Xerox scientists in
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world
has
changed
radically
since
then.
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In particular, with the the digital advent of the the complexity of universe immensely compounding the limitations non-linear environment with using menu-driven, text-based a "Windows" navigation
worldwide web, has increased of "surfing" a type tools. browser
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Vizible Software Spatial Inc. Memory developing is solutionsgraphics that leverage Human and real-time 3D technologies to enhance the use of personal computers Ii and PC-like "metabrowser", beta will Ii phase devices. "VizibleWorlds",Our first currently product nearing is thea
of development. This new user interface use computer make easier and far more engaging for the average consumer and as an "Interactive Program Guide" for television, streamline the convergence of TV, wireless technologies and all PC-like devices.
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Technical advances in 3D graphics patent-pending technology have development of VizibleWorlds as a that overcomes many Windows paradigm. of
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processing and our resulted in the platform technology in the inherent the frustrations Machines such as the Sony of to
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Playstation processing 2, with 20 million polygons a per graphics capability and price second tag $300US underscore the fact that the time is ripe commercialize a Vizible's unique becoming the of television, We believe
as
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radically improved user technology will enable truly cross-platform internet and wireless effect of our product
interface. the convergence interface. communications will be as was
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first the the
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profound when it
was
Netscape's browser first introduced.
Mosaic/Navigator)
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1
A
Case
in
Point
(Taken from"The Business of Ecommerce, From Strategy to Technology", by Paul May, Part of The Cambridge University I, Press/SIGS Books "Breakthroughs in Application Development Series", Published 2000)
"The l
convergence
of
television
and
computing
has
long fact in as
shared seemed technology to components. natural those who see But apartinevitability an from the that computers and televisions both use screens output between the devices, the two of a little classes computer natural of machine. common To and a modern
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ground the extent exists that TV set are both and for
screen
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commonly remotes,
accompanied by input devices, each machine at least has
such as mice the potential
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input directly interactivity. providing the
through the cable accept therefore Digital cable delivery systems can user technology necessary to enable standards, real issues but in about applications interactive TV are
f
not about technologyThe interactive TV and context of use.
•
An electronic program guide, which browse the various content channels channels selection, grows is publication. Television context, passively rather distance beyond the an obvious reasonable necessity
allows the user to on offer and make a scope the number of a printedof when
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is consumed largely in a group social usually families. TV is absorbed rather and often provides a background to home life at a sit attention. than a focus of People from the television and interact with it by it as "zapper".individuals.don't They use is users in fact exactly get up close to to the that
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TV and squeezingconsume the This model of
opposite
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of the PC. PC which performs controlling its from options interpreting
sit a foot or so from the screen, for them alone. They are used to behaviour at a detailed level, choosing between design applications of web sites and and
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that change the navigation
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software packages. These two types of back" and "lean in"
behaviour have respectively. of
been labeled Entertainment,
"lean mass deemed self-
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communications and low levels to go with lean back contexts.
complexity are Decision-making,
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-_'
direction, mode. In the
and
inquiry
are
associated
with
the
lean
in
eCommerce
context
the
desire
is
to
reach
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consumers through a operate medium,... TV. decision who controls and collision
ubiquitous, Yet we also
familiar, want the
easy to individual is a that which
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to make the purchase a valid decision transaction. to TV-type and PC-Type
complete There
between
behaviours
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is not Because
easy to reconcile. TV seems to fall
down
as
an
eCommerce
mechanism
i
at the moment upscaling the become more _ allowing broadcast niche
of truth, the Web. businesses As have on role of such concentratedshould the web and more a TV-like delivery channel,
companies combined to sell with products usingknowledge strategies about of media refined The excitement about PUSH technologies
groups.
r
and methods rather than is intimately i being in a the The
for streaming tailored content to users, requiring them to seek it out on Websites connected with this hope. The problem their tend to computers that PC users do not use TV-like manner. Microsoft's WebTV aims to bring to the TV. for an effective television lag. the and and main
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Web model evidence directly lack of of
user Web The
response formats
to may for home of
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the convergence simple be due interactive TV shopping is identifying maker in the Overlaying interactive existence and home
to cultural to become huge
potential means of the problem
clearly
suggests
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activating the is the key."
