CORPORATE OVERVIEW




COMPANY FOCUS

Ephibian works with a broad spectrum of clients all of which are committed to executing a vision. Technology is a critical enabling component for turning that vision into a reality. In some cases a pre-packaged, "one size fits all" software solution is sufficient. More often than not, though, a company requires a software solution that is designed around their specific need. Enter Ephibian. Ephibian empowers companies to achieve their goals by providing them with the technology team to build their custom software applications. Building businesses today requires a business partner to achieve accelerated time to market, overcome competition and work within budgetary constraints. In addition, tight labor markets make it difficult to quickly hire and retain experienced technology professionals.

Ephibian helps its clients manage risk by providing them with an experienced development team committed to their cause. By providing a technology strategy, application development, and management services, Ephibian's clients receive a highly robust and scalable solution for their mission critical applications.

EPHIBIAN'S SOLUTION AND SERVICES
Ephibian's comprehensive suite of services is designed to meet the needs associated with building a mission critical application. Ephibian provides technology strategy, application development and management services to clients.

Ephibian provides its clients with a robust solution from the outset. By architecting the right technology solution from the beginning, Ephibian helps its clients accelerate time to market and manage risk in today's unforgiving and hyperactive marketplace. Ephibian's expert translation of key business strategies provides a unique technology roadmap ensuring applications are launched quickly and sustain long-term growth.

FACTS
• Continuing with its original mission, Ephibian has chosen to remain focused as a "hard-core" technology shop. In an industry full of companies consolidating to offer "everything under the sun" solutions, Ephibian maintains a strict focus on back-end technical issues.

• Ephibian partners with Venture Capital firms to build applications for funded start-ups with exceptional management teams. Ephibian's Venture Technology division currently has four companies in its equity portfolio. As the recent recipient of the state of Arizona's Service Provider of the Year award, Ephibian has a proven track record and is entering its sixth year of operation. The company is enjoying its 3rd consecutive year of profitability and growth.

• Ephibian operates using a "hub and spokes" approach to business development. Ephibian's technical hubs are located in Tucson and Phoenix and business development offices are located in New York, Denver, San Francisco, Boston, Dallas, and Stockholm, Sweden. As a result, Ephibian is able to attract and retain key elite talent as well as offer clients more valuable solutions without sacrificing critical time-to-market.

• Ephibian minimizes technical risks by using UNIX as its operating system of choice. Ephibian is a strong proponent of open-source technologies and has been deploying Linux-based solutions since 1997.

• Ephibian's model of using small specialized teams of highly focused engineers produces better, faster and more reliable software than big unwieldy groups of engineers. Ephibian maintains a software development toolkit through the process of archiving and documenting software modules, which can be reused and integrated to rapidly deploy e-commerce sites and e-business applications.

• Ephibian's founders have worked together as a team for more than 13 years.


TARGET MARKETS
Ephibian targets organizations that are dependent on highly reliable infrastructure systems and custom software to achieve and maintain a competitive advantage. Ephibian provides these outsourced services both to companies who are in the planning phases of their technology initiatives as well as companies who have an existing infrastructure but require services to support expansion and growth.

NOTABLE CLIENTS
Ephibian has managed more than 100 projects in 30 different locations across the United States and in 10 countries. Notable clients include: America Online, American Honda, Asimba, AT&T, Bell Atlantic, Bar-S Foods, eBay, Contest.com, Everyday.com, Fitrex.com, Homestore.com, IBM, OurHouse.com, Kaiser Permanente, Lockheed Martin, Modern Times Group, National Speakers Association, Sears, SkyAuction.com, TeamFuel, theonline401k.com, United States Army, US West, and UUNet.

LOCATIONS
Ephibian is based in Arizona with business development offices in San Francisco, Denver, New York, Boston, Dallas and Stockholm, Sweden. At Ephibian's Tucson and Phoenix technology hubs, the engineers are able to focus on programming and building systems without distractions. Team spirit is high, turnover is extremely low and Ephibian's employees enjoy a high quality of life as well as a steady stream of exciting projects. Both the University of Arizona and Arizona State University boast exceptional engineering programs, which affords the company the opportunity to attract top talent. Ephibian's appealing technology hub locations enable the company to remain profitable, retain top tier talent and function at an extremely high level.

