November 14, 2002


Dear WebcastingTV Investor,

I have promised many of you that I would provide more regular updates on the progress of our V-Button business plan. I would like to keep these updates informal for now, and will simply send a note such as this once a month or so. Please feel free to contact me anytime you would like more information.

Just to make sure we are all starting on the same page, let me give you my elevator speech so that we all have the same perspective. If you don’t stop for a breath, it is 35 seconds:

WebcastingTV provides streaming video advertising to National Internet Yellow Page publishers such as Verizon, MSN, and InfoSpace. Our product is wholesaled directly to the publisher, who resells it to their Yellow Page advertisers. We provide both the video production, when necessary, and the streaming video hosting. Revenue comes from direct production charges and re-occurring monthly hosting fees on a minimum 1-year contract. Verizon, our largest reseller, will launch their 3,000 person sales force in 1Q03. We expect Verizon to sell approximately 10,000 units in the first 12 months, generating approximately $10 million in revenue for WebcastingTV.

Business Plan Funding:
We continue to seek new investors. We are contacting funding sources, but as yet have not been significantly successful. We anticipate that as we achieve some sales success with Verizon, and the general market improves, we will be more successful. If you have any potential investors, please contact me. I would be happy to provide a packet of information. We have a one-page executive summary that gives a good overview.

I encourage you to look through our site for updated press releases and new customer examples. If you have any potential customers or resellers you think would be interested in our V-Button products, please send them to us.

Secondary Products:
In addition to the Yellow Page V-Button product line, we have continued developing our Email Management System (EMS) and Training Management System (TMS). These products provide additional uses of a V-Button video. The EMS gives a V-Button customer the ability to send and track the viewers of their program. I am sending this email to you as an EMS campaign. I can monitor within the EMS Campaign Report how many times you have opened the email, whether you have played the associated video (linked below), or clicked on the picture above. WebcastingTV charges an incremental monthly amount to use this system and many of our resellers are finding success with it. If you would like a personal demonstration, please feel free to contact me for an online demo.

The Training Management System (TMS) is similar in function to the EMS, but it is used to provide internet-based training to its recipients. We use it to train our V-Button Directors in each market. The link below will launch one of the modules from that 5-module course. The features of the TMS are:
-- Email delivered distance learning;
-- Video-enabled modules;
-- Online testing;
-- Real Time supervision;
-- browser-based operation.

We have a number of corporations investigating its use.

Verizon Status:
As an update, over the past several weeks we have been integrating our Production Operations into the Verizon Customer Service, Internet Ops, and Sales Support procedures. We have trained 8 of their operations people in the use of our online Ordering System and online Production Management System. If you would like a personal tour, contact me.

Our contract amendment, enabling Verizon to sell V-Buttons, is in their legal department and we hope to see it within a few weeks. The terms sheet has been signed-off by all five Verizon departments. All of the terms are consistent with our business projections.

Verizon has two primary sales groups. The National Channel Sales Group, staffed by about 400 people, pursues multi-market advertisers such as Acura, Midas, and Sizzler. The Local Sales Force, consisting of approximately 3,000 people, pursues local advertisers within each territory they serve. The National Channel Sales Group often establishes co-op advertising programs that the Local Sales Force can offer to individual businesses. Verizon publishes 800 different regional directories covering every major market. Their Internet Yellow Page sales was 1.7 billion dollars in 2001.

The National Channel Sales Group has already begun making presentations to their prospective customers. We prepared a web page for them to use as a demo. Click on the link above labeled Verizon Demo Page. It has a variety of V-Button configurations and customers. The Local Sales Force is expected to launch nationwide in first quarter next year.

Feel free to contact me via phone, or through email. I am interested in your feedback and suggestions.

Regards,

Burt Yale
CEO, WebcastingTV.
714-693-5300