February 2000

BESTOFFER.COM STARTS AUCTIONING cars, using its OMIX developed auction software & Web site. Look for the blue and gold inspection van, free parking promotions and numerous ads in the newspaper's car section to see one of the most effective marketing efforts yet by a .com startup.

WEB SERVICES IS A HOT BUSINESS and IDC expects the industry to grow from $7.8B in 1999 to $78B in 2003. 14 Web Professional Service businesses went public in 1999; many now valued at 15 to 40 times revenue. OMIX is happy to be one of the top Silicon Valley Web Professional Service companies in this industry.

COMPONENT-BASED SOFTWARE is emerging, and has the potential to significantly change E-Commerce site development. Components are software objects that perform business logic, such as shopping- cart or auction components. Typically, components are written in Enterprise JavaBeans and can reduce time to market by reducing the amount of code that must be written from scratch. Components also can be easily maintained and changed to accommodate rapid business changes. BEA Systems sells EJB components for building E-Commerce systems at a cost of about $30K/CPU over the cost of the WebLogic application server. Flashline.com is one of the first companies to sell components online in what could be a huge market. Gartner Group says that by 2001, 75% of all new applications will be component based. OMIX is already offering this approach to its new customers.

BEA'S WEBLOGIC APPLICATION SERVER, ORACLE'S DATABASE AND SUN'S SERVERS are becoming the de facto tools of choice for industrial Web sites. Because of this (and a bull NASDAQ market) BEA Systems stock has gone up more than 700% in the last 5 months. OMIX is vendor neutral, but we are recommending the WebLogic application server for most of our new sites. OMIX was among the very first to use WebLogic's first generation application server in a production environment, back when WebLogic was still a newborn on the scene with fewer than 20 employees.

CONFIGURING HARDWARE FOR WEBLOGIC application servers is an inexact science, but a few rules of thumb seem to help: 1) Start small - it's easy to add hardware with the WebLogic clustering feature. 2) If one system is not enough, then add a second powerful computer with lots of I/O to host the database separately. 3) Run load-testing software on your application if you need to be sure that the system can handle a forecasted load.

WEB PERSONALIZATION means that a Web site presents different information depending on who is viewing the site. If personalization increases sales by a few percentage points, then it might easily pay for itself. Once a user is identified by registration or a cookie, then personalization software can use rules to determine which information should be presented (i.e., show skis costing over $700 to all people making over $100K/year and living near mountains). New features in WebLogic E-Commerce components can do this. Another approach is to feed information on customer purchases and browsing behavior to a database and use software such as NetPerceptions.com to determine what the current user should be shown based on what has interested other users with similar profiles.

IPIX.COM GIVES A 360-DEGREE IMAGE on your Web site, within which you can interactively move to choose your point of view. This is done using a Java applet or a plug-in and it is surprisingly fast. The pictures are taken with a special lens on a digital camera and are processed using iPIX software. A nice example of a 360-Degree view is http://expedia.msn.com/daily/360/peru/default.asp

HOW FAST IS YOUR CONNECTION? Pull up this URL to find out: www.computingcentral.com/topics/bandwidth/speedtest.asp My DSL line at home is getting 600kbits/sec, and at OMIX I am getting 1,000kbits/sec. Having fast connections helps you to see which directions the Web will be taking as bandwidth increases for everyone.

OMIX IS HIRING so let your friends know about a fast growing Internet startup that is a wonderful place to work. OMIX needs a non-sales type sales person who is technical and can talk e- commerce, Java and user interfaces. OMIX also needs a project manager who has managed complex projects as well as Java or C++ developers.

FOR QUESTIONS OR TO RECEIVE OMIX NEWS call Kyle Hurlbut, Jim Chabrier or Milla Milojkovic at 650-330-8950 or sales@omix.com