CORPORATE PROFILE


INTRODUCTION

Internet Resources Corporation was founded in 1990 with the acquisition of staff from a 10 year old integrator that specialized in Unix applications and database systems. This group provides the capabilities to offer mission critical application consulting, design and development services in the PC LAN/WAN marketplace.

Internet provides consultants with in-depth experience in a variety of today's major new LAN technologies. Among these are:

PRODUCTS

Professional Staff Internet distinguishes itself as a provider of professional computer consulting services through its unique mix of client management, project management and staff training through early access to new technologies. Professional services are provided on an hourly or monthly billing basis. Employees are incented to maintain their competitive value by tying their compensation directly to their collected billings. This practice has several significant benefits for the staff, the company and the customer.

  1. The caliber of the staff is maintained at optimum levels. Only the best qualified professionals can keep up the pace with today's technology which is required to keep higher billing rates. (The average Internet Consultant has over ten years of industry experience.) Additionally only those that are extremely confident in their abilities will even chance their livelihood to this type of compensation.. This confidence is essential for a high level consultant to be effective the multitude of clients and industries which we service.

  2. The company's payroll expense is directly tied to the revenues received. This minimizes cash flow strains due to late client payments or other collections problems. Additionally, the company's collection efforts are simplified because the client has been constantly updated on costs for professional services and generally want to make sure that the Internet consultants working for them are personally satisfied. Further, a good job by the consultant with high customer satisfaction makes it easier to maintain and increase either the billing rate or the billable time.

  3. Since the employee is keenly aware that their personal pay is impacted by the customer's payment for services, the customer receives realistic estimates with which to plan, and the employee self-monitors any potential problems prior to the expenditure of professional efforts. This built-in project management increases customer satisfaction and decreases write-offs due to misunderstandings.
The staff is further incented to consistently review and appropriately use newer tools and technologies that will better help our clients implement their applications. Through its long standing in the Client-Server marketplace, Internet is constantly asked to help Alpha or Beta test new products directed at this market. The company funds the training often required to qualify for these early product evaluations. As new client requirements present themselves these technologies are incorporated where it makes sense, and after Internet has detailed understanding of the new product's capabilities. This practice has two major benefits:

A side benefit to this practice is that the vendors of these products are often themselves strapped for resources to support them. They therefore are generally happy to be able to direct a prospect towards Internet, whom they know to be highly professional - it helps them make the sale.

RESALE PRODUCTS

Less than 20% of Internet's revenues are derived from resale of third party products. This policy has been maintained primarily to minimize the cash flow strain required to support less profitable sales. Internet does not resell any commodity items such as PCs, printers or other products of that type. However, specialty products such as development tools, database managers, cross platform interfaces and management tools, that are not available through general distribution have been resold. The added benefit to this kind of sale is that the client gets to see Internet's expertise during the installation and training associated with the product, and often this promotes the sale of additional services.

CLIENT BASE

The Internet client base is centered around the New York Metropolitan Area but stretches from Boston to Washington, DC.. It includes small to medium sized organizations but has been moving almost exclusively toward large corporations over the last two years. These clients represent a broad cross section of industries and the applications Internet has installed range from standard accounting systems to satellite transmission control systems. The common thread across the client base is that they needed to integrate a relational database across multiple computer environments. These clients, include:

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BRIEF FINANCIALS

1992 1993 (Projected) 1994 (Projected)

Sales $890K $1000K $1500K

Assets >$170K >$250K >$450K

Liabilities <$30K $50K $150K

Current Ratio 4.6 3 4

FUTURE PLANS

With its client base spreading, Internet has determined that additional facilities will be required to maintain the appropriate levels of response. Internet will open new facilities in Westchester County by the fourth quarter of 1993 and will probably add an office in Central New Jersey by mid 1994. A distinction about of these facilities is that they will also serve as Hubs to The Internet network. This has not been cost effective in our current facilities, and New York City is already well served by other providers to the Internet. However, neither of the planned new locations have good alternatives for general corporate or personal access to the Internet.

Further out, Internet will consider offices in Boston and other locations, as the client population and cost structures dictate. New products and technologies are a continuing focus of research and development efforts. As these indicate potential value for Internet clients, and leverage the technical expertise of its staff, they will be incorporated into future marketing efforts.

INTERNET RESOURCES CORPORATION

1120 Avenue of the Americas, 4th Floor, NY 10036

212 626-6886 FAX 212 626-6887