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EXECUTIVE SUMMARY

A LOCAL ONLINE INFORMATION CENTER, "MULTI-DIMENSIONAL" SEARCH ENGINE, AND TARGET ADVERTISING PLATFORM

THE BUSINESS

Guinness Telli*Phone is a developer of "multi-dimensional" Internet search and target advertising systems. The Company was incorporated in the State of Nevada in 1992 and went public in 1994 (Stock Symbol: TELI).

We recently completed the development of a networking system for establishing local information centers containing comprehensive local information on movies, events, products, services, reviews and news as well as providing consumer redemption coupons.

Telli Local Information Centers provide small businesses, retailers, groups and associations with affordable "do-it-yourself" target-advertising platforms to highlight themselves in their communities and promote themselves on the Internet.

The information centers are managed by local licensees in a manner similar to the way local newspapers and radio and television stations presently operate.

Telli "Multi-Dimensional" Search is powered by a combination of keyword search engines, menu search systems and simple variable category click-through filtering systems making it easy for people to instantly target everyday products, services and information in their community through their computers and mobile devices without spending time surfing through large amounts of irrelevant information.

(e.g. Try searching Google or any other search engine for seafood restaurants in Marin County that have all the following additional variables: a view, entries under $15, outdoor dining, that are child-friendly, with a full bar and serving fish and chips - only 45 - 60 seconds on Telli Marin.)

TELLI LOCAL LICENSING

The Telli Information Centers reside on our servers and the servers contain secure site management administrative tools (the Telli Administrator Program) that allow people with marketing backgrounds to license, manage and maintain Telli information centers for their communities through their personal computers and provide professional advertising assistance to local advertisers to support their advertising campaigns. Licensees generate income from royalties on advertising revenues generated through Telli's automated advertising subscription payment system.

With the success of our first local system, Telli Marin at www.telli.com , we now plan to exploit the recent growth in local Internet advertising by licensing Telli Systems to qualified media people in adjacent communities in the San Francisco Bay Area and then expand throughout California with the goal of building "a network of locally operated community online information centers" across North America.

TELLI MARIN

Our first Telli Information Center, Telli Marin, covering Marin County, CA (Population: 250,000) was established for research, development and testing purposes in 1997. We commenced our first public test of Telli Marin in 1999. In 2001 we began simplifying our software and online advertising tools, developing the Telli Administrator licensing system, establishing a secure, automated online advertising subscription payment system, preparing licensing guidelines, legal agreements and manuals, and creating local advertising materials.

Telli Marin contains 3,800 micro categories displaying over 22,000 up-to-date business listings including local events, movies, reviews, coupons and classifieds as well as local information links. Over the last three years Telli Marin experienced an annual growth rate in advertising revenues of over 40% without any advertising, promotion or customer service support. Presently, people look at over 10,000 Telli Marin listings every day on their computers and mobile devices.

Also, people view businesses with TelliPages over 20 times more often than they view businesses with websites.

Major search engines like Google access Telli Marin over 500,000 times every month to copy Telli's up-to-date listings and TelliPages to post as links on their sites; thus providing additional Internet exposure for Telli advertisers.

Our research indicates we can increase advertising subscription revenues substantially by offering a personal "fee-based" customer service program conducted by local Telli advertising consultants to assist advertisers with their online promotions and TelliPage designs.

THE LOCAL ADVERTISING MARKETPLACE

It has been reported that 80% of retailers' sales are from customers who reside within 2.5 miles of their locations. The Kelsey Group reports that local search is growing faster than general web search with 86% of Internet users searching for local products and services, up from 70% in 2006, and more than 90% of the transactions resulting from these searches are completed at the advertiser's location. Although just 5.6% of sponsored links on the major search engines were bought by local advertisers two years ago, today they're purchasing over 36% of all such ads.

Internet advertising revenue grew by 35% in 2007 to $16.9 billion. Revenue from local advertising reached $8 billion in 2007 and jumped to over $12 billion in 2008 (Borrell Associates). Borrell reports that, "The nation's 14.6 million small businesses were responsible for more than $6.7 billion in locally generated, locally targeted interactive advertising in 2008 - more than half of the U.S. total. (Click on www.Telli.com/Internet)

A report from research firm Borrell Associates reported that a local search company established like a large TV network with multiple local affiliates could more readily establish a strong foothold in individual communities than nationwide players. "Google doesn't have that," commented Borrell. "Local media and search firms that work from a truly local level would relegate everybody else to mere content providers."

"Most sites don't participate in the community they enable," reports Marchex in its 2008 Local Online Advertising Report. "Local sites need to understand their customers' needs. Participation is what makes the most popular portals successful."

LOCAL TELLI SYSTEM OPERATIONS

Telli Local Information Information Centers are stored on Guinness Telli*Phone servers and each local site is operated by a qualified local management and sales team licensed to customize, manage and continually update each Telli Site focused on their community through the Telli Administrator; Guinness manages the Internet technology and electronic payment system and local managers provide the marketing and advertising support.

The Telli Administrator is not a design tool. It is a "management tool" that allows licensees to update their Telli Information Centers and modify them to support the uniqueness of each of their communities. In addition, licensees use the Telli Administrator to establish electronic billing systems, establish accounts with variable billing plans and manage electronic payments.

Also, Telli managers establish themselves as local online-marketing and advertising professionals within their communities and receive royalties based on advertising subscription revenues as well as royalties based on design and maintenance fees charged for preparing TelliPages and search engine advertising programs.

