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Friday, 06/18/2004 6:01:57 PM

Friday, June 18, 2004 6:01:57 PM

Post# of 3970
ZKid Network Company
OTC-BB: ZKID

Overview
ZKid Network Company (?ZKID? or the ?Company?) is a proprietary software company dedicated to providing a totally safe environment for children. ZKid's software provides safe Internet, e-mail, and chatroom capabilities as well as fully animated education/entertainment content for children ages 4-10. Subscribers can participate in a Virtual Private Network (VPN) specifically designed to provide a totally safe environment for children.


Share Data
Recent Share Price: $0.11 (June 1, 2004) Common Shares, Authorized: 500,000,000
52-Week High: $0.3591 Issued (March 31, 2004): 119,442,209
Low: $0.0155 Outstanding (March 31, 2004): 99,442,209
Avg. Volume (3 mos.): 557,961 shares Preferred Shares, Authorized: 10,000,000
Market Cap: $10.9 MM Issued and Outstanding: 1,000,000

New Leadership
In June 2004, Mitchell J. Lederer (43 years of age) became the Company?s new CEO, CFO, and member of the Company's Board of Directors. Prior to joining ZKid Network Company, Mr. Lederer served as a partner and Vice President of Sales and Business Development for St. Charles Consulting Group LLC, a professional services company. Previously, Mr. Lederer served as Director of Sales and Marketing for FluentMedia, a division of the Tribune Company. FluentMedia is a content management and licensing services company. In 2001, Mr. Lederer was the Director of Sales for EC Outlook, which provides business-to-business supply chain management solutions. From 1997 to 2001, Mr. Lederer was a Director of Business Development for Arthur Andersen LLP, in their Advanced Technology consulting practice for the Central Region. Mr. Lederer holds a Masters of Business Administration from the University of Chicago Graduate School of Business, and B.A. in Economics and Government from Oberlin College.

According to Mitchell Lederer, "As CEO of ZKid Network Company I look forward to continuing the mission of keeping children safe on the Internet. I will endeavor to balance the growth of a highly profitable company with the social responsibility to protect our children. With kids bombarded with inappropriate content or solicited through email or chat by a predator, parents are demanding a safe experience for their children. ZKid offers an extraordinary service to protect young children on the Internet by providing a fun, safe and educational environment for children to learn and grow."






Smart Marketing Strategy
The Company has announced plans to co-package or co-bundle the ZKid Network CD with other child-oriented products. The Company currently has online network capacity to handle 100,000 users (subscribers), and the network can easily be expanded in response to growth of the subscriber base. ZKid Network plans to charge a monthly fee of $9.95 per subscriber, which is $119.40 per year per subscriber. The initial marketing campaign offers a sample free 14-day trial period for potential subscribers.

The Company plans to develop additional content for its website, including additional games, cartoons, books in the library, and video-streaming children's activities by children. To learn more about ZKid?s interactive educational and entertainment offering, visit www.zkidnetwork.com

Market Statistics
In the United States, 67% of households have Internet connections, with additional Internet access in schools, libraries, and the workplaces of parents and other adults. According to the U.S. Census Bureau, in the last census (2000), there were 281 million Americans, of which 72.3 million (26% of the total U.S. population) were under 18 years of age. More specifically, 20.5 million were 5 to 9 years old, and 20.5 million were 10 to 14 years old. The overwhelming majority of these many millions of kids have regular access to the Internet.

According to Google, there are 4,285,199,774 websites, and this number is growing every day. According to Internet Filter Review (http://www.internetfilterreview.com/internet-pornography-statistics.html), there are 372 million pornographic websites on the Internet, 2.5 billion pornographic emails are circulated each day; and 89% of sexual solicitations of youth are made in online chatrooms. Internet Filter Review also reports that the average age of first Internet exposure to pornography is 11 years old, and that 12-to-17-year-olds are the largest group of consumers of Internet pornography

There is a vast, untapped, and growing market for ZKid Network?s services to protect kids and provide parents with peace of mind.

Successful Acquisitions of Technologies to Enhance Internet Safety for Children
In May 2004, ZKid Network Company acquired Web Safe Technologies, Inc. (WSTI), a wholly owned subsidiary of UTEK Corporation (AMEX: UTK). WSTI holds a worldwide exclusive license to a software package that can assess the safety of Internet sites utilized by children. The patent-pending software, entitled Mozart?, is an automated intelligence analysis system can be used to evaluate sensitive information found on the Internet or an Intranet, such as inappropriate communication that could result in potential threats to children. Information is gathered from websites, newsgroups, broadcast mail, and other types of data available on the web using a specified web domain or a search string targeting a specific topic, phrase, or word.

Like search engines, Mozart? uses a specialized algorithm to find and rank web pages containing specified information. Mozart? will quickly archive and analyze entire websites based on search terms provided by ZKid and built-in search libraries containing key phrases designed to find sensitive or inappropriate information. Mozart? was developed at the U.S. Department of Energy's Pacific Northwest National Laboratory.




In June 2004, ZKid Network Company announced its acquisition from Usurf America, Inc. (OTC-BB: USUR) of Children's Technology Group, dba MomsandDads, a proprietary software company dedicated to providing a content-protected online environment for children. Usurf originally licensed its proprietary "KidsKeepSafe Internet Software Program" to ZKID in October 2003.

Dividends
Shareholders owning ZKID stock on or before June 8, 2004:
· For every ten (10) common shares of ZKid stock, shareholders will receive the following:
· A dividend of one (1) share of ZKid unregistered Rule 144 Common stock, which carries a 12-month restriction prior to being able to be sold into the market.

Summary
ZKid Network Company is on track to achieve significant business success and to substantially increase shareholder value. In summary, the Company has:
· Strong management with a vision for realizing the Company?s fullest potential and for realizing management?s ongoing commitment to rewarding shareholders.
· Excellent technologies for protecting kids from inappropriate information and child-predator communications via the Internet. These technologies provide the Company with a profound competitive advantage.
· Growing market as the Internet becomes ubiquitous in homes, schools, libraries, and work.
· Increasing adult awareness of the problems associated with predators stalking the Internet.
· Advertising campaign with full-page ads in the following magazines: Family Fun, Parents, Parenting, Child and Major League Baseball 2004: The Official Guide.
· Chicago Bear All-Pro Linebacker Brian Urlacher is ZKid Network?s National Spokesperson.
· Strategic partners, including Net Option Inc., Utek Corporation (AMEX: UTK), National Scientific Corporation (OTC-BB: NSCT), and HumWare, Inc.
· Commitment to increasing shareholder value and paying dividends.

For More Information

Mitchell J. Lederer, CEO Investor Relations
ZKid Network Company Sussex Avenue Partners LLC
666 Dundee Road #705 John Hicks
Northbrook, IL 60062 USA Phone: 760-918-5592
Phone: 847-509-4200 Toll-Free: 866-878-7739
sales@zkidnetwork.com john@sussexavenuepartners.com

We have included forward-looking statements in this report. For this purpose, any statements contained in this report that are not statements of historical fact may be deemed to be forward looking statements. Without limiting the foregoing, words such as "intend", "may", "could", "would", "believe", "estimate", or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors. Factors that might cause forward-looking statements to differ materially from actual results include, among other things, software design integration problems, governmental regulation, or our ability to implement our business plan of operation. For more information about this corporation and risks involved in the investment of their publicly traded shares, please see the company?s website(s), and/or documents filed with the SEC, which are easily accessible in the EDGAR database system and are available upon request.