NEW YORK, Jan. 2, 2003 (PRIMEZONE) -- Exus Networks, Inc. (OTCBB:EXUS) (NIPHIX:EXUSG) today announced the formation of EEN World University, a subsidiary of Exus Networks, Inc. that will provide high-quality distant learning internationally, with a special focus on emerging Markets and Eastern Europe. EEN World University targets universities, governments and multinationals that will purchase pre-paid Smart EducationCards(tm) in bulk. Each Smart EducationCard(tm) allows for ten credits of courseware. Individual courses require 1 or more credits. Hundreds of courses are offered from leading suppliers, including SkillSoft, Distant Learning Inc., and Mount Sinai Medical School. Additional content partners will be added shortly.
Courses provide university-level continuing education, as well as tutoring for grades 3-12, continuing medical education, English as a Second Language, information processing, and business skills. Smart EducationCards(tm) will sell for $300 per ten credits. Revenue share with content providers averages 33%, yielding gross margins of 57%. Breakeven will be achieved at fewer than 500 cards sold per month. The prepaid nature of the card and payment terms with suppliers provides for very favorable cash flow to EEN. EEN World University's goal is to sell 50,000 cards within twelve months.
The World Bank, European Bank for Reconstruction and Development (EBRD), OPIC and The Asian Development Bank (ADB) are expected to provide grants, credits, and loans to governments and universities to enable them to order Smart EducationCards(tm) from EEN World University. Although there are numerous suppliers of distant education, EEN World University is the only supplier to aggregate content from multiple-quality suppliers and offer it through a unique prepaid Smart EducationCard(tm).
About Exus Networks, Inc.
Exus Networks, Inc. is a global provider of a broad array of value-added services, concentrating on Distant Education, delivered via a combined satellite and terrestrially based network. These services are provided to a diverse client base in emerging markets that includes medium to large multi-national businesses, universities, Internet service providers and government agencies. Through its subsidiary, EEN World University, Exus offers the first prepaid Smart EducationCards(tm) to students worldwide. To learn more about the Company, please visit its Website at www.exus.net and www.eenworldu.net
The preceding includes forward-looking statements which involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Forward-looking statements above are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially due to a variety of factors, including, without limitation, competition, intellectual property rights, litigation, needs of liquidity, and other risks detailed from time to time in the company's reports filed with the SEC.