Embryo Capital Group, Inc
Executive Summary
2000
Executive Summary
Mission Statement
Embryo capital group, Inc. ("ECG") is a development company set to develop
promising technologies in the medical, Internet and telecommunication sectors.
Objectives
Embryo capital group was formed in 1999 to develop embryonic stage companies
that are deemed to having promising products, concepts and personnel. Through
the knowledge, experience and networking of its officers and advisors, ECG will
provide the necessary support and management to build, solidify and expand the
company's infrastructure. ECG will also aid in the development of appropriate
prototypes and demos.
The Market
The need for development and marketing of new inventions is a constant and
ever-growing market. With the tremendous growth in the medical and technology
segment the need for "value added" management skills has become increasingly
greater. Value added management and development is the influx industry and
general business management expertise. A successful business venture will rely
heavily on people that are well versed in corporate finance, law, management and
marketing. Since individuals who most often found technology companies are those
with backgrounds in science, technology and engineering, most are lacking the
expertise in business structure and management that is vital to success. It is
no wonder that reports show that only six out one million inventions ever reach
the marketplace. ECG, with its unique management and development programs, will
act as a business incubator and accelerator for promising start-up entities.
With the assistance of our experience and diverse group of advisors, ECG will
assist in translating concepts into marketable items, and subsequently in the
development of industry contacts.
Furthermore, with the group's contacts within each industry, ECG will assist in
designing and building necessary prototypes and model demos.
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Management
The management and advisors of ECG are its strongest asset. Management and
advisors will be responsible for:
o Seeking ventures to develop
o Deeming ventures worthy
o Due diligence
o Helping the company secure investment capital
o Obtaining necessary management talent
o Preparation of business plans and financial models
o Technology development and trial process
o Assisting in designing and building prototypes
o Develop intellectual property rights and technology patents
o Development of industry contacts
o Identify strategic partnerships and negotiate joint ventures
o Product implementation, manufacturing and marketing
The following is a list of current management and advisors. The company is
constantly seeking additional talent to broaden and diversify its areas of
expertise.
Max Shneibalg, CEO
Max Shneibalg has a strong background in sales, management, product design and
implementation, purchasing and both public and private funding. Prior experience
includes four years as President of Beaupre Manufacturing, Inc. in Montreal,
Canada. Mr. Shneibalg also spent two years managing promotions and funding for
two publicly traded companies, Power phone, Inc. (PWPH) and TMC Agroworld
Corporation (TACN). He also spend two years as Vice President of L&M Electrical
Contracting Corp. where his duties involved product design, price estimates,
quality control, architectural review, and customer satisfaction. Mr.
Shneibalg's role in Embryo Capital will be to seek worthy ventures, the due
diligence process of prospective ventures, funding and business implementation.
Basilio Chen, Chief Technology Advisor
Basilio has over 25 years of technical, managerial and entrepreneurial
experience in high-tech product development for telecommunications, embedded
computing and computer controlled systems for industrial, commercial, and
consumer electronics. He provides business management and engineering of
embedded computing technology and software engineering processes from
requirement specifications to manufacturing.
Mr. Chen has performed engineering and management functions for many commercial,
industrial, and governmental organizations and pioneered many areas in system
engineering, electrical software engineering, software verification and
validation, software safety, development, inspection, auditing and quality
assurance.
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His technical and managerial expertise include techno-business development,
engineering development, verification/validation of software and hardware for
high reliability systems including process control, supervisory control and data
acquisition, robotics, medical equipment, telecommunication systems, and other
mission critical systems. He trains and mentors management and professionals in
the high-tech industry on the subject of techno-business development, zero
defect real-time software and gives seminars in Internet appliances.
Mr. Chen's received his degree from California State Polytechnic University. He
later attended the Florida State University Master of Business Administration
program and subsequently was a post graduate researcher at the University of
British Columbia involved in Dynamic Signature Pattern Recognition. Mr. Chen
speaks internationally on real-time software and software quality management. He
is on the International Technological University Board of Trustees and regularly
teaches software safety for the Zurich Insurance Group. He has been a consultant
to Fortune 500 companies such as FMC, General Signal, Raychem, Ericsson, Pacific
Bell, Fujitsu America, IBM, and Perkin Elmer.
