Hotticker.com Initiation of Coverage Corporate Profile Multinet International Corp., Inc. (OTC BB: MNIL) *************************************************************** Multinet International Corp., Inc. dba Showintel Networks, Inc. Executive Summary Address: 574 Greentree Cove, Suite 101, Collierville TN 38017 Exec. Contact: David Lott, President, Kelly Lefkowitz, Acting CF Industry: Entertainment Advertising, Video-On Demand, Database Marketing Business Overview Showintel Networks, Inc. (�Showintel�) increases consumption of entertainment by creating a system that interacts with the �entertainment life-cycle.� Combining theater-based advertising, innovative loyalty programs, and video-on-demand (VOD) access to pay-per-view (PPV) and subscription services, ShowEnTel can increase loyalty and revenue to a chain of theaters, increase purchases of ancillary products (soundtracks, DVDs, videos, merchandise), and create a pinpoint targeted direct marketing connection with entertainment consumers to stimulate rentals and PPV. In addition, some of the infrastructure investment can generate incremental revenue through strategic relationships with local ISP and wireless network operators. In-theater advertising: Showintel is placing interactive displays in theaters that will offer advertising and coming attractions that theater patron can watch passively or interactively. We have an exclusive agreement with See/Saw Communications, Inc. See/Saw was created in part by the principals of Toolbox Productions Inc., to sell the advertising space on our displays. Toolbox is a full service company, uniquely qualified to sell, produce, write, edit and mix audio/video promotional campaigns and sales presentations. Toolbox was founded in 1995 as the exclusive on-air promotion facility for the United Paramount Network (UPN). Clients include MGM, ABC, Sony, Paramount and Studios USA. Loyalty Program: As a reward for interacting with the advertising displays, theater patrons will be offered the opportunity the sign up for a loyalty program that offers them discounts on future tickets as well as discounted or free offers from sponsors of the loyalty program. E-mail Marketing: Once a part of the loyalty program, Showintel will collect data on the movies seen. This will allow us to market merchandise directly related to the films seen as well as creating offers for entertainment of a similar genre. VOD Infrastructure: As entertainment properties continue along the entertainment lifecycle, Showintel will offer PPV and subscription services to the residential and hospitality markets. Wireless Infrastructure: Showintel has a relationship with Truespeed Wireless, Inc. a provider of 802.11b wireless systems that provide subscribers with 11Mb of bandwidth. Since Showintel requires high bandwidth to provide this system, it will be cost effective to erect wireless towers rather than pay for dedicated bandwidth. The extra capacity can be used by Truespeed or offered to local operators to resell. Showintel is currently in negotiations with Truespeed regarding Showintel receiving a portion of those subscriber fees. Information: Once Showintel knows which films a theater patron has seen, we will create online conversations with them designed to obtain feedback on the shows they have seen. This will be valuable to film producers and advertisers. It will give us an advantage in targeting future entertainment opportunities to the consumer. The Showintel Advantage: The Entertainment Lifecycle Unlike any other system available, Showintel gets involved with the entire entertainment lifecycle. Over the first year, viewers can choose to pay a premium to see a show early in the lifecycle or wait to save money. This may be from buying a soundtrack, renting the video, or watching it on broadcast TV. Normally, each stage of the cycle centers around independent contact and interaction. With a combination of in-theater contact and an on-line VOD system, Showintel will have the opportunity to profit from several of the following lifecycle stages rather than just one. Table has been deleted from the email and may be viewed from the hotticker.com profile on Multinet International Corp. at http://hotticker.com/mnil.asp Benefits to Customer Groups Showintel has multiple customer groups. Theater owners benefit from in-theater displays and loyalty programs. Entertainment consumers benefit from loyalty programs and Showintel�s life-cycle approach to entertainment. Entertainment producers get better feedback and additional sales opportunities. Advertisers and sponsors receive sales and branding opportunities. Table has been deleted from the email and may be viewed from the hotticker.com profile on Multinet International Corp. at http://hotticker.com/mnil.asp Market Opportunity The foundation of Showintel market expansion is derived from three primary factors: Growth of VOD/PPV Market. The VOD market alone is expected to grow from its current annual size of $30 million to $2.6 Billion in 2005. Analysts predict there will be as many as 44.4 million homes using VOD by 2010, making the market worth anywhere from $2 billion to $6 billion a year. Video over DSL will have 23 million subscribers by 2005. The combined market revenue potential for Internet and video-on-demand to be $28 billion through to 2004. Increased Penetration