MANAGEMENT
Ephibian's core team of engineers has been building high performance solutions for more than 13 years. Ephibian's executive management team moved forward from the U.S. Army's Civil Service in 1996 to form a technology services company in the private sector. Key members of the executive management team include Teri Spencer, President and CEO; Henry Guy, Chief Financial Officer, and Phil Holton, Chief Operating Officer.

FUNDING
Ephibian is a privately held, wholly owned subsidiary of XSource Corporation, a New York-based holding company specializing in telecom, Internet, media and E-commerce properties. Providing consulting, software development and value added services, XSource is a member of "Our Group," a Stockholm-based consortium of 250+ telecom, new media and Internet companies with a collective market value of approximately $20 billion.

CONTACT INFORMATION
• Company Contact: Teri Spencer, President and CEO, 5151 East Broadway,
Suite 1400, Tucson, AZ 85711. Toll-Free: 877-917-4747 phone: 520-745-3999
fax: 520-745-3775 www.ephibian.com • info@ephibian.com
• Media Contact:
Jennifer Whittle, Vice President, Mullen Public Relations, 3636 N. Central Ave., Suite 1000, Phoenix, Ariz. 85012. Phone: 602-222-4343 fax: 602-222-4330
e-mail jwhittle@mullenpr.com.





COMPANY HISTORY


Ephibian's core team of engineers has been building high volume, high performance solutions for more than 13 years - before most people even knew the Internet existed. Ephibian's founders formed and led an elite engineering team that built several hundred-million-dollar projects for one of the net's earliest pioneers - the U.S. Army.

As civilian engineers for the military, Ephibian's founders developed parts of milnet, the initial network that evolved into the Internet, as it is known today. They also developed the first fully integrated enterprise management solution used to manage networks and systems across 60 different locations worldwide. When these technologies took off commercially, Ephibian's founders decided to strike out on their own.

When the founders were working for the military, the government located a group of engineers near Washington, D.C., close to the decision-makers. But the engineers found they spent more time in meetings than on development work. They became "consultants" rather than engineers. Project schedules slipped and the Army soon started to lose its best talent to the private sector. Once the Army relocated these engineers to a remote spot in Arizona, things changed. The engineers were able to focus on what they did best - programming and building systems without distractions. This location soon became a center of technical excellence for the Army. The engineers thrived. They designed, developed, and deployed systems on time and under budget. Team spirit ran high and turnover was low.

Ephibian's founders learned from this experience and chose Tucson as the company's headquarters - a great place to live and work. In 1996, Ephibian's founding team left the military with a mission - to build technical solutions for dynamic and evolving businesses. In true start-up fashion, the Ephibian team found an investor and began to market their services - all from a founder's garage. The company has since expanded to offices around the world, while revenues have grown by more than 100% on an annual basis.

Employees enjoy a high quality of life at Ephibian and engineers remain challenged by a steady stream of exciting projects. In Arizona, Ephibian's proximity to both the University of Arizona and Arizona State University, with their exceptional engineering programs, allows the company to attract top talent. This location enables the company to remain profitable and retain the best talent while serving clients around the world.






WHAT WE'RE ALL ABOUT


WE'RE SPECIALISTS
Technology is what we do and it's all we do. We're not a design firm trying to sound like a tech shop. And we're not one of those "everything under the sun companies" either. We stay focused on our core competency: custom development of mission critical software applications.

WE'RE RISK MINIMIZERS
We craft our solutions only on best-of-breed hardware, platforms and products. Our sites are made to scale and remain stable under even the heaviest loads. We prefer to use proven technologies like Linux, Solaris, Java, Perl, Apache, Oracle, and PostgreSQL. These technologies are mature, widely used and supported, and scalable.

WE'RE SPEED FREAKS
Speed to market is everything - the difference between being first or second to market can be the difference between life and death. We get our clients to market fast. And work hard to make sure that they stay there.

