March Newsletter:
In the February newsletter I was very pleased to have the opportunity to share with you in a chronology the many contracts and agreements that the company entered into last year. The shareholder response to these successes has been very encouraging and many of you have contacted me, interested in the follow-up to these impressive corporate achievements. It is my pleasure to give you a brief update about the company’s efforts to implement these contracts and also advise you of some upcoming corporate events and changes.
As most of you now are aware, during the first week of February, the Administrative Law Judge of the Securities and Exchange Commission issued a final ruling in the regulatory action taken in December of 2002 by the Division of Enforcement, reversing the earlier and denying any sanctions against e-Smart. As you may well understand, a great deal of time and effort was devoted to bringing this action to a close and we are very pleased with the satisfactory outcome.
With the delays caused by the SEC action now behind us, the Company is now able to move forward our signed contracts and agreements, and the e-Smart team is diligently working to complete the funding necessary to commence the world-wide rollout of the Super Smart Card™ and the Biometric Verification Security System™, or “BVS2™”. We expect to begin this phase of our business with the simultaneous rollout of 1.) the “Student Management Card Project” in Korea (with partners Samsung SDS and Korean company, Kobile Co., Ltd.) ” to provide secure ID and payment cards to middle school, high school and university students in Korea (five hundred institutions of learning to date), with potential revenues in the first six years in excess of US $600 million, and 2.) the roll out the “Mybi/eSmart Payment Card Project” in Korea to facilitate transportation, point of sale, banking and e-payments of all kinds for the current MybiCard Holders (20 million strong) in Korea (with partners Samsung SDS and Mybi Co., Ltd.). Provided all is accomplished, timely, which we are committed to expend every effort achieve, the Company anticipates revenues to commence within four to six months and net positive cashflow from these two projects by year end.
At the same time, with our fine partners, Daewoo International, together with our China and Indonesian partners, we will also move forward with specific signed agreements and contracts and those being negotiated.
In anticipation of the rollouts and the interest that they will generate in our Company, we have taken the steps necessary to cause the filing of the appropriate forms to move the company from the Pink Sheets to the OTC Bulletin Board. It is also the Company’s intention to co-list on several Asian Exchanges as soon as practicable. Of course, as soon as we qualify, we intend to seek listing on NASDAQ or the American Stock Exchange. I will keep you informed as this process moves forward.
And, as is evidenced by the many contracts being negotiated and signed, e-Smart is quickly becoming recognized as the leader in on-card matching biometric smart cards. We couldn’t be more proud that, when all agreements and contracts are brought to fruition, nearly a third of the world’s population will benefit from the security and personal protection offered by e-Smart’s Super Smart Card™ and BVS2™ system.
I also am pleased to announce that with e-Smart’s growing reputation around the world as the leader in on-card matching biometric smart cards, I have been invited as a keynote speaker at the April 27-29, Cards Asia 2005, 10th Annual Exhibition and Conference in Singapore, where I will have the opportunity to continue the process of introducing e-Smart’s Super Smart Card™ and continuing the discussion of how the Super Smart Card™ can virtually eliminate identity theft and payment fraud throughout the banking world. Other distinguished speakers at Cards Asia 2005 include, Francis Hsu, Senior Vice President, United Overseas Bank, Singapore, Edwin Bautista, Executive Vice President, Retail Banking Head, Union Bank of the Philippines, Chongho Yoon, General Manager, e-Business, Kookmin Bank, Korea, David Hendrix, Executive Vice President, Retail Banking, Kasikornbank, Thailand, Indrajit Lahiri, Chief Risk Officer, Hyundai Capital – GE Joint Venture, Korea, Rajiv Kapoor, Executive Vice President and General Manager, Marketing, Visa International - Asia Pacific and David Belchick, Project Manager, e-authentication, US Department of Interior, Office of the Chief Information Officer, USA.
Following the Cards Asia 2005 Conference, I again am honored to be a keynote speaker at the May 12-15, North American Security Symposium & Exhibition in Montreal, Canada, where I’ll have the opportunity to introduce e-Smart’s Super Smart Card™ and BVS2™ to member companies of the Central Station Alarm Association (CSAA) that operate central station alarm monitoring systems, providing the critical security that protects our homes, government buildings, schools, office and commercial buildings, entertainment venues, landmarks, airports & seaports, banks and financial institutions, and protect people and property from harm.
Finally, as I’m sure you are aware, the e-Smart Marketing team is working around the clock to keep pace with the ever increasing interest in e-Smart’s Super Smart Card™ and Super Smart Passport™ and given the speed in which contracts are being signed and agreements are being made, I believe a quarterly, rather than monthly, newsletter will provide shareholders a more complete picture of the company’s progress. Although we will continue to post on the company’s website new agreements, contracts and other news affecting the company, you may expect the “Chairman’s Newsletter” updates in April, July, October and December.
It is truly gratifying to hear from so many of you, knowing of your interest in and support of our efforts on your behalf. I am more confident than ever that we are on the cusp of great success and it is reassuring to know that we have earned your continued confidence. Together we will bring security and peace of mind to the world.
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Note: Statements in this newsletter that relate to future plans, financial results or projections, events or performance are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Act of 1933, as amended. Although these statements are made to convey to the public the Company’s progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management’s opinion. Although management believes such representations to be true and accurate based on information available to the Company at this time, actual results may differ materially from those described.
