Operating Performance Highlights

Legal Structure and Ownership

Internet Events International Inc. is a Subchapter-S Corporation incorporated in the State of Utah. 1,000,000 shares of stock have been authorized: 300,000 shares to be issued as Class A, Preferred Voting Stock, and 700,000 shares to be issued as Class B, Preferred Non-voting Stock. Currently, only 100,000 shares of Class A stock have been issued. No Class B stock has been issued. The principal stockholders are Brian Burnett, Stephen McLain, Lora Mohr and Loren Hollingsworth.

Company Location and Facilities

Internet Events International is currently located at 10901 S. 1000 E., Sandy, UT 84094. The corporate headquarters will be located at South 4122 Grove Road, Spokane, WA. The company will initially lease 20,000 square feet of office space at this location. The firm will also lease a call center facility in Orem, Utah. The call center is 10,000 square feet. Lease agreements for both facilities are under negotiation.

Plans for Financing the Business

IEI is prepared to issue up to 500,000 Class B Preferred shares (non-voting) to a venture capital fund or a syndicate of funds. This would represent a 50% equity position in the company. The corporate charter may be amended to authorize another 200,000 shares to be awarded to the current shareholders on a pro-rata basis. In return for the 50% equity position, the company is seeking $5,000,000. IEI is also pursuing advertising contracts initially intended to generate $6,200,000 in return for a 3-5 year exclusive banner advertising provision. All indications suggest that IEI will be profitable within the first year of operation.

Organization

A core of experienced and talented managers has been assembled to form the management team.

Team Members

Organizational Structure

Principal Stockholders

Below is a summary of the current stockholders and their holdings:

Our marketing and demographic data is based on accepted historical data and current projections of future market trends. This data has been compiled from standard industry sources including, but not limited to, the following:

• Network Solutions, Inc. (dotcom.com, dotcomdirectory.com, nsol.com, networksolutions.com). Currently holding the monopoly on commercial domain name registrations through the control of .com, .net and .org, NSI is the only true source of data concerning the history and expected trends of domain name registration.

• The Industry Standard: The Newsmagazine of the Internet Economy, published by Internet Industry Publishing, an IDG Company. This is the premier source for global Internet news, trends, and data, and the information standard of the global Internet community.

• Netnames.com: a long-time registrar of International Domain Names, and recently contracted with and accredited by ICANN to function as a registrar under the .com, .net, .org Shared Registry System.

• Internet.com: The Internet Industry Portal, a global provider of real-time news and information resources for the Internet industry and Internet technology professionals, web-developers, and experienced Internet users, offering global projections of Internet growth and market trends.

Industry Analysis

The World Wide Web has been available to the general public since 1988, with the authorization of the .com TLD. It began its current explosive expansion in about 1994, and today represents a multi-trillion dollar industry with on-line advertising contributing several billion dollars annually. As of August 29, 2000, over 27.6 million domain names had been registered on the Internet. The demand for domain names within the TLDs currently available is increasing at a rate of approximately 18.5% per quarter, which compounded, equates to a 97% annual growth rate.

Target Market

Our first year target demographic model includes all 28,781,217 current US and international Domain Name Holders for the purposes of introducing a new organizational system of restricted Domain Names simplifying the process of reaching a specific target market, as well as Trademark, Famous Mark and Branding Protection. In addition, there are approximately 144,000 businesses and other entities on the Internet Corporation for Assigning Names and Numbers’ (ICANN’s) mailing list which have specifically requested notification of the launch of the new Top Level Domains.

After the first six months, our target demographic model expands to include smaller organizations and individuals by introducing a system of categorically focused sub-domains allowing them to effectively reach smaller, even private, target markets.

Customer Profile

Due to the extremely diverse characteristics of Internet users and the global appeal of .event, further specification of customer profile is unproductive.

Major Competitors and Risk Factors

The only currently active competition comes from other TLD registry organizations. As ICANN is currently negotiating to add many new TLDs, the field of competition is fluctuating.

Market Segmentation

During the start-up period our market will consist of only extant businesses, Trade Mark holders, owners of Famous Marks, and current operators of active Internet Domains (not to include cyber-squatters and/or others in the business of domain name resale). During the period following start-up and continuing until the end of 2001 our market will be expanded to include any and all businesses or related entities which meet our domain registration restrictions.

