Vistula Presentation for Funding

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Vistula Presentation for Funding
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Disclaimer

• No person has been authorized to give any
  information other than that contained in this
  document, or to make any representations in
  connection with the offering contemplated
  thereby, and, if given or made, such other
  information or representations must not be relied
  upon as having been authorized by Vistula
  Communications Services, Inc. (Vistula or the
  Company) or the Placement Agent. The Company
  and the Placement Agent disclaim any and all
  liabilities for representations or warranties,
  express or implied, contained in, omissions from,
  this confidential document or any other written
  or oral communications or transmission made
  available to the recipient.
• You will be entitled to rely solely on those
  representations and warranties that may be made
  to you in any purchase agreement relating to the
  offering contemplated hereby. No representation,
  warranty or covenant, express or implied, is made
  to you by the Placement Agent and no
  responsibility of any kind as between the
  investors and the Placement Agent is accepted by
  the Placement Agent with respect to the
  completeness or accuracy of any information
  contained in this document or as to any other
  matter concerning it or the statements made in
  it.

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Safe Harbor Statement

• This presentation contains "forward-looking
  statements" within the meaning of the
  safe-harbor provisions of the Private
  Securities Litigation Reform Act of 1995. Such
  statements involve known and unknown risks,
  uncertainties and other factors that could cause
  the actual results of Vistula to differ
  materially from the results expressed or implied
  by such statements, including changes from
  anticipated levels of sales, future national or
  regional economic and competitive conditions,
  changes in relationships with customers, access
  to capital, difficulties in developing and
  marketing new products, marketing existing
  products, customer acceptance of existing and new
  products, and other factors. Accordingly,
  although the Company believes that the
  expectations reflected in such forward-looking
  statements are reasonable, there can be no
  assurance that such expectations will prove to be
  correct. The Company has no obligation to update
  the forward-looking information contained in this
  presentation.

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Vistulas Business
Through its self-developed software platform
V-CubeTM, Vistula provides Hosted IP Telephony
solutions to Telcos, ISPs and mature IT
Distributors allowing them to offer market
leading services to their existing and new client
bases.
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V-CubeTM IP-PBX Platform

• V-CubeTM IP-PBX platform
• A comprehensive VoIP PBX solution for telecom
  carriers, ISPs and transit network operators
• Features include voice, video, fax, presence
  management, email, interactive voice response and
  conferencing services

• Software-only, hosted platform
• Integrates easily with service providers legacy
  systems
• Off the shelf hardware to implement
• No additional cost for upgrades
• Sold through strategic partnerships with service
  providers
• Priced per handset / per user per month
• Priced competitively against proprietary IP-PBX
  solutions
• Service providers can achieve strong gross
  margins similar to legacy systems
• Highly scalable engine, can serve an unlimited
  number of end-users
• End-user web portal service
• MyService portal allows end-users to manage their
  service
• MyOrder portal allows service provider to take
  handset/IP-PBX orders via the Internet

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Benefits of Hosted PBX
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Sales Proposition for ClientNorthamber

• Vistulas Proprietary Hosted Solution for
  Multiple Client Channels e.g. Northamber PLC in
  the UK

• Packaged and Hosted IP-PBX in variants designed
  for simple sales proposition for mature
  distributor channels
• 10, 20, 40 and 60 Desk version
• 5 Desk upgrade package
• Strong Feature Set including operator Console
  with options for Call Centre add-on
• Support For the Sales Channel
• Technical and Sales training given by Vistula to
  each sales outfit in the distribution line
• On-line Service Portal
• Tiered customer support provided.
• Site survey package offered
• Vistula Revenue
• 1,800 per IP-PBX at installation plus 850 per
  annum for the life of the service
• Revenue opportunity in the sale of voice traffic
  carried off-net
• Revenue opportunity for sale of IP access where
  QOS guarantee is required.

