Mark Tofano, President

Product Line or Service — SynPhony, an inexpensive, "one box" integrated, open hardware and software communications peripheral, which resides on a LAN and functions as:

• full function PBX.
• Voice Mail, IVR, Auto Attendant (and

other voice functions) subsystem.

• fax on demand, auto fax back, and standard fax system.
• Internet gateway, allowing voice, data and video over IP.
• LAN hub and switch.
• Video teleconferencing system.

Because SynPhony is a communications peripheral, controlled by application software residing on a LAN PC, it is independent of the computer system hardware or software used by the customer.

Technology/Proprietary Rights — Preliminary searches by a patent attorney indicate there are two areas of SynPhony, which potentially, could be patented. However, due to lack of funding and internal resources, the company has been unable to pursue the applications. Immediately after securing financing, the company will complete and submit the applications.

Market Opportunities — The current Computer Telephony Integration (CTI) product environment is extremely fragmented, characterized by a myriad of PC "add-in" and PBX "add-on" devices, routing and bridging equipment, proprietary software and numerous operating platforms.

A major obstacle to the true integration of CTI products and functions has been the absence of an open platform standard upon which multiple third party hardware and software applications would be housed, each operating independently, yet having the ability to freely transfer information to and from each other. SynPhony provides the CTI market with the open hardware and software platform necessary for market growth.

Data Comm projects that the CTI industry is expected to reach $1.4 billion in annual revenues in 1998, which is a two year compounded growth rate of 238%. The combined sales of routers, bridges and multi-protocol / transport gateways is projected to exceed $6 billion in 1998. SynPhony can also perform PBX switching functions, significantly expanding the role of traditional PBX systems, representing a $5 billion annual market. SynPhony is a low cost, totally integrated, easily installed and maintained communication system, which can be upscaled in both physical size and functionality. SynPhony is an ideal tool for communication systems developers and as a user installable total solution for businesses which require an integrated solution to the management of voice, data and video communications.

Marketing/Sales and Distribution — TeleSys’ initial marketing strategy is geared toward computer distribution and value-added reseller (VAR) channels. Telesys management subscribes to this strategy because it believes that these well established computer oriented distribution channels are better suited to sell and service SynPhony than comparable telecommunications equipment channels. Additionally, SynPhony, as a product which truly integrates telecommunications and data flow, irrespective of disparate protocol / transports, should represent an attractive product offering to computer VARs, which have lacked access into the telecommunications marketplace.

TeleSys currently has one national distributor, CT Solutions, of Old Bridge, New Jersey.

Competition — There are multiple point solution vendors available in the CTI market. They individually provide PBX, voice mail, fax, internet and video teleconferencing solutions. There is currently no means to integrate all of these functions into one single vendor, fully integrated solution. It is the strategy of TeleSys not to compete with any of these single solution vendors directly, but to provide a single source solution that contains all of, and more of, the features offered by these single solution providers and a combined cost which is significantly lower than the aggregate cost of a combination of their products.

Manufacturing — The company plans to utilize third party manufacturers.