DOVE CANYON, Calif., May 2, 2005 (PRIMEZONE) -- BICO, Inc. (OTCBB:BIKOE) today announced that it has entered into another pilot agreement, with Aspen Square Management, Inc., to deploy the company's WebPhones and related services at a number of select locations.
Aspen Square Management owns and manages more than 25,000 apartment homes in 124 communities located in 96 cities and 25 states. BICO is also in advanced discussions with several other major property managers and owners across the country to participate in similar pilot deployments.
Based on its current business model and projections, BICO management anticipates initial revenue of up to $10 per phone per month, a portion of which will be shared with the participating apartment property managers. Over time, BICO anticipates revenue growth to more than $20 per phone per month. The company presently anticipates achieving breakeven or profitable operations in the next 12 months as it implements its business plans. With the addition of Aspen Square Management's portfolio, the potential total resident unit deployment from those who have signed pilot agreements could be more than 50,000 residential units upon successful completion of the pilot programs.
"This is a very strong validation of our business model within the apartment management community," said Richard Greenwood, CEO of BICO. "Once in place in the apartment home, not only will the WebPhone enhance communication between the property manager and the resident, it will also generate revenue each month for BICO and our property manager and owner 'partners'."
"We are very excited to be one of the first property management companies to introduce the video WebPhone to the Multi-Housing Industry. The WebPhone will add a new level of communication from our residents to our professional office staff. This will also enhance our focus on resident retention at our properties. Aspen prides itself on bringing the best amenities to its properties. From the very first day it feels like 'home' in an Aspen Square property," said Jason Lindwall, CIO of Aspen Square Management Inc.
"This is about communication, and we know merchants will pay to get their message into the homes of apartment residents. BICO's unique way of delivering very specific and targeted messages easily and inexpensively is exactly what they are looking for," said Rick Rundles, Executive Vice President of BICO.
BICO is both a distributor of Internet appliances and an advertising and content publisher, primarily focused on the multi-housing and hospitality industries. It delivers content and other fee-based services, including ISP, telephone services, video conferences, and e-commerce fulfillment directly to its appliances. Much like a magazine publication sells advertising space based on its circulation and readership, the BICO WebPhone business relies on generating advertising revenue from regional, national and local merchants who service apartment communities, and benefit from placing paid advertising on the screen of the WebPhone.
This news release includes comments that may be deemed forward-looking within the meaning of the safe harbor provisions of the U.S. Federal Securities Laws. These include, among other things, statements about expectations of future events, financings, revenues, sales of products or advertising, cash flow, profits and performance. Forward-looking statements are subject to risks and uncertainties that may cause the company's results to differ materially from expectations. These risks include the company's ability to obtain necessary financing in time to meet contractual obligations to conduct pilot programs or meet other obligations, develop appropriate strategic alliances, raise working capital, successful development and implementation of technology, acceptance of the company's products and services, build a functional infrastructure of servers and other support equipment necessary to support the functionality of the WebPhone deployment, obtain initial and ongoing advertising sales, and other such risks as the company may identify and discuss from time to time, including those risks disclosed in the company's current and future filings with the Securities and Exchange Commission. Accordingly, there is no certainty that the company's plans will be achieved.