ALBUQUERQUE, N.M., May 7, 2008 (PRIME NEWSWIRE) -- AccessKey IP, Inc. (Pink Sheets:AKYI) CEO George Stevens issued a letter to shareholders today. The letter reads as follows:
Dear Shareholders:
The set top box has become a commodity with too many boxes to serve potential subscribers. These available boxes have shown little 'added feature' upgrades for quite some time. The only major advance in the last few years is the addition of HDTV. Otherwise, the market remains at status quo. To complicate matters even more, the vast majority of box manufacturers find it difficult at best to make money, which has resulted in a number of mergers and acquisitions among these manufacturers.
As a commodity, set top boxes are offered with a lowest price mentality especially because the major players give them away and hope their customer subscription models will eventually pay for the equipment.
Does AccessKey stand a chance in this "status quo" market with a typical marketing model? No! But considering our existing patents and the integration of those patents into a STB or as an add-on, then AccessKey takes a revolutionary, not evolutionary position to develop and lead the market. Our recent contract with CSI Digital moves us in that direction. A solid year and a half was invested to resolve vital issues within AccessKey, and to resolve legacy problems both known and unknown to further strengthen our capabilities.
And today we are focused totally on this new and exciting initiative.
Seldom does one gain a partner who wants to develop a product, will pay for its development, and will complete the loop by bringing sales of that product to our door. While there are some historical issues remaining, they are surmountable and will be resolved.
Given the progress we have made within AccessKey and the power of our CSI partnership, sales and revenues reported going forward indicate that we are building on our strengths. Surprisingly, in the past when we reported a contract for development, which is revenue, I have received some negative comments and stocks have been sold. Apparently the significance of this project is un-noticed or overlooked.
As we gain strength, we are better able to access possibilities and make good strategic decisions. The TeknoCreations spin-off initiative has been rescinded and will not happen, as it would only dilute the stock of AccessKey and the market timing is not advantageous. The assets created within this wholly owned subsidiary of AccessKey will remain in AccessKey. I look forward to reporting to you the revenues from these products.
My job is to create value for you as stockholders, real value, and I refuse to allow any influences that might lead to a pump it and dump it approach to our ownership. Ours is a real business, not some hyped up, out of control stock play for the short-term benefit of a few. Yes, we could go out and sign some IR firm for $20K or $30K per month, but given our history with you I believe our stockholders would rather see those monies invested to the build out of the company. Please be assured that AccessKey is managed close to the vest and each and every dollar spent is reviewed for its return and value to our owners.
We have made a concerted effort to pay down the existing debts and will continue to focus on improving the balance sheet. Further, as our financial picture improves, we will enter into the market and repurchase company shares to further control the company's financial picture. Don't think for a moment that I relish the idea of the company's currency in the hands of people who either do not understand the business model or look at this only as a short-term investment.
This company is incredibly undervalued. Yours is logically a long-term investment in a market with huge potential. AccessKey is approaching this market with stamina, patience and solid management of both assets and realistic technologies.
Looking forward as well, we are getting past many of the legacy issues that have prevented us from pursuing the OTC/BB listing, thus we have begun this process.
As we move forward with these major partnership and financial initiatives, the fun for me will be reporting revenues from all our products and showing the margins we achieve. Conversely, I share in your amazement that the stock has no support, even though we have a solid PE ratio potential, while knowing full well that so many of the listed companies have twenty and thirty-to-one ratios. This is ridiculous at best when one simply tallies the value of our patents and contracts alone, our PE ratio is the equivalent of two boxes of pencils and three rolls of towels.
This company has value and lots of it. There is value for you in supporting AccessKey's potential. We have grown to a point far surpassing where many business initiatives have failed.
While I can't be responsible for what happens on Wall Street, I commit to you that I sure as hell take responsibility for the success of AccessKey, its employees and stockholders...and it is working!
Respectfully, George Stevens CEO & Chairman
About AccessKey IP, Inc.
AccessKey IP, Inc. is a developer of cutting-edge technologies and best-of-breed products tailored to address the market opportunities created by the explosive growth of digital communications, entertainment-related services and specific consumer electronics platforms. AccessKey IP's AccessKey(tm) products, powered by the Company's patented technology, provide complete access to the coveted "Triple Play" (voice, video and data) and "Quadruple Play" (voice, video, data and wireless) offerings of cable, telecom, satellite and broadband service providers. The Company's AccessKey Home(tm) and portable flash drive-sized AccessKey PC(tm) allow subscribers to "channel surf" streaming "HD Quality" television content (IPTV), navigate the Internet, watch Video on Demand (VOD) offerings. Specialized functionality also allows users to play video or Internet-based games, listen to music, make phone calls (VoIP), video conference, run a full array of computing applications, securely store data and more, all from a single device and service provider network.
The AccessKey IP logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4945
FOR INVESTOR INQUIRIES: Please visit the Company's website www.accesskeyip.com, or contact: Bruce Palmer, 310-734-4254, ext. 105.