Corporate Overview

History of Capital Intelligence

The Company was incorporated on 8 February 2000 and commenced trading under the 'HomeTrader' brand in May 2000. Since then, the HomeTrader business has assisted in providing the resources necessary to establish the Australia wide infrastructure that forms a major asset of the Company today. The features of the Company include:

• Operational offices in 5 Australian capital cities (Perth, Adelaide, Melbourne, Sydney and Brisbane).
• Over 4,000 clients (called Members), who in most cases have each spent $5,000 or more with the Company.
• A national marketing database of more than 40,000 people compiled from people attending HomeTrader sales and marketing events.
• Established team of experienced and highly competent employees that provide the human resources required to effectively carry out the Company's operations.
• Business systems developed over the period the Company has been operating.
• A requisite Australian Financial Services Licence for Australian Financial Market Services Pty Ltd AFSL 295337.

Of more recent times the Company has diversified its revenue sources by starting several other businesses. These include:

• HomeTrader Signals
• Shares Made Simple
• National Money Solutions
• dataHQ
• Backtesting Made Simple

As with HomeTrader, these businesses mostly provide financial products and/or services to retail traders and investors. A more detailed analysis of each of the businesses follows.

Corporate Objectives & Strategy

The long-term corporate objective of the Company is to produce returns for its Shareholders by providing quality products and services whilst providing an enjoyable, challenging and stable employment environment.

The Company recognises a society wide tendency of people wanting to achieve a position of financial security. The Company aims to earn revenue through the provision of quality products and services that assist people in their fulfillment of this desire.

Specifically, the Company has isolated six primary mechanisms used to build personal financial resources:

• Shares
• Derivatives
• Margin Foreign Exchange
• Real Estate
• Small Business
• Basic Financial Strategies

The Company's strategy is to market and provide quality products and services in each of these specialist areas to assist people in attaining their personal financial goals. Products and services offered by the group can be grouped into the following categories:

• Individual one on one learning - individual teacher to client tuition.
• Classroom style part time courses - clients attend regular training sessions over several months.
• Classroom style short courses - content is delivered over a short period of time (2 or 3 days) in an intensive learning format.
• Correspondence courses - information and education is delivered via CD / DVD and written manuals.
• Online courses - clients receive training via online mediums as written text and/or streaming video and audio.
• Information and data subscription services - provision of factual information and data to assist in clients decision making.
• Direct advice subscription services - provision of general advice on financial transactions.
• Transactional and broking services - referral agreements with third parties who provide transactional services on various financial markets.

Brand Structure

The brand structure of the Company is such that unrelated products and services are marketed with independent brands. This strategy assists the Company to develop strong brands that are clearly associable with the products and/or services on offer.

In some cases, individual brands of the Company are assigned independent resources to the extent that the brand operates as a business in itself. Businesses (brands) owned and operated by the Company include:

• HomeTrader
• HomeTrader Signals
• daytraderHQ
• Shares Made Simple
• BackTesting Made Simple
• Forex Made Simple