july 2001

1

July 2001

Strictly Confidential

Investor Presentation

Prepared forAOLTW

Strictly Confidential 2

Agenda

I. Executive Summary

II. Management Introductions

III. The Company

IV. Organization & Ownership Structure

V. Financial Overview


I-View-It…Visualizations for the Future

Imaging Video

Two inventions discovered in the pursuit of helping children save the planet were created using out-of-the-box thinking and have led to significant

advancements in imaging and video processes.


I-View-It Processes

I-View-It is an innovator providing Patent Pending Intellectual Property processes in video streaming and imaging, focusing currently on three of its core IP assets:

Video streaming scaling processes that enable the delivery of rich media to be provided distortion free, at full screen resolution with normal TV equivalent frame rates of between 24-29 fps, at extremely low bandwidths and at high bandwidth provide superior processing efficiencies.

Image scaling process for creating high definition user controlled “super” zoom and pan capabilities levels without macro blocking and pixelation. The image scaling process may be applicable to every known screen for imaging.

Combinations of the two processes, creating a user controlled video or television environment with super zoom and pan applications, (currently in R&D).


I-View-It Video Process

Mathematical Scaling Formula For Encoding & Playback of Video for Streaming and/or Downloading

I-View-It’s revolutionary process for video compresses video at an incredible 75% less data than previous technologies by utilizing a scaled encode for large screen playback. This process yields:

Less processing power required for full screen data by 75%!

File size for full screen representation reduced by 75% making high impact full screen video available for download at any bandwidth!

Full-screen, full-frame rate video (including high quality stereo) at 150-300 Kbps, a 90% reduction over previous standards!

At modem bandwidths this process provides a markedly improved video quality over prior Internet industry standards.

This process has applications that are being explored on the higher ends of the encoding and bandwidth spectrums. As a result of the I-View-It processes on the encoding and decoding systems these applications may yield efficiencies in High Definition markets.

Enables stereo audio with full lip synchronization of audio/video.


I-View-It Imaging Process

Mathematical Scaling Formula For Encoding & Viewing Images with Super Smooth Zoom & Pan Capabilities

The I-View-It proprietary imaging system is designed to provide clear, sharp images, which can be zoomed into at great depth, and panned around at the discretion of the viewer, or under program control. The resulting experience is one of immersion into the image and an ability to view detail at a level heretofore not thought possible.

This process yields:

Yields user controlled zoom & pan for screen applications.

Resilient to pixel distortion when magnified over 200x.

The image scaling process may be applicable to every known screen for imaging.

Allows new user controlled zoom & pan for imaging and video appliances. Applications include; Cameras, Televisions, Video Camera’s, DVD Players, Scanners, Printers & Copiers.

Easily integrates into Hardware and Software Applications.

The user now has the ability to design an image with a zoom magnification factor in mind and have the corresponding parameters to create the “zoom factor”.


I-View-It Combination Video and Imaging Processes

Mathematical Scaling Formula For Encoding & Playback of Video with Remote Control Camera\Video interface coupled with the Mathematical Scaling Formula For Encoding & Viewing Images with Super Smooth

Zoom & Pan Capabilities

Combined I-View-It video and imaging processes create a user interface that allows camera control and zoomable video streams. Allows user to take video feeds and pan & zoom on individual frames or streams.

Ideal for the security market and sports events.

May apply to all video playback devices.

In R&D


I-View-It Executive Summary

Focused intellectual property strategyFive US Patent Pending ApplicationsSix Patent Cooperation Treaty (PCT International) ApplicationsTwo US Provisional Patent Pending ApplicationsR&D to yield further Intellectual Property

Versatile technology applications and comprehensive revenue modelPlatform agnostic imaging and video processes applying to a vast array of products across software and hardware industriesLicense & Royalty revenue model

Validation through high visibility beta test customers17 customers since May 2000 product launchHigh profile customers with significant market presenceValidation of both video and imaging processes

