July 12, 2000
As we enter the second half of the year, I wanted to take this opportunity to provide an
update on the activities of Worlds.com and highlight some of our accomplishments during
First, I remain extremely optimistic that the three-dimensional technology sector will become
increasingly important to users, other ISPs and advertisers as they seek to take advantage
of the Internet. With proven technology, an expanding user base and strong partner
relationships, Worlds.com is well positioned to benefit.
We have taken significant steps during the first half of 2000:
- Extended our contract with Road Runner, the high speed, broadband Internet service
jointly owned by Time Warner, MediaOne Group, Microsoft, Compaq Corp., and
- Contracted with 24/7 Media to sell advertising space and have received placements
from more than four dozen advertisers in the first month;
- Added to our management team in the advertising sales, e-Commerce and finance
- Completed our first advertising/brand awareness campaign which increased the user
base for our 3D entertainment portal significantly;
- Hosted the first live 3D avatar chat, following the broadcast of exclusive Hanson
- Raised $3.7 million through a private placement in the UK;
- Delivered the first in a series of "worlds" for e-eNewMedia in the PanAsian market, and
- Increased our e-Commerce offerings to 40 stores.
Our plans for the second half are equally ambitious. We believe that the 24/7 contract will
begin to provide advertising revenue that will impact the third and fourth quarters. We
believe that new systems as well as a more aggressive merchandising and advertising
program for our e-Commerce stores will show growth in that area. And we expect that
distribution of more than 1.3 million CDs in July and August via Teen Magazine and Yahoo
Internet Life will add to our user base.
We are also carrying out a continuing media relations program that has produced coverage in
print and on-line publications and in broadcast media, including Silicon Alley Investor, Rolling
Stone, Wall Street Reporter, Individual.com, CNNfn and atNewYork.com. These can be
accessed through our website Worlds.com.
Although I am displeased with shareholder value, I believe the market will recognize our true
value as the results of our new efforts emerge and markets recover for our sector. All in all, I
am very pleased with the progress that we have made operationally during the year. While
we still have many challenges ahead, the increased availability of broadband as well as the
increasing search by advertisers for new and more robust ways to promote their products are
both trends that bode well for us and are beginning to show results.
Steven G. Chrust,
Forward Looking Statements. Except for any historical information contained herein, the matters discussed
contain forward-looking statements that involve risks and uncertainties that could cause actual results to
differ materially from those set forth in the forward-looking statements. These risks and uncertainties are
described in the company’s filings with the SEC. Given these uncertainties; prospective investors are
cautioned not to place undue reliance on such forward-looking statements. The company disclaims any
obligation to update any such factors or to announce publicly the results of any revisions to any of the
forward-looking statements contained herein to reflect future events or developments.