SOURCE: Viper Networks, Inc.

VPER, Viper Networks, VoIP, India, Riyadh, Saudi Arabia

March 24, 2010 09:26 ET

Viper Networks' (VPER) President and CEO Issues Shareholder Letter

TROY, MI--(Marketwire - March 24, 2010) -  Viper Networks, Inc. (PINKSHEETS: VPER), a fast-emerging global telecommunication network operations and technical management leader, is pleased to release the following corporate update within today's Shareholder Letter from the Company's President and Chief Executive Officer.

To All Shareholders of Viper Networks:

I'd like to take this opportunity to thank our shareholders for their invaluable support this past year and the investment community too, for their heightened interest in our expanding telecommunications global footprint.

During historically challenging economic conditions, we are truly excited about the extraordinary opportunities that we have been able to contractually solidify with some of the largest telecommunications operators and distributors worldwide over the last fifteen months.

Indeed, the company's previous fiscal year ended December 31st had proven to be the most demanding, yet clearly, the most substantial 52-week period of development in the decade long history of our company.

By closely monitoring expenses while securing major distribution agreements and telecom licensing partnerships in the midst of building our core telecommunications services business, we were able to successfully secure the launch of our India/BSNL Calling Card division.

Clearly, our fiscally responsible, budgetary prudence since early 2009, helps facilitate the expansion of our telecommunications services division across multiple geographical regions worldwide and our forthcoming concurrent telecom services roll-out with BSNL (www.bsnl.co.in).

This 50/50 partnership agreement with BSNL is very significant and as many of you know, Bharat Sanchar Nigam, LTD is the Number 1 Telecom Company in India with more than 81 million customers and net profits of $2.26 billion (U.S. Dollars) for their last fiscal year (ended 3/31/09).

However, Viper Networks shareholders should know that another key area of focus has been our diversification strategy. Through management's strong commitment to diversify our business interest, we have been aggressively pursuing the expansion of our geographical horizons in both the telecom industry and other key industry sectors.

This corporate strategy reinforces our intent to capitalize on only the most attractive opportunities in diversified markets, which in turn should only strengthen the company's ability to withstand myriad business climates across both hemispheres and multiple continents.

In tune with this expansion strategy, Viper Networks has already seized numerous opportunities in different countries to broaden our core telecom business reach and expand our sphere of influence for new customers on a growing worldwide basis.

Shareholders can rest assured that they are in good hands with the executive leadership for Viper Networks, Inc. Just five months ago, we announced the appointment of Tom Otrok as the new president of international operations.

Today, I would like to congratulate Mr. Otrok as the newly appointed Chief Operations Officer for Viper Networks, who along with our entire management team, has done an extraordinary job in moving our telecommunications business forward during a most demanding economic environment.

As noted in the October 19, 2009 release announcing Tom Otrok's appointment, Tom came on board as one of the most accomplished telecommunications veterans in the industry. As a former Executive Director of Operations for Lucent Technologies, he was also the Senior Manager for Network Deployment with Lucent Technologies (Middle East), where Mr. Otrok's responsibilities included Sales and Program Management of all resources required for successful deployment of a $6 billion network, which included Data, Optical, Wireless and Voice networks.

Finally, I would like to take this opportunity to provide updates on prior announcements and some new developments, along with guidance for the rest of 2010. For simplicity sake, I will break down the projects by sector, pursuant to our expanded business strategy, including: communications and technology; real estate and construction; and energy.

Communications and Technology

BSNL/India Calling Card

Our primary focus in 2009 and most exciting project with the biggest projected impact on earnings is our BSNL/India Calling Card division. In March of 2009, the Company signed a 5-year Joint Venture Agreement with Cirilium India Pvt. Ltd. for the exclusive franchise rights with BHARAT SANCHAR NIGAM LIMITED ("BSNL," a Government of India Enterprise) for pre-paid international calling cards for retail inbound international traffic. This Joint Venture will target the roughly 50,000,000 Indian expatriates and a floating population of Indian tourists outside India. This card will enable users to call from any landline, mobile, PC or any VoIP enabled device from countries where it is proposed to be launched in the world. The card will be available both in India and outside India. Viper is partnering with Cirilium India Pvt. Ltd. to own and operate this license, offering a full spectrum of national and international telecom services, including: VoIP, Calling Cards and Pinless Accounts. To meet projected revenue and ramp sales as quickly and efficiently as possible, Viper has targeted some of the largest telecommunications providers for various sales, distribution and carrier agreements for the approved countries.

In 2009, we announced routes in Singapore, Bahrain, Saudi Arabia, Australia, Thailand and North America, along with distributor agreements with 2P Communications, Inc., Globalcomm, Inc. and Solectek. 