Mr. Chen, with his deep-rooted experience in the technology sector, will be an
invaluable asset to the Embryo capital group. His responsibilities will include,
due diligence, building and designing of prototypes and overall product
implementation.
Robert G.L. Shorr, Chief Science Advisor
Robert Shorr competencies include the financing and commercial development of
pharmaceutical and biotechnology ventures, selection of technology or company
targets, and planning of business growth. Robert has successfully raised over
$50 million dollars in financing including $25 million for Enzon, Inc. Investors
include institutional and private funds and other biotechnology companies
including Schering Plough, Bristol-Myers Squibb, Eli Lilly, Baxter Healthcare.
Robert was also intimately involved in 30 other deals worth $50 million dollars.
Robert is currently a principal in Altira Capital and Consulting LLP where his
responsibilities include:
o The selection of technology and opportunities for investment, creation of
business model and plans as well as offering memoranda and prospectus on an
international scale.
o Identification of strategic partnerships and negotiation of deals.
o Development of intellectual property plans and technology patent portfolios.
o Management of technology development and clinical trial processes.
o Market introduction and sales support.
o Road shows to support private placement and public investment.
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Mr. Schorr is Director of Business Development for the State University of New
York at Stony Brook Center for Advanced Technology. He was formerly (1991 -
1998) Vice President of Science and Technology for Enzon, Inc. where his
responsibilities included:
o Engineered strategic joint ventures, co-development agreements, partnering,
licensing, sale of technology, and spin-offs.
o Created strategic and creative alliances, licensed technology and marketing
rights. Sold discovery stage products for further development.
o Negotiated the buying and selling of research, development, and clinical
trial work.
o Networked with VC firms, investment bankers, institutional funds, brokers
and capital companies
o Structured and managed due diligence.
o Created impacting formats for presentation to financial backers.
o Prepared and wrote business plans and executive summaries.
o Made presentations that secured financial commitments.
Robert was the Founder, Vice President Technology and Chief Scientific Officer
of AT Biochem. The Company was devoted to research and development of polymers
used in automated DNA sequencing. The company was sold to FMC in 1991.
Peter H. Muller, Chief Engineering Advisor
Peter H. Muller has been President of InterForm, an internationally acclaimed
product development and design firm. His professional expertise is based on
highly diversified international product development and design for major
industries in Europe, USA, Japan, Korea, Malaysia, Australia and Hong Kong. His
clients range from General Motors to start-up companies with activities ranging
from concept development and problem solving to engineering and graphical user
interfaces.
His list of client companies include: Alltel, Avery Dennison, Becton Dickenson,
Echelon, General Electric, General Motors, Fujitsu, Phillips, RayoVac,
RCA/Thompson, Samsonite, Plantronics, Hayes, VistaVision and many others.
In addition, Mr. Muller is currently on the Board of Directors of the Alden Lee
Company and Director of Design at the IPT Corporation and the Abarca Group. He
was formerly Vice President of Frog Design and Director of PA Technology and
Management Consultants.
Mr. Muller has a background in mechanical engineering with a Master's Degree in
product design from Darmstadt, Germany and management training from Sunset park,
London, UK. He has published articles and given lectures throughout Europe, USA
and Asia and has received numerous patents and awards throughout his career.
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Roger NG, Engineering Advisor
Roger is a highly experienced technical consultant and project manager to
companies developing real-time software and firmware applications. He is
currently employed at EvoTech as Vice President of Engineering and is
responsible for all project development.
Roger brings a strong background in development processes with emphasis on
design, documentation and verification. Provided training, leadership, and
mentoring of software development. Has broad experience in the successful
definition, implementation, integration and verification of real-time
applications.
N. Mark Horowitz, Advisor
Mark Horowitz is currently Vice President of Marketing at American Stock
Transfer & Trust Co., offering the services of AST, America's largest
independent stock transfer agent, to publicly traded companies. He Supervises
and trains a national sales force.
Prior to AST Mark was Vice President of AmTrust Realty, seeking suitable
commercial real estate properties for investment. Responsibilities include
performing all the due diligence on properties being offered.
