VeriType Marketing and Sales Strategy POSITIONING VeriType analysis creates value by minimizing exposure to government regulatory fines and increasing legitimate reimbursement for services rendered. We will position VeriType as the most efficient and reliable way for a clinician to protect against fines, reduce costs, enhance revenue and provide self education. ROUTES TO MARKET VeriType's marketing and distribution strategy is to form one or more partnerships with a firm that already has an established reputation and distribution network in the healthcare industry. We have chosen this option because the estimated cost and development time involved in setting up our own national distribution and marketing network is prohibitive. We have identified IBM as a potential partner because IBM actively seeks software creators like VeriType to include in their intensive business partner programs. Their Software Vendor Marketing Program and Healthcare Industry Solution Unit are prime potential channels for distribution of our product. Sales representatives working for IBM can capitalize on the firm's name and reputation to open doors with busy physicians. While this distribution option will be costly, as IBM generally receives 40-45% of the product's sales revenue, it will allow VeriType to focus on development and operations, its core competencies. IBM would also be an ideal candidate because their ViaVoice® product leads the voice recognition technology market, and could be co-marketed with VeriType's software. This natural product synergy is likely to be of significant interest to companies like IBM.

VeriType will work with its business partner to target individual physicians with a very specific and effective representation style. Clinicians are most familiar with the practices of pharmaceutical reps, who are generally very well dressed, have solid demonstration abilities, and maintain constant interaction with the practitioner. The company founders will provide training in HCFA guidelines where necessary, which can be followed by a formal class. Sales reps for the business partner are not only expected to demonstrate knowledge of the product, its uses and benefits, but also educate clinicians on changing government guidelines for documentation with each visit.

SUPPORTING MARKETING COLLATERAL
VeriType will supplement its business partner's sales force in situations such as trade shows and medical association meetings and conventions. The company will also support the marketing efforts of its business partners with several different promotional vehicles. These will include advertisements in physician's journals, such as Journal of the American Medical Association, Healthcare Finance Managers Association Journal and Journal of the American College of Cardiology, including Physicians and Computers, the leading physician's computer journal.

We will also develop and maintain an Internet site to provide product demonstration downloads, online technical support, user updates, HCFA updates and to allow immediate customer feedback.

VeriType will offer free training software to medical schools to target physicians in training. Current contacts include: the University of Arizona College of Medicine, the Baylor College of Medicine, and the University of Virginia Medical School.

SALES PROJECTIONS
VeriType's sales target is to achieve 2% penetration of the physicians in each subspecialty. This would be a total of 6,530 units for the eight initial subspecialties currently identified. Sales in year three are projected at 1,610, representing less than 1% of physician specialists in the U.S., and 25% of our project sales for the first eight modules we develop. Additionally, we target selling educational and technical support contracts to half of the customers that buy the product. VeriType feels this is a realistic and conservative number upon which to base our sales.