into Theater Chains. As of the end of 1999, there were 36,448 theater screens housed in 7,031 sites. Independent theaters/chains account for 2800 sites. Better Information to Interact with Entertainment Consumers. Research shows that the average theater viewer will interact with the same piece of entertainment an additional 2.1 times. Knowing which films they have seen will allow us to target offers to them based on. Growth of Location-based (Kiosk) Advertising. Dubbed �the vending machine of the Internet Age�, location based displays are growing at a 20% compounded annual rate. Revenues of $3.23 trillion are expected by 2006. Up from 400,000 units today, there should be 1 million units by 2005, a 150% increase. The interactive display market is growing at a slightly faster (24% compounded annual) rate. Competition Movie Theater Advertising NCN: National Cinema Network was the first to introduce media and promotions in movie theatres. NCN has onscreen presence in 10,000 theaters, however their reach in in-theater displays is much smaller. They are partially owned by AMC. Showintel Advantage over other Theater-based Advertisers � We offer continuing contact focusing on the entertainment lifecycle whereas they focus only on in-theater. We also offer a comprehensive loyalty program Residential VOD Moviefly: Moviefly is a venture formed in August 2001 by MGM, Sony, Paramount, Universal and Warner Bros. to distribute movies on demand over the Web. Moviefly hopes to launch with 100 titles and will need at least 1 million customers to make a profit. Moviefly isn't using streaming video. Instead, it will require viewers to download movies in their entirety before watching. Movies.com: Walt Disney Co. and News Corp. are launching Movies.com, which will also be offered through cable television companies will offer movies for download and viewing on personal computers. New movies and older titles will be offered from Disney�s News Corp.'s film libraries. Disney and Fox will offer new feature films soon after they are available for rental and before they are shown on traditional pay-per-view services. The other studios, including Sony Pictures Entertainment, Universal Studios, Paramount Pictures, Metro-Goldwyn-Mayer and Warner Bros., will provide their films to their video-on-demand service on a non-exclusive basis. In Demand: iN DEMAND delivers television premieres of movies, the NBA, NHL�, ESPN� FULL COURTtm college basketball, plus championship boxing, mega-event wrestling and exclusive originals.Universal and Columbia, have announced separate deals to provide films to In Demand. Comcast, Time Warner Entertainment, Cox Communications Holdings Inc., MediaOne of Delaware Inc. and TCI Communications Inc. (an AT&T subsidiary) hold stakes in iNDEMAND, which provides pay-per-view movies and events to multichannel video programming distributors Intertainer: Delivery: Delivered to home computers and televisions through high-speed telephone (DSL) or cable connections (cable modems or digital set-top boxes). Investors: Comcast, Intel, Microsoft, NBC, Sony and Qwest Distribution: Service has completed technical and consumer trials. Commercial deployments currently in progress. Pricing: Intertainer has multiple pricing options including pay-per-view selections, and premium program package offers. Programming: Current movies and film favorites, television shows, concerts, music videos, children's programming, documentaries, enhanced TV programs and shopping. Content Providers: Include Universal Pictures, Warner Bros., Dreamworks SKG, Twentieth Century Fox, New Line Cinema, A&E Networks, Discovery Channel, ESPN, PBS, NBC, Warner Music Group, EMI Music and many others. Showintel Advantage over other Residential VOD Systems � We already have knowledge of the shows seen by subscribers before they are released to VOD systems. This allows us to target our online promotions to a group of ready, willing, and interested buyers. Hospitality VOD On Command: On Command Corporation annually serves 250 million guests through 950,000 rooms in approximately 3,450 hotel properties. (NASDAQ: ONCO) Lodgenet: LodgeNet covers 5,300 lodging properties, representing 870,000 hotel rooms. (NASDAQ: LNET) Showintel Advantage over other Hospitality VOD Systems � we offerfaster speed connections and a larger library. Sales and Marketing Strategy Aggressive direct-sales effort. Our immediate goal is the sign-up and integration of 9.7% of the theater plants in the US (24.4% of the independent theaters), expanding internationally by 2004. Low-barrier network entry Showintel is eliminating all barriers to sign-up by initially offering low-cost integration to theater owners. This is a virtual 'land-grab' strategy that will place ShowEnTel in a dominant market position. Back-end attack on competition. To avoid the rush for e-merchant sign-up, Showintel will concentrate on and integrate with the �back-end' becoming the network for bulk-mover warehouses in the e-marketplace. Strategic partnering. Showintel will partner with merchandise fulfillment companies to facilitate e-commerce, with local ISPs to market excess bandwidth capacity on our wireless connections, and with Viral market penetration. By integrating points of aggregation, Showintel offers trading partners the most efficient, logical and convenient