Mark was also Vice President at Wang Recovery Services had the responsibility to
develop Wang Recovery Services (a division of Wang Technologies), which
specializes in Disaster Recovery services. Upon the company's decision to build
a hot site in lower Manhattan, was placed in charge of supervising construction,
purchasing computer and telecommunication equipment, and even designing the
networks. Was involved in the hiring of sales personnel and development of
marketing material.
Directed the company to become positioned as the only provider of call center
recovery, with the addition of satellite links to our mobile units. Developed
the plan whereby Wang Recovery Services, through various business partnerships,
would be the providers of complete Crisis Recovery Services - phones, computers,
trained operators and family counselors - to many smaller American and/or
foreign airlines. Secured approval from DOT, NTSB, and many aviation lawyers in
Washington.
Ezra Rosensaft, Chief Analyst
Ezra is currently employed at KPMG Peat Marwick LLP as Strategic Financial
Analyst for the Internet sector. His responsibilities include:
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o Development of concepts, capabilities, and core competencies from financial
and strategic viewpoints for Internet companies.
o Generation of ideas to expand and assist in development of company
websites.
o Financial statement analysis, due diligence , forecasting and valuation
reports.
o Valuation of public and private companies for the purpose of, IPO
pricing, Mergers and Acquisitions, purchase price allocation, and
intangible assets.
Ezra was formerly a research associate at McFarland Dewey & Company where he
conducted research and analysis of Fortune 500 companies.
Ezra has a MBA in Finance from Fordham University, Graduate School of Business,
New York, NY.
Stephen Seidenfeld, Financial Analyst
As President and Founder of Seiden Associates, a mortgage, investing and
financing institution, Stephen has generated over $70 million in loans annually
for the past five years. His financing experience involves the acquisitions of
large office buildings, shopping centers, and apartment houses across the U.S.
He was also involved in the financing of corporate acquisitions and the
structuring of leverage buyouts.
Robert Rodriguez, Healthcare Analyst
Robert is currently a Principal at Altira Capital & Consulting, LLC a firm that
provides consulting services for the commercialization, competitive positioning
and funding of healthcare related ventures. He has extensive experience in
assessing the technological and overall viability of various technologies and
products in the Pharmaceutical, biotechnology and medical diagnostic fields.
Prior positions include Manager of Business Development at Enzon, Inc. At Enzon
Robert was involved in the negotiations, implementation and engineering of many
of the company's technologies and products. Robert also spent two years as
Marketing Manager for Sienna Biotech, Inc. where he managed the acquisition of
pertinent marketing and business development related information from a variety
of sources including: personal interviews involving domestic and international
opinion letters, surveys, proprietary and syndicated market research studies,
relevant industry and scientific publications.
Robert has an MBA from Rensselaer Polytechnic Institute and BS in Biochemistry
from SUNY at Stony Brook. He was formerly an Associate Scientist at Johnson &
Johnson Ortho Diagnostic Systems and a Research Scientist at the Kimball
Research Institute of the New York Blood Center.
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Evotech
Embryo capital group has formed a strategic partnership with Evotech, a full
service product development company. ECG feels that this partnership will
provide the group with a constant flow of fundable ventures. Evotech will also
play a strong role in the due dilligence process and the development of needed
prototypes.
Since 1984, EvoTech has been one of the leaders in embedded computing solutions.
Their tremendous growth over a decade led them out of a home basement to have
developed a track record of excellence with many prominent startups and large
fortune 500 companies.
Telecommunication and embedded controls marks their strength. A long-standing
history of commitment to testing, validation, and verification keeps their
clients happy through every step of the product lifecycle.
From high-speed data communications applications, POTS linecards to paging
system, cellular phones, and Internet appliances, Evotech has pioneered
technology integration using their software, hardware, and firmware expertise.
Telecommunications
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Whether it's a cellular, xDSL, ATM, SNMP, Wireless Telecom Devices/Equipment,
pager, PCS or linecards, Evotech has the best of minds to integrate their
knowledge base with proven embedded technology to develop products quickly.
Right after regulatory divestiture, EvoTech has been involved in creating
Telecommunications products. Including Subscriber Loop, Customer Premise
Equipment (CPE) products, and Access Networks Accessories. About 70% of the
products that they have developed fall into latest xDSL, ATM and SNMP (network
management).
