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Background Information On E-FORCE


In this release:



· Eforce is an internet information portal or 'infomediary':
- a consumer representative which filters the increasing amount of products and services available on the internet
- an internet-based middleman who facilitates the flow of information between buyers and sellers.

The concept of the web-based intermediary has been put into practice in the United States, with sites such as,,, and

· Eforce is an eCommerce first for New Zealand consumers.

· Eforce offers the first and only investment exposure to the eCommerce sector based around the infomediary business model.

· Eforce's first mission and marketing focus is to help its members save money.

Membership and Ownership

· Membership of Eforce is free.

· Members have the opportunity to share in the long term growth and success of the company by becoming shareholders of Eforce…

· Or they can remain members only and simply take advantage of the products and services offered through the portal.

This is a win-win proposition for members:
§ As part of the Eforce consumer cooperative, Members are exposed to exclusive product and service deals that can be achieved through power in numbers and the online environment;
§ As Shareholders of the Company, taking advantage of Eforce offers contributes to the overall profitability of the Company, in turn enhancing shareholder value.

How does Eforce work?

· Eforce works like an online co-operative. It gathers together a critical mass of people and uses the bargaining power this generates to attract preferential deals from product and service retailers.

· Registered members of the Eforce consumer group provide information about themselves. This information is used to ensure that members are alerted to products and services on the Eforce site that are of interest to them.

· This member database also offers businesses a targeted marketing channel of considerable commercial value.

· A low cost structure;
- using the internet to literally bypass inventory and warehousing costs
- communicating with members by email
means that Eforce has the ability to promote products and services to a large audience highly efficiently.

· Eforce will generate revenue in six key areas:
1. Charging an introduction fee to service based companies
2. Percentage of sales revenue from affiliated eCommerce sites
3. Revenue from Eforce's eCommerce products
4. Charging advertisers for sending targeted emails to Eforce members
5. The sale of advertising space on the Eforce website
6. Revenue from joint ventures with successful overseas companies


Eforce Products & Services

At launch, Eforce offers the products and services detailed below. Eforce is currently developing six additional products and services that will be made available to members over the first six months of site operation.

PowerChoice allows Eforce members to instantly compare the rates of their current electricity provider with the rates of other local providers, using the Powerchoice calculator.
· In some cases customers could save well over $40.00 per month simply by switching power companies (because of the effort required to find this out most people don't bother).
· If members then want to switch power suppliers they can do so at the 'click of a mouse'.
· Eforce receives a commission from the power provider for the switch.

Over three percent of New Zealand's estimated 1.7 million electricity customers 'churned' in the first eight months of competition. NZ Household Churn rates to date are shown in the graph below (churn = power customer changing supplier).

Amazon FreightLink

Eforce is an official associate of, the world's largest and most sophisticated online book and CD store. A major deterrent to New Zealanders ordering goods regularly from (or anywhere else in America) is the cost and time delay involved with shipping goods to this side of the world.
· Eforce makes it cheaper and quicker to ship books from by bulk freighting members' purchases, which are then delivered directly to their home.
· Eforce members receive their books delivered to the door in 14 days from the order date. Members will only pay for the freight of purchases from to its freight consolidation point within the US.
· Eforce receives a commission from for introducing customers
through its site. Eforce members must click through to from the Eforce site to utilise Freightlink.


Eforce members who want to buy the same product band together to increase purchasing power. (Similar to US sites such as and
· For any product available on Co-Buy, prices will reduce when one item, five items and 10 or more items are purchased.
· Price for each product's price lowers as more customers indicate they are prepared to buy that product. The more people who are prepared to buy, the lower the price.
· Co-Buy will serve the NZ and Australian markets and
· In addition to products that Eforce chooses for the Co-Buy site, members will have the opportunity to suggest products to be offered on Co-Buy.

Subscribe Now

Subscribe Now makes it easy - and cheaper - for Eforce members to subscribe to magazines by centralising subscriptions in one place.
· Eforce members can subscribe to a range of different magazines from around the world at great prices.
· The magazines available range from specialised titles such as Netguide and NZ Snowboarder, to more generic magazines such as New Idea, Trends and Unlimited.
· Eforce receives a commission from magazine publishers/importers. Approximately half of this commission will be Eforce revenue. The remaining half will be passed onto Eforce members as a discounted subscription rate.