As of March 2010, we have invested roughly $400,000 in this project and I have personally been involved in the testing and installation of equipment in India and all international routes announced to date. 

As announced in February 2010, the Singapore route will be the first operational route with calling cards printed and sold by Globalcomm, Inc. We have recently been notified by BSNL that they would like this route retested, along with additional equipment installed. We have made the proper arrangements for the installation of equipment in both Singapore and India and expect BSNL to complete the successful retesting by April 15, 2010. 

We fully expect that upon the successful launch of Singapore, all of the routes we have announced to date will be coming online in short order.

Argentina

In December 2009, we announced a Letter of Intent with a privately held communications provider to establish a Joint Venture in Argentina to operate a newly awarded license for services including Wireless Data Networks, Fixed Wireless Voice Network, Mobile Networks (GSM or other), Calling Cards, VOIP and Value Added Services "VAS" over dedicated trunks or data networks in any part of Argentina covered by this license. 

We have spent the last 90 days working on the network design and specific customer end products. Additionally, we have identified several partners for phase I funding, which we expect to announce an update on within 60 days.

Trimax Wireless, Inc.

In October 2009, we announced a Letter of Intent to acquire Trimax Wireless, Inc., a privately held company based in Naples, Florida. Trimax Wireless is a developer and manufacturer of a complete line of modular wireless broadband infrastructure equipment.

This acquisition is intended to be completed through a combination of cash and common stock. To date, we have finished due diligence and we are waiting on additional funding to officially close this merger transaction.

Value Added Services

In today's global markets, we strive to enrich our offerings with value added services that clearly set us apart. It is this value-added positioning that directly attracts more multinational players and customers to enter long-term partnerships with Viper Networks. We obligate ourselves to customize and tailor our technology solutions to ultimately fit the requirements of our customers' industries; which ensures they get optimum value from their infrastructure investments through the most up-to-date IT and Telecom applications and services.

Recurring Revenues

We are structured for continuous revenue streams by providing services that are renewed on an automatic annual basis. Our connectivity solutions, contact center services, and maintenance services are all in line with this annual renewal model of operations. This enables us to capitalize on the customer life time value which positively impacts our financial stability, growth and position in the market.

We ultimately strive to strengthen ties with our customers to maximize their lifetime value. We continuously monitor customer satisfaction levels through tailored customer surveys. We focus on delivering high-end solutions and services that are governed by quality accreditations and various customer care methodologies. Our customer focus impacts the way we do business; as we actively engage in exploring the customer experience and gaining invaluable feedback.

We enlarge our customer segments to cater to a broader base of end-consumers, where we forecast an area of high potential growth due to the rising penetration of internet services and the increasing dependency of consumers on technology products. We actively focus on delivering a wide portfolio of services and technology products. Our scope includes maintenance and a diverse array of global mobile and IT brands including our own PC brand that helps us to further penetrate more consumer segments.

Real Estate and Construction

In January 2010, we retained Ibrahim Kaftaro, President of Construction. In this new role, Mr. Kaftaro will be responsible for directing and completing the company's existing development and construction efforts, as well as assembling a team to identify new projects and acquisition opportunities.

A key part of our management approach entails the building of our execution capacity. We have spent the better part of our previous years in creating the capacity to execute on the potential growth of our business. Today, we feel it is the right time to deliver on such capacity to cater to our growth and expansion plans.

Mr. Kaftaro and our Board of Directors are currently evaluating several potential acquisitions, partnerships and joint ventures. 

Energy and Environmental Solutions

Green Key, Inc.

In November 2008, we entered into a Letter of Intent with Green Key Environmental Solutions, a Division of RXND LLC., for the exclusive sales and marketing throughout the Middle East and South Asia. This Letter of Intent has since been formalized and Viper Networks, Inc., through a wholly owned subsidiary, is now providing Green Key with an administrative office in Saudi Arabia, as well as sales, marketing and technical support staff. This sales and marketing agreement gives Viper Networks, Inc. the exclusive distribution rights for Green Key's state-of-the-art environmentally friendly products and services in Saudi Arabia, Egypt, Tunisia, Algeria, Morocco, Bangladesh, Sri Lanka and the Maldives. Green Key's proprietary products include both government, commercial and residential machines that use FDA approved micro-biological ingredients that ferment and digest food matter converting to roughly 95% water and 5% organic and inorganic liquids which go down the drain systems. The result is a significant reduction in the current food waste hauling method that is overwhelming our landfills. Green Key's proprietary products deliver significant cost savings, improved sanitation conditions and significant reductions in overall food, waste and the resultant carbon footprints associated with conventional systems.

