COMPANY OVERVIEW

APMsafe.com, Inc. (APMsafe) and its wholly owned subsidiary, Cypherus, Inc. provide packaged and customized privacy and encryption products for distribution worldwide. The mission of APMsafe is to transform viable computer based technologies into innovative and useful solutions for partners and customers.

APMsafe focuses on both the consumer and B2B markets, with an emphasis in the legal, financial and health care sectors. The company develops comprehensive software solutions to protect your privacy, ensuring secure access to information stored on your computer, network or sent over the Internet.

In addition, APMsafe is a developer of biometric software technology with Biometric Verification Inc. (BVI), located in Fargo, ND. Biometric Verification Inc. is a is a global provider of interoperable biometric security solutions including fingerprint recognition, smart card and encryption software for the PC, network and Internet. BVI is a majority owned affiliate of APMsafe.com, Inc.

COMPANY HISTORY

Formed in 1998 in Pasadena, CA, APMsafe has from its inception been a strong advocate of privacy and continues to position itself at the forefront of today's increasingly relevant privacy related debates. Before the Internet began to irrevocably transform the way we communicate, the way we do business and the information landscape in general, APMsafe had the foresight to identify encryption as an answer to digital security and the protection of individual and corporate privacy. APMsafe.com, Inc.'s goal is to make digital security and privacy affordable and available for all levels of computer use - from home and small office applications to the boardrooms of multinational corporations.

DEMOGRAPHICS

The widespread use of computers and the Internet has paved the way for new technologies as they become integral parts of our everyday lives. As new technological trends are assimilated into the daily habits of the general public, the concern for privacy and security increases. According to Forrester Research, in 1999 U.S. online commerce reached $43 billion and is expected to surpass $1.3 trillion by 2003. Personal information and confidential documents travel along the information super-highway at an increasingly torrid pace.

Gartner Group, an IT consulting firm, estimates that 55 million users work outside the boundaries of the enterprise. The use of laptops and mobile data storage devices, along with the proliferation of email have all contributed to an increase in data theft. The FBI reported that US companies lost over $60 billion due to proprietary data theft.

The information security market is now poised for a new wave of tremendous growth. A survey conducted by KPMG of New York, studied 1000 large corporations and found that 41% of those polled said security was the most significant barrier to conducting web based electronic commerce. The market for security products was approximately $6 billion in 1999 and is expected to double over each of the next few years. Biometric based security solutions have also seen a large growth over the last few years. Soundview Financial Group predicts the marketplace will reach $1.1 billion in 2001.