SAN DIEGO, Dec. 1, 2009 (GLOBE NEWSWIRE) -- Thomas Johnson, CEO of Dot VN, Inc. (www.DotVN.com) (OTCBB:DTVI) writes to shareholders as follows:
To Our Shareholders:
In recent months, our Company, Dot VN, has taken major steps
toward reaching our goal of deployment of the many services we
offer as an innovative Internet and Telecommunications Company and
the exclusive online global domain name registrar for the Country
of Vietnam. This is a pivotal moment in Dot VN's history, as we
are now moving from securing partnerships and building the
necessary infrastructure to conduct our work to actual revenue
generation and commercialization opportunities. We have made
significant progress in several areas, and I am pleased to share
the following highlights of our latest news and activities:
* Domain Registration -- In May 2009, the Vietnamese Government's
Vietnam Internet Network Information Centre ("VNNIC"),
(www.VNNIC.vn/english), executed a new contract with Hi-Tek
Multimedia, Inc., a California corporation, ("HMI"), a wholly
owned subsidiary of Dot VN, Inc., for the registration,
renewal, development and promotion of the ".vn" country code Top
Level Domain ("ccTLD") names with no fixed term (the "New
Contract"). The New Contract applies to all registrations
occurring since January 2, 2009 but otherwise contains
substantially the same terms and conditions and further,
replaces the existing January 3, 2006 contract. Pursuant to the
New Contract, HMI will be paid commissions, on new
registrations, renewals and registration changes, every two
quarters (January through June and July through December) based
on revised benchmarks; previously commissions were paid
quarterly. VNNIC is extremely pleased with Dot VN's positive
progress in marketing and promoting ".vn" domain registration
worldwide.
Dot VN has entered into a strategic partnership with Key-Systems
GmbH, (www.Key-Systems.net), a leading Internet services
provider based in Zweibrucken, Germany, providing Top Level
Domain ("TLD") registration, management and reselling services.
In the agreement, Dot VN can now offer customers access to 178
unique domains worldwide in the Key-Systems network as an
official domain reseller. Dot VN resellers and individual
customers will be able to purchase not only ".vn" domain names,
but also other ccTLDs such as ".de", ".jp", ".cn", ".asia" and
".eu" and generic TLDs ("gTLDs") including .com, .net, .edu,
.gov and .org. This is a new revenue stream for Dot VN.
Key-Systems also provides both the hardware and software to host
the registration platform for 24 industry specific sub-domain
names ("Industry Domains") exclusively offered and managed
directly by Dot VN under authority from VNNIC. Dot VN commenced
taking sunrise period reservations in March 2009, which allowed
registrants who owned trademarks to register an industry domain
name containing their owned mark(s). Additionally, this
agreement offers Dot VN's industry domains to the Key-Systems'
network of 1,400 global resellers. This is another new revenue
stream for Dot VN.
Dot VN, in conjunction with Key-Systems, has just completed both
the design and development phases of a custom-designed
Application Programming Interface ("API") for the Company's
domain registration program and is currently testing the API
with its Vietnamese staff. The API will allow for an influx of
domain name registration, since the API creates more efficient
access and a simplified domain registration process, which in
turn offers the opportunity for immediate revenue generation.
The API will allow easier and more efficient access to the
domain registration program for our resellers, sub-resellers and
individual customers. The system will replace the Company's
existing database and web-based systems with a fully automated
system, significantly simplifying the registration of domain
names within the ".vn" ccTLD, the network of Key-Systems ccTLDs,
gTLDs and Dot VN's industry domains. We expect implementation
of the API and commercialization to begin in January 2010.
* Domain Parking/Monetization -- In May 2009, VNNIC granted Dot VN
the exclusive right to immediately implement and commercialize
the official pay-per-click ("PPC") parking page for the country
code Top Level Domain ("ccTLD") ".vn", and to create and promote
links for domain registrations, domain appraisals and a smart
search engine for the ".vn" ccTLD. Shortly thereafter, Dot VN
entered into strategic partnership with NameDrive, LLC,
(www.NameDrive.com), a leading global domain parking, Internet
advertising and pay-per-click company. NameDrive provides the
technology and consulting services for Dot VN's new domain
parking and domain registry monetization program. Domain
registry monetization is the process whereby an Internet user
who types in a domain name that does not exist is redirected to
a landing page with sponsored results. Parking pages display
premium and specific advertising targeting related searches,
which results in highly relevant advertising being displayed in
the right language with the right message for each domain. This
is also a new revenue stream for Dot VN.