Recent achievement:
o Developed a VDSL line unit to increase high-speed data access and
digital video applications to the latest offerings of major primary
telecommunication providers
o Completed a Wireless Local Loop Switching Processor for a leading
wireless local loop startup that uses spread spectrum to customer
premises distribution.
o Developed next generation Smart Phone for multinational
o Created the first High-Bit-Rate DSL (HDSL) in the market for the leading
DSL manufacturer in the USA.
o From 1991-1995, EvoTech also developed 90% of all linecards for the
leading fiber access network manufacturer in the valley - the present
deployment rate is estimated to be over1/2million units.
Technology:
o DSOS message-switching embedded technology
o Applications such as digital subscriber Loop (xDSL)
o Access Networks (fiber-to-the-loop-Bellcore TR-303)
o Data communication applications such as T1/E1/T3/DS3, DSU/CSU
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Encryption and Control System
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Evotech pioneered the use of DSOS embedded message switching kernel to optimize
ROM/RAM space and megahertz. It's an exciting option to save on total-product
costs, and especially time. Since 1992, they have been providing security
technologies to manufacturers including alarms and entry security for high-speed
data communications and voice ciphering. In the security area, Cryptography
modules and premise security are readily adaptable to OEM specifications. In
many cases, thay can add encryption services to already existing data
communication or voice products. And in more newer areas thay are in the process
of completing Gas Detection SCADA line of products that allows detection of
unsafe quantities of gases due to material breakdown. The specific technology
being created today is for Electrical Transformer applications, but its uses
outside of that area could be many.
Other special cases of leading technologies are autonomous robotics vehicles,
Digital Signal Processing (DSP), and fuzzy logic. Most developed products are
for large volume consumer markets or customer premise telecommunications
applications. Typical prediction volumes are in the high six figures.
Internet Appliances & Applications
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Our lifestyle in the 20th century will become more technologically driven.
Evotech accelerates with the latest technology and bring their best architects
to serve web applications like Internet radios, Video and Television. A quote
from Henry Blodget, Senior Internet Analyst of Merrill Lynch proves the
viability of Internet radio. He said, "Music is one of the most exciting
applications on the Internet. There's a big promise that once we get the
technology and the bandwidth to download music that it's a great distribution
capability."
Recent Achievement:
o Manage prototype co-development of Internet appliances like ePhone,
eRadio, and WebTV
o Designed and implemented NetRadio with Cyrix Media GX processor, touch
screen, music and web surfing capability.
Our Technical Expertise:
o Hardware design and prototyping
o Firmware design and programming including intuitive user interface design
o Software prototyping, tools and application development
o PERL, CGI scripts, Visual Basic, C, C++, JAVA, Java scripts, JAVA applets
Company Clients
o Bay Networks
o Ericsson Fiber Access
o Cylink
o ETEC Systems
o Fujitsu America
o FMC Corp.
o NellCor
o General Electric
o Varian
o Pacific Bell
o Racal Datacom
o Raychem
o Radionics/Honeywell
o Alcatel USA
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Market Areas
Internet Access Devices
Set-top boxes, Web TV, Internet Radio
Telecom equipment
XDSL, wired/wireless local, loop and linecards
Customer Premise equipment
Paging information, Systems & remote controls
Customer Electronics
Digitally enhanced next , generation products
TracTech
THE BUSINESS
TracTech is engaged in the development, marketing and distribution of a
proprietary tracking system designed to provide highly accurate information
monitoring and data retrieval services. The system utilizes a sophisticated
combination of GPS (Ground Positioning Satellites) systems, Internet, paging and
cellular networks for the transmittal of data providing a most effective and
cost efficient solution.