To date, we have sales and marketing teams in the U.S. and Middle East working together to introduce the bio-digester machines to the market.

Saudi Nossan Viper Green Key (SNVG)

In January 2009, we entered into a Teaming Agreement in the Kingdom of Saudi Arabia to form a new entity, Saudi Nossan Viper Green Key (SNVG) for the purpose of developing and bringing to market environmentally friendly products and services. This Agreement was signed by Sheikh Bandar Bin Adel Mohammad Al-Fakir, Sheikh Faisal Bin Mohammad Al-khalil and Mr. Farid Shouekani, President of Viper Networks, Inc. SNVG will work on comprehensive environmental solutions in the region, including: waste management, sewer treatment, recycling, and environmental awareness programs to direct the general population toward an environmentally friendly way of life -- "Circle of Green."

Saudi Arabia Plant

In January 2009, SNVG announced project specific analysis and site selection for a large-scale plant installation in the country to process new waste and existing waste dump that can relieve the region from several million metric tons of bio waste to convert to compost.

In February 2009, SNVG executed a Financing Placement Agreement with PRG Realty Advisors, Inc. of Dallas, Texas for the procurement of a $100,000,000 (SR3750,000,000) financing for the construction of the Company's first large-scale Green Key plant installation to be built on 2,000,000m2 of land located in Industrial City in the Kingdom of Saudi Arabia, pending final license award.

To date, we have not received the final permitting for this project and expect to provide an update by September 2010. Should permitting not be approved by this date, we will likely choose to abandon this project and allocate our resources in other projects.

Korea Plant

In February 2009, we announced project specific analysis and site selection for a large-scale plant installation in Korea for up to 100 tons per day of new waste and existing waste dump that can relieve the region from several million metric tons of bio waste to convert to compost.

To date, we have not received the final permitting for this project and also anticipate that we will provide an update no later than September 2010. 

Accounting and Finance

Accounting

In February 2009, we filed a Form 15 with U.S. Securities Exchange Commission. Upon the filing of the Form 15, the company's obligation to file certain reports with the SEC, including Form 10-K, 10-Q and 8-K ended. While we no longer are required by the SEC to file these periodic reports, we intend to provide selected quarterly and annual information regarding the company's performance to its shareholders by means of comprehensive press releases and corporate filings made available at www.pinksheets.com

In January 2010, we filed an Information and Disclosure Statement followed by unaudited financial statements for the years ended December 31, 2006 and 2007, respectively. Currently, we are working judiciously on all elements along with our legal and accounting support team and expect to file unaudited financial statements for the years ended December 31, 2008 and 2009 by April 16, 2010. Simultaneously, we will be working on a complete audit report with our independent auditor.

Finance

In October 2009, we secured an institutional funding commitment with a private equity firm based in Riyadh, Saudi Arabia for $10,000,000 with an option for an additional $5,000,000. This non-dilutive, debt financing will be a direct obligation of the India BSNL/India Calling Card Joint Venture and not Viper Networks, Inc. Upon repayment, the investor will retain a minority interest in the India/BSNL Calling Card Joint Venture. This financing will be funded in $2,500,000 increments and will be used for equipment, expanding routes and working capital. This funding commitment is in tact and is contingent upon the operational launch of our first route in Singapore, which we expect by mid-April 2010. 

In the interim, some of our key executives have chosen to receive compensation in the form of company common stock. In fact, our Chief Financial Officer, Tom Otrok, has recently signed a 2-year commitment for an all-stock based compensation agreement. Company shareholders should certainly gain confidence by executives whose interests in corporate successes are totally aligned with every shareholder. On a personal note, last month my family and I converted well over $200,000 of company debt owed to us in exchange for Viper Networks common stock. 

As the first quarter of 2010 draws to a close, each individual on our Board of Directors and all management team members hold the highest expectations for significant profitability and notable, diversified achievements throughout the remainder of 2010 and beyond. 

In a nutshell, we believe that Viper Networks will fully commence numerous revenue producing projects under multiple agreements in different geographic regions globally in the weeks and months ahead, some of which promise to deliver impressive earnings growth almost immediately.

Thank you and best regards to all current and future shareholders.

Sincerely,
Viper Networks, Inc.

Farid Shouekani, President & CEO

For further information, please contact Rich Kaiser at 800.631.8127, Investor Relations principal at YES INTERNATIONAL. Email address: info@vipernetworks.com

Except for the historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially from the results predicted and reported results should not be considered an indication of future performance. In addition, the factors discussed in the filings with the Securities and Exchange Commission, among the other factors that could cause actual results to differ materially.

www.vipernetworks.com

Contact Information

  • Investor Relations Contact:
    YES International
    Rich Kaiser
    800.631.8127