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EXECUTIVE SUMMARY

THE COMPANY

Applica, Inc. developed revolutionary patented technology that enables it to manufacture and market new advanced systems for the Client-Server and complete Home Entertainment server-client system.

The company products enable:

1. PCs running Windows Server 2003 or Windows XP Pro to receive incoming connections from multiple remote devices. Each client can access the server and all of its software concurrently and independently. ApplicaServer is a powerful combination of strong performance, durable operation and low power consumption, plus the added features of USB ports, remote management, and simple device setup and imaging. ApplicaServer’s ultra-convenient size, light weight and solid-state components enable the unit to be mounted almost anywhere, even on the back of a display, making it ideal for any space-constrained environment.

2. A combination of hardware and software that allows multiple users to access and use one host PC simultaneously and concurrently. Each remote client has its own Windows desktop and can work completely independently from the host server, with no perceptible performance degradation. ApplicaXP can either be locally or remotely connected to the host PC. Using STP CAT5 cables, each remote station can be located up to 500 feet away from the host server.

3. Plazoom is an innovative home- entertainment system that allows the streaming of audio and video to multiple TV sets at home. This system is designed to revolutionize home entertainment by allowing a host PC to display streaming images on multiple television screens that act as client. Each TV can play different movies, listen to music, share photos, access email or control the home simultaneously and independently. Babazoom empowers any TV to act as a computer. The control functions available on the host PC can be remotely accessed and used on any television screen using the remote control. Streaming images from the host PC to the client- TV screen allows users to optimally utilize the multimedia, internet, and workstation functions independently of the host.

Applica, Inc. (“Applica" or the "Company") is a leading manufacturer of multi-user server/client application products that enable the cost-effective and efficient enterprise-wide deployment of hardware and software solutions for multiple remote users to simultaneously access a single server. Designed for WindowsXP/2003 operating systems, the Company's innovative product lines allow organizations to run advanced Windows applications and provide access from any type of device, using any operating system, from any location.

Microsoft is rapidly gaining industry acceptance for its 32-bit operating systems as the preferred environment for business applications. But, operational challenges have impaired effective deployment of Windows applications to Applica’s target users. These include remote users, Internet users and users of various non-Windows platforms such as Linux.

Applica meets these users' demands with the development of two primary Applications: ApplicaServer and ApplicaXP. ApplicaServer is designed to provide access from any type of device, using any operating system, from any location. It allows PCs running Windows Server 2003 or Windows XP Pro to receive incoming connections from multiple remote devices. It makes use of a wide array of Thin Client devices currently on the market. Each client can access the server and all of its software concurrently and independently.

ApplicaXP is a complete solution that allows many users to access one Windows PC. Users have their own Windows desktop and can work simultaneously and independently, as if they were using separate computers. This distribution reduces the communications, memory and processing requirements of the client system. Even older machines that used to run Windows 95 can be configured to connect to the remote server and access all of the modern software and information. Cost of ownership is also reduced because of the centralized nature of a server - only the server has the software and high-performance components installed, while the remote clients simply log in to access them.

Applica intends to fully leverage the Windows momentum and strictly adhere to Windows standards while promoting widespread acceptance of its technology. An additional strategic element of the Company's goal is to establish key relationships with technology and marketing partners.

Dynamic Digital Signage, Video Wall Solutions, Data Wall Technologies, Multi-Screen Content Network

Digital signage is a dynamic digital display system used to deploy rich-media content in place of traditional static signs. Digital signage uses modern display devices to captivate and engage target audiences and consumers at their point of purchase. Research shows that 5 out of 10 viewers are more likely to pay attention to dynamic digital content than static content. In contrast to traditional print media, Applica's revolutionary digital signage technology allows the use of dynamic digital content such as full motion video, eye catching graphics, sound, and interactive media to deliver important messages to target audiences around the world. With Applica's digital signage network and video wall solutions, dynamic interactive content can be deployed to multiple independent remote stations at any time and in any location.

Dynamic Digital Signage, Video Wall Solutions, Data Wall Technologies, Multi-Screen Content Network

Applica's Digital Signage Solutions

Applica's SignagePro uses the IP network to remotely manage, control, and broadcast information to target audiences in specific locations. SignagePro is a unique combination of hardware and software solution that uses a single PC to drive and control multiple remote display devices, simultaneously and independently, from a central location. Each remote display unit is capable of running unique programs and applications, as though it was being operated by a separate computer. For example, one screen could be running a PowerPoint presentation, a second screen presenting a streaming video using the internet, and a third displaying the results of a database search, while all screens are concurrently exhibiting real-time news briefs and updates. SignagePro eliminates the need of costly acquisition and implementation of several systems by offering a comprehensive digital signage package.

Dynamic Digital Signage, Video Wall Solutions, Data Wall Technologies, Multi-Screen Content Network

How Does Digital Signage Work?

To deliver the most efficient and cost effective solution on the digital signage market, SignagePro incorporates and provides the necessary hardware and software package. Applica software utilizes the unused processing power of standard PCs and distributes it among multiple stations. The Applica software integrates itself with the Windows operating system using patented technology and extends the standard Windows multi-user capabilities to support numerous sets of remote display devices. Each remote station can be controlled and managed by the centralized server (the main host PC) to display a diverse range of content and different applications simultaneously and independently, anywhere in the world! Through the system software that resides on the host PC, multiple virtual sessions are created, each associated with a remote client. Input for the session is read from the SignagePro software; output is written directly to its remote client.

As in any computing architecture, there are both hardware and software components involved to deliver this advanced functionality. A vital element of the SignagePro solution is the ability to transmit a true graphical signal directly to the remote display device. By extending the VGA signal, as opposed to packeting the video with software and network protocols, the host PC is not burdened with CPU overhead and the responsiveness of the remote display unit is as fast as a standalone PC system.

Each remote station can operate completely independent of the other stations. This allows the central server to customize digital messages in different locations based on demographics, preference, and timing. Because the system operates as a networked configuration, all display stations have their own, unique, network identities and can share the physical network adapter/connection. Digital Signage, Digital Signage Network, Dynamic Digital Signage

*Note that additional software licenses may be required. Check your software licenses before you install any Applica products.

Dynamic Digital Signage, Video Wall Solutions, Data Wall Technologies, Multi-Screen Content Network