The business of TracTech involves the sale of GPS tracking units and related
support products to various end-users, such as businesses, organizations and
individuals who require retrieval and transmission of data for the purpose of
tracking, monitoring and asset management. The TracTech product line will
revolutionize an industry currently dominated by outdated and primitive
technologies. For example, the options that are available today for automotive
security and retrieval are mostly preventative deterrents or systems that
require entire police squads be outfitted with tracking devices. None allow the
end-user to actually locate their own vehicle accurately and be instrumental in
its eventual retrieval. A vehicle equipped with the TracTech tracking system can
be located within minutes, from any standard PC or telephone. The product line
is unique in that it is capable of providing Internet based real-time monitoring
and data retrieval utilizing an accurate GPS tracking system with graphical
mapping. The system can locate any vehicle equipped with a tracking unit in a
matter of minutes and pinpoint its latitude, longitude, speed, direction, and
street location to within 40 feet. When appropriate, commands can be sent to the
vehicle to disable its operation thereby allowing for a safe and easy recovery.
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The TracTech tracking system has many applications for the automotive industry
and is not limited to security alone. The system can be utilized to unlock the
doors of a vehicle when keys are not accessible, or to lock the vehicle from a
PC without having to actually approach it. The system can also be used to send
needed help to a stranded vehicle quickly and accurately.
The TracTech tracking system can also be programmed for one-way communication.
The unit can be configured to collect, hold and send data at a preprogrammed
time or interval (i.e. weekly, monthly0 or to provide notification when a unit
is being moved. In this format it can be utilized for remote data retrieval for
the purpose of tracking movable assets such as computers and business equipment.
Market Analysis
According to the Wall Street Journal and The U.S. Department of Justice 1997
Uniform Crime Report, there were a total of 694,141 reported incidents of car
theft nationwide amounting to a $7.4 billion a year loss to consumers. It is no
wonder that reports show the demand for deterrent systems is growing at a rate
of 9-12% a year. Car theft has become a hard fact of life and its no longer a
question of if someone's car will get stolen rather when. The only basic options
available to consumer's today are to attach devices to their steering wheels,
engine cut-off devices, and noisy alarm systems. Consumers spend an estimated
$9.32 billion a year on car alarms and other deterrent devices. The company
believes there is a large market for a product that will allow a consumer to
recover his/her vehicle after it is actually stolen.
TracTech vs. LoJack
The industry leader and pioneer LoJack Corporation have dominated the vehicle
recovery product market in recent years. LoJack has developed a nonexistent
market into a $35 million a year industry. TracTech considers LoJack to be our
primary competition in the market.
Developed in 1982 the LoJack System consists of four basic operating components:
1) LoJack Unit, 2) Police Tracking Computer, 3) Sector Activation System (SAS),
4) Registration System.
The LoJack is the consumer component of the system. It is installed in the
consumer's car and consists of a VHF radio transponder, a microprocessor
computer and a modem. The computer's memory contains a set of codes unique to
that particular unit and the vehicle that it is installed in. Each unit has a
specific activation and reply code and is activated only by a signal from the
SAS. Once activated the LoJack unit will continue to send its signal until it is
instructed to stop.
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Once the unit has been activated, the Police Tracking Computer is then utilized
to detect the transmittal signal. When the PTC detects a signal the PTC displays
the signal strength and direction. The patrol vehicle then proceeds to move in
the general direction of the signal. As the patrol vehicle moves closer to the
target vehicle, the signal strength increases.
Although the LoJack system was a breakthrough 16 years ago, today it is a
antiquated both in terms of technology and operating effectiveness. These are
some of its major shortcomings compared to the TracTech system.
1) LoJack: Effective only in a short range of distance. The PTC must be within
1-5 miles of an activated LoJack unit to pick up its signal
TracTech: The GPS tracking unit has no limitations, and can track a unit in
any state.
2) LoJack: Provides no specific directional information. The PTC only tells
the patrol vehicle the general direction to head towards to find the target
vehicle. It can also lead the vehicle into inaccessible crossings and
dead-ends due to lack of specific geographical information. Additionally,
the central dispatcher is not availed to the information provided by the
PTC and requires the patrol vehicle to radio frequent updates.
TracTech: The GPS with geographical overlays provides pinpoint location of
target vehicle to within 30-40 ft. and allows patrol vehicle to select
specific routes to approach the target vehicle. The dispatcher can also
determine which patrol units are closest to the target vehicle.
3) LoJack: No feedback available on vehicle status: The LoJack unit provides
no feedback info on the operating condition of the vehicle. The vehicle
could be moving rapidly in the opposite direction of the patrol vehicle
never allowing the patrol vehicle to come within visual range.