purchasing
decision-
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the future of knowledge of the personal proxy in application that blends both media seamlessly an experientially consistent and engaging manner bridging the chasm between the two media will change the debate to questions of when from how. both the while user. lean-back and lean-in
the and current Web debate on TV the with the a thin client-enabled
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VizibleWorlds supports contexts simultaneously under the control of
remaining completely VizibleWorlds is an configuring culturally
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neutral that absolutely technology intuitive,
wecross-platform, are currently
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I for use Programming and WebTV by Guide, Roger Interface. Cable Internet Systems an Browser, as Video Interactive on Demand l This product in mid-June is being sponsored readied for by Rogers focus group testing as part of their our technology for
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overall testing of the use withinfeasibilityproduct their offerings.
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2 Background The Current
Paradigm
(The
Graphical
User
Interface)
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a) History As late computers as Microsoft's the early through MS-DOS TM 1990s, a interacted text-based user interfaces operating system or any order to interfaces that user. provide often were with such of the most as many
variations functionality, of cryptic commands to the
UNIX. text-based In and
complete contained far from
options
tj
intuitive
non-experienced
t
Most current computer systems use graphical user interface (GUI) to manipulate content. These GUIs entities, "windows", main advantage of to GUIs view over
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a two-dimensional allow the user to create graphical The individual documents. text-based interfaces is opened available within for it is possible an use to
t
that several and documents application several at any one time. In associate with an along revolutionized
may be applications addition,
t
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t I
application introduction with an icon.of the how people used computers
This the paradigm, mouse, in mid 1980s.
b) The The
New
Paradigm User Interface memories the and of places, objects and their their and
Spatial
Images, shadows sounds
colour,
in context, overlapping
shapes of in all capacity to imprecise,
words and combinations
t
permutations quantities
the of have qualitative,
convey immense yet potentially
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,
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i high quality, information. imprecise; i information content. compelling Qualitative however, far it faster and can than at times content convey very is large entertaining inherently amounts discursive of text-based
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Vizible's innovative
new desktop web-centric
paradigm is virtual machine paradigm and User Interface
based that
on an leverages
both the 2D memory within
windows based a 3D Spatial
human spatial (SUI). This 3D computer file formats, publishing and
new paradigm combines edge, graphics with all existing cutting applications, legacy content, distribution protocols, browsing Configured technologies. as a web
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browser,
the
technology
becomes
a
system. self-organizing, compact Its self-maintaining make personal footprint it available information to the user both online and offline. In conjunction with a Ij Palm Pilot and or portable VizibleWorlds cross-platform consistent interaction platforms. other device, readily similar evocable. product will evolve providing the end content a VizibleWorld is In essence, our into a personal a familiar and user in their on all hardware
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User Interface experience for with all digital
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will I As the become devices improves, This I use more of computers grows, wide-spread and begin willPC.expand a As internet usage to be accessed wireless in their with
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inthese addition devicesto
usage. technology
growth, both in usage and in the devices that are on access used to content the internet and all other networks, will require an intuitive and familiar user interface flexible enough to operate across all platforms Our and content. Spatial User Interface, will be the
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VizibleWorlds,
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key for which
common link for computer accessing the internet this access is
users, their devices used and the various means by
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accomplished.
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Merrill Lynch, in a recent the four key elements communications/media company as follows: (i) Design usable mobile
research essential today.
report, to a They are
outlined start-up outlined
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a
common
context/communications device (PC, TV,
interface hand-held
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on any telephone); hardware unit,
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(ii) (iii)
on any it so consumers platform with Brand Ensure it is
any device; feel comfortable through and all
using types wireless,
it of
available
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interactive cable, DSL,
distribution satellite);
(dial-up,
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(iv)
Ensure it all (communications, provides interactive video, audio). could be developed that the
types of content,
content print,
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Vizible.com We have
communication/media missing link will company allow for to succeed.
