SOURCE: Alternet Systems, Inc.

Alternet Systems, Inc.

July 28, 2011 10:12 ET

Alternet Systems, Inc. (ALYI) Releases Letter to Shareholders, Update on YTD Business

MIAMI, FL--(Marketwire - Jul 28, 2011) - Alternet Systems, Inc. (OTCQB: ALYI) (PINKSHEETS: ALYI), a leading enabler of mobile commerce, mobile financial services and mobile and digital security applications, today issued the following letter to shareholders. In the letter, Alternet CEO Henryk Dabrowski summarizes 2011 YTD performance.

Dear Fellow Shareholders,

2011 continues to be an exciting year at Alternet. Opportunities abound in mobile commerce and digital and mobile security, as evidenced by the launch of multiple initiatives by public and private entities in our hemisphere. Both our operating subsidiaries, Utiba Americas and International Mobile Security (IMS), have achieved significant success in expanding their reach in the mobile commerce and mobile security markets.

Mobile Commerce - Utiba Americas
Mobile Commerce is here to stay! No longer a dream, the service went mainstream when in late May, Google rocked the mobile commerce and payments industries with the launch of Google Wallet. You know you are in the right business when Google announces its entrance into your industry! Google has launched an impressive initiative to bring mobile-enabled commerce to smart phone toting consumers in the United States, bringing together its growing base of Android devices, the recently acquired Groupon for consumer advertising and retailer "pull," and the widely accepted debit and credit card brand, MasterCard, whose experience in Near Field Communications (NFC) will help Google push the adoption of this technology. This is exciting news for the payments industry in North America.

Alternet, through its subsidiary Utiba Americas, has focused initially on providing mobile financial services platforms to Mobile Network Operators (MNOs), Banks, and Payment Service Providers (PSPs) in markets with significant "unbanked" populations. To date successful implementations of mobile financial services worldwide have been confined to developing countries where a large portion of the population is without access to financial services, where the most basic, voice and text only, cellular phone has proven an effective mechanism for delivering financial services.

Since Utiba Americas' launch in early 2010 we have grown the company's regional footprint, and created a position of leadership in mobile commerce in the hemisphere, which can be seen in the following achievements:

  • Launch of four commercial mobile financial service platforms in 2011, to be announced in the third quarter, subject to client approval.
  • Execution of five contracts, with more than twenty opportunities in negotiation and more than twenty qualified prospects throughout the region
  • Utiba Americas and its partner, Utiba Pte, Ltd., are in advance negotiations, with announcements expected soon, to enter into global strategic partnerships with industry giants, enhancing the company's presence and market participation

We are on track to play a leading role in this expanding multi-billion dollar industry and reap double digit sales growth over the next 5 years.

Digital and Mobile Security - IMS
As the world becomes increasingly dependent on mobile devices, the threat they pose to our business and personal data looms larger. In late 2010 there was a growing proliferation of malware (ZeuS, Plankton) targeting mobile communication devices which are rapidly morphing into unprotected personal computing devices. By 2015 the desktop and mobile client security markets are expected to reach $7 billion, according to a report released by Infonetics in April of this year.

Alternet's digital and mobile security subsidiary, International Mobile Security (IMS), fortified its position in the beginning of the year by completing the acquisition of intellectual property. The company has then focused on the following accomplishments for the second quarter:

  • Expanded global sales efforts in the government sector, marketing proven law enforcement and intelligence applications in Africa and Asia
  • Articulation of product strategies for the consumer and corporate markets

In the third and fourth quarters, IMS will continue to expand its product portfolio through acquisitions and reseller agreements with third party companies, seek patent protection on five products, and expand support and service staff.

Alternet Accomplishments
With the initial financing of approximately $700,000 secured earlier this year, Alternet has expanded key staffing of both Utiba Americas and IMS. As of the end of July we have a full time staff of 13, which will increase in the coming months. To accommodate this larger staff, we are moving to new offices at the end of August.

Alternet continues to negotiate strategic private placements as investor demand in the mobile commerce and mobile security industry segment is strong. Additional capital is needed to deliver on current and anticipated customer commitments providing mobile financial services platforms in the Central and South American market and to roll out digital and mobile security products for the consumer and corporate market segments.

Shortly, we will engage an Investor Relations firm to better inform our growing investor base of developments and further disseminate the company's message. In the meantime we welcome your emails and calls at the contact information listed below.

About Alternet Systems Inc.

Alternet Systems Inc. (OTCQB: ALYI) (PINKSHEETS: ALYI), a US corporation headquartered in Miami, Florida, is a leading enabler of Secure Mobile Commerce and Communications in the Americas and Caribbean. Alternet has regional presences in 17 countries throughout the region through a network of fulfillment partners and agents. Alternet's subsidiaries provide a comprehensive suite of hosted and Software as a Service (SaaS) applications for the Utility, Transportation, Financial, and Telecommunication, and Retail industries. Alternet subsidiaries include Utiba Americas, a joint venture with Utiba Pte Ltd., a leading provider of mobile payment and financial transaction software, and International Mobile Security (IMS) a newly formed provider of mobile communications security products and services.

"SAFE HARBOR STATEMENT" UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

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.

Contact Information