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Demand for Hosted IP-PBX Systems

• Immediate price advantage on basic telephony.
• Toll by-pass. Any company with home workers or
  multiple office locations can avoid toll charges
  by utilization of a hosted IP PBX system.
• Advanced productivity features such as Outlook
  integration.
• Ability to use a mobile handset as an extension
  of the PBX when operating in Wifi enabled hot
  spots. This can be enhanced when traveling by
  taking a small router (the size of a Blackberry)
  that can be plugged into an Ethernet port.
• Always current. By adopting a hosted IP PBX
  solution as opposed to a traditional boxed
  product, the user's system will only be as old as
  the last software release. That is unprecedented
  in the traditional equipment world.

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Extended Business Strategy

• Vistula selected by the UKs largest IT sales
  group as PBX supplier (replacing Avaya) for
  distribution through VAR network.
• Vistula gets paid on point of sale for each
  IP-PBX contract
• Vistula benefits from long term relationship
  between VARs and their customers (Government
  Organisations, Enterprises and SMBs)
• VARs have technical expertise to install and
  support hosted IP-PBX systems.
• Vistula hosts the platform (in the UK at
  Telstras CoLo facility in central London)

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Budget Assumptions

• Northamber (www.northamber.com) launch hosted
  IP-PBX in April 2007.
• Ramping up to 600 PBX sales per month in December
  2007
• Year 2 Sales at Northamber conservatively to
  remain at 600 PBXs per month.
• Very low revenue assumed from all other sources
  USA, South America, Asia, Europe and Africa -
  despite developed prospects in these regions.
• Capital equipment needed (PC Servers, Routers and
  Gateways) will be leased not purchased

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Summary Business Plan 2007
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Summary Business Plan 2008
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Benefits to Vistula
Vistula to launch direct end-user services
through relationship with strongest local
established distribution channel.

• Rapid revenue achievement
• More profitable revenue i.e. Higher return per
  handset deployed
• Annually recurring revenues
• Working commercial model for other distribution
  channels around the world.
• Quickly take the company into profitability and
  positive cashflow.

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Benefits to Northamber

• Attractive margins
• Create sticky customers
• Highly competitive pricing model
• Annually recurring revenues
• Additional revenue streams from complementary
  services
• Outbound calls
• Managed Service
• LAN assessment
• Quick way to enter the lucrative VoIP market
• Sell to all customer sizes 10, 20, 40, 60 user
  5 user expansion pack customized for larger
  enterprises.
• Opportunity to join Northambers Partner Programme

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HENRY MATTHEWS, Managing Director - Northamber
group

• The future of telephony lies in the IP domain.
  We recognize that in order to continue to achieve
  strong growth in this segment of the market we
  required an IP-PBX solution. After careful study
  of the competitive product offerings we chose
  Vistulas V-Cube IP-PBX as the core product to
  deliver to our customers. Vistula provides us
  with a proven multi-faceted technology platform
  at a price point that will drive sales in volume
  in our core markets. We see this as a big
  opportunity for both companies and for our
  customers.

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UK Distribution
Vistula have concluded a sales agreement with the
UKs largest trade only IT distributor
Northamber

• Northamber will start selling Vistulas hosted
  IP-PBX product through 200 of its Master
  Resellers in April 2007.
• Later in 2007 Northamber will launch the product
  to 2,000 large Resellers.
• In 2005 Northamber sold US40 million of Avaya
  PBXs Vistula has been selected as the PBX
  supplier for Northamber in 2007 to replace Avaya.
• Northamber has forecast 7m of sales in 2007
  (3,000 PBXs), 13m 2008 (10,200 PBXs) and 19m
  2009 (17,400 PBXs)

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NORTHAMBER

• Largest and Longest Established Trade-Only IT
  Distributor in the UK
• 6,000 Active Resellers
• Annual Revenues circa 400 million
• Major Vendors include HP, Microsoft, Oracle,
  Sony, Toshiba, Intel etc
• Launch partner for specialised products for
  companies such as Oracle, Orange and T-Mobile
• www.northamber.com

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VARs

• Vistula will contract with other distribution
  channels into VAR business networks in the USA
  and Europe to capture growing demand for Hosted
  IP-PBX systems. Northamber will act as the
  template.