in just
company. today's such a
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technology. VizibleWorlds new communications/media
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3
VizibleWorlds
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User to as the core Vizible Interface intends to the offermarket the VizibleWorlds, Technology in a broad range of consumer and
Platform Spatial business
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applications. Along with software, proprietary Vizible packaged and business application will consumer license the core technology for use by third-party developers 'and manufacturers legacy systems. to extend the functionality of their
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Initially, metabrowser market. At
Vizible offer version ofwill the technology the to VizibleWorlds the consumer 500k, its relative compactness and ease of orforas distribution a download over within thea
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use make it ideally suited internet either via email thin client environment. The VizibleWorlds functionality of with existing freely 2D distributed metabrowser the core
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will platform
contain the technology It public
basic along
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browser technology.the as "Pitchware" to
will be through
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a viral be to email marketing to campaign. copies their friendsUsers and will associates encouraged as they see fit. The free version will contain imbedded advertising the consumer links for to pay a sponsors small fee for
our an option with for an advertising-free
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upgrade. Nominally functionality will www.vizible.com. Concurrent with the will release the under thereby party limited allowing plug-ins
priced upgrades extending the core be available from time to time at
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release of "VizibleWorlds", "VizibleWorlds Developer's
Vizible Suite"
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VizibleWorld. for the applications Spatial User
license to third-party developers, for the development and sale of third extending the functionality of a Developer's provide The Suite API will modification of proprietary third-party to take advantage of the VizibleWorld's Interface.
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Commercial will versions of VizibleWorlds, as outlined below, include e-commerce functionality, third party advertising and proprietary applications and content. thereby defined Push technologyour is customers enabled permitting demographic segments of by servingtechnology, the clearly the population to efforts custom and to sell corporate
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precisely target their marketing advertising space on their VizibleWorlds. Vizible has focused on Broadcast
Television Services adoption toward below
and
WebTV,
Wireless Financial Estate asCommunications, targets initial for technology. We are currently working contracts four areas. with major companies
and Real of our concluding in these
listed
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Rogers Communications www.rogersl.com
Inc.
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Rogers Communications is satellite communications,
a
diversified cable, internet and media
wireless, company.
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Their Wireless, corporate umbrella Video, includes Roger@home, Rogers AT&T Rogers Excite.ca, The Shopping Channel and corporate alliances with among others
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Microsofts preliminary reconfigured
WebTV. version beta to run
Weof are our as a
currently VizibleWorlds 3D Channel and
testing product a Changer, Demand both access of the
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Interactive Program (VOD) interface. interactive broadcast
Guide, WebTV This product programming We in
Video on will offer and internet
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to the television viewer. focus group demonstrations
expect to run a series mid-June to ascertain the TV environment. involve providing
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effectiveness of the product in A deal with Rogers would Enterprise services Software royalties million* Solution, relative development on cable
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consulting VizibleWorlds and content creation to our product. fees, consulting fees and monthly the will software to their 5 be negotiated along
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licenses of subscribers
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VizibleWorlds. with royalties brand exposure Also, opportunities Rogers
Vizible will look to on third-party to Rogers advertising providein and marketing as part of any deal. in the investment
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in are Vizible. interested
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*Currently, customers Rogers of is Videotron attempting in to merge withthe their 1.5 million Quebec subscriber base of 3.5 million in the rest of eastern Canada. Ericsson Communications com
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www. ericsson,
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deployment is ofthewireless Ericsson market leader communicationsthe in We are in the early feasibility stages developmental enable the and future
development infrastructure. and to clarify the
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requirements of many our of technology to convergence of core Ericsson's current products. The opportunity available to market alone is market in 2001 of Bluetooth enabled will Vizible open up an in 2001. the to
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Vizible relative to the cell phone staggering. The introduction to the 3G based technologies utilizing a WAP-compliant annual market A contract licensing version of our interface of 150,000,000 units to with the Ericsson would core technology
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of
most likely be allowing Ericsson
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develop independently proprietary it technologies. licenses, consulting fees and an investment Vizible. Algorithmics interest options
for Royalties integration on into blocks their of relative to interface design part in exploring major opportunity for
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on Ericssons represent a
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Inc.
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www.algorithmics.com Algorithmics is the Management software. of the largest Vizible is working
world
leader
in
Financial
Risk
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Their clients are financial institutions representative worldwide. with Algorithmics to develop their
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next generation user interface. Their Mark-to-Future (www.mark-to-future.com) initiative will feature a variant of our platform technology that allows for the intuitive complex visualization data sets in and navigation a non-linear of massive real-time 3D
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and broad of technology through ours. environment. acceptance Algorithmics their envisions the mass marketing Their target market is mid to high net-worth consumers. We are contract ongoing royalties.