Esafe is a security service offered to Eforce members, guaranteeing the authenticity and service levels of Eforce affiliated organisations or partner companies. Esafe acts as a guarantor of the credit card transactions undertaken by its members with companies involved in delivering Eforce products.


Doing Business On The Internet

· The internet is the fastest growing industry and communications system ever.

· By 2004, total eCommerce worldwide is expected to grow from $46 billion in 1999 to reach $1.3 trillion - this is 4% of the global economy.

§ This year, Americans will buy about $40 billion worth of consumer goods online.

§ It is expected that this will rise to $328 billion in 2003
(source: Forrester Research Inc.)

· New Zealand currently has 1.14 million people online, either at work or at home.

· This is expected to climb to 1.9 million by 2004.

· New Zealanders will spend approximately $US275 million over the internet this year, rising to $US2.7 billion by the end of 2004.
(source: International Data Corporation)

· New Zealand has a greater number of internet connected PCs per capita than Australia, the United Kingdom or California's Silicon Valley.

In New Zealand, Eforce is the first and only internet business based around the infomediary concept.

Infomediaries offer more than online versions of established retail models.
Infomediaries are the new direction in eCommerce. As the variety of products and services available on the internet increases exponentially, the need for a trusted middleman to guide consumers to the best purchasing decisions is becoming fundamental.

An infomediary:
· is an internet-based middleman who facilitates the flow of information between buyers and sellers.
· operates in markets that are fragmented either geographically or because of the absence of any dominant firms.
· can operate in various forms; auctioneers, brokers, clearing houses, consumer advocates.
· exists on the basis of aggregated commerce - power in numbers - and is consumer focused.
· gathers together a large group of consumers (individuals or businesses) using the buying power this generates to attract preferential deals from product and service providers.

In the United States the business-to-business infomediary market alone is predicted to grow from $290m in 1998, to around $20 billion by 2002.
(source: Volpe Brown Whelan)

· Existing infomediary sites have thrived including,,,, and

The web-based infomediary model is cited
as the new direction for eCommerce:

"Aggregated buying is the next wave in e-commerce. Where big companies and organisations have long received volume discounts, the Net makes it possible for individual consumers to act like one organisation."
Marc Andreessen, co-founder of Netscape and chief technology office for America Online (AOL).
"A new age is upon us. The role of intermediaries in our economy will expand, not contract - although it will change substantially.

"Just as our ancestors needed people to package, transport, and distribute their goods, we need people that have the time and technology to search through a vast array of offerings on the Internet. In the future, instead of dealing with the service providers, you may only have to do business with "Acme Brokerage"."
Sir Gil Simpson, CEO, Aoraki Corporation

"There will be new web-based intermediaries between utilities and customers that encourage customers to shop around for lower prices. These should feature in any utility company's strategic planning."
Deloitte Consulting


Guy Cook
US - Vice President of Qwest Communications
NZ - Eforce Board member

· Founder of Colorado SuperNet, the largest ISP in the Rocky Mountain Region.

· As CEO of SuperNet, in 1997 he oversaw the acquisition of the company by Qwest Communications for US$20 million.

· Qwest Communications is an Internet communications company at the leading edge in Internet applications, services and network design. Qwest operates internationally, delivering Internet systems and applications built with the industry's most advanced technology.
Qwest is:
· One of the top 100 technology companies in the world (Red Herring)
· One of 40 companies driving the new economy (Wired)

· As Vice-President of Qwest Communications and a key member of Qwest's senior management team, Mr Cook plays a central role in the design, development and implementation of Qwest data strategy. He has led European operations and assessments of the EUNet.

· Other professional experience includes:
· five years as Staff Director at the United States House of Representatives
· Telecom/datacom management experience with US West
· Founder of the South African Internet Corporation.

· Mr Cook is a notable figure in the internet business sector in the United States.
· He has made over 200 industry presentations and key note addresses over the last seven years.

· Also serves on numerous boards and advisory councils including the Executive Committee of the Global Distance learning Association Board, the Colorado Advanced Technology Institute, the University of Denver Telecommunications Advisory Council and several corporate boards.


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