A Message from Dave Shaw, CEO, EBIZ Enterprises; EBIZ Looks Forward to a Positive 2001.Business Editors/High-Tech Writers SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Jan. 26, 2001 Dear EBIZ EBIZ Electronic Business Shareholder: As we begin 2001, EBIZ is a dramatically different and, I believe, a much-improved company from a year ago. In our last shareholder letter, I updated everyone on all the events that occurred in the last half of 2000 including the acquisitions of Partner Axis and LinuxMall as well as several large investments into EBIZ. With this letter, I want to tell you about our latest acquisition, Jones Business Systems Inc. (JBSi) of Stafford, Texas Stafford is a city in the U.S. state of Texas within the Houston–Sugar Land–Baytown Metropolitan Area. Stafford is mostly in Fort Bend County with a small portion in Harris County. As of the 2000 U.S. Census, the city population was 15,681. , and tell you about our plans for the first half of this year. Several weeks ago, EBIZ completed the acquisition of JBSi located in the suburbs of Houston. JBSi is a leading provider of SCO Unix An enhanced version of Unix System V Release 3.2 for Intel processors from SCO. In 1989, SCO Unix was introduced as a major upgrade to SCO XENIX with more security, networking and standards conformance. systems solutions. The company provides a well-known line of computer systems branded as "Terian" to leading computer consultants and resellers around the country. They are ranked No. 291 in the VAR Business 500 and are highly respected for producing reliable, top quality business servers. You may learn more about JBSi by visiting www.jbsi.com. I believe the combination of EBIZ and JBSi truly creates a powerhouse A fourth-generation language from Cognos that was introduced in the late 1970s for midrange computers. It supports both character-oriented, terminal-based applications as well as Windows clients. Applications developed under PowerHouse can be imported into Cognos' Axiant client/server environment. in the computer industry. Note that I said "the computer industry" and not just the Linux or Unix industry. By combining a major Unix company (JBSi) with a major Linux company (EBIZ) we have tapped into a substantial source of potential Linux users and given them an easy and simple migration path to the new world of Linux -- in other words Adv. 1. in other words - otherwise stated; "in other words, we are broke" put differently , a targeted source of new Linux customers with whom relationships already exist. At the same time, EBIZ is now no longer solely dependent upon the growth of Linux but, in fact, generates a majority of its revenue through the long-established and proven technology of Unix. What are our goals for the first half of 2001? First, let me state boldly and for the record, that I believe EBIZ will be EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become profitable (Earnings Before Interest, Taxes, Depreciation and Amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Secondly, the combined trailing 12 months revenue of EBIZ and JBSi is approximately $50 million. I anticipate substantial revenue growth in 2001. I believe that a profitable company within excess of $50 million in annual revenues specializing in the Linux space will be big news in 2001. So what about shareholder equity? I have to be honest with you and tell you that the day-to-day price of the stock does not determine how I manage this business. I believe that if a company is properly managed to achieve strength, longevity and profitability, that a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. stock price will follow favorable performance. However, I also recognize that certain investor relations Investor relations The process by which the corporation communicates with its investors. and public relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most activities need to take place in order for the market to be aware of what EBIZ is doing. We are currently evaluating a careful selection of public relations plans and investor relations strategies to help put EBIZ "on the map." I have a high degree of confidence that a combination of positive performance and public relations will result in improved shareholder equity. I will continue to write shareholder letters on a periodic basis to keep you informed of company news and events. However, this is the last time that we will be sending out a hard copy letter to each of our shareholders. In the future these letters from the CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. will be posted on our site www.EBIZShareholder.com under, "A Message from Dave Shaw, CEO, EBIZ Enterprises." If for some reason you would like to receive future letters in hard copy, please contact Victoria Welch Welch , William Henry 1850-1934. American pathologist and bacteriologist who discovered the bacteria that causes gas gangrene. at 480/778-1000 or send email to her at IR@thelinuxstore.com. Sincerely, Dave Shaw, CEO EBIZ Enterprises Inc. This letter contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. regarding the company's financial condition, potential use of funds, potential business opportunities and financial results. Forward-looking statements involve risks, uncertainties and other factors, which may cause the company's actual results performance, or achievements to differ materially from those, set forth in these forward-looking statements. Factors that might cause such differences include, among others, the ability to successfully execute its business plan, competitive pressures, acceptance of the company's products and services in the marketplace, the success of new marketing programs, the company's ability to successfully execute its agreements with other parties, and other risks discussed in the company's Form 10-KSB, dated June 30, 2000 and the company's 10-QSB, dated Sept. 30, 2000, on file with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date made and the company disclaims any obligation to update any forward-looking statements. |
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