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River Valley Investors June 21, 2006 Cory Wallenstein Servprise International, Inc. 447 Rawson Street Leicester, MA 01524 1-800-832-3823 www.servprise.com [email protected] Recovering from a crash • Call tech support –$100 per incident • Drive to datacenter • Remotely cycle power Market • 29 million worldwide servers – 70% available remotely 24/7 – $2.1 billion market opportunity • 2004 revenues of $180M – APC, Avocent, BayTech, etc. Product Roadmap WebReboot 8-port • IT Consultants • Small ISPs • Fringe of Enterprise WebReboot Enterprise • Enterprise IT • ISPs & Web Hosts • Government Servprise Intuity • IT problem-solving software • Significantly grow market 2004: Retail sales 2005: Regional distributors 2006+: Global distributors Distributors Customers Team • Cory Wallenstein, President – Serial entrepreneur in IT • Kevin Menard, Vice President – Background in web hosting, Cisco • Robert Chipman, VP Business Development – Enterprise engineering at BAE Current Financials • Sales – Retail sales started mid-’04 – $7k/month revenue on initial 8-port product, 42% margin – No marketing • Margins – WebReboot 8-port – $489 retail, $200 cost; 59% margin – WebReboot Enterprise 24-port – $1500 retail, $400 cost; 73% margin Projected Financials • Break-even with full-time staff in 2Q07 – $497K quarterly revenue, $305K gross margin, $249K operating expenses • Profitable in 2008 – $10.2M annual revenue, $7.7M gross margin, $5.9M operating expenses – Potential $5M 2nd round for Intuity stand-alone • Projected exit in 2009: Strategic acquirer – $20.9M annual revenue, $17.2M gross margin, $11.1M operating expenses – $3.6M net income after taxes Timeline Funding $600K 33% Equity 4Q06