An Independent Security Analyst, Howard N. Stillman, Recommends Stream Communications Network Inc.

VANCOUVER, British Columbia -- Stream Communications Network Inc. (OTCBB:STNYF):

STREAM COMMUNICATIONS NETWORK INC.

    SPECULATIVE BUY

    PRICE OBJECTIVE: $3 - $ 5

    NASDAQ B.B. SYMBOL: STNYF

    Price: $0.98

    Range: $1.45 High $0.50 Low

    CAPITALIZATION:

    Common Stock: 30,000,000 shares outstanding

    Float: 1,500,000 approximate

CORPORATE STRATEGY:

FAST TRACK OPPORTUNITIES FOR MATERIAL GROWTH PREVAIL FOR STREAM COMMUINCATIONS A MAJOR CATV AND INTERNET PROVIDER IN SOUTHERN POLAND. THE COMPANY IS EXPECTED TO BE A STRONG PARTICIPANT IN THE EXPECTED ACCELERATION IN ECONOMIC GROWTH OF POLAND HIGHLIGHTED BY THE COUNTRY'S MAY 2004 ENTRY INTO THE EUROPEON UNION.

ALREADY, THE NINTH LARGEST CATV COMPANY IN THE COUNTRY, STREAM HAS LAUNCH ED MAJOR ACQUISITION PROGRAMS WHICH SHOULD INCREASE ITS SUBSCRIBER BASE TO 150,000 USERS BY YEAR END FROM JUST 47,000 CURRENTLY. ACQUISITION COSTS ARE EXPECTED TO BE UNDER $300 PER SUBCRIBER COMPARED TO AN AVERAGE OF $3,000 PER SUBSCRIBER IN WESTERN EUROPE AND NORTH AMERICA, OR JUST ONE-TENTH THE EXPENSE.

STREAM IS CONCENTRATING ITS ACTIVITY IN THE MOST DENSELY POPULATED REGION OF THE COUNTRY WITH 11.5 MILLION INHABITANTS AND 3.2 MILLION TV HOMES AND ONLY 800,000 CATV SUBSCRIBERS REPRESENTING JUST 25% OF TV HOMES. MOREOVER, POLAND'S INTERNET MARKET IS STILL IN ITS INFANCY WITH ONLY ELEVEN MILLION USERS WHIS IS EXPECTED TO DOUBLE BY 2007. STREAM FEATURES CABLE MODEM, THE MOST POPULAR METHOD OF HIGH SPEED INTERNET ACCESS, WITH VIRTUALLY NO DSL AVAILABLE AND SATELLITE COMMUNICATION NOT FAVORED. A THE FACT THAT THE MAJORITY OF MIDDLE INCOME FAMILIES RESIDE IN MULTIFAMILY UNITS ENABLES NEW SERVICES TO BE DEPLOYED AT LOW COST, ANOTHER IMPORTANT BENEFIT TO BOTTOM LINE PROFITS.

THE HIGH INDUSTRY FRAGMENTATION OF MORE THAN 500 OPERATORS IN POLAND DOVETAILS BEAUTIFULLY WITH MANAGEMENTS STRATEGY OF ROLLING UP SMALLER COMPETITORS AT MODERATE COST AND INTEGRATING THEM SUCCSESSFULLY INTO THEIR ENHANCED SYSTEMS COVERING SUBSCRIPTION PACKAGES, BILLING AND TECHNICAL SERVICES. CONCENBTRATION OF EFFORTS WILL BE AIMED AT NICHE MARKETS IN CITIES EXHIBITING THE GREATEST PROFITABLE RETURNS.

INDIVIDUAL SUBSCRIBERS ARE OFFERED SEVERAL DIFFERENT CABLE PACKAGES WITH UPGRADES ON THE ASCENT, REFLECTING CONINUOUS EFFECTIVE MARKETING PROGRAMS. DOUBLE DIGIT GROWTH IN PERSONAL COMPUTER DEMAND HAS ALSO STIMULATED THE DEMAND FOR ALL SERVICES OFFERED BY THE COMPANY WITH INTEREST IN PREMIUM CATV PACKAGES ENRICHED WITH MOVIES INTERNATIONAL SPORTING EVENTS, VIDEO ON DEMAND AND THE INTRODUCTION OF VOICE OVER IP TELEPHONY. AS TO THE LATTER, SUBSCRIBERS CAN ENJOY DRAMATICALLY REDUCED AND FACILITATED PHONE CALLS BOTH DOMESTICALLY AND INTERNATIONALLY. BUNDLED PACKAGES CAN BE OFFERED TAILORED TO THE NEEDS OF EACH SUBSCRIBER. A FURTHER STIMULUS TO HIGH PRICED BUSINESS INTERNET USUAGE IS THE POLISH GOVERNMENT N EW REQUIREMENT FOR POLISH BUSINESS TO REPORT MOTHLY SALES AND PROFIT RESULTS WHEREIN E-MAIL CAN TRANSMIT THIS DATA. THIS SHOULD EVOLVE TO A NEW PROFIT STREAM TO THE COMPANY.

