SOURCE: Alternet Systems, Inc.

Alternet Systems, Inc.

November 11, 2010 11:12 ET

Alternet Systems, Inc. (ALYI) -- Third Quarter Sales Up Over 200% Due to Mobile Commerce Business

Alternet Ceo Henryk Dabrowski Issues Shareholder Letter Announcing Major Advances in the Mobile Financial Services and Mobile Security Fields

MIAMI, FL--(Marketwire - November 11, 2010) - Alternet Systems, Inc. (OTCBB: ALYI) today released a letter to shareholders from CEO and founder Henryk Dabrowski. The letter discusses the quarterly results filed on November 9th, and expectations for the future. The letter is included in its entirety below.

Dear Fellow Shareholders,

I am happy to report that in our third quarter results, just filed this week, we are already seeing the positive impact of our mobile commerce business. Sales for the first nine months of 2010 increased 232% over the same period in 2009, and additional contracts for products and services have already been signed in the Fourth Quarter (Q4) 2010. Alternet's business transformation has begun; we are rapidly realizing our vision of enabling secure mobile commerce and communications, as well as leading the company and its subsidiaries to swiftly become major revenue and profit generators.

Utiba Americas is our mobile commerce subsidiary, formed in joint venture with Singapore based Utiba Pte, the leading developer of mobile commerce financial platforms worldwide. We launched Utiba Americas in early 2010, and since then have been actively marketing Utiba software licenses and hosted mobile commerce services to mobile operators, financial institutions, distributors and retailers. Utiba's global leadership and unparalleled technology, combined with our value proposition and the efforts of our sales team, have paid off. As part of our regional strategy we will be expanding our operations and sales presence in more than 10 markets next year, developing a network of value added resellers, and solidifying new commercial partnerships. Currently, we have commercial partnerships with more than 7 leading companies in the Americas, and many more in different stages of negotiation. Utiba Americas has an extensive market share and presence and will continue expanding aggressively by opening regional offices in Mexico and Brazil by the end of the First Quarter (Q1) 2011.

In the final months of 2010 and first quarter of 2011, we expect to show continued revenue growth in the mobile commerce and mobile financial products and services sector. Our efforts at trade shows and participation in multiple bids have filled our sales pipeline with a large number of qualified opportunities. The mobile commerce and mobile financial services market is rapidly expanding. Seemingly every mobile operator and financial institution worldwide has plans to deploy mobile commerce services, and retailers in the US are already showing promising sales through nascent mobile efforts. In late September, industry titan Ebay announced $380mm in year to date sales through its mobile commerce site and i-phone application, and Amazon in July announced it had conducted $1 billion in mobile sales in the previous 12 months. Such results confirm the tremendous potential of mobile commerce within the US market, and the willingness of users to adopt the technology.

While the sale of mobile commerce and mobile financial products and services provides an important confirmation of our business model, we still need outside financing to fund our business plan. These resources will be used to build out our regional network and to finance the growth of our mobile security offering. We remain committed to the mobile security initiative announced in early 2010. Several opportunities have been identified, and we have outlined a broad and comprehensive product offering for consumer, corporate and law enforcement markets. We are committed to the acquisition of intellectual property, and expect to close the acquisition shortly.

Alternet and its subsidiaries are actively recruiting new executive, managerial and technical talent, using social media and networking sites as a low cost, innovative recruiting tool. With the expansion of the team, we plan to move to larger executive offices and create a satellite office for technical and support personnel in the next 60 days.

Alternet is also expanding its engagement of current and future shareholders with additional Investor Relations initiatives, independent analyst coverage, and more social media efforts. Follow us on Twitter @AlternetSystems for updates on the company, its subsidiaries, and the markets in which we operate. The mobile value added services sectors we target -- Mobile Commerce and Security -- are in the news daily, and we have lots to share. 

To finance these many plans, we are currently raising $3 million through a combination of private placements and debt. We believe strongly in the need for both mobile commerce and mobile security services in this increasingly mobile world and that the market is mature and ready to buy them. For a more in-depth description of our vision, a detailed look at the markets we plan to serve and an outline of our five year business plan, we will be launching shortly a Webcast presentation and a conference call for interested shareholders and potential investors.

Until then, thank you for your continuous support.

Henryk Dabrowski
Founder and CEO
Alternet Systems, Inc.

About Alternet Systems, Inc.
Alternet Systems, Inc. (OTCBB: 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., the 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.

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

  • Media Contact at Alternet:
    Erin Clancy
    VP Marketing
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    Investor Relations Contact at Alternet:
    Investor Relations
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