EDSR INFORMATION 07-12-1999 - Laserfiche WebLink

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• Waypoint Technologies, Inc. Page 3 MARKET: A more focused view of the LakeMaster customer would define him or her as a licensed fisherman who owns his or her own fishing boat. The Minnesota DNR released their fish and boating license statistics for the year 1998 with the following results. There were over 940,000 fishing licenses sold and approximately 780,000 boats licensed last year. Approximately 500,000 of the total number of boats are primarily used for fishing. Based on the assumption that most purchasers of LakeMaster will be boat owners, who fish, we have a general targeted market of 500,000-licensed fisherman who own a boat in Minnesota. Wisconsin, Michigan and other Midwestern states have similar boat ownership statistics for future sales projections. The bigger question beyond the size of the market is the trend or buying potential of the individual customer. The average fisherman does not hesitate to spend a significant portion of their income on all aspects of their fishing recreation. This is clearly evident in a demographic profile of 370,000 subscribers to In-Fisherman magazine. They determined that with an average household income of$64,500 the participants allocated an average of 4% of their total income or$2,587 on fishing gear, equipment, apparel and fishing travel annually. Based on the annual purchasing percentages from this • study, the size of the Minnesota market that would purchase LakeMaster could be as large as 410,000 buyers. The typical user of LakeMaster will be fresh water or inland lake sport fishermen. This is a focused market that is easy to reach with selective advertising combined with product shelf displays in commercial sport fishing retail stores. This market is estimated to include nearly 1 million customers in each of Upper Midwestern fishing states. It is estimated that 80% of all fishermen use some type of Lake Map information when they seek out fishing locations. The Company's minimum goal, over a 12-month period, is to have a 2% market penetration of the Minnesota target market and the same market share of each new state that has a LakeMaster product. Factoring the 500,000 licensed fishermen that own boats in Minnesota this sets the sales target of 5,000 LakeMaster units within one year of each product release. COMPETITION: Direct competition in the Minnesota market does not exist for LakeMaster at this tilos:. A competitor offering similar lake map software in the Oklahoma/Texas market (Top)o-