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WE GUARANTEE THAT YOU WILL BE ABLE TO SELL LINSPIRE - OR YOUR MONEY BACK! If you are not able to move any of your initial order within 3 months, just ship the inventory to us in original sealed packaging and we will refund your money! That's how confident we are about our product. No other business can guarantee that!

Dear Prospective Channel Partner/Distributor/Reseller,

Thank you for your interest in Linspire Five-O with CNR. You have taken the first significant step towards capitalizing on a rare opportunity by reaching this part of our Web Site. If you haven't visited the other links at the left sidebar, please do so to first learn and understand our product and its features.

This page provides you with an insight on the business potential of Linspire to help you decide. We believe you will find that this is a rare opportunity to be part at the very start of something big that would change the Philippine market.

MARKET OVERVIEW

There is an estimated 2 million computers in the Philippines as of December 2005 mostly running in over 800,000 business establishments, sustaining a growth in the IT sector of 81% for the next 4 years. According to the December 2005 report of the International Data Corporation, the current piracy rate stands at 71%. There is a huge unserved market that is currently using pirated software.

MARKET CHARACTERISTICS

Some of the key points to note are as follows.

- The National Statistics Office (NSO) in 2002 recorded 809,460 business establishments operating in the Philippines, with Micro, small and medium enterprises (MSMEs) accounting for 99.7% of the total number of establishments, of which 91.8% were Micro. In 2003 (latest figures available), the figures changed slightly to 810,262 businesses, of which 99.6% are MSME, of which 91.75% are Micro. This means that the Philippine business landscape is dominated by small businesses of limited capital.

- The Philippine market is a very price sensitive market. As is true for VCDs DVDs and branded clothing items, surveys and experience have shown that the primary driver for piracy is the huge price disparity between pirated, counterfeit products and authentic, legal versions.

KEY SUPPLIERS

95% of the world's personal computers run on the Microsoft Windows platform. The Philippine market is not immune to this dominance. Microsoft Philippines works through three (3) remaining Distributors namely Lamco International, WordText Systems, and Millenium Computer Technology, who in turn have Resellers.

There is an undocumented, non-mainstream number of Linux following - Linux is primarily used to run Web Servers and Application Servers. Linux is known to those inside the Information Technology industry but has made very limited in-roads to the end user market, though attempts have been being made by the DOST since early 2000.

COMPETITOR RETAIL PRICES

From inquiries with Microsoft Resellers, the Suggested Retail Price (SRP) (also referred to as "Street Price") of Microsoft WindowsXP and Microsoft Office 2003 are as shown in the table below. The information is as of June 2006 (Microsoft changes its prices on a month to month basis, affected by several factors) and based on pricing for customers using the software for business/company use. This information is not confidential and is in fact available in local web sites.

For such customers, each computer that uses Microsoft WindowsXP with Microsoft Office will incur a cost of over P 51,000 for Microsoft Software. New computers hardware cost from about P 15,000 upwards. The Microsoft software is thus costing the customer more than 300% over and above the cost of the hardware!

OPPORTUNITY

There is clearly a market opportunity considering the market size, its growth potential, the current piracy rate and the distorted pricing of software.

The answer to the situation is a sensibly priced Operating System that feels like Windows XP, with value added features and services.

Our answer is Linspire Five-O with CNR, a world-class full-featured, internationally supported, virus-safe, Internet-ready Desktop OS (Operating System) with a WindowsXP-like Interface that comes with a Microsoft Office compatible application that can open, edit, save DOC XLS and other file formats.It comes with the unique Click and Run (CNR) service that gives the customer access to over 2,000 software free of charge.

Linspire is already being used world-wide.

Linspire is priced lower in the Philippines than in other parts of the world. A testimony to the true understanding of the limitations and ecomonic realities here. It is also a testimony to the belief in the honor of the Filipinos, that we will support software licenses that are reasonably and sensibly priced.

Linspire is as low as P 1,395.00 for Volume License.

The complete SRP of Linspire is summarized in the Pricelist page. We implemented a creative licensing offer for Home users and the discounting for Academic, Charity and Religious Organization use. Linspire is also specially priced for the Micro, small and medium enterprises (MSMEs).

OPPORTUNITIES FOR DISTRIBUTORS AND RESELLERS

You can be part of this exciting development in the Philippines. The entry of Linspire is not like the entry of just any other software. This is an Operating System. It is a trigger for a host of other opportunities for many sectors. See the sidebar at the right.

This is a special time and we are offering FREE shipping to all Distributors and Reseller nationwide, as we hold the prices steady till September 30, 2006 . We will buffer exchange rate fluctuations.

To become a Distributor or Reseller, please accomplish this form and e-mail back to us at sales@linspirephilippines.com and fax the required supporting documents to (02) 893-8909 extension 802. You may also call our Corporate Office at (02) 893-8909 extensions 804, 810 or 811. Join us!

We also welcome Partner Inquiries on Classroom Training services. Accredited Training Partners will be granted rights to use the Linspire Official Curriculum and Materials ( nominal printing charges apply) . Participants are thus guaranteed standardized content and quality, and official recognition of their achievement. Participants will be awarded official Certificates directly from Linspire Philippines and will be included in the roster of Linspire-trained Professional thus giving them, their employers, and their customers greater confidence in their skills. Certification Programs are also planned to further strengthen this professional network.