Sento Corporation (SNTO)

12/15/00

• Profile

Sento Corporation provides information technology outsourcing services, including technical support services, help-desk functions, and technical training and education. Sento's integrated IT solutions are designed to enable its customers to effectively use leading-edge technology to improve their business processes and operating results.

Through its state-of-the-art eCustomer Contact Center, Sento provides domestic and international technical support services to leading computer hardware and software companies. Sento also provides instructor-led technical training, including distance learning through computer-based training methods.

• Mission Statement

"Sento will be a financially successful organization focused on the long-term welfare of our shareholders, employees, and clients. Our clients will be more efficient, more profitable, and have better quality products and services due, in part, to the services and products we offer."

• Marketing

Sento's marketing efforts focus primarily on middle market to enterprise level companies, as well as divisions/departments of Fortune 500 companies. Sento sells and delivers its services through its IT service office located in American Fork, Utah. Sento's current eCustomer Contact Centers are located in its American Fork, Utah facility and its recently completed second facility in Evanston, Wyoming.

• Services

Sento's integrated IT solutions are designed to enable its customers to effectively use leading-edge technology to improve their business processes and operating results. Sento delivers IT services in two strategic categories: technical support and training services.

IT TECHNICAL SUPPORT

Sento offers a broad range of IT outsourcing services consisting principally of customer support, helpdesk and product support services. Sento uses advanced systems, including client-server-based database and reporting systems, Internet, local area networks ("LAN"), multi-user systems, Computer-Telephony Integration ("CTI") and Integrated Voice Response ("IVR") technologies, to provide immediate and accurate technical support to its customers, enabling those customers to focus increased attention on their core business operations. CTI combines data with voice systems in order to enhance telephone services. For example, automatic number identification ("ANI") allows a caller's records to be retrieved from the database while the call is routed to the appropriate service representative. IVR is an automated telephone answering system that responds with a voice menu and allows the user to make choices and enter information via the user's telephone keypad to accurately route the call to the correct service representative. IVR systems are used in customer support facilities as a replacement for reception operators and may also integrate database access and fax responses.

HELPDESK

Helpdesk services are provided by vendor-certified professionals acting on behalf of a customer. They provide end users and IT staffs with a knowledgeable resource to address questions and problems involving applications, integrated desktop, network support or customized areas of need. Helpdesk personnel provide flexible services of a moderately technical nature that can be easily scaled to meet a customer's changing technical support requirements. Utilizing Sento personnel, customers can develop a program that meets their requirements, then implement the program as a helpdesk solution or as a supplement to the customer's on-site facility. In addition, Sento has the capability to dispatch trained engineers to customer or end-user locations when necessary to provide on-site solutions.

PRODUCT SUPPORT

 Product support services are targeted towards original equipment manufacturers ("OEMs"), software publishers, hardware system manufacturers and other organizations requiring high-quality technical services. These services, which are more technical in nature than helpdesk or customer support services, are designed to provide customers with immediate and efficient access to "best-of-class" product support. Sento delivers comprehensive first-level support (support related to product installation, features and configuration) to end users and manufacturers, combining hardware and network support with application support for proprietary and off-the-shelf programs.

IT TRAINING

Sento provides instructor-led training in seminar (including intensive multi-week IT Certificate courses), customized corporate and multimedia settings. Sento's objective is to provide high-quality IT training designed to incorporate leading delivery systems, measurement tools and training practices. Sento currently offers training and related certification services to IT professionals in the Internet and networking technologies, some of which include Microsoft Certified Systems Engineer ("MCSE"), Cisco Certified Network Associate ("CCNA"), Cisco Certified Design Associate ("CCDA"), Certified Novell Engineer ("CNE"), CompTIA A+, Network+, Certified Winframe Administrator ("CWA"), and Certified Internet Webmaster ("CIW"). Additional certifications could include Cisco Certified Network Professional ("CCNP"), Cisco Certified Internetwork Expert ("CCIE"), Certified 5 Directory Engineer ("CDE"), Linux, Oracle, and others.

