Wh Th Fu  Happened ?

TWST: Would you start us off with a brief summary of 01 Communique Laboratory?

 

Mr. Cheung: 01 Communique focuses on providing remote access/remote control solutions. During the last few years, three major trends developed: broadband Internet users; Internet browser can be found everywhere nowadays; businesses are becoming more and more mobile. We offer our solutions through the Internet, basically through multiple channels like the Internet channel and the retail store as well as partnership channels. With this technology, we allow people to access remotely their PCs using any kind of browser. For example, if you have a corporate office or home office or small to medium-sized company, with our solution you will be able to access that PC anywhere in the world using a browser, whether it is on an Internet kiosk, a customer site or even a wireless browser on your PDA, your PC, your phone or whatever. This is mainly what we do. The company has been there since 1992, though it's just in the last three or four years, I would say, that we have been focusing on this business. Although we are still selling our legacy product in the retail OEM channel, which is communication software, it is no longer our focus. Our focus is strictly on remote access and remote control solutions.

 

 

TWST: Who is the target client at this point?

 

Mr. Cheung: Really, the target client is any kind of small to medium- sized enterprise as well as corporate users ' in other words, any user who might have the need to remotely access information that's on their PC while they're away. That includes e-mail attachments, files, applications or anything, using a browser. Now, remote access and remote control technology, this concept is not quite new; it has been there for 15 years. The old concept was to have special software on each site to access the PC, but with this new generation of technology, only one site needs our technology; on the other site you just grab a browser. So it's much easier and much more convenient to access your computer wherever you go because you can access a browser virtually everywhere in the world these days at any time.

 

 

TWST: How much actual customer traction have you seen within the marketplace today?

 

Mr. Cheung: There are 10 million wireless users today. We also have Hitachi in Japan as what we call a 'private-branded customer.' They private-branded the solution and offer it in Japan. Roughly, in Japan there are 55 million wireless users, and each one of them could be a potential customer for us. And in North America the number is growing. We are maybe one or two behind those countries in the foreground of wireless data, but we are getting there. So we are the worldwide leader in over 200 million potential users. This product is also country borderless because it is offered through the Internet services and we can literally offer the service anywhere in the world today.

 

 

TWST: What is the sales and marketing program at this point? What there are you looking to improve, or what partners are you looking to include?

 

Mr. Cheung: As I mentioned before, we have a multi-channel strategy. First is the retail channel, which is actually inherited from our legacy product. This means that if you walk into a Comp USA or J&R, those kinds of stores, you will find the I'm InTouch product, which is the brand name of the remote control/remote access product that we offer. You'll find that physical product sitting on the shelf as channel number one. Channel number, two we make offers through all kinds of online download subscription models. Then channel number three: partnership. A good example would be Hitachi in Japan. They offer a product they call DoMobile, which is a private-branded I'm InTouch. Since it is private- branded, no one knows that it is actually 01 technology. Japanese end- users just subscribe to Hitachi, and Hitachi pays us royalties. Then we have various other partners such as Fido, which is the GSM wireless operator in Canada and a few different partners with whom we're offering our solution indirectly.

 

 

TWST: What is the competitive landscape at this point? Who do you see with comparable technology? Who provides the same ease of use and is also targeting the same market space?

 

Mr. Cheung: This concept of remote access and remote control is not a new market. It has been there for 15 years. It's just that the technology generation has changed. I'm sure that people have heard about products like PC-Anywhere by Symantec that has been there for 15 years already ' and it is a very good product. But as I said, the last generation of this kind of solution required users to have the same product loaded on both the host and the remote computer, whereas with the new generation of solutions, users just need a browser, and they can use any browser, and our technology just needed to be installed on the computer which the user wants to access. And we are the foremost leader in this kind of solution.

 

 

TWST: How strong financially is 01 at this point? When you look at the balance sheet, are there any areas there that you're looking to improve?

 

Mr. Cheung: We are a debt-free company and we are running well. We have enough resources to carry on and execute on our business plan. And we are a public company traded on the Toronto Stock Exchange, so with zero debt and cash.

 

 

TWST: For investors with an interest in Canadian technology companies, what would you say are the advantages of having a base in Canada ' particularly when you look at the bulk of the business in the US?

 

Mr. Cheung: I wouldn't say that it is a Canadian advantage. We actually feel that we are a North American company. We've got good talents here, and we sell products throughout US and Canada. Although the I'm InTouch business is really a worldwide business, initially 95% of the business is in the United States and 5% in Canada, and we feel very comfortable to have our R&D center and sell our product mostly in North America.

 

 

TWST: What role might mergers and acquisitions play in this industry today?

 

Mr. Cheung: We don't focus too much on M&A these days. After the tech bubble burst, we really focused a lot on building the company's business plan.

 

 

TWST: Introduce us to your management team. Who are the individuals responsible for the strategy and the growth of this company as well as the bench strengths and the skill sets that you have onboard?

 

Mr. Cheung: We have a very strong board of directors. We have

Mr. Henry Pankratz as our Chairman who was the Deputy Chairman of Ernst & Young Canada and retired in 1999. We also have a gentleman named Bob Ferchat who was the CEO of Bell Mobility, which is the largest mobile operator in Canada. He retired in 1999. In addition, we also have the former CEO of AT&T Canada, George Harvey.

 

 

TWST: What are your goals over the next 12 months as far as reaching the investment community?

 

Mr. Cheung: We always maintain the same thing ' having announcements for material news and new technologies. Besides, we also have quarterly announcements. So we do exactly what we've been doing over the last few years, except that we would be a bit lower key on the stock because, obviously, we want to focus more on the business side rather than the share price, although we keep a very good communication channel with our investors.

 

 

TWST: What has been the role of analysts in this industry? Do you have a goal to get more analysts looking at what you're doing?

 

Mr. Cheung: Not at this moment. We're focused on building the business. Then, eventually, things will take care of themselves.

 

 

TWST: When you look at your shareholder universe today, how much institutional following have you been able to develop? Is that a priority?

 

Mr. Cheung: No, it's not a priority, but we have quite a few shareholders.

 

 

TWST: What would make the next 12 months a success at 01?

 

Mr. Cheung: There's nothing more important than the bottom line these days, and we are focusing 120% on building that.

 

 

TWST: What would be the three or four summary statements you'd make to compel an investor to include 01 in their portfolio and investment strategy?

 

Mr. Cheung: In fact, this industry is growing very rapidly. Not even talking about a year or two ago, just comparing the business today with the business three or four months ago, it is growing very fast, and the attention is really getting white hot because of the natural development of the three areas we touched: First is the ever increasing broadband Internet users. I'm sure that two or three years ago a lot of people were using dial-up, and broadband is almost like a given these days. Second is the fact of Internet everywhere, that wherever you go you will be able to find an Internet browser. The third thing is the mobility of any professional. So with these three things added together, remote access/remote control of the PC is just becoming a natural demand. It is now proving to be extremely white hot. And the fact that Hitachi in Japan is actively pursuing this market is a very good proof because Japan is the world leader in terms of wireless usage. People just cannot afford to overlook this.

 

 

TWST: Thank you. (DWA)

 

ANDREW CHEUNG President & CEO 01 Communique Laboratory Inc. 1450 Meyerside Drive Suite 500 Mississauga, Ontario L57 2N5 Canada (905) 795-2888 (905) 795-0101 - FAX www.o1com.com e-mail: [email protected]

 

 

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