- Mass Transit Wireless E-Ticket System Anticipated
- To Process 24 Million Passenger Transactions in First Year of
- OperationAlternet Systems, Inc. released a letter to shareholders from CEO Henryk
Dabrowski detailing the Company's rollout of its wireless consumer E-Ticket
solution for the mass transportation market. Prepaid fare collection,
commonly known as "E-Ticketing," is becoming an industry standard in the
mass transportation marketplace. Alternet is initially targeting the mass
transportation market in Central and South America and anticipates
establishing a recurring revenue foundation with its E-Transaction solution
by processing 24 million E-Tickets within the first year following the
solution rollout. Alternet has built a comprehensive wireless E-Transaction
system that can support electronic payment transactions for multiple
industries. The Company plans to subsequently rollout its wireless
E-Transaction system in the financial, telecommunications, and utility
industries.Alternet recently acquired TekVoice Communications, Inc. to augment the
internal development of its wireless consumer E-Transaction solution. Prior
to the TekVoice acquisition, Alternet was a development stage business.
Through the TekVoice acquisition, Alternet has gained a proven billing
solution to compliment the Company's overall wireless E-Transaction
solution and a customer base with approximately $3 million in annual
revenue. TekVoice's billing solution allows Alternet to offer prepaid
E-Transaction solutions as well as a more traditional billed solution. In
addition to the broadening of Alternet's electronic ticketing and
transaction solutions, TekVoice also brings the capability to support
clients in the execution of periodic E-Marketing campaigns.
     Today, the Company's transaction-related services include mobile (cell
phone and PDA) transactions, prepayment of utilities, fare collection and a
mobile point of sale system, which equip Alternet with a broad service
offering for expanding into additional markets.
     Alternet CEO Henryk Dabrowski has released a letter to shareholders
elaborating on the Company's Electronic Ticket solution, the overall
Electronic Transaction marketplace and specifically the mass transportation
opportunity in Central and South America. The letter is included in its
entirety below:
     Dear Fellow Shareholders:
     I am enthusiastic about the Company's progress in 2008. Since I joined
Alternet at the end of last year with the acquisition of TekVoice, Alternet
has made substantial advances toward building a robust, wireless
E-Transaction solution. The acquisition of TekVoice brought some important
technology into Alternet's wireless E-Transaction capabilities, and since
then, the Company has further augmented its solution with additional
technology enhancements gained through strategic partnerships. Now, the
Company is poised to close on its first substantial implementation of its
wireless E-Transaction solution. Our initial sales concentration has been
on the South and Central American mass transportation market, and our first
breakthrough is imminent.
     E-Ticketing Solution Augmented by Chinese Partnership
     In order to bring an industrial strength E-Ticketing solution to market
in Central and South America, Alternet has formed strategic partnerships
with two companies in China that already have extensive experience in the
mass transportation market. The partnership with Tianjin IC Card Public
Network System Co., LTD. and TransTech Sino America Tianjin brings proven
technology, stress tested in the most highly populated country in the
world. Additionally, these partnerships expand Alternet's capabilities in
mass transportation support to include fleet management, bus monitoring,
and fuel dispensing.
     E-Transaction Marketplace
     The E-Transaction marketplace is thriving today worldwide and is
expected to see continued rapid growth. As previously mentioned, Alternet's
acquisition of TekVoice has expanded and helped make our E-Transaction
solution ready to deliver to customers worldwide. The opportunities
surrounding E-Transactions span virtually all business sectors and are
currently sought by public and private companies, as well as governments.
Alternet has chosen to focus on four main sectors; mobile transactions,
prepayment of utilities, fare collection and mobile point of sale systems.
These technologies have numerous benefits for both companies and their
customers, including improved cash flow, reduction of bad debt, and higher
levels of customer satisfaction. Additionally, in emerging economies where
many residents only have basic banking accounts, they are offered the
flexibility of paying their bills on a schedule that fits their needs. They
can pay as much and as often as they choose.
     Alternet is currently concentrating on implementing these services for
clients in Latin America. To date, the Company's primary focus has been on
prepaid fare collection for mass transportation systems.
     Mass Transit in Central and South America
     Latin America, home to 10% of the world's population, is the second
fastest growing region in the world, with a growth rate of 9.1% annually. A
large portion of the population in Latin America uses public transportation
for their daily commute. For example, studies show that in Guatemala and
Curitiba, Brazil, nearly 70% of residents use public transportation. Mexico
City has the fifth highest ridership in the world, serving nearly 1.5
billion passengers in 2006. Serving such large numbers of passengers
efficiently can be a difficult task.
     I am sure everyone is aware of the continuing rise in fuel costs. The
crunch is being felt by individuals as well as those operating mass transit
systems. In order to keep their services affordable, governments are
looking for solutions to operate as efficiently as possible. To date,
prepaid fare collection has mainly been implemented in the largest urban
areas in Latin America. By 2006, Sao Paulo, Brazil had already issued 8.5
million smart cards for prepaid fares, making it the second largest
smartcard solution in the world. Prepaid transportation was a major part of
Chile's renovation of the Santiago mass transit system. Today, riders can
refill their fare cards at bus stations and shops located throughout
     There are roughly 50 cities in Latin America with a population of at
least one million. Prepaid fare collection improves cash flow, operational
and administrative productivity as well as boarding times, in turn offering
reliable transportation for residents, many of whom are dependent on public
transportation systems.
     A Recurring Revenue Foundation
     Alternet today, by way of the TekVoice acquisition last year, has
historical revenue of approximately $3 million annually. That revenue is
derived through the sale and management of a variety of services, including
their electronic billing solution and electronic marketing campaigns. The
marketing campaigns have a beginning and an end. Accordingly, our
E-Marketing revenue fluctuates throughout the year, although we are able
to sustain repeat clients and grow revenue year to year. The imminent
breakthrough with our electronic transaction offerings will transform our
revenue model into a recurring stream. We are excited about the
opportunities Alternet has in Latin America and beyond. Alternet's
capabilities are global not only in prepaid fare collection, but other
electronic-based transaction services. Business development is well under
way and we look forward to sharing our progress. Please watch for
announcements in the near future, as we look forward to sharing our
progress in the region with you.
Thank You,
Henryk Dabrowski
Chief Executive Officer
Alternet Systems, Inc.
     About Alternet Systems:
     Alternet Systems, Inc. ( (OTCBB: ALYI)
provides: telecommunications services; education and health-care
application software and systems; and electronic transaction platforms for
the mass transportation and utility markets. Alternet Systems Inc. is a
U.S. corporation with offices in Miami, Florida and Vancouver, British
Columbia, Canada.
     Certain statements in this news release may contain forward-looking
information within the meaning of Rule 175 under the Securities Act of 1933
and Rule 3b-6 under the Securities Exchange Act of 1934, and are subject to
the safe harbor created by those rules. All statements, other than
statements of fact, included in this release, including, without
limitation, statements regarding potential future plans and objectives of
the Company, are forward-looking statements that involve risks and
uncertainties. There can be no assurance that such statements will prove to
be accurate and actual results and future events could differ materially
from those anticipated in such statements.
(c)2008 Market News Publishing Inc. All rights reserved.
Toronto:(416)366-8881 Vancouver:(604)689-1101 Fax:(604)689-1106

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