Protocall Technologies Inc (PCLI)

[Value_Investor]

BUSINESS GROWTH STRATEGY

Based on our continued investments in R&D, systems development, market testing and long-standing business relationships, we believe our company is uniquely positioned in the entertainment industry to benefit from the recent DVD CCA decision to approve copy protection for on-demand production. These investments, in combination with lower pricing for hardware, have drastically reduced the cost for retailers to implement our service to approximately $5,000
- $8,000 per store - down from about $50,000 in earlier versions of our service. We believe by lowering up-front implementation costs and expanding the range of available products, we can promote adoption of our service by retailers and simultaneously increase the barriers to entry for potential competitors. In the near term we plan to focus our resources toward developing our outsourced fulfillment services business.