WE PARTNER
We don't want to be just a vendor. We're in it for the long haul. We do whatever it takes to make our clients successful. And, if appropriate, we'll introduce them to our network of venture firms, incubators, accelerators and other service providers.

WE ONLY HIRE THE BEST
Call us elitists, but we believe that "A-Level" people breed "A-Level" people and we don't stray from our policy of only hiring the best talent around. We put our new hires through the most stringent test possible - spending time with our top programmers.

WE RENEW AND LEARN
We're passionate about technology. We spend a lot of time staying abreast of new technologies and industry best practices. And we constantly experiment with new and faster ways of doing things. We share our knowledge with each other - and our clients.

WE'RE STABLE
Our founding team has worked together for more than 13 years - that's longer than most of our competitors have been in business. We've grown organically, and haven't been stitched together through multiple acquisitions like many of the large e-services firms. This translates into security, speed and success for our clients.

WE KEEP A LOW PROFILE
We prefer to let others tell our story: We have strong reference clients ranging from AT&T and AOL to theonline401k and National Speakers Association. We stand behind our reputation for quality and customer service. Ask us to provide references. They'll sing our praises.

WE HAVE FUN
All work and no play makes for a boring company. That's why we take the time to have fun around the office - and on our company retreats. Don't get us wrong. We take our work extremely seriously. It all makes for a healthy mix.

WE'RE NOT GOING ANYWHERE BUT UP
We have investors in high places. They're well known, well capitalized and have a proven track record of investing in and growing successful companies. With them as our partner, we are well equipped to support and be long-term partners to our clients.


THE MANAGEMENT TEAM


Ephibian has developed a strong management team, some of the best engineers in the world, and the company continues to attract an elite group of developers, programmers and support staff. The executive team is made up of Teri Spencer, Chief Executive Officer; Henry Guy, Chief Financial Officer and Phil Holton, Chief Operating Officer.

TERI SPENCER - PRESIDENT AND CHIEF EXECUTIVE OFFICER
As co-founder, president and chief executive officer, Teri sets the company's goals - and the pace to reach them. Under her leadership, Ephibian has grown from a few people in a garage to cities around the world. The company has experienced more than 100 percent annual revenue-growth since its inception.

From 1988 to 1996, Teri served as a lead systems engineer for the U.S. Army. She led a team of more than 100 engineers and oversaw several hundred more who were responsible for the design, development and deployment of several projects valued at more than $100 million. She was the lead system engineer for the Army's billion-dollar information systems redesign. Over her career, her teams created Internet-protocol campus networks at more than 60 Army bases worldwide, interconnecting tens of thousands of users. She led the team that developed the Army's first fully integrated enterprise management solution, which was used to manage heterogeneous networks and systems across 60 different Army installations worldwide. This enterprise management solution saved the Army over $80 million in annual personnel costs. Teri received both the Secretary of the Army's Award for Outstanding Achievement and the prestigious Outstanding Performance Award from the Secretary of Defense.

In addition to her duties at Ephibian, Teri sits on the boards of directors of several organizations including Miltope Corporation, Phoenix Group International, and the Arizona Software and Internet Association. Teri holds a Bachelor of Science degree in electrical and computer engineering from the University of Arizona. Teri was the recipient of AZSoft.net's President of the Year award in 2000.

HENRY GUY - CHIEF FINANCIAL OFFICER
As Ephibian's chief financial officer, Henry Guy is responsible for the overall financial management of the company, including accounting, risk management, equity arrangements, mergers and acquisitions, and the fluid integration of these areas with operations.

Henry joined Ephibian in 1998 with a wealth of financial and operational expertise gained in management consulting and manufacturing. He was instrumental in building the financial and operational framework that evolved Ephibian from a start-up to an industry contender. Henry co-founded the Venture Technology division of Ephibian in January 2000, and has led investment in four portfolio companies. Henry sits on the board of directors of Fitrex.com (recently sold to Asimba), Contest.com and Spruce Technology Group.

Before joining Ephibian, Henry spent six years as a U.S. Naval officer, leading a United Nations inspection team aboard more than 100 ships in the Red and Adriatic Seas. Henry has a master's degree in business administration from the Owen Graduate School of Management at Vanderbilt University and a bachelor of science in economics from the U.S. Naval Academy.