Poised for rapid growthSeeking $10 million of growth capital


Management Introductions

Chief Executive Officer, (Identified)Strong Media/Entertainment BackgroundStrong Computer Industry Background – Licensing Hardware & Software

Aidan Foley, Advisor to the BoardClearview Networks – Chief Executive OfficerEastman Kodak/Cinesite – President & CEOEastman Kodak – President and General Manager, Advanced Technologies

Peter Lee, pro tem President & CTOIBM - Global Development Executive, Broadcast & Advertisement Solutions GeoVideo Networks (a Lucent Technologies Company) – President & CEOHitplay Media, Inc. - CTO, VP of Engineering

click on name to see resume

http://www.iviewit.com/bio/lee.htm


Management Introductions Con’t

Ross Miller, pro tem Chief Operating Officer & General CounselOutSource Partners, Inc. - Vice President and General Counsel Moovies, Inc. - Senior Vice President and General CounselRogers & Hardin - Corporate Counsel Schwartz, Cooper Greenberger & Krauss – PartnerKatten, Muchin & Zavis – Partner

Maurice R. Buchsbaum, EVP - Business and Corporate Development

Drexel Burnham – PartnerKidder Peabody – PartnerJW Genesis\First Union – PartnerEmerald Capital Partners - Partner

Kevin Lockwood, VP Sales and Business DevelopmentFormer EVP of Cylex SystemsNational Sales Manager for Acer AmericaManaged launch of Fujitsu PC in the US

http://www.iviewit.com/bio/buchsbaum.htm



http://www.iviewit.com/bio/lockwood.htm


Management Introductions Con’tClick on name to see resume

Jack P. Scanlan, VP Advertising and PublicityColumbia Pictures - The Burbank Studios Publicity/Promotion Manager21ST Century Films – Vice President: Advertising, Publicity, PromotionCannon Films – National Promotion Director

Eliot Bernstein, Founder and Vice ChairmanI-View-It Technologies – FounderPresident & CEO – SB Lexington Inc.


Company Milestones

Month/Year Milestone July 2001 Warner Bros License & Sony agreements in negotiations

Retained consultant in Advertising & Marketing Retained pro tem CTO

June 2001 Established a “core” licensing team

May 2001 Retained Special Advisor to the Board Retained Business & Corporate Development Specialist Retained pro tem COO & General Counsel Retained Senior Licensing & Sales Executive

March 2001 Shifted focus from a service validation model to a license revenue model

January 2001 Relocated Corporate HQ to Los Angeles December 2000 Raised 1.2 million from Crossbow/Alpine Ventures November 2000 Completed technical review with Warner Brothers October 2000 Began development of corporate license strategy September 2000 Began collaborative discussions with 6 of the 7 global content

providers


Company Milestones Continued

July 2000 Raised $800,000 from Crossbow/Alpine Ventures June 2000 Launched imaging and video processes in beta test

environments at ShowBiz Expo in Los Angeles June 2000 Hired VP of Operations May 2000 Secured first customer Hollywood.com March 2000 Filed first Non-Provisional International patent February 2000 Raised $1 million from Crossbow/Alpine Ventures October 1999 Launched website September 1999 Raised $500,000 from Huizenga Holdings August 1999 Hired COO June 1999 I-View-It Incorporated

Raised seed capital from Private Investors May 1999 Real 3D technology audit April 1999 Confirmed feasibility of full-screen, full-frame rate video March 1999 Filed first provisional patent


Intellectual Property Portfolio

Country (Type) Filing Date Application Title

U.S. (Provisional) 2000 Zoom and Pan Imaging Using a Digital Camera

U.S. (Provisional 2000 Zoom and Pan Imaging Design Tool

U.S. (Patent Pending) 8/2/2000

System and Method for Producing an Enhanced Digital Image File

PCT (International) 6/7/2000 System and Method for Video Playback Over a Network

U.S. (Patent Pending) 6/5/2000 System and Method for Streaming an Enhanced Digital File

U.S. (Patent Pending) 6/5/2000 Apparatus and Method for Producing Enhanced Digital Images