integration method and easy-to-use, intelligent transaction fulfillment. Revenue Revenues are derived from in-theater advertising, loyalty program sponsorship, hospitality VOD PPV payments, residential VOD PPV and subscription payments, merchandise sales, research report sales, and resale of excess capacity on our wireless equipment to local internet service providers. Status Showintel has recently completed a reverse merger into a public shell (NASDAQ Symbol: MNIL.OB). We are live with our first customer, Malco Theaters, Inc., the 23rd largest theater group headquartered in Tennessee. We are in final stages of negotiations to reach 10% of the independent film market by December 2001. Our sole restriction will be the capital to install the hardware in the theaters we sign up. In concert with Truespeed, Showintel intends to test its hospitality VOD system (in development) with a major hotel in Las Vegas. Performance Metrics and Financial Projections Using industry averages and internal assumptions, Showintel l should achieve the following performance goals. Table has been deleted from the email and may be viewed from the hotticker.com profile on Multinet International Corp. at http://hotticker.com/mnil.asp Showintel, by achieving the above business goals expects to generate these financial results: Table has been deleted from the email and may be viewed from the hotticker.com profile on Multinet International Corp. at http://hotticker.com/mnil.asp The Showintel Team Showintel employs highly skilled and experienced employees with proven backgrounds, led by the following management team: David Lott, Founder & CEO. Mr. Lott has 20 years experience in business development and management. In addition to his responsibility to SHOWINTEL NETWORKS, Mr. Lott is President and founder of Daody Management, Inc (DMI). DMI is a warehousing and storage management company in the Greater Memphis area of Tennessee and encompasses properties in several locales of southern Texas. Properties under his management include the Canon Computer Distribution Warehouse and PanAm Flight Training Academy. Mr. Lott developed this large real estate, storage and management company from the ground up. In 1982 he founded and operated Landscapes Unlimited, Inc. as its President. Landscapes Unlimited, Inc. was a top 50 company in commercial landscape contracting and management. He orchestrated the company�s sale to industry leader Orkin International in 1994. Mr. Lott brings to SHOWINTEL NETWORKS his broad entrepreneurial and practical experience in all facets of corporate development and ! management. Kelly Lefkowitz, CFO Mr. Lefkowitz has 17 years experience in strategy, planning, finance, implementation, and interim management including 10 years experience with entertainment, promotions, technology and web-centric businesses. Lefkowitz has a talent for balancing visionary leadership and executive management roles to maintain strategic and tactical focus simultaneously. His experience includes consulting and/or interim management engagements for NBC Entertainment division of General Electric Inc. (NYSE: GE), Internet music giant ARTISTdirect, Inc. (NASDAQ: ARTD), Hughes Electronics Corp. (NYSE: GMH), MK division of Computer Associates, Inc. (NYSE: CA), Affinity Media, Inc., ClickPLAY, Inc., CyberActive Network, Inc., Digital Entertainment Network, Inc., Lone Wolf, Inc., Making the Turn, LLC, and MetaWire, Inc. Lefkowitz holds a BS in Business Administration from Boston University School of Management and an MBA from the University of Southern California where he has al! so taught strategy and planning in the School of Entrepreneurship�s Business Expansion Network. Lefkowitz is performing services for Showintel as part of a consulting agreement with ClickPLAY, Inc. He has agreed to accept the full time position when needed. Alan Josef Kaplan, Executive VP Business Development � Music and computer-industry veteran Alan Josef Kaplan is the founder and former chief executive officer of the $18 million music publishing and record label company Music West. In 1990 he received his 2nd consecutive Label of the Year award from Billboard magazine and was named one of the top 40 entrepreneurs under 40 by Entrepreneur Magazine. Kaplan worked with the first national retailer of PCs, ComputerLand. He helped launch the IBM XT and AT as well as Apple�s IIc and Macintosh computers. He served as an adviser to management of Gold Circle Entertainment (music), PackageNet (online package delivery), Headspace (now Beatnik, music on the Internet), MissionStudios (video games) and Motorola Interactive Media Festival (conference on new media and the Internet). As the founder and chairman of ClickPLAY, Inc., Kaplan created and led the development of a media-based software that took a radical new position in the indus! try, insuring the complete experience everytime. This core technology will be incorporating into Showintel�s systems. Kaplan is performing services for Showintel as part of a long term contract with ClickPLAY, Inc. ************************************************************************ DISCLAIMER Wall Street Web Inc.(Hotticker.com) is an independent research firm. This report contains forward-looking statements. Pastperformance does not guarantee future results. 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