cory wallenstein servprise international, inc. 447 rawson street leicester, ma 01524 1-800-832-3823 ...

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Cory Wallenstein rvprise International, Inc. 447 Rawson Street Leicester, MA 01524 1-800-832-3823 www.servprise.com [email protected] River Valley Investors June 21, 2006

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Cory WallensteinServprise International, Inc.

447 Rawson StreetLeicester, MA 01524

[email protected]

River Valley Investors

June 21, 2006

Recovering from a crash

• Call tech support–$100 per incident

• Drive to datacenter

• Remotely cycle power

Market

• 29 million worldwide servers– 70% available remotely 24/7

– $2.1 billion market opportunity

• 2004 revenues of $180M– APC, Avocent, BayTech, etc.

Product Roadmap

WebReboot 8-port• IT Consultants• Small ISPs• Fringe of Enterprise

WebReboot Enterprise• Enterprise IT• ISPs & Web Hosts• Government

Servprise Intuity• IT problem-solving software• Significantly grow market

2004: Retail sales

2005: Regional distributors

Customers

2006+: Global distributors

Distributors

Team

• Cory Wallenstein, President

– Serial entrepreneur in IT

• Kevin Menard, Vice President

– Background in web hosting, Cisco

• Robert Chipman, VP Business Development

– Enterprise engineering at BAE

Current Financials

• Sales– Retail sales started mid-’04 – $7k/month revenue on initial 8-port product, 42% margin– No marketing

• Margins

– WebReboot 8-port– $489 retail, $200 cost; 59% margin

– WebReboot Enterprise 24-port– $1500 retail, $400 cost; 73% margin

Projected Financials

• Break-even with full-time staff in 2Q07 – $497K quarterly revenue, $305K gross margin, $249K

operating expenses

• Profitable in 2008– $10.2M annual revenue, $7.7M gross margin, $5.9M

operating expenses– Potential $5M 2nd round for Intuity stand-alone

• Projected exit in 2009: Strategic acquirer– $20.9M annual revenue, $17.2M gross margin,

$11.1M operating expenses– $3.6M net income after taxes

Timeline

Funding

$600K33% Equity

4Q06