U.S. (Patent Pending) 6/5/2000

System and Method for Providing an Enhanced Digital Video File

PCT (International) 6/2/2000

System and Method for Streaming an Enhanced Digital Video File

PCT (International) 6/2/2000

System and Method for Providing an Enhanced Digital Video File

PCT (International) 6/2/2000 System and Method for Playing a Digital Video File

PCT (International) 3/23/2000 Apparatus and Method for Producing Enhanced Digital Images

U.S. (Patent Pending) 3/10/2000 Apparatus and Method for Producing Enhanced Digital Images


Utilize nationally recognized IP & Licensing counsel to ensure maximum protection

Irell & Manella LLP

Blakely, Sokoloff, Taylor & Zafman

Armstrong Hirsch Jackoway Tyerman & Wertheimer

Establish market precedence through licensing

Strong R&D effort to develop new applications

Acquire similar IP to enhance patent portfolio

Intellectual Property Strategy


Markets for Imaging Intellectual Property

Process End-user Hardware Software

Imaging

Internet Entertainment

Auctions Retail

Security Systems Healthcare Education Distance Learning Games

Advertising Sporting

Patent Pools DVD

Camera JPEG

Appliances

Digital Camera’s DVD’s

Wireless Devices PDA’s

Scanners Medical Imaging

E-Books Copiers Printers

Game Boxes Simulators

Patent Pools JPEG

Corporate

Bundling OEM’s

Graphics Animation

3-D CAD

Scientific Visualization Virtual Reality

Multimedia Games

Image Restoration


Markets for Video Intellectual Property

Video Internet Streaming

VOD Downloading

Broadcasters

ISP’s

Security Systems

Patent Pools MPEG DVD

Corporate

Appliances Set Top Boxes

DVD’s HDDVD’s

DVD Players Encoders

Wireless Devices PDA’s

Simulators Camcorders

Patent Pools MPEG

Corporate

Bundling Video Suites Editing Suites

Encoding Suites

Combinations of Imaging &

Video Processes – Zoom TV, etc.

All Markets Above

All Markets Above

All Markets Above



I-View-It’s Imaging Process

Mathematical Scaling Formula For Encoding & Viewing Images with Super Smooth Zoom & Pan Capabilities

For 3,000 years man has sized art to fit the frame. Sounds logical?

For 30+ years screen images have been sized to fit the frame they were presented in. When zoomed on they became “pixilated”.

Three years ago it was discovered that images for screens should be tremendously larger than the picture frame, that’s if you want to create a “zoom factor”.

Three years later and the world is changing! Goodbye pixelization.


Prior Zoom Imaging Demonstration


I-View-It Imaging Process Demonstration


I-View-It Video Process

Industry practice had been limited to 160 x 120 and 240 x 180 frame size in order to achieve acceptable video quality.

I-View-It developed a process through which it has greatly expanded the industry standard for video quality. This process:

is based upon a consistently applied frame size, for example 320 x 240 throughout the digitizing and encoding processes anddelivers to the encoding step a pre-processed file which increases the efficiency of the encoding step by maintaining the integrity of all source parameters.playback of the scaled video to full-screen

As a result of this process, I-View-It is able to deliver consistently superior video product in full-screen.

I-View-It is continuing to develop pre-processing techniques that will further enhance video quality.


Video Encoding Prior to the I-View-It Video Process

Source = ??????

Application Bandwidth Standard Size Frame Rate

Analog Video 5 - 10 Kbps none 170x128 2 - 5Low Bitrate Video Conferencing 26 - 64 Kbps H.263 128x96 15 - 30Basic Video Telephony 64 - 128 Kbps H.261 176x144 10 - 20Video Conferencing > = 384 Kbps H.261 352x288 15 - 30Interactive Conferencing 1 - 2 Mbps MPEG-1 352x288 15 - 30Digital TV - NTSC 3 - 10 Mbps MPEG-2 720x480 30 - 60High Definition TV 15 - 80 Mbps MPEG-2 1200x800 30 - 60

Summarizes applications of the compressed video by specifying current standards used in various applications, the required bandwidth, and typical frame rate and frame sizes.