* Info.VN -- Dot VN is currently developing an Internet portal
that will aggregate and organize everything that the Vietnamese
Internet has to offer and serve as the next evolution of our
domain registry monetization program. Dubbed "Info.VN", Dot VN
anticipates to create a super portal that makes news,
entertainment and information available in one central and easy
to navigate website. Further, information and news will be
available in both Vietnamese and English making access easier
for non-Vietnamese speaking users. By leveraging the existing
traffic from the domain registry monetization program, Dot VN
expects to initially serve over 1.1 million Internet users a
day. Dot VN also plans to launch related services from Info.VN,
including free e-mail, web hosting, business directories, smart
search engine, e-commerce and cutting edge advertising
solutions. We expect to launch Info.VN in January of 2010. The
Company anticipates strong revenue to be derived from this super
portal's web products, services and advertising.
* Mobile Data Centers -- To offer the most technologically
advanced Internet data center solutions to businesses and
organizations throughout Southeast Asia, in late August 2009,
Dot VN entered into a strategic partnership with Elliptical
Mobile Solutions, LLC ("EMS"), (www.EllipticalMedia.com), of
Chandler, Ariz., a provider of high-tech solutions for the
mobilization, operation, environmental protection and security
of electronic equipment. The centerpiece of the partnership is
to bring turn-key infrastructure solutions for Internet data
center projects in Vietnam. EMS product offerings integrate
Tier III, and in some cases Tier IV, standard redundant
infrastructure into a cost effective and energy efficient secure
rack. Dot VN believes that this solution is uniquely suited for
the Vietnamese Market because the EMS product line reduces power
consumption by up to 50%, floor space by up to 75% and
significantly reduces the capital expenditures associated with
building an Internet data center. Generally, traditional
Internet data center development requires that the majority of
the infrastructure associated with the construction of an
Internet data center must be built out upfront and further, the
infrastructure must be able to support not only current needs
but also future needs as well. This "future needs" requirement
makes the capital cost of a traditional Internet data center
incredibly high. The EMS product line makes scalable "pay as
you go" infrastructure possible which makes initial construction
and subsequent growth cost effective, manageable and quick. Dot
VN has the exclusive right to distribute these advanced Internet
data center solutions in Vietnam and the non-exclusive right to
distribute in Asia. Some of our potential clients include the
Vietnamese Government, Internet and Telecom companies, banks,
hospitals and universities.
* Virtual Fiber -- Dot VN, through its strategic partnership with
E-Band Communications Corporation ("E-Band"),
(www.EBandCom.com), a leading provider of virtual fiber
(wireless) technology, has begun commercialization of this
technology in Vietnam, which we believe will revolutionize the
broadband Internet and wireless sectors in the country and the
region. Dot VN also has the right to distribute E-Band's
virtual fiber links in Cambodia, Laos and Thailand.
Additionally, Dot VN believes there will be strong demand for
broadband technologies in Vietnam as dial-up subscribers migrate
to broadband connectivity and people with no Internet access
become broadband subscribers. E-Band virtual fiber offers
superior bandwidth and connectivity. By providing over 1 GB
(1024 MB) per second, it greatly surpasses the bandwidth offered
by older microwave technologies (2-311 MB per second) currently
in use in Vietnam, making the E-Band virtual fiber a well-suited
option as cellular phones are now demanding quicker and more
powerful connectivity with the advent of 3G and 4G technologies.
Some of our potential clients include the Vietnamese Government,
Internet and Telecom companies, banks, hospitals and
universities.
In order to deploy E-Band virtual fiber (wireless) technology
and EMS stationary and mobile Internet data center units, both
of which Dot VN is the exclusive provider for Vietnam and a
provider for Southeast Asia, Dot VN entered into a strategic
partnership agreement in October 2009 with SaoBacDau
Technologies Group ("SBD"),
(www.SaoBacDau.vn/sbd/web/en/news/overview/view/89), a highly
recognized leader in the Vietnamese IT industry and a Top 5
systems integrator. SBD is now a value-added reseller of Dot VN
products, providing IT and telecom integration services for E-
Band virtual fiber (wireless) technology and EMS mobile Internet
data center units. SBD provides installation, maintenance and
technical support for firms and organizations that are
implementing these hardware solutions.
