Company Update 02/17/05
We would like to update you on several recent events that have occurred at iBill.
On January 21st it was announced that Interactive Brand Development ("IBD"), a publicly traded company, had acquired iBill and began committing the resources necessary to return iBill to a respectable and profitable status. For your information, IBD's assets also include a 36.5% stake in Penthouse Media Group, significant investments in broadband TV and interactive media properties.
IBD's decision to acquire iBill was based upon a full understanding of the issues facing iBill's business, and we are focusing our energies and resources on achieving a turn around at iBill both through financial settlement with our clients and exploiting our innovative and secure products for current and future business.
IBD has engaged a top-tier restructuring firm to oversee the day to day operations and management of iBill in cooperation with IBD's senior executives. As such, IBD is confident that iBill will be managed with proper corporate governance.
As part of this turn around initiative, iBill obtained an initial $2.0 million investment on December 30. Based on the plan being established in conjunction with our consultants, iBill and IBD have arranged for additional capital injections into iBill above this amount with a view of supporting and growing iBill while it continues to resolve the effects of the September 16th events.
Over the last five months there have been announcements regarding the funding of past due amounts. One of the first objectives of IBD's management will be to address this primary concern through an organized and cohesive plan. This plan will be rolled out in the next few weeks and will supercede any previous announcements or commitments. We expect to update you on this progress no later than March 9th, 2005.
As you may be aware, Cathy Beardsley, iBill's President, has announced that she will be leaving iBill to pursue other interests. While IBD regrets Cathy's departure we note that she chose both in the interests of iBill's clients and employees to remain at iBill during the very difficult months of uncertainty while IBD evaluated iBill's business. It is largely due to her efforts that IBD was able to feel comfortable in our ability to address iBill's financial issues and complete this acquisition to the benefit of iBill's clients. Over the next 30 days, Cathy will be working with IBD management to ensure the finalization of the First Data reserve release as well as the implementation of the Inteca trusted third party payment program for our European clients. She may also continue to work with iBill on a freelance basis going forward.
IBD recognizes that iBill's clients have been through a difficult period caused primarily by events now rumored to be affecting others in our industry. Our experience in dealing with these same events has resulted in the implementation of the gkard debit card payment solution. This secure product has been tried and tested over the past several months to the benefit of many of iBill's clients. As part of a new and strong organization, iBill stands ready to apply our experience and these products to existing and future clients.
Interactive Brand Development Inc.
The tigers of wrath are wiser than the horses of instruction.