Applications of the compressed video and current video compressions standards.Source: ?????????????????


Video Encoding Prior to the I-View-It Video Process

Will Pentium III Live Up to its HypeIntel gives a sneak preview of the features in its Pentium III processor

The holy grail of multimedia? by: Tom Steinert-Threlkeld - Inter@ctive Week Online from February 1999

The Pentium III processor promises the ability of providing the holy grail of multimedia on the Net: The ability to display on a full computer screen -- the "wished for 30 frames a second," as In-Stat analyst Max Baron puts it, that provides the fluidity and crispness of conventional motion pictures.

“But that is only if Internet users have high-speed connections that transfer 1.5 million bits of data or more, Intel engineers say. To the average PC user, a high-speed connection to the Web is still 56 thousand bits a second or less. At those rates, Web pages will feature more and better stock tickers…”


Prior Industry Specifications

Application Bandwidth Standard Size Frame RateAnalog Video 5 - 10 Kbps none 170x128 2 - 5Low Bitrate Video Conferencing 26 - 64 Kbps H.263 128x96 15 - 30Basic Video Telephony 64 - 128 Kbps H.261 176x144 10 - 20Video Conferencing > = 384 Kbps H.261 352x288 15 - 30Interactive Conferencing 1 - 2 Mbps MPEG-1 352x288 15 - 30Digital TV - NTSC 3 - 10 Mbps MPEG-2 720x480 30 - 60High Definition TV 15 - 80 Mbps MPEG-2 1200x800 30 - 60

Summarizes applications of the compressed video by specifying current standards used in various applications, the required bandwidth, and typical frame rate and frame sizes.

Applications of the compressed video and current video compressions standards.Source: ?????????????????


Prior Video Process Demonstration


I-View-It’s Video Process Demonstration


Impact of Encode Frame Size on Full Screen Viewing Quality

0

1

2

3

4

5

6

28Kb 56Kb 100Kb 256Kb 512Kb 1Mb 3Mb

Encoded Bandwidth at 30 fps (Average of 5 Stress Videos)

180 x 120 encode

360 x 240 encode

720 x 480 encode

Best

Worst

Viewing Quality

Based on studies performed by Dr. Christopher Taylor of the Milwaukee School of Engineering


Impact of Encode Frame Size on 360 x 240 Viewing Window Quality

0

1

2

3

4

5

6

28Kb 56Kb 100Kb 256Kb 512Kb 1Mb 3Mb

Encoded Bandwidth at 30 fps (Average of 5 Stress Videos)

180 x 120 encode

360 x 240 encode

720 x 480 encode

Best

Worst

Viewing Quality

Based on studies performed by Dr. Christopher Taylor of the Milwaukee School of Engineering