Sento instructors combine their presentation skills with technical information and years of practical, real-world experience and examples. Instructors are certified in their area of instruction, with many having multiple certifications In addition, Sento offers training for QuickBooks customers. These courses provide tips, configurations, tweaks and solutions required to address obstacles faced by business and accounting professionals. Students are provided instruction in the use of solutions to maximize their productivity. Sento provides its training and applications through various settings including seminar, customized corporate and multimedia including video and computer-based training via Internet and CD-ROM.

• Strategy

Sento's business strategy is to develop and provide integrated IT solutions that enable its customers to effectively use leading-edge technology to improve their business operations and results. Sento believes it can pursue its business strategy by implementing the following strategic initiatives:

DEVELOP AND MARKET LEADING-EDGE IT SOLUTIONS  

Sento's services are split into two strategic business segments: comprehensive product support and helpdesk services available through Sento's eCustomer Contact Centers and customized and general system and applications training available through Sento Training. Sento's services help businesses provide and improve customer service by providing immediate and accurate responses to their queries originating from the telephone or Internet. Sento Training provides students with high-quality IT training that has been designed to incorporate leading-edge delivery systems, measurement tools and training practices in the latest general system, application and certification curriculum.

INTERNAL GROWTH

Sento intends to expand its operations by opening additional customer support facilities and training offices in strategic locations throughout the U.S. and foreign countries. In addition to geographic expansion, Sento will seek to identify and acquire companies that provide complementary technical support and training services, and as a result, extend the breadth of its service offerings.

ATTRACT AND RETAIN HIGHLY SKILLED IT PROFESSIONALS

 Sento's success will depend on its ability to attract, train, motivate and retain highly skilled IT professionals. Management believes Sento's dual service approach (technical support and training) provides an excellent career path filled with significant opportunities across the spectrum of IT experience, from entry-level positions through highly-skilled IT consultants. Sento's helpdesk and technical support centers will offer both entry level employees and seasoned professionals the prospect of training to enhance their abilities while serving customers in a broad range of IT areas. Sento also offers its professionals the opportunity for rapid advancement and expert personal training, as employees can move from one career step to another while remaining within Sento. Sento employees work with leading-edge technologies in a flexible, entrepreneurial environment with ongoing technical training.

CAPITALIZE ON TECHNOLOGY

Sento has completed its construction of a new generation technical support center in American Fork, Utah integrating technology (including the Technology transferred to EchoPass as discussed above) into the eCustomer Contact Center from divergent companies in the IT and computing industries. Sento is currently solely dependent on the Technology and has entered into the Services Agreement, which permits Sento to use the Technology in the operation of its eCustomer Contact Centers. As part of the EchoPass Transactions, Sento and EchoPass executed agreements granting to Sento the right to utilize the Technology on terms considered favorable by Sento at the time of the EchoPass Transactions. Sento's eCustomer Contact Centers go beyond a traditional telephone-centric customer support facility, incorporating increased customer contact points through nearly any media type, including voice and fax communication, as well as electronic customer interactions over the Internet (e-mail, Web text chat, Internet calls, Web collaboration, Web callback interactions and co-browsing) with the same speed and efficiency as telephone calls. The advent of the Internet and the proliferation of electronic customer interactions are changing the manner in which businesses communicate with their customers, and Sento believes its eCustomer Contact Center will position Sento to meet these emerging opportunities.

• Echo Pass

Sento Corporation recently did a spin-off of its eCustomer Contact center technologies into a separate company: Echo Pass. The transfer of Sento's technology to this new company allows Sento to concentrate on their core business while realizing optimal value for their technology.

• Industry

Sento believes most organizations face a rapidly changing, highly competitive environment in which improved utilization of IT products and services can be a significant factor in improving products and services, lowering costs, increasing customer satisfaction and building competitive advantages. Many top executives and managers recognize the importance of information technology in their organizations and the potential benefits of improved IT utilization.

At the same time, the rapid technological change and migration required to achieve those benefits create tremendous pressure on organizations and their management. As the pace of technological change accelerates, the organization's ability to evaluate, integrate, deploy and leverage IT systems is becoming a critical competitive issue.

