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BUSINESS SUMMARY
Sin Since the early 1970’s through 1999, Sound and Lighting
Specialist, Inc. was a Midwest based sound and lighting
systems design installation and sound reinforcement rental
company. During this time the Company derived substantially
all of their revenue from marketing, renting, selling, and
installing sound and lighting systems. During this time,
their products and services were purchased and selected by
some of the biggest and most prestigious names in the music
business and by nightclubs, churches, studios and anyone who
demanded quality and professional service.
The speaker systems sold
and used were sometimes custom designed and built by SLS and
at other times selected from the industries leading
manufacturers and resold to their customers.
During this time all of
the speaker systems utilized the age-old compression
driver/horn combination that had become the industry standard
for sound reinforcement systems. Using this older technology
was the only way to build a speaker system that could develop
the sound pressure levels (SPL) necessary to be used for sound
reinforcement. Most of these speaker systems will produce
enough SPL to be heard however the sound that is produced is
generally very harsh and is not necessarily conducive to
producing any musical detail.
Due to the search for
excellence that had become the motto of SLS the company began
a development process to create speaker systems that rivaled
to most high quality and sometimes esoteric products in the
World. To do that they chose to create a high efficiency,
high power handling type of speaker transducer that could
replace the compression driver and deliver the sound quality
delivered by the esoteric Hi Fi speakers except at the Sound
Pressure Levels necessary for sound reinforcement. Hence, the
development of the SLS Patented PRD line of Planar Ribbon
Drivers.
Then in June, 1999, due
to favorable customer acceptance of their custom-designed
loudspeaker systems, the Company changed their course of
direction, ceased these historical operations, and began
focusing all their efforts on becoming a loudspeaker
manufacturer and selling to dealers and contractors on a
wholesale basis. Thus, for the past few years, SLS has
basically been in a development stage and marketing products
that were introduced in 2000 and 2001. In June of 2000,
dealers and distributors began selling the Company’s
Professional Line of products and today they form a current
network of over 50 dealers and 7 foreign distributors.
In September, 2000, SLS
introduced their Home Theater systems and sales began
immediately. From September until year-end, 2000, the Company
added 20 new Home Theater dealers in the United States and
started to establish dealers and distributors internationally.
In June of 2001, SLS
introduced their Commercial Line of loudspeakers, which
utilized their PRD500 Ribbon Driver and then in September of
2001, the Company finished development of its PRD1000 Ribbon
Driver and began implementing it into their Professional
Line. It is important to note that the Company’s proprietary
PRD drivers, which then started to be manufactured in-house,
upgraded the previous drivers that were purchased from
third-party manufacturers, resulting in significant cost
savings of approximately one-sixth the previous price.
SLS International,
Inc. (OTC BB: SITI) was formed on July 25, 2000 and had
no business operations. On that date, this corporation merged
with Sound and Lighting Specialist, Inc, its sole shareholder
and SLS International became the surviving shareholder,
initially being financed and going public through an SB-2
offering. Thus, although SLS has its roots tracing back some
28 years as a manufacturer and developer of patent-pending,
ultra-high fidelity, state-of-the-art ribbon driver
loudspeakers and sound systems for the commercial, home
entertainment, professional, and music markets, it has just
been in the past few years that its business direction has
changed and its stock has started trading. Today, we
feel strongly that this Company is on the verge of explosive
and dynamic growth in revenues and earnings and that the stock
will turn out to be not just a home run, but a GRAND SLAM home
run for its investors.
superior
TECHNOLOGY WILL LEAD TO EXPLOSIVE GROWTH
SLS has perfected the
ribbon-driver technology to enable their loudspeakers to
achieve exceptional clear, clean, concise sound with 20 to 30%
less the distortion of typical compression driver and dome
tweeters. This radical and innovative new approach (ribbon
driver versus compression driver technology), combined with
their proprietary horn, woofer, and cabinet designs, is the
compelling reason why the SLS speaker systems perform so well
and are now being recognized as the most technologically
advanced and best speakers in the world today.
Both the PRD 500 and PRD
1000 ribbon drivers utilize a cast aluminum body, Neodymium
push-pull magnetic structures and a high temperature Kaptonâ
diaphragm, which is 100 times lighter than a compression
driver diaphragm and 50 times lighter than a dome tweeter.
This translates into lightening fast transient response and
exceptional sound clarity and quality. Suffice it to say that
the SLS sound speakers are now receiving overwhelming positive
testimonials from many of the world’s top recording artists
and from owners and management of nightclubs, churches,
stadiums, record companies, theaters, opera houses, hotels,
airports, etc.; i.e., wherever excellent sound clarity is
important!
numerous
positive & powerful testimonials
We have only included a
few testimonials here to show how the amazing and superior SLS
sound technology is being received. As a matter of fact, many
companies (JBL, Bose, Eastern Acoustics, Klpisch, Soundlab,
Infinity, Eggleston Works) may state or believe that they have
the best speakers available, but few, if any, have had the
tremendous response and testimonials that SLS has garnered
over the past year. Here are just a few:
Wynona Judd –
“The SLS speakers sound as good as or better than anything
that I have ever used in the studio, and that includes the
Emerald Sound Room, which has $30,000 speakers.”