Business Strategy

Become a leading licensor of the technologies

Partner with selected customers and technology leaders

Build recurring licensing and service revenues

Provide superior products through R&D innovations

Expand IP base through R&D and/or acquisitions

Bring on strategic industry investors


Customers & Prospects in Target MarketsVideo

Video

Internet

Warner Bros. Online

Sony Pictures & Columbia Tri-Star Viacom/Paramount

MGM 20th Century Fox Hollywood.com Broadway.com Gear Magazine

Atlas Entertainment Ellen DeGeneres

Internet cont

Alanis Morisette Kids’Camps

Golden Shadow Pictures

QVC Academy of Motion

Pictures COX

American Enterprise Boca Raton

Resort & Club JM Lexus

Security

Clearview Networks

Appliances

Sony Dell Acer

Tera Nex

Bundling

Adobe Burst

Disk Mailer MindArrow

Combination of Image & Video

Processes

AOLTW

Clearview Networks

AOLTW Clearview Networks

AOLTW


*Customers in Bold


Customers & Prospects in Target MarketsImaging


Imaging

Internet

Hyatt Hotels AOLTW

Sony Viacom/Paramount

MGM Anschutz Digital Media

Picture Vision Ron Jon Surf

Security

Clearview Networks

Medical

Medical OnLine BioSample

Retail

Greg Manning Amazon Target

Best Buy Extreme Yachts

JM Lexus Signature Eyewear

Digital Cameras

Sony Concord Camera

Appliances

3Com Dell Acer

Bundling Adobe

Versifi/REEF BlueZone

Open Graphics Cyberworld

Picture Vision

*Customers in Bold


Marketing Strategy

Target high profile content owners and distributors

Co-brand with Industry Leaders

National print media campaign targeting corporate decision-makers

National B2B public relations campaign

Target market trade show presence


Strategic Partners

BlueZone

Open Graphics

Medical OnLine

Atlas EntertainmentBrings I-View-It high profile branding; video-on-demand, and pay-for-view Internet broadcast opportunities with the likes of Alanis Morissette, Ellen DeGeneres, etc.

Versifi/REEFThe two parties have a co-marketing, license, and production relationship as well as inclusion of I-View-Its imaging processes and software with the Versifi content management software for resale within the IBM e-commerce tool suite. Versifi Inc. specializes in building easy-to-use, enterprise Java applications to enable the creation, delivery and management of dynamic Web content. Versifi's Dynamic Information Delivery (D.I.D.) system provides the underlying architecture for deploying high-change, content-rich intranet, Web and e-commerce sites without the associated costs of limiting scripting technologies.


Target Milestones

3Q 2001

3Q - 4Q 2001

1Q - 2002

Secure growth capital

Hire CEO

Hire SVP of Sales/Marketing

Hire CTO and CFO

Close Technology Licenses in Target Markets

Launch branding campaign

Introduce technology enhancements


Board of Directors

Maurice BuchsbaumCEO of Emerald Capital Partners

Drexel Burnham

Kidder Peabody

JW Genesis

Simon Bernstein (Chairman Emeritus)

President, S.T.P. Enterprises

President, S.B. Lexington

Eliot BernsteinI-View-It Founder & Vice Chairman

Gerald LewinCPA - Senior Partner of Goldstein Lewin & Co.

Donald KanePrior Managing Director at Goldman Sachs

President of GDI, holding company of 4 B2B companies

Vice Chairman of Sagence Systems

Director of Versifi and Ergo Systems

Kellogg Graduate School of Mgmt.

Bruce T. Prolow Tiedemann Investment Group

Ken AndersonMyCFO

Prior Partner, Arthur Andersen Private Client Services

Director of Schaeffer Autosimulation


Advisory Board

Alan EpsteinPartner - Armstrong Hirsch Jackoway Tyerman & Wertheimer

George deBidartPresident & CEO - TSI Motorsports Marketing

President & CEO - The Source, Inc.

Stephen Verona – TBD

David J. ColterWarner Bros. VP Advanced Technology


Capitalization Table

Shareholder Date Paid $

Price Per

Share $

Class A

Class B Non-

Voting

Class A Preferred

Class A

Class B

Convertible Debt

Warrant Exercise

Cost

% of Total Shares Fully

DilutedAlpine Venture Capital Partners LP 12/13/00 $21,192 7,714 13,478 20.26%Eliot I. Bernstein 6/29/99 $9,410 $0.50 11,320 7,500 17.99%Simon L. Bernstein 6/29/99 $5,175 $0.00 5,350 5,000 9.90%Alpine Venture Capital Partners LP 12/13/00 $1,200,000 3,096 $0 2.96%Investech Holdings L.L.C. 10/29/99 $500,000 $166.28 3,007 2.88%Tiedemann / Prolow II LLC 3/21/01 $345,000 $155.00 1780 890 $413,850 2.55%

Alpine Venture Capital Partners LP 2/2/00 $1,000,000 $387.59 2,580 2.47%Alpine Venture Capital Partners LP 7/19/00 $387.59 2,580 $999,982 2.47%Lisa Friedstein 6/29/99 $1,250 $387.59 2,500 2.39%The Jacob Bernstein 1999 Trust 6/29/99 $1,208 $387.59 2,415 2.31%The Joshua Bernstein 1999 Trust 6/29/99 $1,208 $387.59 2,415 2.31%Alpine Venture Capital Partners LP 12/13/00 $823,241 $387.59 2,124 2.03%Provision for Employee Options 2,109 $0 2.02%