THE MANAGEMENT TEAM OPERATES FROM OFFICES IN POLAND ANMD CANADA. PRINCIPAL OFFICERS AND DIRECTORS HAVE CONSIDERABLE EXPERIENCE IN BOTH POLISH AND NORTH AMERICAN BUSINESS. OF PARTICULAR NOTE IS THE RECENT APPOINTMENT OF MR ROBERTWUSSLER TO THE BOARD OF DIRECTORS. MR WUSSLER IS THE CO FOUNDER OF CNN, TNT AND WTBS AND IS CURRENTLY PRESIDENT OF TED TURNER PICTURES. THE COMPANY BELIEVES HE WILL BE VERY HELPFUL IN AREAS OF PROGRAM CONTENT, FINANCING AND GENERATING GREATER INVESTMENT INTEREST IN STREAM.

POLAND'S RECENT ADMISSION TO THE EUROPEAN UNION HAS BROUGHT WITH IT A TREMENDOUS AMOUNT OF FINANCIAL AID TO BUILD THE INFRASTRUCTURE OF THE COUNTRY TO THE PRESENT LEVELS OF THE WESTERN EUROPEAN ECONOMIES. A TOTAL OF $40 BILLION WILL BE INJECTED INTO THE POLISH ECONOMY AND COMPANIES IN THE COUNTRY.

STREAM IS SUCH A COMPANY AND PLANS TO SEEK AN AVAILABLE SOURCE FOR FUNDING. PROCEEDS FROM FINANCING OF THIS KIND WILL BE USED TO FUEL THE ACQUISITION PROGRAM AS THE COMPANY STRIVES TO BECOME THE CATV/INTERNET LEADER IN POLAND. COMPLEMENTING THIS ACTIVITY ARE PLANS TO RAISE ADDITIONAL FUNDS IN THE UNITED STATES THROUGH PRIVATE PLACEMENTS OF EQUITY AND DEBT WHEN APPROPRIATE.

THE LIBERAL POLISH GOVERNMENTS POLICIES TO ENHANCE THE NATIONAL BUSINESS CLIMATE HAS BEEN REFLECTED IN THE REDUCTION OF THE VALUE ADDED TAX ON CATV REVENUES FROM 22% TO 7%. THIS WILL ADD SIGNIFICANTLY TO STREAM PROFITS. ESTIMATED REVENUES ARE EXPECTED TO MORE THAN DOUBLE TO $6 MILLION THIS YEAR AND TRIPLE TO $20 MILLION BY 2005 FROM JUST $2.8 MILLION LAST YEAR. THUS WE FORESEE A $ 3 MILLION INCREMENTAL BOOST TO INCOME NEXT YEAR AND CONTINUED ENHANCED CASH FLOW THEREAFTER. NET PROFITS ARE ANTICIPATED BY 2005.

SUMMARY AND CONCLUSION:

THE GDP OF POLAND IS CURRENTLY GROWING AT 5.3% ANNUALLY. THE TRICKLE DOWN EFFECT TO ITS SOCIETY AND THEIR DESIRE TO ATTAIN THE LIFES STYLES OF THE WESTERN WORLD PRESAGES CONTINUED GROWTH FOR COMPANIES LIKE STREAM COMMUNICATIONS. THIS WILL SERVE TO INCREASE THE VALUES OF EACH SUBSCRIBER WHICH IN TURN WILL BOOST THE ASSET VALUES OF THE COMPANY SIGNIFICANTLY. THE RESULTING FINANCIAL STRENGTH ENABLES MATERIAL GAINS IN MARKET SHARE. AT PRESENT LEVELS, THE SHARES ARE AN EXTREMELY ATTRACTIVE SPECULATION FOR RISK ORIENTED INVESTORS SEEKING SUBSTANTIAL CAPITAL APPRECIATION.

HOWARD N. STILLMAN, SECURITY ANALYST

This report is read at your own risk. It was prepared for a fee of $5,000. It is based upon information believed to be reliable, but cannot be guaranteed as to its accuracy or completeness.