alentus corporation

Analyst: Victor Sula, Ph.D. Initial Report

May 4th, 2009

Alentus Corp. (OTCOB: ALNS) 1

Analyst: Victor Sula, Ph.D.Initial Report

May 4th, 2009

Company Introduction

Alentus Corp.25 Enterprise drive Suite 200Aliso Viejo, CA 92656 Phone: 877-922-9903Fax: 949-271-4144E-mail: [email protected]: www.alentus.com

MARKET DATA

SymbolExchangeCurrent PricePrice TargetRatingOutstanding SharesMarket Cap.Average 3M Volume

Source: Yahoo Finance, Analyst Estimates

ALNSOTC OB

$0.24$0.85

Speculative Buy61.99 Mn

$13.64 Mn4,517

Alentus Corp. (ALNS) provides business-class website, email, SQL Server, MySQL, Microsoft Windows ASP.NET and SharePoint hosting services to small- to medium-sized companies and customized solutions to larger organizations, including Fortune 500 enterprises. ALNS is a Microsoft Gold Certified Partner, a Red Hat Ready Hosting Partner and a MySQL Enterprise Ready Partner.

The Company has data centers and network facilities in Canada, the U.S. and the U.K. ALNS owns and manages over 800 servers and currently serves around 25,700 customers in some 100 countries worldwide. It has a track record of 99.999% uptime and could more than double available capacity by leveraging its existing network. Customer support is available 24/7 year-round online via live chat and email. The Company’s client list includes Coca Cola, Honeywell, DuPont, BP, Sheraton Hotels and Resorts, International Paper, Belkin, Kelloggs, ADT Security, Intel, Fidelity Investments, agencies of the U.S. and Canadian governments and several universities.

ALNS has received multiple awards from Web Host Directory and was ranked #1 in August 2008 by Dedicated Server Directory, an industry-leading web host directory and review site. This was the Company’s 7th award from Dedicated Server Directory. In addition, ALNS appears in the top page of search results for common industry keyword searches such as “sharepoint hosting,” “dedicated servers,””website hosting”, etc.

5/01/09

volume

0.35

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0.25

0.20

0.15

0.10

4

3

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ALNS daily

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26% annual global web hosting industry growth

The web hosting industry has existed for approximately ten years. Advances in technology, network infrastructure, and broadband access have combined to enable more robust and frequent access to web-based computing capabilities. As the Internet has evolved, businesses have sought efficiencies and cost reductions through migrating their IT systems and computing resources to hosting companies.

Tier1 Research estimated the size of the worldwide hosting market at $12.3 billion in 2007 and forecasts 26% annual growth in the hosting market to $24.4 billion by 2010.

Leading provider of web hosting with own data facilities

ALNS has been providing business-class website, email, SQL Server, MySQL, and SharePoint hosting services to thousands of companies worldwide since 1997. The Company also provides mission-critical Windows and Red Hat Linux managed services on Dell dedicated servers and Cisco dedicated firewalls, as well as Genband-based Cisco VOIP services. In contrast to most hosting companies, ALNS manages and operates its own data centers; it has six facilities spread across the U.S., Canada, and the U.K. ALNS owns and manages more than 800 servers and could triple capacity by fully utilizing its existing facility space.

Strong revenue growth

During 2008, the Company’s revenues grew 624% to $6.4 million mainly due to higher volume and acquisitions. At year-end 2008, ALNS had some 25,700 customers and a sizable recurring revenue stream. The Company closed three acquisitions in 2008 that added more than $4.1 million to annualized revenues and made a fourth acquisition in April, 2009.

During Q1 2008, ALNS was awarded a million dollar contract by Ingenico UK Limited, one of the world’s largest credit card payment processing companies. We expect this contract to grow significantly over the next few years and add to annualized revenues.

Expanding referral network

Approximately 60% of ALNS’ customers are referred to the Company and 30% are captured through search engines and review websites. The Company also manages a reseller program that allows approximately 400 resellers to host bulk quantities of domains under a single customer account. Another source of new business

Investment Highlights


May 4th, 2009



May 4th, 2009


is ALNS’ affiliate network, which consists of approximately 180 affiliates who are paid commissions for referring customers.

Multiple awards heighten visibility within the industry

ALNS has been ranked #1 by Dedicated Server Directory, an industry-leading web host directory and review site for dedicated hosting. This award, the seventh won by ALNS, is given out monthly and determined by votes submitted by end-users. The Company has also won multiple awards from Web Host Directory and is one of the first names to appear when industry keyword searches such as “sharepoint hosting” and “dedicated servers” are performed.

Growth strategy based on acquisitions

ALNS plans to expand its customer base through organic growth, acquisitions and leveraging its success, strengths, and reputation as a reliable provider of Microsoft hosting technologies. The Company typically acquires small hosting companies for a 1.0X multiple of annualized revenues and believes it may potentially realize a 3-4-fold improvement in valuation through this acquisition strategy, since other successful, web hosting companies have been valued at 4.0X multiples of revenues in the merger and acquisition markets.

ALNS has already acquired four hosting companies and plans to complete one-two acquisitions per year in 2009 and 2010. Assuming two acquisitions per year, the Company’s revenues could rise to $15.6 million in 2oo9 and $22.9 million in 2010.

The Company provides premium hosting services such as Microsoft Windows ASP.NET hosting, RedHat Linux website hosting, SharePoint hosting, SQL and mySQL database hosting, Microsoft Exchange Hosting, Virtual Private Servers, and Dedicated Server solutions. In addition to offering a variety of hosting services, ALNS supplies managed converged voice, unified messaging, WAN connectivity, co-location, and dedicated Internet connectivity. The Company is engaged in discussions with several North American and European hosting and managed services providers that may further enhance its network and service offerings.

