Competitive Companies Inc. (fka CCOP)

[LGL8054]

Effective Control Trucking LLC. Reviews the Revenue Model

2007-07-31 11:20 ET - News Release


LONGUEUIL, QB -- (MARKET WIRE) -- 07/31/07


Media City Corp. (PINKSHEETS: MCCY) (www.ecnholding.com) President Raphael Huppé is pleased to announce a review of Effective Control Trucking LLC.'s current revenue model.

"The company's growth has been exponential and has really come into its own with a portfolio of contracts and LOIs which should translate into over $100 million in sales for fiscal 2007. Our shareholders have been very insistent with their numerous inquiries on the revenue model at Effective Control Trucking LLC. In order to give our shareholders a better understanding of our revenue model we have chosen to release this PR outlining where the growth in our top line will come from and how we expect to see a move to the $200 million sales level. Our sales team has been hard at work and the results of our efforts have generated a number of demonstration contracts, some as old as three months, that are now in the process of converting to full contracts. We are also signing and announcing a number of new Letters of Intent for new pending contracts that will not have a demonstration phase.

"All contracts will have an initial upfront charge for the installation of both the truck systems and the trailer systems. This fee will be dependent upon the number of features being utilized, obviously the more systems in use the greater the fee. Each system will also include a renewable three-year monitoring contract; there is also a penalty fee for any early cancellations of the contract. This is the same formula that we use for both the Folo Truck and Folo Trailer systems; keep in mind that although the trailer system is a lower price, many companies often have twice or three times the amount of trailers as trucks. Our trailer system also has major advantages over other systems; it does not require a direct hook-up to a power source at all times. Keep in mind that we own the data and the units are of no value to the companies without the monitoring. With this sales process we will have a constant revenue flow that will come to us on a monthly basis; we will also have periodic lump sum payments within 30 days of the installation of the units. This revenue model has been utilized by other technology-based companies very successfully in the past and we feel it is a very simple model for us to adopt. From this steady and predictable revenue model we can continue to fund our growth and our internal Research and Development efforts," said Mr. Huppé.

Furthermore, Mr. Huppé stated, "If you use a simple formula as a base case, you can see the potential for growth in our revenue model; for example for every 1000 trucks paying a $100 per month fee, you have $100,000 of revenue coming in for a minimum three-year period. Keep in mind our research and the industry data indicate that there are roughly one billion trucks in operation currently. We don't need a huge penetration of the market to have very significant revenue growth.

"Let me also remind you that we have also made a recent acquisition of Argo Navigation that will allow us to further penetrate the overall market by addressing the OEM market. This opens several new opportunities for our products and we are aggressively following up on a number of these in the next few weeks. We expect to be able to announce developments on this front in the next few weeks. We are confident of maximizing the benefits from this timely acquisition given the past sales performance of Argo Navigation. In their last fiscal year, Argo Navigation had sales in excess of $10 million USD," added Mr. Huppé.

"The acquisition is also an important piece for us as we continue our Research and Development for more applications of the technology. Keep in mind we have only been focusing on the trucking industry to date; as big as it is and as big as the OEM market is for trucking, the global car industry is exponentially bigger. Shareholders should also keep in mind that we have had high level meetings with various government officials both at international levels as well as regional levels. From this we have been introduced through the SAAQ, Societé de l'assurance automobile du Quebec, the provincial insurance organization to various police forces. These police forces are now interested in being provided the data that we collect so that they can automatically track stolen vehicles, respond to emergency situations in a more efficient manner, and have the ability to have more patrol in areas that are at high risk for accidents to occur. We have had our sales team investigate the potential for this market and have come up with preliminary data that in North America there are in excess of 100 million requests for this type of information and that these requests are paid for on a per request basis. We already own and control this data within our system and can provide it on a real time 24/7 demand basis," said Mr. Huppé.

In closing, Mr. Huppé concluded, "I suspect that we will become the industry standard in our field. We have been causing big waves because of our rapid pace of growth. We have received a significant number of calls from direct competitors and we have had the pleasure of holding preliminary talks with some parties. I fully expect that we may conclude a business combination with some of these parties. The only question on our side is a valuation given that we can foresee sales in our business plan of several hundred million."

All statements in this news release that are other than statements of historical facts are forward-looking statements, which contain our current expectations about our future results. Forward-looking statements involve numerous risks and uncertainties. We have attempted to identify any forward-looking statements by using words such as "anticipates," "believes," "could," "expects," "intends," "may," "should" and other similar expressions. Although we believe that the expectations reflected in all of our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct.

A number of factors may affect our future results and may cause those results to differ materially from those indicated in any forward-looking statements made by us or on our behalf. Such factors include our limited operating history; our need for significant capital to finance internal growth as well as strategic acquisitions; our ability to attract and retain key employees and strategic partners; our ability to achieve and maintain profitability; fluctuations in the trading price and volume of our stock; competition from other providers of similar products and services; and other unanticipated future events and conditions.


Contact:
Mr. Raphael Huppé
President
[e-mail]
1-514-940-7587