Les Garland co-founder
and originator of MTV and VH-1 – “The incredible sound
of SLS speakers is far better than anything I’ve ever heard…I
believe the SLS leading edge sound systems and speakers have
the goods to create a revolution in sound by enhancing and
clarifying the sound of all music from hip-hop to classical.”
Gregg Rolie,
co-founder and lead singer in Santana – “I get a better
reproduction of sound out of the SLS studio monitors than any
other speakers I’ve used before. I intend to use them in all
of my future recordings. I can’t say enough good things about
them.”
Denny Purcell, founder
of Georgetown Masters – “Their technology will
ultimately change the way that all speaker systems will be
designed in the future, because no other system will be able
to compete with them.”
John Louis, audio
engineer for Electrosonic, Inc., the firm retained by
Universal Studios to re-engineer the audio, video, and show
control of the Special Effects Stages exhibit – “We
chose to purchase SLS’ speakers due to the warmth and wide
disbursement of sound achieved from the company’s ribbon
drivers.” The Special Effects Stages exhibit is
one of the main attractions at the Universal Studios Hollywood
Theme Park that is visited by more than 5 million people each
year.
Patrick Armstrong,
Parc Records and now a consultant to SLS – “When I
heard the S8Rs at M5 Studios in Miami, I was blown away with
their sound. The clarity, transparency, detail, and accuracy
of these speakers was something that I had not experienced
before. We have had every kind of speaker imaginable at Parc
Studios over the past 17 years and none have sounded anywhere
close to the SLS’s. Nsync, The Backstreet Boys, Britney
Spears, and Mariah Carey have all recorded at Parc
Studios and when they come back and hear our new SLS’s , I
know they are all going to want to know about the company.”
Larry Stessel,
Trillium Entertainment and past Director for Sony Records –
“I am convinced that the SLS Ribbon Drivers and SLS are
going to be leaders in the loudspeaker game in the very near
future. We are going to educate our associates in the
industry about the SLS technology and speaker systems. Their
studio speakers will undoubtedly become the new industry
standard.”
Phil Morris, Starlight
Theater – “I have worked with almost all of the major
loudspeaker systems during my 20 plus years as an engineer and
the SLS speakers are by far the easiest and cleanest I’ve ever
used.”
Tommy Pooch, of Nikki
Beach and Pearl (ranked by The Travel Channel and E Television
as one of the Top Ten Night Clubs in the world) – “I
have never heard any system like this in the world, and I have
been to the best clubs there are, period. The SLS speakers we
bought are going to change the total night club industry.”
These are but a few of
the many powerful testimonials, which SLS has recently
garnered along with numerous awards and accolades.
Recent awards &
accolades
In 2002, the SLS speakers
were the choice at many significant venues including the
Staples Center in Los Angeles, The Grammy Producers
Sound Table, the MGM Grand in Las Vegas,
Universal Studios in Hollywood, and the World Cup
in Korea. Additionally, many renowned U.S. recording studios
have ordered SLS speakers, which include Peerless Mastering
in Boston, Georgetown Mastering in Nashville, NBC’s
Winter Olympics studio, M5 Studios in Miami,
Astoria Soundworks in New York, 2K Sounds in Los
Angeles, Neil Diamond’s personal studio, Redwood
Digital and the University of Massachusetts Recording
Institute.
This year, SLS is
continuing to land large venue contracts and expand their
global presence with high profile clients. Also, since the
Company has started manufacturing in-house and has therefore
enjoyed considerable cost savings, SLS is now launching a less
expensive Home Theater System, which is expected to compete
very effectively to a much larger market and yet provide the
Company with excellent profit margins.
looking ahead -
financial projections & a very bright future
In 2002, in its first
year of sales of the new product line, the Company’s sales
approached $1 million. We foresee a huge leap in
revenues for 2004 to the $25 million+ area. Beyond that, we
believe that SLS has reasonable certainty to attain annualized
sales in the $400 million or more area in the next 4 to 5
years.
If these projections
might seem astounding, we don’t believe they are! It appears
that SLS has the world’s BEST sound technology and there are
numerous applications and venues for their exceptional speaker
systems for which the Company is now strategically planning.
Global demand for their technology is rapidly accelerating
and we would expect numerous forthcoming announcements of
strategic alliances, business relationships, more high profile
venue contracts, and many more endorsements and testimonials.
Obviously, the SLS sound technology is applicable to such huge
and diverse industries as automobiles, airports, churches,
nightclubs, chain restaurants, stadiums, amusement parks,
etc.
recent news
items
On October 29,2003
Xylan Technologies Selects SLS
Loudspeakers for State-of-the-Art Night Club
On October 16th, 2003
Webster University Selects SLS
International's Loudspeaker Products
On
October 7, 2003 Churches Continue To Install and Praise
The Performance of SLS International's Loudspeaker System
On
October 2nd, 2003 SLS International Provides Surround
System For Honda/Acura's Dealer Show
On August 18th, 2003
SLS International Enters Agreement With
Globally-Acclaimed Recording Artist Sting to Promote
SLS Speaker Systems
On January 14, 2003,
The Church on the Move, in Tulsa, Oklahoma, purchased and
installed an SLS, RLA/1 (ribbon line array) system, the
flagship of the SLS Professional Products line.