There has been considerable consolidation within the industry in the past three years. Typically a company is acquired at 2.5 to 4.5 times revenues. Based on 2001 revenues this would make Sento an acquisition target at between $10 and $20 a share. Even the most conservative estimate currently places Sento at less than 1/3 of its fair value. 

• Management

DENNIS L. HERRICK President & CEO

 DENNIS L. HERRICK joined the Company as President and Chief Executive Officer, and as a member of the Board of Directors in March 2000. Prior to joining Sento he was President and Chief Executive Officer of I-Lease Inc., a provider of Internet based marketing tools for equipment leasing companies from June 1999 to March 2000. From November 1995 to March 1998 Mr. Herrick was Vice President of US Operations for Americ Disc, a manufacturer and distributor of compact disks. From September 1993 until November 1995, he was a founder and Chief Operating Officer of Triptych CD, a CDROM start-up, which was subsequently sold to Americ Disc. Concurrently, from January 1991 until April 1994, Mr. Herrick served as President of SJ Packaging Corporation, an offset printing company. Prior to 1991 Mr. Herrick was Vice President and General Manager of Data Products Europe for Xidex Corporation, a manufacturer and distributor of storage media products. He received a bachelor degree from Baylor University and an MBA from Pepperdine University.

GARY B. FILLER Chief Financial Officer

 GARY B. FILLER has served as a director of the Company since August 1998 and as Acting Chief Financial Officer of the Company since March 1999. Prior to joining the Company, he was Senior Vice President and Chief Financial Officer of Diamond Multimedia Systems, Inc., a manufacturer of graphics boards and modems, from January 1995 to September 1996. From June 1994 to January 1995, Mr. Filler was a business consultant and private investor. From February 1994 until June 1994, he served as Executive Vice President and Chief Financial Officer of ASK Group, Inc., a computer systems company. Mr. Filler was Chairman of the Board of Seagate Technology, Inc., a manufacturer and distributor of data storage, retrieval and management products ("Seagate"), from September 1991 until October 1992, and was Vice Chairman of the Board of Seagate from October 1990 until September 1991. Mr. Filler currently serves as Co-Chairman of the Board of Seagate and as a director of Seagate Software, Inc., a subsidiary of Seagate.

Ronnie Johansen Vice President of Operations

Ronnie Johansen has served as Vice President of Operations for Sento's technical Services Division since September 1999. Mr. Johansen has been with Sento since June of 1998, previously serving as Vice President.  He comes to Sento with 11 years of successful software development and support center management. He is the former Director of Product Internationalization for Word Perfect Corporation. In addition, he served for two years as the Director of Technical Services for Novell in the Netherlands, where he was responsible for the successful consolidation of technical services in Europe, the Middle East, and Africa. Mr. Johansen received a B.A. degree in Russian Studies from Brigham Young University.                              

BRIAN W. BRAITHWAITE Vice President of Training

Brian Braithwaite, is vice president and general manager of Sento's Training Division. Mr. Braithwaite is responsible for managing the training division’s growth, developing its core competencies, aligning strategic partnerships and expanding its presence. In addition, he is involved in the productization of Sento University, Sento's Corporate University, which allows employees to certify and advance their knowledge and position within the Company.

Mr. Braithwaite is a founder of Spire Technologies, Inc., the predecessor to Sento Corporation. During the past 14 years, Mr. Braithwaite has headed several Sento departments including operations, business development, and sales. In February 2000, he was promoted to vice president and general manager, a role that gave him day-to-day responsibility for running the training division.

Mr. Braithwaite has a strong background in sales and marketing, having negotiated contracts with General Electric, Eastman Kodak, United States Department of Energy, and GSA contracts. In addition, Mr. Braithwaite is responsible for site location, selection, and securing governmental incentives for Sento's expansion in opening call centers in Salt Lake City, Utah and Evanston, Wyoming.

• Corporate Contacts

Sento Corporation

808 East Utah Valley Drive
American Fork, UT 84003

Phone: (801) 492-2000
Fax: (801) 492-2100
Email: info@sento.com

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