Virtual Ed Link Inc (VRED)

[DeltaBlue]

Lets discuss margins..

The licensing fee to VYON has been stated by the issuer at 10%. The set fee is paid for by the "client" ie campus institution. This fee has previously been stated to be about $20-%30,000 one time fee. This fee covers the set up and backbone hardware.

A VRED charges an annual( billed quarterly) $3.95-$4.95 per semester per participant in the alert network. There are 2 1/2 semesters in a year. Thus $10-12 /per participant per year.

As for billing, this is performed by the institution and is typically suggested to be included as a line item on a tuition bill under "student activity" fees. In some state funded cases, some of this cost is reimbursed by the state, NY is an example.

deduct license fee 10%, deduct marketing fee 15-20% ( example would be a fee paid to clements group. decduct about 10-15% for operational costs and servicing. The gross net then is in excess of 55% of billings or about $6/per year per participant.

Now take the company's revenue expection for 08 of say $5 million plus deduct 45% and you get $2.75 gross net profit. BTW 4% million would represent about 500,000 enrolled participants.