On December 12, 2002,
VisionQuest of Atlanta, Georgia completed their first
church installation of the SLS’ new LS8695 Line Source Column
speaker system and it is receiving rave reviews.
On November 12, 2002
PMC Sound, Branson, MO, purchased an SLS RLA/2 Ribbon Line
Array system for their touring operations through the Midwest.
On November 5, 2002, SLS
announced that Hootie and the Blowfish is recording
their new album at Bogart’s Studio in Miami, Florida utilizing
the SLS, award-winning S8R nearfield studio monitors.
exceptional
proffesional management team & associates
John M. Gott,
President, CEO, and Director founded SLS International in
July 2000 in connection with the merger between the Company
and its predecessor, Sound and Lighting Specialists, Inc. The
predecessor, which was founded in October 1994, engaged in the
sale and installation of sound and lighting systems. Mr. Gott
was a founder of Sound and Lighting Specialists, Inc. and was
the Company’s President and CEO since inception where he
spearheaded the Company’s growth for over 25 years. Sales and
installations of sound and lighting systems included
Carnegie Hall and Disney World in Tokyo.
Tom Harrison, Director
of Engineering, has been with SLS since 1994. He has
extensive experience in high end loudspeaker design and
voicing and is an accomplished studio and live performance
musician.
Igor Levitsky,
Director of Transducer Development, was contracted by SLS
in February 2000 to assist in the development of the Patent
Pending SLS Ribbon Drivers. In April 2001, he joined the
employment of SLS. He has an extensive background with
respect to loudspeaker component design and manufacturing. He
is considered in the loudspeaker industry as one of, if not
the authority in planar and conventional transducer design and
development. He works daily with Mr. Harrison on the R&D
necessary to integrate the SLS technology into the many
different speaker systems manufactured by the Company.
Les Garland, Director,
is one of the co-founders and originators of both MTV and
VH-1, where he served as MTV Network’s Senior Executive Vice
President. He is currently President of AfterPlay
Entertainment, an entertainment and media consulting company
and has an extensive and respected background in the music and
recording industry.
Patrick J. Armstrong,
consultant, currently serves as President of Parc Records,
owner of the renowned Parc Recording Studios in Orlando,
Florida and personal manager for actor Steven Segal’s music
career. He also discovered and managed Lynyrd Skynyrd, Molly
Hatchet, and Quiet Riot.
Larry Stessel,
consultant, is the President of Trillium Entertainment and
partners with Armstrong in the Titan Entertainment Group. He
was General Manager of Mercury and EMI Records and was Senior
Vice President of Marketing for Epic Records and
Sony Music Entertainment for 15 years. While
working for these music giants, Stessel marketed some of the
biggest selling albums of all time including Michael Jackson’s
“Thriller”. He also directed all marketing activities for
Gloria Estefan, Babyface, Bon Jovi, Vanessa Williams, Pearl
Jam, Celine Dion, and many others.
This is an extremely
knowledgeable and well-connected management that is focused on
huge success for SLS. The Company is involved in a
multi-billion dollar industry with proprietary, patent-pending
technology that many experts applaud as the most
technologically advanced and superior technology amongst all
competitors. SLS is now positioned to reap the rewards and
show explosive revenue growth in the next few years.
summation
SLS International,
Inc. (OTC BB: SITI) is one of those rare undiscovered gems
that we believe is destined to become a HUGE winner in the
coming months and years. SLS’ superior technology in the
$ multi-billion sound and loudspeaker industry will drive the
overall revenues of this Company into the hundreds of millions
within the next few years. We foresee a dynamic upward move
on the price of these shares as the Company takes a dominant
leadership position. It is very unusual to find a stock with
this much upside potential! The Company’s current market cap
is only $42 million with current share price trading around
1.90
cents. Based on what we anticipate to be a very strong
growth rate, we feel the stock has true potential to be
trading in double digits within the next three years. LOOK
FOR A HUGE WINNER!
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Company with its state-of-the-art, superior
technology is positioned to become a world leader in
multi-billion dollar sound technology market in coming years
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Management team is experienced, professional,
and committed to major success
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Stock is currently virtually undiscovered and
has a very low market cap of only $42 million. It is very
undervalued at the current price
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SITI has true potential to have revenues
explode into hundreds of millions within the next 3 to 5 years
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Company’s exceptional technology has numerous
applications in giant industries such as automobiles,
stadiums, amusement parks, concert venues, airports, hotels,
recording studios, night clubs, churches, sporting events,
etc.
Company’s in-house manufacturing and cost-controls allow for
excellent profit margins and quality assurance
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