LOCAL TELLI INFORMATION SYSTEMS

Unlike global search engines that are usually not up to date and offer only lists of website links, a local Telli Information Center displays pertinent up-to-date details on almost every business and organization in the community in addition to providing people with current information on local events, movies, classifieds, coupons and reviews.

First, initial listings and monthly telephone connects and disconnects are downloaded from a data base of telephone listings provided to us by the local telephone companies. Movie listings and schedules are provided directly though a national data feed and people in the community can post event information, reviews and classified ads for free. Therefore, as soon as a Telli Information Center goes online it is useful to people in the community immediately.

Next, using our simple software tools, businesses not listed in the phone directory or that operate with cell phones can post their listings in a Telli Information Center and all businesses can update their listings and categories at any time and at no charge.

Then, local organizations can highlight themselves above their competitors and increase their customer views substantially by subscribing to Telli's inexpensive, high-profile promotional platform and create colorful TelliPages to provide current "summaries" on their products and services using Telli's simple "do-it-yourself" web design tools.

The Telli subscriber development tools are more than just design tools and are available through the Telli website, making Telli a do-it-yourself "Advertising Plantform" and not just a website creation tool. Below is a list of the Subscriber Advertising Planform tools that subscribers access through their subscriber advertising platform menu page.

  • My Favorites
  • My Alerts (Read alerts that have been sent by your favorite businesses.)
  • My Reviews (Read reviews that you have posted.)
  • My Calendar (A calendar marking your special events, sales, etc.)
  • Edit My User Profile (Change your email address, password, etc.)
  • Post, Edit or Delete a Classified
  • Post, Edit or Delete an Event
  • Banner Campaigns (a list of your banner campaigns and statistical information) Telli banners must be created and placed on Telli Marin through a local Telli Advertising Consultant.
  • Account Profile
  • Notification Settings
  • Edit My TelliPage
  • Edit My Listing (Change your listing name, address, hours of business, phone numbers, tag line, add a listing icon, add a website link, confidential email contact link and more.)
  • Edit My Categories (Manage the categories where your listing appears.)
  • Post an Alert (Post an alert to viewers who have saved your listing as a Favorite.)
  • Post, Edit or Delete a Coupon
  • Viewer Statistics (Track the visits to your listing and clicks on your website link.)
  • Related Listings (Link your TelliPage to other business listings on Telli. e.g. An attorney with a major law firm can have his or her own listing and link it to the listing for the law firm so he or she shows up on the law firm's TelliPage.)
  • TelliPage Links (Place a link on your website that sends people to your TelliPage so you can keep your website up to date through your TelliPage without having to pay web design fees. Also place links on your website to your Telli Events Calendar.)
  • Create a TelliPage Internet Address: e.g. www.telli.com/name (of your business).

However, we have found that the majority of local advertisers need assistance in preparing online promotions.

(a) The don't know what to say about themselves, or how to say it, and

(b) Most of them are challenged by computer technology.

Consequently, small business are not comfortable creating their own information for display on the Internet.

For further information on Telli's expansion plans, see our Plan of Operation at www.telli.com/growth.

Subscribers pay Telli local managers various fees to design and maintain TelliPages on their behalf. We have found that over 70% of local businesses request professional advertising and design assistance.

CORPORATE MANAGEMENT

Lawrence Guinness, founder, CEO and developer of Telli systems, has 40 years experience in managing various successful media ventures. Patrick Guinness, President of Guinness Telli*Phone Corporation, has developed and continues to develop all Telli software systems. They are supported by a management team consisting of a community newspaper publisher, an award-winning advertising director, and a CFO experienced in small and medium-sized businesses.

LOCAL TELLI ADVERTISING CUSTOMERS

Existing local advertising and listing services do not offer the simplicity and do-it-yourself opportunity for instant target-marketing and communications provided by Telli. Most Internet search engines only provide links to websites, and placing advertising on them is expensive and time consuming. Therefore, significant information on the Internet is available only from those who can afford the large investment required to establish, maintain and promote websites.

Our current and potential customers are businesses providing local retail goods and professional or household services, including local clubs, leagues and associations. Telli Systems offer organizations a simple platform for their internal staff to keep people continually informed of new products and services, changing schedules and last minute events through TelliPages created using their own computers and Telli’s simple design tools.

Organizations with websites can place TelliPage links on their websites to keep their sites up-to-date by updating their TelliPages themselves.

Telli provides an inexpensive advertising platform for organizations that have no need to advertise outside their area and a local medium for major organizations to tailor promotional programs targeting people’s individual needs.

Focusing on local marketplaces makes it possible for Telli to build a critical mass of users in each area with minimal effort and operating Telli Systems under common guidelines makes them inexpensive to manage and promote.

PATENTS, TRADEMARKS & COPYRIGHTS
The Telli logo is patented with the U.S. Patent and Trademark Office, and all our software is protected by copyright law. We feel the success of our business is dependent on the kind of information we distribute and not the technology used to distribute it.

Telli has contracted Francorp, (www.francorp.com), to assist with the development, regulatory filing and marketing of a Telli franchising operation as a future potential alternative to establishing Telli Local Sites in areas throughout North America. Francorp's legal department is completing the appropriate documentation and filing applications for franchise registration with the FTC and for those states requiring such registration.

Please give us a call at 415 435-1280 for further information.

Click here to see more information on TelliPages. or click on Website to the left of this page for more corporate information.

DISCOVER THE POWER OF TELLIPAGES FOR YOURSELF!
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This page was last updated on December 2nd, 2009