End to End Solution Provider - Currently, the EBPP market is very fragmented with companies competing in different industry sub-segments (in house software, Front-end Providers or Back-end Providers). As competition increases, a movement towards complete proprietary solutions will likely emerge. ePower will be positioned as an attractive target that offers a complete solution in the utility market.

Financial Projections
Financial projections were created to model the effects of certain assumptions of our business model. Through our due diligence, we discovered broad estimates for the cost of traditional preparing and presenting bills. Estimates ranged from $1.60 to 2.00; however, we believe that a conservative $1.75 cost is reasonable and sustainable given the rising costs of paper, and postage over the life of the projection.

ePower's revenue model includes two parts, a $5,000 monthly subscription fee and a $0.40 per transaction fee. The fees are charged for system space, web presence, speeding receivable collection, targeted marketing and other customer care benefits of the system.

Total Clients

The company achieves positive cash flow in Q2 2001, and the cumulative cash draw down peaks at $3.5 million dollars.

Expenses
Bank Fee
The bank that executes the ACH transfer for ePower will collect $0.06 per transaction. We anticipate this rate will decline as banks compete for this space and volume increases.

Technical Development
Line items referring to the technology, include the technical staff which is the salary budget for the firm on the income statement as well as the PPE expenditures on the cash flow statement. These expenditures on PPE will be used to purchase needed hardware and software to develop ePower's CustomerDirect service. The funds budgeted will be used to finance the growing technology needs within the firm as it begins to service more clients.

SGA -Marketing and Salaries
This includes a $800,000 annual marketing expense for implementation of the program. In addition, minimal salaries for management (who will be compensated primarily through an equity participation program), customer support and sales forces are included in this number. We believe that marketing and strong sales leads will be based primarily on relationships with key decisions makers within targeted organizations.

Other Expenses - Rent & Contract Advice
Rent is projected at $3,000 per month and will not grow dramatically until years three and four where expanded facilities will be required. The majority of the other expenses will be used to contract system design consulting and legal expertise at a $ 150 per hour rate.