PHIL HOLTON - CHIEF OPERATING OFFICER
Phil Holton co-founded Ephibian in 1996. As chief operating officer, Phil is responsible for executing the strategic initiatives to realize the company's vision and overseeing operations. He has oversight responsibility for all Ephibian partnerships, contracts, projects and proposals. Phil has demonstrated an ability to run large engineering teams that tackle the most demanding challenges on time and under budget constraints.

Prior to Ephibian, Phil worked for the U.S. Army where he led several multi-million dollar projects. He served as deputy systems engineer on the Army's billion-dollar information systems redesign, and led the team that promulgated the Army's Standard Network and System Management solution. With the Army, he was continuously assigned to some of its largest and most complex automation initiatives. He received several Army awards and recognition from civilian program managers.

Phil holds a Bachelor of Science degree in electrical and computer engineering from the University of Arizona.


CASE STUDY: GET2NET



CHALLENGE
Deploy user-friendly and tamper-free Internet kiosks.

Get2Net, the fastest growing public access Internet company in the world needed a remotely managed network of kiosks that were scalable, easy to use and secure from sabotage and abuse - and they needed to be up and running within 90 days.



SOLUTION
Faced with a tight schedule to meet Get2Net's contractual obligations, Ephibian created an end-to-end system linked to a responsive, nationwide network that is monitored 24x7 to maintain maximum uptime. To be successful, the kiosks had to interface with sophisticated back-end services including general Internet navigation, Web-based e-mail, featured links, location-specific graphics, ad serving, and filtering to eliminate pornography and other material the public might find objectionable.

A key to the system's success is its flexibility. Instead of locking the client into an all-or-nothing solution, iterations of software were developed quickly and affordably to allow Get2Net to test different business models, and to change them if necessary, without missing a beat.

Originally, Get2Net's plan was a pay-by-the-minute business model. But analysis revealed that competition in the pay-to-surf market was fierce, and users weren't willing to pay for time while waiting to catch a flight. Instead, Get2Net decided to base its business model on advertising revenue - not credit card swipes. Ephibian responded quickly by pulling out the credit card billing module and rolled out software that enabled Get2Net to sell advertising space and sponsorships on its site.

Once the site was up and running, Get2Net's business took off. It now has more than 600,000 page views a day and a user base of well over 200,000 registered customers. The system has been operational for more than a year in dozens of locations, including New York's La Guardia, JFK, Newark and Boston's Logan airports.

FEATURES
  • Free sponsored sessions or pay-for-use capabilities
  • A secure browser for public-access
  • Back-end services include Web-based e-mail and featured browsing
  • Internet browsing, content filtering, ad serving, and management reports
  • Responsive nationwide network
  • State-of-the-art network and systems management services


CASE STUDY: FITREX



CHALLENGE
Build the world's first "online personal trainer."

Fitrex.com, a fitness corporation recently acquired by Asimba, dreamed of tapping the power of the Internet to provide personalized fitness programs to clients worldwide. While the company had an abundance of expertise in conditioning and strength training, they needed a strong technology partner.




SOLUTION
Ephibian developed a customized database-backed Web site that allowed members to select from a variety of programs such as weight loss, bodybuilding, strength and power, sports, and general conditioning. Programs were tailored to the number of days per week members wanted to train, as well as to their starting strength levels. A "feedback" mechanism allowed participants to further customize their programs.

Ephibian's solution allowed the Fitrex staff to create new exercise programs on the fly. A Web-based, database-backed authoring tool was developed to create new exercise programs, answer e-mails, develop supplement stacks and easily post them to the site. To augment the exercise programs and dietary advice, the site was designed to sell sports supplements at wholesale prices. Ephibian developed the Fitrex shopping cart implementation, credit card banking interface, order entry and tracking sub-system, and distributor interfaces.

In a testament to Ephibian's dynamic approach, the company responded to Fitrex's changing business needs at mid-project. The initial business model was fee-based and the initial software iteration included a credit-card module. The most recent iteration of the site offered users free customized workouts while generating revenue through nutritional supplement sales. Fitrex was recently acquired by Asimba, a CMGI backed company and the leader in the online health and fitness marketplace.

