Investors Presentation

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Transforming The Business Of Stock Photography
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business definition

• Upshots Stock provides technology and marketing
  services for professional Photographers, Stock
  Agencies and Picture Editors.

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management

• Upshots was founded by Ron Warris, an
  entrepreneur and amateur photographer. Ron was
  formerly the VP Technology and Founder of Net
  Shepherd Inc. (cdnxweb)
• Our CEO is Don Sandford who is also the founder
  of kinetiQ Inc., a leading Internet and high-tech
  business accelerator that Upshots currently
  operates from.

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our opportunity

• More than 250,000 customers purchased over 7.5
  billion (CAD) of stock photography in 2000.

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our opportunity

• Customers are looking for

• better search results
• pricing that fits their budget
• better selection
• faster delivery

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our opportunity

• Two thirds of the industry is severely fragmented
  with thousands of Stock Agencies and professional
  Photographers trying to reach customers and a
  global market.

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our opportunity

• Upshots is positioned to consolidate the industry
  by providing existing Agencies and Photographers
  with transformational technology services and
  marketing.

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competitive advantages

• Peer-To-Peer technologies provide breakthrough
  cost reductions and operational efficiencies.

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competitive advantages

• Our third party application plug-ins for Adobe?,
  Quark? and Macromedia? products gives us desktop
  access to customers and will build new selling
  and distribution channels.

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competitive advantages

• No upfront publication fees for our image
  contributors.

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competitive advantages

• Our services completely solves the customers
  image search problem.

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our offering

• Our Stock Business Platform gives customers
  single point access to a an unlimited source of
  photography that delivers the exact image the
  customer needs when they need it.

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our business model

• We retain 20 of the revenues for each image
  licensed from the Upshots stock network.
• Average license fees are 220 per image.

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go to market strategy

• Channel Marketing
• We will leverage the existing channels of our
  plug-in application partners including

• Adobe
• Quark
• Macromedia

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go to market strategy

• Partnership Co-Marketing
• We will extend are customer reach using
  co-marketing programs with our Stock Agencies and
  Photographer partners.

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go to market strategy

• Direct Marketing
• We will use an AOL style, CD-ROM direct mail
  campaign to distribute our application plug-ins
  and installation incentives directly to image
  buyers.

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go to market strategy

• Trade Conferences
• We will attend key segment trade conferences with
  our channel and agency partners.
• Our first opportunity an invitation from Adobe
  to co-release our first plug-in with InDesign 2.0
  at Seybold NY on February 19.

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market participation

• Getty Images (nasdaqgety) spent 1 billion (USD)
  on an acquisition strategy to create a business
  that went from 0 to 484 million in revenues in
  5 years.
• Getty has has never been profitable.

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market participation

• Upshots will invest 4 million (CAD) and use a
  consolidation strategy to build a 400 million
  business in 5 years.
• We will achieve break even in 20 months and
  profitability in 2 years.

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current status

• A fully functional prototype of our platform and
  our first plug-in has been delivered by our
  off-shore development partner ahead of schedule
  and on budget.
• We have engaged stock agencies and photographers
  and will have over 500,000 images for our launch.
• We have established a Partnership with Adobe to
  reach customers using their existing channels.

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investment opportunity

• Upshots is seeking an initial equity investment
  of 1,000,000.
• We are also seeking an investor who can add value
  to our business and provide full board
  participation in return for a significant stake
  in the company.

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investment opportunity

• We are projecting that an initial investment of
  1 million will return 35 million in value to
  the investor by 2004.

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liquidity

• Upshots is positioning itself for either a
  takeover or an IPO on the Canadian Venture
  Exchange or NASDAQ.
• Given current revenue projections, a strategic
  acquisition by a larger company is very likely
  within the next three to five years.

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recap

• Commercially proven Peer-To-Peer business model
  that provides breakthrough costs reduction and
  operational efficiencies.
• No compromise solution that delivers the exact
  image the customer needs when they need it.
• New stock selling channels using Adobe, Quark
  Macromedia plug-ins.
• Clear business model generates revenues by
  retaining 20 of the total selling price for
  every image sold using the Upshots network.
• Global market worth 7.5 billion (CAD) and
  growing 10 a year.
• Initial investment of 1m projected to return
  35m in value in 4 years.
• Liquidity achieved by acquisition or IPO in 3 to
  5 years.

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Transforming The Business Of Stock Photography
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