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currently finalizing with Algorithmics development fees,
a software which will consulting
development provide for income and
Brookfield
Commercial
Properties
Ltd.
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landlords Brookfield Economy" centric fortune broad
and one of soon will itself a "New is North transform Americas largest into commercial juggernaut as it rolls out a suite of web-
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services to captive world a 500 companies. its Brookfield market plans of tothe offer spectrum of real-estate services through high
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speed infrastructure available many tenants. Vizible hopes services within a customized on be
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in its properties to its to aggregate all of these enterprise solution based tenants would our platform technology. Brookfield's able to access the internet, take advantage of ASP, building services browser. through centric a customized procurement, Each seat provided by
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and ISP, property content management creation, version of our internet
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I Brookfield part their tenantsas would are I also planning to of be thefr license base one similar to building sold by technology and services Vizible. in to We offer a nonOxford exclusive Properties CB arrangement among others. TrizecHahn
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Richard Ellis www.cbrichardellis.com is the largest Commercial the world. With offices Real around Estate Brokerage the world and firm I0,000
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CB in
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professionals, currently it currently trades augmentation on the NYSE. a Vizible is negotiating the of fruitful relationship with CB Richard Ellis that will see the continued provision of content services combined with the development of Enterprise Solution Software based on our VizibleWorlds browser. Similar to the itself Brookfield beyond the opportunity, shackles of CBRE is poised the old world to launch economy as
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diverse it aggregates portfolio within technologySpatial of our investments User estate world. CB Richard Ellis sees our
Interface reala in the technology as
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the ideal vehicle to client/corporatecore relationships absolutely deliver central new to their business. The ability to leverage their professionals' relationships within the context of the environment of the internet, beyond being marketing will differentiate their services the delivery leasing, procurement expertise. VizibleWorlds of a multitude of Real management, insurance, new economy tremendous, by enabling
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Estate investment, finance, and
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servicessimple The strengthening and intuitive their nature brokerage core of the interface make it ideal for the daily use many of whom a less than
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of their technologically clientele, adept.
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Our pending version of and a
deal is on VizibleWorldsbased for Solution
providing in-house tailored eCommerce ongoing
a customized communications to work in
Enterprise
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conjunction with their other Vizible will also be providing to provide eCommerce
initiatives. consulting on continue
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issues content related services to in the near VizibleWorlds term. and
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Magna Vizible
International has become involved with MI through the
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provision Associates interest
of services in Architects in developing an
and Toronto. technology MI has a customized
to Graham indicated an version of at
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VizibleWorlds initially
and providing
Enterprise Solution aimed inter-corporate communications
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development, relative worldwide construction,their maintenancevolumeand ofmanagement to large facility requirements. The project would be expanded at a later date to the interface managementtheir and corporate for procurement become and subcontractor bidding requirements. VizibleWorlds also offers Magna the to their vast online. ability manage product catalogue
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4
Competition
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recognized There are the a have attempted
limitations few examples to create
of of the companies Windows paradigm and that have solutions that facilitate and Web. Perhaps the is Microsoft's Task on their site at
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interaction the best, however with flawed, Gallery, which can
computer example be viewed
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www.research.microsoft.com/ui/taskgallery/. Other examples of metabrowsers developed specifically recently
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to view reviewed
the Web in an easier fashion were in the May 18 Wall Street Journal:
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QuickBrowse
(www.quickbrowse.com)
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OnePage Octopus DoDots attempt Each easier, but cannot be
(www.onepage.com) (www.octopus.com) (www.dodots.com)
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many pages to make viewing Web Content on all have faults with their design and upon in a significant way.