Starting January 2002, our market will be expanded to include any person or persons who meet our domain registration restrictions. At this time all entities meeting the registration restrictions will be accepted. Any expansion or modification of our market beyond this point will be in reaction to the market itself and determined by the .event Policy Group.

Projected Market Growth and Market Share Objectives

IEI will be selling TLD registrations and advertising on the Internet, to corporations, small businesses, and individuals.

Product and Service Uniqueness

As an Internet TLD Sponsoring Organization and Registry Operator, we will enjoy the following key operating advantages over other top-level domains and other Internet advertising companies:

• Defining and reaching target markets. Restricted domain access combined with our sub-domain system allows organization of the event industry into an easily identifiable and accessible database of specific events that will provide advertisers with an improved ability to define and reach target markets within the virtual world.

• Global unification. With our global focus, we will not only provide access to international events, supported by numerous languages, but we will also make the Internet "friendly" to users of all ages and experience levels, thereby potentially increasing world-wide Internet acceptance.

• Technological superiority. By employing a team of technological experts, we have designed a technological model that is expandable, upgradeable, secure, redundant, and geographically diverse. The model is unparalleled in the industry.

• Convenient 24-hour registration. Our website is open 24 hours a day, seven days a week, and can be reached from the registrant's home or office.

• Customer service. In addition to on-line registration through our website, we will provide toll-free telephone service and registration-based technical support.

Competitive Comparisons

Although IEI’s primary source of competition will be other TLD registry groups, the unique nature of our model does not allow for effective competitive comparison.

Research and Development

A vast majority of research and development investment will be in the area of logistics and technology. Improvements in the way we deliver content, interact with consumers, and deliver products will be the top R&D priorities. A significant portion of gross profit will be dedicated to ensuring that we employ the most cutting-edge technology available and proven effective.

Web Site

A website will be established to facilitate registrations to .event and provide an open medium for public comment. Full technical plans have been designed to support all associated registration functions.

Policies

The Policy Board of the Sponsoring Organization will be responsible for receiving and processing as well as replying to input from domain holders, registrars, users and the public at large. In addition to unsolicited input, we will regularly place ads in different print media, including event and expo industry magazines. If our Policy Board feels that the input it is receiving seems to be missing representation of certain groups within our target market, such as international users or sub-domain holders, it will actively seek input from these groups through advertising and other forms of communication directed at these markets. It is our intent to meet regularly with ICANN and/or other registries to share successes and struggles and to discuss the marketplace at large. As trends of the Internet continue to change and flow, we have left our policies open to changes as needed.

Openness and transparency policies will be handled by the Policy Board. We will have a dedicated staff member to post information, policy change, meeting minutes, public notices and also respond to and monitor bulletin boards on policy.event. All TLD policies will be posted at policy.event with links from register.event, search.event, etc. We will practice an "open-door" policy among our employees and also through the bulletin board system from the public. All comments and suggestions are welcome and will be responded to in a timely manner. Major policy changes will also be announced via newswire services and other means as appropriate and as approved by the Policy Board.

One of our general hiring policies is to hire from within whenever possible. Our hiring model is as follows: General staff will be screened by HR and hired as needed. Supervisory positions will also be screened by HR and then interviewed by a panel of "peers," meaning employees at the same level of authority. Positions at the "Manager" level and above will be hired in similar fashion, but will also be presented to the Management Board for approval. Standard employee contracts will be "at-will," meaning no notice is required for termination of service by the employee or by the company.

Management level contracts will generally be for two years, unless otherwise negotiated and stated in writing in the contract. Compensation will be competitive for the market and field of the position. Salaries and other compensation will be set in the Human Resources manual with a base pay rate for each job title and standard policies for level of proficiency pay raises. Bonuses and shares will be awarded for performance and service and will be voted on and determined by the Management Board. Annual raises will be a percentage above base salary at a rate determined by and voted on by the Management Board. Any general staff member may be dismissed "at-will" based on company needs. Management level employees will be given two weeks’ severance or notice based on security policies.

