United States, Ne... "EXECUTIVE SUMMARY US MEDIA & TECHNOLOGY CORPORATION PRIVATE PLACEMENT OF 2,000,000 SHARES OF COMMON STOCK CONSISTING OF 160 UNITS OF 12,500 SHARES EACH. PRICE PER UNIT $25,000 TOTAL $4,000,000 Office: 44 Brighton Road Island Park NY 11558 Phone 516-431-8660 Fax 516-431-5697 Contact: Allan Morrell, CEO e-mail: [ Please use our messaging system ] Basis for Investment: Equity ownership position in the first national newspaper distributed full-color magazine and e-commerce web site. Major U.S. daily newspapers are under partnership contracts with US Media & Technology Corporation to carry a 32-page full color magazine, The CyberGate, at no charge to US Media. The supplement will cover and report on computing, the Internet and World Wide Web, particularly in layman's terms. Opening circulation will be between 4,000,000 to 5,000,000 copies every two weeks. Full circulation, in two years, should approach 60,000,000 Sunday newspaper readers every two weeks (30,000,000 circulation each issue). US Media will promote its e-commerce web site, www.thecybergate.com with prominent full page ads in every issue and offer strategic partners active on the Web. Numerous ""strategic partners"" will be presented in a content-rich web site called ""The Global Village."" The partnerships are well-known e-commerce marketers and will revenue share with US Media. Management is experienced in all facets of the business. The founder and CEO has over 30 years experience as editor and publisher of national and local print publications and ""sits at the table"" of major newspaper publishers in a very closed industry. The Vice-President had an extensive advertising sales background with a leading computer magazine and marketing expertise that created the electronic side of this concept. Significant factors affecting profitability: The Cybergate magazine will publish every other week, beginning in the first quarter of 2000. Newspapers will insert the full-color magazine supplement into their weekend editions at no charge to US Media, and they will receive two free pages for local advertising or editorial material. The newspapers will also share in The CyberGate's national advertising revenue and a link to the Newspaper's web site will be added to the Cybergate's Internet home page. From the first issue, at least 10 pages of paid ""tier-1"" advertising will be scheduled. The magazine should be self-supporting within several months. Cybergate's editorial thrust is aimed at the average reader who may or may not have Internet experience. Circulation will reach the 65% of U.S. readers who have access to or own computers, but are not yet connected, or branded -- ideal candidates for the Cybergate web portal and computer/internet advertisers. Advertising will follow the same regional breakdown in use by both Parade Magazine (circulation 37,217,000) and USA Weekend (circulation 21,163,109), the two major newspaper supplements currently printing. Average cost of a page, in a six-time schedule in The Cybergate, is $70,000 gross, at its opening circulation of 4,000,000. The Cost Per Thousand (CPM) is close to Parade - $15.15. Computer magazines CPMs run around $40, and the entire universe for computer magazines is about 10,000,000 monthly copies. Advertising sales are conducted by a full time, coast-to-coast seasoned staff. The Director of Advertising and US Media Vice-President was formerly regional sales director at Windows Magazine. Advertising schedules are expected from ""Tier One"" advertisers such as Compaq, Dell, Gateway, WinBook, Microsoft, Quantex, IBM, Hewlett-Packard, etc. as well as Internet strategic partners including Amazon.com, Weather Channel.com, CDNow.com, E-Bay.com, Autobytel.com, etc. Currently, there are 1,520 daily newspapers in the United States, of which 890 publish Sunday or weekend editions, with a circulation of 60,789,000 copies. Of that number, 324 maintain a circulation above 50,000 copies for a total circulation of 51,164,531. The CyberGate will be delivered free of charge to those newspapers. Below 50,000 circulation, The CyberGate will pass on the trucking costs (approximately $10/M) and not offer the two free local pages, but will profit-share its print advertising as it does for major circulation newspapers. Each issue of The CyberGate will carry a prominent full page ad encouraging readers to visit the extensive Cybergate web site, ""The Global Village"". This e-commerce and content-rich site will also be promoted by each newspaper on their main pages. Income to the Company derives from paid national print advertising, major web site advertising and strategic partner revenue sharing. Extensive marketing information will be gathered. Financing Sought: US Media & Technology Corporation is privately-held and funded with a small group of professional individuals who have invested approximately $1,000,000. The corporation is seeking an additional investment of $4,000,000, under a Private Placement Memorandum, to begin full operation. Exit Strategy is a planned initial public offering when appropriate. Comment on the company's startup position: The company is young and emerging out of the startup stage. It is on the cutting edge of an explosive opportunity extending the heightened interest in the Internet to 65% of the U.S. population not yet connected, but having access to computers. 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