Thomas Elliott

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Thomas Elliott Chief Operating Officer
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Agenda

• Who are we?
• Product Overview
• Target Market
• Competitive Position
• Case Study

• July 2004

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All-in-one communication system for small
businesses (lt40 EEs)

• PBX/Key/Hyb.phone sys,
• Business server,
• Messaging tools

• July 2004

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About Us

• Founded July, 1998, Located in Rochester, NY

InSciTek, Inc.

• Product Small Business Information System
• Integrated IT Telephony solution
• Leading Edge technology
• Market Launch March 2003
• Sales Channels
• Established Interconnect Data VARs
• Strategic telecomm equip distributors

• Consulting
• Services Engineering/Product Development
• Digital hardware design
• Embedded software design
• Systems database programming
• Web PC applications
• Target Clients F500
• Established and Growing Business

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Consulting

• High-end Engineering Services
• Hardware software competencies
• Digital product development
• Windows NT Unix System Programming
• Top 5 - Engineering Talent
• Strong Foundation for Allworx Division
• Contributed 3.3M in cash retained earnings to
  date
• F500, International Customer Base
• Strong Growth Potential

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Product Overview

• July 2004

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All-in-one communication system for small
businesses (lt40 EEs)

• PBX phone system,
• Business server,
• Messaging tools

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• Options
• Phones - VPN - Music on
  Hold - Mirror Disk
• UPS

• Size
• 60 GB Hard Drive
• 17W x 13D x 3.5H

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Components
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Direct Savings for Small Business

• Lower Recurring Costs
• Static IP addresses
• Reduced dependency on phone service provider
• Replaces 5 to 6 hardware items (and vendors) such
  as router, file server, mail server, voice mail
  server, network server, etc.
• Moves, adds, and changes done in minutes
• VoIP Lower Long Distance Calling!

• Cost Savings
• No per seat charges other than phones
• No license fees for software
• No separate server for data files and emails
• No 3rd party secured firewalls system
• No separate backup software
• No limitations on voicemail access
• No third party hosting fees for website
• .and much more

• Productivity Gains
• Combined All-In-One solution, alone, will save a
  company 14,000 in staff time/year

Based on a single office, 12 employees. Backed
by industry studies
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Target Market

• July 2004

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Large Market Opportunity

• 7.0 Million Small businesses (lt50 employees)
• 1.7M expansions annually in US
• 11 growth year over year
• 38 plan to increase capital outlays
• 70 of 10M new jobs will be from small businesses
• 60 will increase their use of the Internet
• 283 B spend in IT/Services

Sources US Census Bureau 2002, NFIB 2004, CRN
2004
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Target Customer Segment

• 40 Employees or Less
• Key Market Segments
• Business Services
• Engineering, Architecture, Accounting
• Insurance
• Legal
• Medical
• Real Estate

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Small Business Market Triggers

• Launching A Company
• New start-up companies need infrastructure to get
  them up and running quickly (auto attendant, 16
  port vm, unified mess.)
• Expanding Existing Company
• A new branch office is opening up (multi site)
• Adding personnel, but no space (remote workers)
• Upgrading System
• Wants to integrate voice mail and email
• Wants to take advantage of VOIP services

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Competitive Landscape

• Allworx Competitive Advantage
• Unique Comprehensive Solution
• Focused on SB
• Complete IT Telecomm
• Low Cost, High Volume Deployment
• Turnkey delivery of previously customized
  solutions
• Cost Effective, Scaleable Distribution Model
• 50 less than multi-system solution

Allworx has all the components SMB marketplace
needs, and its ideal solution for businesses with
40 or less employees
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VAR Program

• July 2004

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Is Allworx Right for You?

• Unique business opportunity for data and
  telephony resellers
• Profit
• 30 GM, minimum
• On going revenue streams (e.g. VoIP)
• Remote service (e.g. higher margins on service)
• Expansion
• Expand customer base
• Re-engage existing base
• Differentiation
• Convergence technology (IT Telephony) hit the
  market early
• Allworx designed specifically for SMB marketplace

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How do you qualify?

• Currently targeting or selling into SMB
  marketplace
• Requires training (sales technical)
• Purchase a demonstration unit
• Sign up as a reseller with ABP

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Case Study

• July 2004

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Case Study - Redwood Technologies
Supplies products to the US Government- from
parts for battle tanks to refrigerators

• Needed office system when moved out of home
• Owner purchased 2nd business
• Needed a system to insure all calls were
  answered
• Wanted to project a big business image

Competition

• Being familiar with technology, once owner
• saw Allworx, he didnt consider an
  alternative system

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Case Study - Redwood Technologies
The Solution Allworx 10x

• Owner saved 20,000 in equipment costs
• Allworx
• directs all incoming calls to the correct
  extension(s) or cell phone
• provides shared calendars, multiple auto
  attendants and hosts Redwoods website
• easy to use current office staff learned how to
  administer it in 45 minutes
• unified messaging adds to employee productivity
  when on the road
• supports two businesses on one site

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Case Study - Redwood Technologies
The Benefits

• Serves two companies
• No more lost calls, business revenue doubled
• Employees on the road have instant access to all
  types of messages from phone
• Both companies have a true professional image

User Quotes
I like how Allworx gave me all the tools to
manage my companies communications. Allworx not
only saved me money, it makes me money! I
wanted a system that would give me a bigger
scope. I need to present an image that we are
bigger than we are I saw the product
demonstration and it absolutely blew me away.
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Case Study - Redwood Technologies
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From The Voice of the Customer. . .
Wow. This is incredible! The biggest deal is the
server integration and the ease of setup.
The all-in-1 approach is much more cost
effective.
Allworx eliminates a lot of our support
headaches.
This is fantasticthe less stuff to break, the
better!
We want one! When can we get it?
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Summary

• Finally, the all-in-one system for small
  businesses with big plans

• Email
• Voicemail
• Calendaring
• Phone System
• PC Network
• Internet Access

Improves your bottom line and employee
productivity