TracTech: GPS system provides precise data of vehicle's direction, speed
and operational status. If the target vehicle flees, dispatch can select
the appropriate tactics to counteract. When safe to do so, the tracking
system can also disable the vehicle from any further travel.
4) LoJack: Lengthy infrastructure setup - Before entering a market, LoJack
must install several SAS radio towers to provide sufficient coverage to
transmit activation signals. LoJack must also negotiate with the local
municipalities and police departments to install PTC units in patrol
vehicles.
TracTech: The GPS tracking system's ease of access can provide a police
central dispatch tracking information for an entire state. It has taken
LoJack 16 years to expand its coverage into 16 states where TracTech can
provide nationwide coverage immediately following its launch.
5) LoJack: Recovery is dependent on one single source. In order to recover a
LoJack equipped vehicle, police intervention is required. Should the police
not detect the signal or be unable to immediately respond, the chances of
recovering that vehicle diminish with each passing hour. Chances are the
vehicle will be driven out of range, stripped or totally dismantled.
TracTech: The TracTech system empowers the vehicle owner with options on
how to recover the vehicle once it is stolen. 1) The police are notified of
the exact location of the vehicle, and the vehicle is disabled from further
movement. 2) Customer can contact TracTech command center and have the
vehicle recovered by an authorized recovery agent. 3) Customer can utilize
the secure Internet access to ascertain the location of the vehicle and
take appropriate action.
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Target Market
Secondary Auto Sales
The secondary automotive market is one of the largest commercial markets
available. Domestic automotive sales are a $673 billion dollars a year market.
Used car sales accounted for over $370 Billion of total sales in 1998. TracTech
will be targeting its products to both the new and used car markets as the
company feels it has strong potential in both. The company believes there will
be strong success in the marketing of the TracTech products to the companies
that provide financing for both new and used vehicles. The availability of the
TracTech Tracking System will allow those entities to track the whereabouts of
their financed vehicles thereby reducing their overall default risk in the event
a repossession should become necessary.
Biometric Systems
Biometric Systems is dedicated to the development of fingerprint authentication
technology for the use in secure electronic commerce, door entry systems and ATM
Machines.
Secured Authentication
With the growing popularity of e-commerce, a large demand for authentication
devices has risen for the use of PC and Internet access. An increasing number of
PC users need to secure their computers while leaving the units unattended. Foe
example, a financial broker taking a break would enable his screen saver to
activate and upon return he or she would reactivate the system by a simple
fingerprint scan. The device would be incorporated into the user's mouse making
its usage virtually transparent. Additionally, the technology can be used to
facilitate a secure Internet transaction thereby eliminating the possibility of
fraud.
The Need
Fingerprint recognition has been used in the past primarily for law enforcement.
Recently, commercial applications of this technology have become available and
are deemed essential for the continued growth of the information age.
Specifically, fingerprint recognition would facilitate a secure e-commerce
transaction where the assurance of the end-users identity is necessary.
The market for this technology includes a variety of industries and applications
including banking institutions, online shopping, employee time attendance, door
entry, consumer credit, distance learning, motor vehicle licensing, immigration,
border control and voter registration. For all of these industries, fingerprint
authentication will solve the need of determining that "you are who you say you
are". There would no longer be a dependence on passwords that are often stolen
or forgotten.
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Broadlink Communications
Broadlink has positioned itself to become the leading provider of wholesale,
open access, high-speed wireless last mile transport services. Internet Service
Providers and Competitive Exchange Carriers purchase the company's solutions to
serve their end-users. Broadlink is the first Internet-centric wireless
transport services provider offering local high-speed communications services to
its customers. A base station and a customer premise unit provides the ability
for point-to-multipoint wireless voice/data/video communications at speed higher
than 10 Mbps. Broadlink intends to have working prototypes to demonstrate to
large service providers who have expressed interest.
Jlink
Jagoo.com has developed an information technology system capable of many
wireless Internet applications requiring limited interactive response from the
user. The first application is in the financial industry for the use in
interactive stock trading with a compact and easy-to-use e-appliance that uses
two-way paging technology. Jagoo is currently developing the product concept and
working prototype, to be followed by sales and production in the last quarter of
2000.
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