1. quarter 2004
Vianett established its own 4-digit numbers in Norway during february. During may the company reached a gross turnover at almost NOK 750.000 incl. VAT from cellphone customers, which is approximately 1 % of the market share. The undivided interest to Vianett during may coming from this trade was about NOK 75.000 ex. VAT, or approximately 10 % of gross turnover incl.VAT. SMS distribution covers entertainment like ring tones and chat solutions, but also notify solutions to substitutes, notify solutions about repairs being fixed and similar benefit services for the business community. The contents of the services are mainly delivered by collaborators.
simultaneously, according to a strategical adjustment and concentration on the SMS distribution, the sales on other products, e-commerce and publishing were maintained. Compared to the same period last year, the income from hourly based development projects was much lower than first quarter 2004. Hence the underlying growth doesn't clearly emerge according to the numbers.

During 1. quarter 2004 the company turnover was NOK 1 360 367 towards NOK 1 256 586 in 2003.
The result before tax was NOK 15 566 towards NOK 4 642 last year.

The issue
The issue was activated subsequent to a presentation towards some of the current share holders in the company. Beforehand, two of the boardmembers of the company, among others major share holder Lars Helland, took advantage of options at quotation NOK 3,00 or an estimated company value just above NOK 10 mill. Based upon the fact that inside share holders indicate trust in the company, and considerable growth within the SMS segment was achieved, other share holders wanted to finance marketing and make investments for increased sales capasity. Besides, Vianett can refer to its own developed technology entirely financed by daily operations. This technology is also in use among several customers.

SMS in the Nordic region
In addition to penetrating Sweden, Vianett has established a cooperation with Unwire, which is Denmarks largest actor within SMS traffic. Besides, the company can also offer distribution towards other markets like e.g. Germany.

E-commerce and publishing
Vianett has agreed to a cooperation with Paynova AB, which is among the leading companies in Scandinavia when it comes to payment solutions on the Internet. Paynova is listed on the Stockholm NGM stock exchange.
Vianett publishing has been translated to english, and the translated version will soon be ready for e-commerce as well.
Resently, Vianett E-commerce was implemented in 2 major webshops; one in Norway and one in Sweden. By doing so, Vianett e-commerce is utilized as major consumer webshops (B2C) as well as webshops for distributors and partners (B2B). E-commerce solutions integrated with Visma Business and Navision from Microsoft Business solutions are also operative. Although both Visma and Microsoft offers its own modules for e-commerce, Vianett's customers has prefered Vianett E-commerce.
Additionally and at the same time, Vianett publishing has been sold to a couple of medium-sized companies in Norway, both having high demans according to function. The system is being used as publishing solutions for large company websites, smaller newspaper websites and towards private solutions (intranet / extranet). Vianett publishing is also being used in plural language organizations.

How will the money be spent?
During summer the marketing will be intensified, e.g. comprehensive advertising on the Internet.

Two persons will be employed, one person on support, and one person on sales / marketing. An agreement has been made with one of the persons, and the second person is expected to be employed before summer holidays. By doing so, the company will consist of 7 employees.

Vianett has entered into an agreement over separate SMS-number in Sweden, and marketing has been initiated on Vianett's different websites to create traffic when launching starts in the early part of august. (Norwegian, Swedish, Danish and English websites)

Vianett will strengthen its saleswork towards distributors in the Nordic region, and the company will offer its contribution during the sales process along with Paynova and other Partners.

To commit liquidity, the company has offered testing campaignes towards customers, e.g. possibilities to customers for testing systems unrestricted for 4 months. This kind of sales activities will be intensified.

Vianett aim at an increase in the activity at approximately NOK 170 000 per month, and the company anticipates accounts balance at the turn of the year.

"Spinoffs / Search for partners"
The company will consentrate on realizing / commercializing "Spinoffs" from products and concepts. Vianett holds e.g. high competence, technology and ideas within the music business. The task to realize the ideas has commenced. On the websites there are several references to concepts and other websites which the company is anxious to consentrate resources on, preferably in cooperation with others. It might be of current interest for the company to participate more actively as e.g. part-owner companionship, or clear off "Spinoffs" including technology and systems.

Export
Vianett has products ready for export, and customers established abroad will support
this work in a larger scale. The consentration on SMS will smooth the path
for e-commerce and publishing sales. The cooperation with different international actors leads to a vision for great potential in sales when it comes to investing resources outside Norway. The export turnover made a total of 6.75 % at the end of april 2004.

Further concentration on the work - Invitation for interested parties
Vianett expects results for the effort in the short term, and the company aims for a new secondary offering this autumn. Hence the company wants to step on it creating more "push" in the market.
Interested readers; please make contact with Vianett as a potential distributor for our products, or as an investor to the company. Vianett is already into contact with potential investors, but the company is anxious to get in touch with even more.