Gerald R. Lewin & Barbara S. Lewin 6/29/99 $1,000 $36.22 2,000 1.91%

Maurice Buchsbaum 8/15/00 $36.22 1,930 $69,905 1.85%James Armstrong 6/29/99 $875 $166.70 1,750 1.67%Brian G. Utley 8/3/99 $857 $166.70 1,714 1.64%

Options/Warrants

Authorized200,000 400,000 100,000

Shares Issued


Capitalization Table Continued

Donald G. Kane, II 6/29/99 $832 $166.70 1,663 1.59%Patricia Daniels 6/29/99 $625 $166.70 1,250 1.20%Donna Dietz 6/29/99 $625 $166.70 1,250 1.20%Andrew Dietz 6/29/99 $625 $166.70 1,250 1.20%

Jill Iantoni 6/29/99 $625 $166.70 1,250 1.20%

Guy Iantoni 6/29/99 $625 $166.70 1,250 1.20%James Osterling 6/29/99 $625 $166.70 1,250 1.20%Emerald Capital Partners, Inc. 12/20/99 $166.70 1,250 $208,375 1.20%

Ross Miller 5/1/01 $193.80 1120 $217,056 1.07%Emerald Capital Partners, Inc. 12/20/99 $308.30 1,000 $308,300 0.96%

Loans by Stockholders & Friends 2/23/00 $350,771 $387.59 905 $350,769 0.87%Alpine Venture Capital Partners LP 5/14/01 $330,000 $387.59 851 $329,839 0.81%

Raymond Hersh (9) 10/1/00 $387.59 700 $271,313 0.67%Jason Gregg 3/29/00 $250,000 $387.59 645 0.62%Alpine Venture Capital Partners LP 7/9/01 $220,000 $387.59 568 $220,151 0.54%

Alpine Venture Capital Partners LP 6/8/01 $220,000 $387.59 568 $220,151 0.54%AHJTW 10/18/00 568 $0 0.54%Michael Reale 4/18/00 $387.59 522 $202,322 0.50%Bettie Stanger 6/29/99 $250 $387.59 500 0.48%David Colter 2/8/01 $387.59 384 $148,835 0.37%


Price Per

Share $

Class A

Class B Non-

Voting

Class A Preferred

Class A

Class B

Convertible Debt

Warrant Exercise

Cost


Diluted

Options/Warrants

Authorized200,000 400,000 100,000

Shares Issued




Price Per

Share $

Class A

Class B Non-

Voting

Class A Preferred

Class A

Class B

Convertible Debt

Warrant Exercise

Cost


Diluted

Options/Warrants

Authorized200,000 400,000 100,000

Shares Issued

Emerald Capital Partners, Inc. 2/2/00 $387.59 258 $99,998 0.25%Kevin Lockwood 8/17/00 $387.59 258 $99,998 0.25%Jennifer P. Lewin 6/29/99 $125 $0.00 250 0.24%Erika R. Lewin 6/29/99 $125 $0.00 250 0.24%Atlas Entertainment/Tidal 4 11/8/00 250 $0 0.24%

Alan Young 10/16/00 250 $0 0.24%Steve Sklar 10/1/00 $387.59 206 $79,844 0.20%Interest on Loans 6/30/01 $54,420 $387.59 140 $54,263 0.13%Ken Anderson 6/13/00 $50,000 $387.59 129 0.12%Atlas Entertainment/Tidal 4 11/8/00 125 $0 0.12%