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improved
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5
Management
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a) Founding
Partners
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Chairman of the Board Dr. non Dembo, Ph.D. is a mathematician and the leading thinker on risk theory and is a founding partner of Dembo for ten at Yale Vizible Inc. Dr. taught years and was a consultant for Goldman Sachs. He is the Incorporated, founder, innovative a president leading and developer CEO financial risk management vendor of and Algorithmics of software used by
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many of world'sAlgorithmics leading Based in the Toronto, the world, including offices Paris, Mexico Johannesburg. Dr. City, Rio de
financial institutions. has 14 offices around in London, New York, Janeiro, Tokyo and
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Dembo economists,
recognized is mathematicians,
by around the world leading bankers and businessmen as Dr. the of
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tools available authority its on analysis its management for and mitigation. and the ultimate Risk, Dembo brings a wealth of experience to the post Chairman where his to planning to the Board. role Dr. isDembo his duties as President and CEO of providing marketing critical insightoperations into and the ongoing
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provide strategic will continue with Algorithmics while product development at Vizible.
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Chief
Executive
Officer
(Interim)
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Colin Chief ExecutiveHe Partner Graham, the company. with in the architectural field
Officer, is has extensive of design, clients Inc., for 12
aexperience founding utilizing of his own in Toronto. years and
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computer applications for commercial firm, Graham Associates Architects Graham Associates has operated continues services dimensional expertise to operate in to clients in
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2000, providing architectural utilizing advanced threetechnologies. environments provides Their
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computer-generated visualization
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Graham clients products
Associates with a virtual 3-D during and at
the ability to computer rendering demonstrate of designedto completion of the design stage. in Mr.
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Mr. Graham 1984 with
graduated from the University of Waterloo a bachelor's degree in Architecture.
Graham
is
employed & Chief
by
the
Company
on
a
full-time
basis.
President l
Design
Officer Chief company
Anthony Gallo, BESArch, BArch, President, Development Officer and founding partner of the since its inception Principal of Graham is responsible for and design University
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in May of 1999. Mr. Gallo is a Associates Architects Inc. where he the ongoing development of design Mr. Gallo graduated in Waterloo, Ontario from in the 1996
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management. of Waterloo
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with producing cutting-edge an award-winning computer thesis technology. combinedPrior which design to graduation, Mr. Gallo worked with the world-renowned
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architectural design where firm Renzo developed Building Piano Workshop in Genoa, Italy, he an extensive knowledge of computer technology as it relates to design. Using these abilities, Mr. Gallo was develop Vizible's design methodology and the and design for its patent-pending technologies. Gallo is employed by the company on a full-time able to concept Mr. basis.
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Chief John
Operating
Officer MBA, Chief Operating Officer.
Sullivan
B.Eng.,
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Mr. Sullivan joined Vizible in July of 1999 as a corporate advisor and was named Chief Operating Officer in March 2000. Mr. Sullivan is currently Senior Vice President Corporation of for Development which he for Cadillac oversees the of Mr. Inc., Fairview ongoing
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development joining projects Cadillac opportunities and Prior to Fairview, Senior Vice President for Gentra continued controlling Properties Concordia University when he was shareholder Corporation. Mr. University with in a transferred Brookfield Sullivan in
the company. Sullivan was a role he
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by Gentra' s Real Estate graduated from from in McGill Civil
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Montreal bachelor' s
1983 degree
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Engineering Business Marketing. development projects Levesque office
and in Administration 1985 Since 1985 and has the recent in downtown
with Masters Finance Degree in majoring a in and he has pursued real estate for among on Blvd. the last other Rene major
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been responsible IBM Tower project Montreal one of in Canada.
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developments
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Executive Peter Senst,
Vice
President Vice President. Mr. Senst
Executive
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joined Vizible in July of 1999 as a corporate advisor and supervises the company's sales to its largest corporate customers, including; Oxford Development Corporation, Olympic Capital, OMERS, GWL Senst is currently Richard Ellis. and York Property Corp., Realty Advisors Inc., etc. Executive Vice President of GE Mr. CB
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Other
Stakeholders
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Advisory Merritt
Lutz, Board Managing Member
and Shareholder director Morgan
Stanley
& Co.,
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Arthur Torys,
Anderson Legal
Consulting, and
Auditors Shareholder
and
Shareholder
Council Inc.,
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Bruce Mau Shareholder
Design
Marketing,
Communications
and
6 Conclusion Vizible is currently
seeking
initial
capital
funding
in
the amount US$3.5 products million. and This will develop our of initial generate the next 9 months. We expect to secure a of financing "A" outlines used. of the in the budgets Fall/Winter for which
allow to revenue usover second round Appendixbe will
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of these2000. funds
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i I Appendix "A"
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