uSchoolNet

1. uSchoolNet Facebook for the K-9 Market!!! By: Gary Cheng Email: gary@uschoolnet.com

2. Topics • The Transformation of Internet(Web 1.0  Web 2.0  Web 3.0) • The Value of Social Network • Market Opportunity • uSchoolnet’s Vision • Magic Diamond • Exponential Growth • Connecting to Schools • Strategy • Competitors (TW and US samples) • Expansion

3. The Transformation of Internet (Web 1.0  Web 2.0  Web 3.0) • Web 1.0 1994-2004 (static pages, Front Page/Dreamweaver, Namo) • i.e. Geocities – 3rd most trafficked website, purchased by Yahoo for $3.57 billion • Web 2.0 2004-2010 (social network) • i.e. Friendster, My space, Facebook, Google+ • Web 3.0 2011-? (convergence of virtual and physical) • i.e Foursquare, augment reality

4. The Value of Social Network “If you’ve got something to sell, email steveb@microsoft.com,” Mr. Ballmer told Web 2.0 attendees. The world’s largest software maker expects to vacuum up about 20 companies each year for the next five years, … Microsoft will spend between $50 million and $1 billion per company, he said. “Kids are starting to go to the Internet first, so it is important for us to operate in that space,” Robert A. Iger, Disney’s chief executive, said in an interview. Media companies like Disney and Viacom, the owner of Nickelodeon, are being forced to rethink how they reach young people, who often do not see television as the door to the world of movies, toys and video games.

5. Market Opportunity • K- 9 market is an untapped market – while everyone is fighting for the 16-30 year old market (Facebook vs. My Space vs. Friendster, Yahoo vs. Google vs. Microsoft), we are becoming the #1 destination site for the K-9 market. • K-9 market not anyone’s main focus (Geocities - purchased by Yahoo for $3.57 billion in 1999 closed in 2009) • Currently every educational company is trying to sell SYSTEMS to the schools. However the value is in the NETWORK. • (i.e. Blackboard is worth 1.4 B while Facebook is worth 70B)

6. uSchoolnet’s Vision • To be the #1 social network (member identifier) for the 6-15 age group. • To become the largest kids new media in the world. • The strategy is to connect all the schools so that anything that goes in and out of schools will need to go through our uSchoolnet system. Publishers Vendors uSchoolNet Schools Parents uSchoolnet is the gateway btw schools and the outside world Advertisers Government

7. uSchoonet’s Vision • Taiwan • 2600+ elementary schools • 2 million elementary students • China • 456,000+ elementary schools • 121 million elementary students • United States • 98,210 K-9 schools • 41 million K-9 students • Japan/Global • NOTE: • Every year 1/6 will graduate and still be our members • 1/6 new members will be added via 1st graders • Can easily expand downward to Kindergarten or upwards to Junior High

8. Magic Diamond Competitors think we are a class website company. However what we are managing is the network (uBlog) Teachers Shared Database Students Parents

9. Exponential Growth School Class Teacher Students Parents

10. Exponential Growth Kids btw 6-15. elementary and junior high Teachers and parents of these kids 0 6 15 30 45 Age

11. Connecting to Schools • Class Website Cloud service • Advertising • Subscriptions • Transactions

12. Connecting to Schools • Class Website Cloud Service • Charge by usage and/or storage size • Usage: online quiz module • Storage: must pay to archive past class websites • Advertising • Better than any other media (targeted and interactivity – better than Focus Media) • Mass exposure to targeted audience (age and location) • Example – target 9 years old in Taipei city • Only media allowed inside school • Targeted surveys (help AC Nielson)

13. Banks 匯豐銀行 HSBC 國泰金控 Cathay Financial Holdings 瑞泰人壽 MQ大作戰 Education 芝麻街美語 Sesame English 小哈波美語 巧連智 Games 遊戲橘子 楓之谷 遊戲新幹線 天使之戀 Game淘 快閃寶貝

