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congruency, Inc.
553 Baylor Avenue
River Vale, NJ 07675
Ph: (201) 930-5120
Fax: (201) 664-4770

Ralph Hayon, CEO, Founder
Dror Shuchman, Vice President, Product Management, Founder

Product Line or Service — Highly reliable Internet Communication Systems with integrated telephone, voice messaging and fax. This integrated system will include Smart Ethernet Telephones and will provide Internet access, e-mail and Web server in-addition to telephone switching, voice mail and fax management. This equipment works in combination with standard Ethernet wiring and is compatible with current PBXs.

Technology/Proprietary Rights — The Company has one patent pending concerning the Smart Ethernet Telephone Device. It is in process of filing another associated with its integrated communications server. All of the software developed by the company would be proprietary to the Company and provides the Company with its competitive advantage. Its integrated hardware architecture is a barrier to software only solution providers.

Market Opportunities — The Company is a high technology startup focused on providing Internet communications systems for small office based workgroups (100 users or less). The Company’s communications equipment would consist of Integrated Packet Communication Servers and Smart Ethernet Telephone Terminals that provide real time telephone, fax, voice mail, e-mail and Web capabilities using Internet Protocol technology on standard Ethernet wiring.

The overall communications equipment market is estimated to grow from $18B in 1996 to $26B by the year 2000. The Company’s products are focused on the $2B small business communications market where cost and value is selected over higher priced, feature deficient branded products. The Company believes its products will offer superior functionality to that of traditional and discrete switches, servers and software at less than half the cost per user. It is further expected that the Company’s integration of services on T1 lines will lower recurring communication charges by more than half and that the product’s integrated Web architecture will significantly reduce administration and maintenance costs.

Key advancements and advantages provided by the company’s products include (a) one wiring plan is used for all communications (voice, fax, data), (b) a single access line is used to access public communications networks (i.e. PSTN) for voice and data communications (significantly reducing recurring communication charges) and (c) multiple service capabilities (i.e. telephone switching, voice mail, fax management, e-mail, Web, etc.) are integrated in one system.

Marketing/Sales and Distribution — Indirect distribution channels in 30 major US markets will be in place by year 5. This channel would consist of 100 to 120 independent dealers and 10 to 15 "gold" dealers. The company will also seek strategic corporate partners and OEM channels to bolster sales. Initially, direct distribution in limited markets will be used for the sales of the first 1000 to 2000 systems to develop initial customers and to develop product brand value.

Competition —Company is not aware of any competitors with the complete capabilities it proposes, though several with similar elements are known. NBX and Selisus, startups, offer or soon will LAN based PBX replacement systems with Ethernet telephones. These systems are not designed to be used with existing PBXs nor offer the Internet and fax capabilities proposed by the Company. Other new startups include Shoreline Teleworks and Vertical Networks that will offer Windows NT based PBX replacement solutions. Use of NT will result in systems with lower reliability. Their approach also requires two lines to the desktop and analog telephones, they do not provide Ethernet telephones or fax management. Other companies with product elements include: Picazo Comm, NetPhone, Altigen, Touchwave, Phonenet, Sphere Comm., Inter-Tel, Lucent, Vienna Systems. The Company’s products also compete with current multi-system voice and data communication solutions.

Manufacturing — The Company will use third party manufactures to produce hardware product elements.

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