FEATURES
  • Dynamic workout generator that created "on the fly" personal training programs
  • Customized authoring tool to allow management to add and modify programs
  • Back-end services include automatic e-mail, distribution of articles and newsletters
  • E-commerce capabilities including live credit card processing
  • Management reports providing user, traffic and membership statistics
  • State-of-the-art network and systems management services


CASE STUDY: THEONLINE401K



CHALLENGE
Evolve and migrate a promising financial services site - in less than 21 days.

An online 401(k) provider needed a bullet-proof, highly scalable database-backed Web site to accommodate rapid growth - built under an extremely tight deadline. The company's market niche is providing small businesses with simple and convenient 401(k) benefit services - so the solution had to be easy to use yet powerful and scalable to millions of potential users.








SOLUTION
While other companies would balk at such deadlines, Ephibian constructed and implemented a new design in a record three weeks. Ephibian migrated the company's constricting Windows NT-based Filemaker Pro database to Oracle running on Linux for maximum flexibility and scalability. The solution is currently based on five servers that switch seamlessly among each other to handle heavy loads. Because customers input Social Security numbers and other personal information, the site was designed with maximum security in mind. It consolidates what once was a labyrinth of paperwork and middlemen into a clean, one-stop shop built for customer satisfaction.

FEATURES
  • Intuitive, simple-to-use navigation
  • Mutual fund plan sponsor hub
  • New enrollee tutorial
  • Certified secure site
  • Hosting services


CASE STUDY: SKYAUCTION



CHALLENGE
Rapid scalability analysis and solution.

SkyAuction.com is a leading online travel-ticket auction site that was concerned about the scalability of its software and hardware architecture as it experienced tremendous industry growth.


SOLUTION
SkyAuction.com enlisted Applied Value Corporation to assist with strategic planning and analysis and turned to Ephibian for technical expertise. Working closely with its strategic partners, Ephibian analyzed SkyAuction's current technical design. Of particular concern was the interface to the database and whether the interface technology could scale under increasing demand.

Ephibian devised a scheme to simulate a load on the system and tested its scalability. The load testing allowed Applied Value and Ephibian to provide SkyAuction with concrete recommendations for future growth before the company encountered real problems in real time.

SkyAuction relies on customer satisfaction. With fierce competition in the Internet-based airline ticketing space (e.g., Expedia, LowestFare), reliability and responsiveness are key. SkyAuction took prudent measures to address response and reliability issues early in its life cycle, before any noticeable impact was felt by users. With Ephibian's expertise, the company knew exactly what was needed to scale their solution.

FEATURES
  • Technical scalability assessment
  • Load simulation and testing
  • Practical, implementable advice



REPRESENTATIVE CLIENT TESTIMONIALS


"During the due diligence part of our evaluation process we evaluated three companies, including Ephibian. We were looking for some very specific deliverables and were also interested in establishing a long-term partnership with a company that could help us with similar projects. Our executive and middle management both feel very comfortable with our choice. I have spoken very highly about our partnership with Ephibian to colleagues."

David McEldowney
Manager of Systems Development - Sales Division
Bar-S Foods


"We chose Ephibian over other companies due to their intelligence, employee expertise and enthusiasm. They are always accessible and bring so much value to our project. Ephibian is committed to our success and they show it."

Beverly Babb
Director of Member Services
National Speaker's Association


"The employees at Ephibian welcomed this project and took great efforts to explain the entire process to ensure this less-technical manager could understand it. After interviewing several companies, Ephibian seemed the most grounded in their field and excelled in the back-end functionality. I would highly recommend them in terms of product, service and knowledge."

Sheila Hunter
Assistant Project Manager/Director of Marketing
Fiesta Mall


"We utilized a wide range of Ephibian's services from engineering to application development for our personal training program. They also provided incubation services and support. Being relative novices at that time, we relied heavily on their expertise and ability to translate our ideas into a product that exceeded our highest expectations. They only hire the best and it shows in the work and the type of support given on an ongoing basis.

Marc Jablonski
President and CEO
Fitrex


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