14. Food & Beverage 芬達 芬達笑園 福樂 福樂一番鮮小畫家 家樂氏 Kellogg’s 可爾必思 光泉 光泉牛奶 立頓 原味奶茶 味全 味全牛奶 波蜜 波蜜果菜汁 雀巢 美祿巧克力麥芽牛奶 白蘭氏 白蘭氏兒童雞精 統一 蜜豆奶 泰山 冰鎮紅茶 乖乖 乖乖大胃王 紅牌 速纖 維他露 舒跑

15. Entertainment 福斯影業 Garfield 2 博偉電影 Meet the Robinsons CN Cartoon Network Cars TOYOTA Honda Government 電腦技能基金會 就業服務協會 Others EPSON JOE POWER 利樂包 Tetrapack ToysRus

16. Subscriptions (i.e. 30/70 split) • Paid features ublogsnet • Participate in contests/events, class vs. class, school vs. school • Integrate vendors(i.e. publisher content/questions) into class website • Once a publisher integrate with uSchoolnet, others must follow • Revenue share paid content • Transactions • Schools buy DIRECTLY from uSchoolnet (group purchases) • For every purchase we will donate % of proceeds to schools. Thus encourage them to buy through uSchoolnet • Gifts (physical/virtual) to friends • Annual Yearbook CD (burn class website on CD – replace old yearbooks) • SMS/MMS voting

17. Strategies • Centralized R&D, localized sales • Expand globally by JV (franchise) • Down up approach • Allow teachers to use the system for free • Indirectly influence other teachers to use the system • Up down approach • Offer tools for education departments to communicate and collaborate with schools • Encourage schools to use uSchoolnet so that they won’t miss any education departments announcements • Integrate into computer class curriculum

18. TW Competitors (Web 1.0) • Taiwan • Yam Kids (www.yam.com) (小蕃薯) • 2nd largest portal in Taiwan. • Was largest kids portal in Taiwan 2006 • Was the largest class website aggregator before uSchoolNet 2005 • 2006 uSchoolnet becomes #1 class website aggregator in Taiwan • 2007 uSchoolnet becomes #1 kids portal in Taiwan • Educities (www.educities.edu.tw) (亞卓市) • Government backed with 10+ million USD back in 1998 • Chung-hwa Telecom(government backed) was forced to buy for less than 300K USD

19. uSchool Portal (TW)

20. uSchool class page (TW)

21. uSchool class page (TW)

22. uBlogsnet Portal (TW)

23. uBlogsnet member page (TW)

24. Screen Shot 1

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26. US Competitors ( Web 1.0) • United States • E-Chalk (www.echalk.com) • Launched in 1999 • One of the larger K-12 communication Solutions in the States • Fund raised totaling at least $5 million • IT tech similar to Blackboard thus cannot shift IT structure to compete with uschoolnet • Selling systems thus cannot change to ad supported business model • Teacherweb (www.teacherweb.com) • ASP model • Award of excellence 2007 Winner (Technology & Learning) • IT tech similar to Blackboard thus cannot shift IT structure to compete with uschoolnet • Selling accounts thus cannot change to ad supported business model

27. Competitive Advantage • Experience in porting system into different languages • Porting from traditional Chinese(TW) to simplified Chinese(CN) to English • System built for millions of users while competitors are built for thousands of users • Web 2.0 centric with Web 3.0 plans • 7 years of hands-on experience from zero to dominating a market • Can be ad supported business model • Competitors cannot switch to ad based model without sacrificing their revenue • Look and feel (example below: which class website would you rather use? ) Competitor uSchoolnet

29. Timeline • Taiwan • 2004 Fall – Development of uSchool platform • 2005 Fall – Official launch of uSchool TW • 2006 Dec – Official launch of uBlog TW • 2007 – Schools over 50%, start to have revenue • 2008 – Profitable

30. Timeline • China • 2006 Fall – Official launch of uSchool CN • 2007 Fall – Official launch of u8log CN

31. Expansion Strategy Self Operate Franchise