Interactive Annual Reports Background and Highlights

OVERVIEW:
Interactive Annual Reports (IAR) is a joint venture between Foley/Freisleben LLC, one of Southern California's most respected investor and corporate relations firms and, NetScope, Inc a leading Orange County-based interactive marketing agency. Its principals have an extensive background in investor relations, including corporate annual report editorial, design and project management; interactive shareholder communications; and Web-based stock marketing.

The venture's first product, an Interactive Annual Report on CD-ROM, offers a new alternative to the traditional printed annual report. This interactive product enhances the printed annual report by taking shareholder communications to a totally new, more advanced level by employing the latest in technology to investor relations tools such as stock marketing and interactive financial communications.

Accompanied by a company's 10-K, the IAR complies with all Securities and Exchange Commission reporting regulations, and ideally supplants the printed annual, particularly in such sectors as technology, where an interactive report is more appropriate.

Offered in either a standard-yet-individualized package or full custom-designed annual report, the product melds interactive programming functions with a full traditional report's conceptual execution and project management. It is a turnkey product capable of delivering the functionality and interactive investor communications "tools" not delivered in most other annual reports on CD-ROM.

IAR may well be the first to offer a standard "off-the-shelf"-variety package for a flat fee -- $25,000 - a very modest amount in light of current design and printing costs.

PRODUCT:
Interactive Annual Reports offers two product options:
Version A: "Off-the-Shelf" alternative--$25,000 Standard Package provides:

• Individualized design and concept that reflects the company's printed annual report
• Flash or QuickTime intro, with HTML thereafter
• CEO letter (studio-produced audio of CEO delivering message)
• Rollover navigation with color swap out
• Basic text
• Photos and art (supplied by client)
• Sophisticated, high-impact graphs, charts and tables that grow and move (Use of Macromedia Flash animation)
• Designed financials
• 1,000 custom three-color CDs in jewel case or sleeve

• Additional CDs
• Printed 10-K form
• Custom folders or packaging
• Photos and illustrations (as commissioned by client)
• Tracking and usage measurability
• Seamless Web hosting capabilities
• Integration into existing website

• Expanded video production (including CEO letter, review of operations, products, markets)
• Extensive use of sophisticated graphics
• Interactive financial data (partial or full), graphs, charts and tables
• Stock-marketing and investment-community outreach tools:
• Proactive outbound E-mail communication
• Targeting-measurability
• Campaign-Management Tool (CMT) for tracking costs per impression
• Web site hosting features

PRODUCT FEATURES:
Interactive Annual Reports offers a new way of thinking about communications with shareholders. Features include:

• Interactivity: attractive, sophisticated graphics, video and audio designed to grab shareholder attention and increase readership
• Full custom package provides stock-marketing and investment-community outreach tools:
  • Campaign-Management Tool (CMT) for tracking costs per impression
  • Electronic mail communication
  • Targeting-measurability
  • Web site hosting features

• The resources, experience and "brain trust" of a leading investor relations firm and interactive marketing agency partnership
• Increases shareholder readership and positions company as forward-thinking
• Extremely cost-effective, especially at the Standard Package flat price of $25,000
• Meets all SEC-mandated regulations regarding disclosure requirements
• Turnkey product with individualized design that reflects company's printed annual concept and appearance
• Enhances cost-value relationship of corporate annual report expenditures; leverages those expenditures by extending concept and design to a new communications tool
• Adds value to annual report by providing measurability
• Tracks what sections shareholders are reading by providing links to company's Web site
• Provides opportunity to personalize shareholder communications by offering those who desire periodic updates and chance to submit questions

NetScope, Inc is one of the largest and most successful interactive marketing agencies in Southern California, serving clients both large and small throughout the region and nationwide. Founded in 1995, the company is located at the Irvine Spectrum, a hotbed of Orange County technology firms. The firm's dynamic team of 20 - including developers, creative members and project managers -- also offers web hosting, search engine optimization, content management, online training, e-commerce and e-mail marketing and maintenance solutions. The agency remains a strong contributor to many nonprofit organizations in the community.

PRINCIPALS:
Jerry Freisleben, President, Foley/Freisleben LLC, co-founded the firm in 1996. With more than 17 years experience in corporate communications, he directs the agency's investor and corporate relations practice. Previously, he spent 10 years in the Los Angeles office of a major international communications firm. Freisleben has a diverse background in business-to-business and technology communications, as well as investor relations. He has written more than 150 annual reports for firms ranging from startups to major corporations. He holds a bachelor of arts degree in English from the University of California at Berkeley.

Michael Beresford, President, founded NetScope in 1995 to bring web development to Orange County businesses. The firm currently employs some 20 associates, and has expanded its core web development business to include web hosting, search engine optimization, content management, online training, e-commerce and e-mail marketing and maintenance solutions. Prior to NetScope, Beresford was director of information technology for the Orange County Business Council. His career includes stints with IBM and with a small software replication company. He is a graduate of the University of Arizona with an emphasis in Management Information Systems.

LOCATIONS: Orange County Office Interactive Annual Reports 16 Technology Drive, Suite 126 Irvine, CA 92618 Phone: 949-450-1122 Fax: 949-450-1133 www.interactiveannualreports.com

Los Angeles Office Interactive Annual Reports 800 Wilshire Boulevard, Suite 300 Los Angeles, California 90017 Phone 213-955-0020 Fax 213-955-0060 www.interactiveannualreports.com