In November 2009, Dot VN signed a memorandum of understanding
("MOU") agreement with Kasati Telecom, (www.Kasati.com.vn/en), a
leading telecom infrastructure deployment company. Kasati is
deploying a 30-day test of E-Band virtual fiber (wireless)
technology to assess the capabilities of the virtual fiber.
After the test is complete, Kasati will provide a report
demonstrating the performance of the virtual fiber. Kasati's
30-day test will be conducted in the Mekong Delta, a relatively
rural area featuring numerous waterways, rendering it one of the
more difficult areas in which to install traditional telecom
infrastructure. Dot VN's E-Band virtual fiber offers a more
efficient, cost-effective solution, eliminating the need to lay
fiber wires underground or below bodies of water.
Previously, Dot VN has successfully tested and demonstrated the
E-Band virtual fiber (wireless) technology in Hanoi, with the
assistance of VNNIC and Vietnam Data Communications Corporation
("VDC"), (www.VDC.com.vn), a state-owned enterprise and the
largest Internet Service Provider in Vietnam. More recently, in
June of 2009, Dot VN conducted a test of the E-Band virtual
fiber (wireless) technology in cooperation with the Department
of Information and Communications of Danang City
(www.tttt.danang.gov.vn/home.do?lang=1). The goal of this test
was to both demonstrate the high bandwidth and reliability of
the E-Band virtual fiber solution and determine its suitability
as an infrastructure component of a city-wide metropolitan area
network for the City of Danang. The test was successful and we
expect a favorable outcome.
* Danang Land -- On August 27, 2009, the Company made the third
and final payment on the land sublease in Danang, Vietnam. The
lease of approximately 8,768 square meters (94,256 square feet)
of land in the Danang Industrial Zone is for a term of
approximately 35 years expiring September 21, 2043. In the near
future, Dot VN intends to design and construct a high technology
office building to offer Internet data center and web related
services.
* Dot VN Offices -- Dot VN opened an office in Danang, Vietnam and
currently employing seven professionals in approximately 1,000
sq. ft. office. The Company also plans to hire 60 new staff
positions in Vietnam to support the growth of its existing and
new products and services in the next two quarters.
As evidenced by these recent accomplishments, Dot VN is now
generating revenue through the commercialization of several of our
new services. I am confident that we are on the path towards
additional commercialization opportunities, as we have partnered
with leading technology and telecommunications entities and,
through our exclusivity agreements with VNNIC, have positioned
ourselves as the sole providers of much needed technology services
in Vietnam, the second fastest growing economy in the world.
As we move forward, we will continue to update you on the latest
Company news. We also recommend you visit our website frequently
for important information: www.DotVN.com. I thank you for your
support and shared belief in Dot VN as we look ahead to our
promising future.
Warm regards,
Thomas Johnson
Chairman & Chief Executive Officer
Dot VN, Inc.
About the Company:
Dot VN, Inc. (www.DotVN.com) provides innovative Internet and Telecommunication services for Vietnam. The Company was awarded an "exclusive long term contract" by the Vietnamese government to register ".vn" (Vietnam) domains and commercialize Parking Page Marketing/Online Advertising worldwide via the Internet. Also, Dot VN has exclusive rights to distribute and commercialize Internet Data Center solutions and Gigabit Ethernet Wireless applications to Vietnam and Southeast Asia region.
Forward-Looking Statements:
Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to Dot VN or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about Dot VN's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and those risks discussed from time to time in Dot VN's filings with the Securities and Exchange Commission. Factors that could materially affect these forward-looking statements and/or predictions include, among other things: (i) our limited operating history; (ii) our ability to pay down existing debt; (iii) unforeseen costs and expenses; (iv) potential litigation with our shareholders, creditors and/or former or current investors; (v) Dot VN's ability to comply with federal, state and local government regulations in the US and foreign countries; (vi) Dot VN's ability to maintain current agreements with the government of Vietnam and enter into additional agreements with the government of Vietnam; and (vii) other factors over which we have little or no control. In addition, such statements could be affected by risks and uncertainties related to product demand, market and customer acceptance, competition, pricing and development difficulties, as well as general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and Dot VN does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on Dot VN's website does not constitute a part of this release.