Alanis Morissette 12/27/00 $387.59 100 $38,759 0.10%Mitchell Welsch 6/9/00 $29,844 $387.59 77 0.07%Happy Feet Living Trust 12/27/00 $155.00 68 $10,540 0.07%Andrew Dietz 11/28/00 $25,000 $387.59 65 $25,193 0.06%Mitchell Welsch 6/9/00 $387.59 $387.59 53 $20,542 0.05%Lauren Lloyd Living Trust 12/27/00 $155.00 34 $5,270 0.03%




Price Per

Share $

Class A

Class B Non-

Voting

Class A Preferred

Class A

Class B

Convertible Debt

Warrant Exercise

Cost


Diluted

Options/Warrants

Authorized200,000 400,000 100,000

Shares Issued

Ellen DeGeneres/Heche Trust 12/27/00 $155.00 34 $5,270 0.03%Atlas Entertainment/Tidal 4 12/27/00 $155.00 14 $2,170 0.01%Scott Welch 12/27/00 $387.59 13 $5,039 0.01%Atlas Entertainment/Tidal 4 12/27/00 $387.59 12 $4,651 0.01%Ross Miller 5/11/01 $387.59 5 $1,938 0.00%

Interest on Loan by Andrew Dietz 6/30/01 $1,226 $387.59 3 $1,163 0.00%

100.00%Outstanding to Date $5,447,146 28,242 48,935 4,704 2,891 14,719 5,099 $4,415,485 104,590


Financing History

Investor AmountAlpine Venture Capital Partners $3,814,433Huizenga Holdings $500,000Tiedemann / Prolow II LLC $345,000Individual Investors $787,713

Total Investment $5,447,146


Use of Proceeds

*Assumes a 12-16 month period

Expenses AmountCapital Expenditures $1,500,000Licensing & Marketing $2,000,000Restructure Expenditures $1,000,000Research and Development $2,500,000Patent Filings & Expansion $1,700,000Working Capital $1,300,000

$10,000,000


Video & Imaging Showcase

The Sights and Sounds of the Internet


Income Statement (ending Dec. 31)

YEAR 1 YEAR 2 YEAR 3

REVENUE 3,639,248$ 24,776,909$ 63,830,946$

COST OF GOODS SOLD 2,057,453 6,617,445 13,192,434

GROSS PROFIT 1,581,796 18,159,464 50,638,512

OPERATING EXPENSES:

SELLING, GENERAL, & ADMINISTRATIVE 9,861,781 13,870,983 24,790,101 RESEARCH AND DEVELOPMENT 776,326 1,705,086 2,686,204

TOTAL OPERATING EXPENSES 10,638,107 15,576,069 27,476,305

OPERATING PROFIT (LOSS) (9,056,311) 2,583,395 23,162,207

NET INCOME (LOSS) (9,157,644)$ 2,364,062$ 16,378,757$

EARNINGS BEFORE INCOME TAXES, DEPRECIATION AND AMORTIZATION (8,860,499)$ 3,871,945$ 26,610,280$


2001 Video Revenues

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

Q1 Q2 Q3 Q4

Web Design & Consulting

Master Licensing

Serving

Hosting

Archival

Encoding


2001 Imaging Revenues

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

Q1 Q2 Q3 Q4


Archival

Hosting & Serving Revenue for Hotels & ResortsServing Revenue

Hosting Revenue

Master License Revenue

Image Processing Revenue

Hotel & Resort PackagesRevenueSetup Fee Revenue

Annual License Fee Revenue


Imaging Revenues by Quarter

$0

$1,000,000

$2,000,000

$3,000,000

$4,000,000

$5,000,000

$6,000,000

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9Q10 Q11 Q12


Archival

Hosting & Serving Revenue for Hotels & ResortsServing Revenue

Hosting Revenue

Master License Revenue

Image Processing Revenue

Hotel & Resort PackagesRevenueSetup Fee Revenue

Annual License Fee Revenue


Video Revenues by Quarter

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9Q10 Q11 Q12


Master Licensing

Serving

Hosting

Archival

Encoding


Revenues by Quarter

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

$16,000,000

$18,000,000

$20,000,000

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11 Q12

ImagingVideo


Cash Flow StatementYEAR 1 YEAR 2 YEAR 3

CASH FLOWS FROM OPERATING ACTIVITIES:

NET INCOME (LOSS) (9,157,644)$ 2,364,062$ 16,378,757$

ADJUSTMENTS:

DEPRECIATION 297,146 1,507,883 3,841,406

(INCREASE) DECREASE IN ACCOUNTS RECEIVABLE, Net (1,249,651) (5,993,849) (9,222,813)

INCREASE (DECREASE) IN ACCOUNTS PAYABLE 185,734 500,024 1,797,736

CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (9,924,415) (1,621,879) 12,795,087

CASH FLOWS FROM INVESTING ACTIVITIES:

PAYMENTS FOR FIXED ASSETS (921,438) (3,664,811) (7,025,770)

CASH USED IN INVESTING ACTIVITIES (921,438) (3,664,811) (7,025,770)

CASH FLOWS FROM FINANCING ACTIVITIES:

PROCEEDS FROM INVESTOR FINANCING 20,000,000 - -

CASH PROVIDED BY FINANCING ACTIVITIES 20,000,000 - -

INCREASE IN CASH 9,154,147 (5,286,690) 5,769,317

CASH - BEGINNING - 9,154,147 3,867,457

CASH - ENDING 9,154,147$ 3,867,457$ 9,636,774$


Balance Sheet

YEAR 1 YEAR 2 YEAR 3

CASH 9,154,147$ 3,867,457$ 9,636,774$

ACCOUNTS RECEIVABLE, Net 1,249,651 7,243,499 16,466,312

PROPERTY, PLANT & EQUIPMENT 921,438 4,586,248 11,612,018 LESS: ACCUMULATED DEPRECIATION (297,146) (1,805,029) (5,646,435)

11,028,090$ 13,892,176$ 32,068,670$

ACCOUNTS PAYABLE 185,734$ 685,758$ 2,483,495$

COMMON STOCK 1,000 1,000 1,000 ADDITIONAL PAID-IN CAPITAL 19,999,000 19,999,000 19,999,000 RETAINED EARNINGS (DEFICIT) (9,157,644) (6,793,583) 9,585,175

10,842,356 13,206,417 29,585,175

11,028,090$ 13,892,176$ 32,068,670$

ASSETS

LIABILITIES AND STOCKHOLDERS' EQUITY



sih

siw

Source Image

ViewingWindow

vwh

vww

Source Image = si

Aspect Ratio = siw / sih = sir(width of the image divided by the height of the image, in inches)

The Viewing Window is the window, defined in pixels, within which is to be displayed the virtual image, scaled to fit.

Viewing Window = vwViewing Window Aspect Ratio = vww / vwh = vwr

Viewing Window width in pixels = vww Viewing Window height in pixels = vwh



vihvwh

vwwviw

Viewing Image

sir < vwr

Viewing Image

sir > vwr

viw

vwh

vww

vih

To fit the Source Image to the Viewing Window :

Compare the Source Image Aspect Ratio to the Viewing Window Aspect Ratio:

if sir < vwr thenViewing Image height (vih) = vwh

Viewing Image width (viw) = vih * sir

if sir >, = vwr thenViewing Image width (viw) = vwwViewing Image height (vih) = viw / sir



vih

Virtual Image

Viewing Image

viw

vih virtih

virtiw

The Maximum Magnification Factor is defined as the ratio of the Virtual Image area to the Viewing Image area. This ratio will determine the amount of zoom available without causing the image to distort due to fewer pixels in the image being displayed than available in the Viewing Window.

Maximum Magnification Factor = mmfViewing Image area = viw x vih = viaVirtual Image area = virtiw x virtih = via x mmf = virtia

To obtain the Virtual Image width and height:

virtiw = virtia * sirvirtih = virtiw / sir



Virtual Image

virtiw

ViewingWindow

vwh

vww

virti

A zoom to the maximum level will be shown in the Viewing Window as shown below. By panning the Viewing Window, every portion of the Virtual Image may be viewed from each level of zooming.

july 2001

Documents