stockholder briefing

internet SCESCAPE has had a very successful first year in 1996.

Strategically speaking, we have established ourselves as the choice for quality internet access in the region, with very little investment in advertising. Most of our advertising is positive word-of-mouth, and testament to that is than most of our customers are on their second or third internet provider, and we have only had a cancellation rate of 0.7%.

We have met our goal to offer internet access in Augusta, Georgia, and have begun the first steps to marketing that service as well.

Fiscally, the corporation also performed well. Our year's cashflow was positive, and while we did not turn a profit above initial investment, at current rates of growth we should start to see a profit before third quarter 1997.

We formed technology partnerships with area businesses, the majority of which have been mutually beneficial. For example, our relationship with Z-Com computers has provided us with a very solid solution for customers in need of equipment upgrades, and they have provided us with a referral source

During the course of 1996 we also grew our website development, creating new sites for Houndslake Country Club, Eulalie-Salley Realtors, Shutterbug, the Aiken Electric Cooperative, and Dove Electronic as well as numerous other sites. Our existing websites were updated and developed.

Further diversification continue as we began reselling virtual servers. Today, we have close to thirty sites being sold under this category.

The key to our continued success has been our attention to providing quality and good service to our customers, as well as our willingness to keep communications open. In 1997, we will continue this practice and develop new markets.

doug mcclure, president and chief executive officer
internet scescape inc