Dismissal may be for poor performance and/or attendance, failure to work with team members, theft or other criminal activity, including failing random drug tests at work, inability to perform the required job functions, violating the open-door policy, or other reason as determined by supervisor and approved on a case-by-case basis by Human Resources and/or the Management Board. All dismissals may be appealed in writing within two weeks of initial written notification of dismissal. Appeals will be handled by Human Resources managers and may also be brought to the Management Board by HR or Supervisor.

No employee will be fired on the basis of religion, political beliefs, gender, sexual orientation, injury, race or disability (provided the disability does not prevent the employee from performing the requisite tasks and was disclosed at time of hire). We support and practice fair hiring procedures and the Americans with Disabilities Act and our policies can be updated or amended at any time by proposal to the Management Board. No employee shall be liable jointly or individually for any loss, judgment, injury, etc. unless proven to be criminally involved as stated in the by-laws of the company.

All policy must be in agreement with our stated mission statement. As described above, we follow an "open-door" policy for all aspects of company operations. Initial policies of the company were written and agreed upon by the shareholders and approved by the Board of Directors. Any policy changes in the future will be reviewed by the Policy Board at its weekly meeting. Ideas for policy change may come from any source as per our "open-door" policy. Ideas from shareholders, employees, domain name holders, ICANN, registrars, etc. will all be accepted and given fair treatment by the Policy Board.

Any idea presented to the Policy Board from any source that is voted on and becomes new policy will result in some form of compensation to the person or persons that initially submitted the idea. Those ideas that the Policy Board deems merit further consideration will be presented at the general Board of Directors meeting for discussion and vote. When any policy is changed, Corporate Policy manuals will be updated and the Policy Board will assign a team to implement the new policy including, but not limited to, purchasing equipment, providing training or assigning the training team to conduct training, and releasing this information to the public, ICANN, our employees and any other interested parties.

Shareholders will meet annually on the fifteenth day of March at 10 a.m. at the principal office of the corporation or at such other places as the Board may authorize for the purpose of electing directors and transacting any such other business as may properly come before the meeting. In the event of March 15 falling on a holiday or weekend, the Board may choose to change the date, but may not change it more than 7 days previous to or following the 15^th day of March. Special meetings of the shareholders may be called at any time by the Board, the President, or by the holders of twenty-five percent (25%) of the shares then outstanding and entitled to vote. The Board of Directors shall hold an annual meeting immediately following the annual meeting of the shareholders and shall be convened at the same location on the same date as the shareholders adjourn.

The Board shall also hold a semi-annual meeting six months after the adjournment of its annual meeting. This meeting will be held at the principal place of business or any other location that the Board may deem appropriate. Matters of policy change or other corporate business that require the vote of the Board of Directors will be considered at the annual or semi-annual meetings unless the Policy Board, the President, or one of the directors has reasonable cause to convene a special meeting of the Board of Directors. The Board from time to time, may provide by resolution the holding of other meetings as it deems necessary and may fix the time and place thereof. Officers of the company, department heads, etc. may have meetings as frequently as deemed necessary for smooth operation of their departments and/or the company at large but shall convene at least quarterly. Shareholders, Directors, Officers, employees, etc. may participate in meetings through the use of a telephone or the Internet if such can be arranged so that all members can hear all other members.

The use of a telephone or the Internet for participation shall constitute presence in person. The corporation shall keep current and correct records of the accounts, minutes of the meetings and proceedings and membership records of the corporation. Such records shall be kept at the registered office or the principal place of business of the corporation. Any such records shall be in written form or in a form capable of being converted into written form. The Secretary of the corporation shall be charged to compile, keep and otherwise maintain these records as provided for in the by-laws or other policies of the corporation.

Creating and Maintaining Customers

With over 28 million current registrants on the Internet, approximately 144,000 entities which have specifically requested notification of the launch of new TLDs, and millions of businesses globally that are not yet on the Internet, a strong customer base already exists. Consequently, one of the keys to the global acceptance of .event will be brand-name recognition. This will be accomplished through the use of a comprehensive advertising campaign.

Product Pricing Strategy

Promotional Strategy

As previously mentioned, the company will use various media channels (Internet, television, radio, and print media) to launch an advertising campaign designed to educate the public regarding the advantages of searching for information with our restricted TLD and simple sub-domain system.

Estimated Start-Up Capital

Financial Highlights

Income Statement

For the Year 2001 through 2005

(all numbers in 000's)