ALNS markets its products and services primarily through its websites. The Company also manages a reseller program that allows some 400 resellers to host bulk quantities of domains under a single customer account. Another sales channel is ALNS’ affiliate program, consisting of approximately 180 affiliates who are paid commissions for referring customers. The majority of the Company’s business (60%) is sourced through referrals, with another 30% captured through search engines and review websites.

The Company’s Canadian facilities consist of a 6,500 square foot, state-of-the-art data center in downtown Edmonton. ALNS owns and manages all of the core equipment necessary for data center operations. Over the past seven years, the Company has expanded this site, creating sufficient space to accommodate another 500 servers, or approximately twice its existing capacity. In the U.S., the Company operates a state-of-the-art data center in Columbus, Ohio. This location has a 600 amp, 480 volt utility power feed, a 300 KW generator and 56 tons of cooling capacity. Overall, ALNS operates six data hosting facilities spread across the U.S., Canada, and the U.K. These facilities currently house 800 servers and have sufficient available space to more than double capacity.

In Q1 2008, the Company was awarded a million dollar contract by Ingenico UK Limited, a world leader in secure

Business Model


May 4th, 2009


payment and transaction solutions. As part of the contract, ALNS will provide managed, co-located, geographically disparate data center facilities capable of housing Ingenico production systems and meeting PCI-DSS requirements. Revenues associated with this contract are expected to grow significantly over the next few years.

In November 2008, the Company joined the London Internet Exchange (LINX), which is one of the world’s largest Internet Exchange Points (IXPs). LINX provides a peering network that spans the U.K., Europe, North America, Asia and Australasia – a total of 300 networks across more than 40 countries. The new peering arrangement allows the Company to exchange traffic with other members of the LINX exchange, providing greater opportunities for connectivity.

ALNS is a Microsoft® Gold Certified Partner for Networking Infrastructure Solutions, Hosting Solutions, Storage Solutions and Active Directory and Identity Management Specialization. This designation identifies it as a partner who has demonstrated superior levels of successful implementations, capabilities and certification. Through its relationship with Microsoft, the Company gains access to a variety of exclusive resources and early product information. These resources include priority access to a support team of Microsoft certified systems engineers, non-disclosure evaluation of new products and technologies, and tools and events that keep ALNS abreast of the latest Microsoft product developments and future direction.

Corporate strategy

The Company plans to expand its customer base through organic growth and acquisitions of smaller hosting companies and related service providers. By leveraging the existing capacity of its three data centers, ALNS could double the number of customers it supports with minimal capital expenditure. The Company also plans to develop additional products and services and to extend its sales channels while enhancing value for existing customers. ALNS may also form additional, strategic revenue-producing partnerships for complimentary services such as unified messaging, bandwidth, and marketing SEO/SEM.

The Company completed three acquisitions in 2008 and one acquisition in early 2009. Two of the acquired hosting companies together add over $4.1 million to annualized revenues. One of the acquired businesses is also a domain name registrar, which the Company views as an additional revenue opportunity.

In March, 2008, ALNS acquired the data center and managed services clients of Ohio-based AO Technologies, • LLC. Founded in 1996, AO Technologies provides high-end, managed infrastructure services, co-location and connectivity solutions to a host of SMB and enterprise customers. Its assets, which include a Tier 1 state-of-the-art data center in downtown Columbus and a redundant 100% Cisco-powered IP network, were acquired in this all cash deal.

In April, 2008, ALNS acquired all of the outstanding stock of Website Source, Inc, Web Hosting Groups, Inc. •

Acquisitions


May 4th, 2009


and SpeedFox, Inc. These businesses, headquartered in Austin, Texas, provide Linux-based, shared Web site Hosting, Virtual Private Servers (VPS), Dedicated Servers, E-Commerce, and Domain Registration services to over 14,000 customers. This acquisition immediately added $2.6 million to ALNS’ annualized revenues.

In June 2008, the Company acquired all of the outstanding stock of Areti Internet, Ltd. This U.K.-based business • operates five data centers spread across London and New York. Areti provides Co-Location, Dedicated Server andInternet Access with national UK xDSL and Leased Line, Virtual/Shared Hosting, and specialist data-center virtualization solutions. The acquisition added approximately $1.5 million to ALNS’ revenues.

In April 2009, ALNS acquired Illinois-based Route Sense Corporation, a provider of datacenter, bandwidth • and wide area networking services. Route Sense has built an IT infrastructure business focusing on services that facilitate web hosting, eCommerce, and enterprise connectivity. Route Sense can provide infrastructure services in 19 U.S. markets, and wide area networking and bandwidth services in more than 22 countries across three continents.

ALNS has several additional acquisition candidates in its pipeline. Assuming two additional acquisitions this year, annualized revenues could climb to $15.6 million and EBITDA to $3.8 million in 2009.

ALNS has been providing high-performance Internet business solutions to thousands of small to medium- sized companies and customized services for larger organizations since 1997. The Company hosts websites, databases, web applications and manages Internet servers for a broad range of private and public organizations. It is a leading provider of ASP.NET and Windows web hosting services.

Website, email and database hosting

The Company’s website hosting plans are configured to meet virtually any site hosting requirement and budget. Customers can choose from a complete line of site hosting services and options, with comprehensive support for ASP, ASP.NET 2.0, PHP, SQL Server, MySQL, SharePoint, MS Exchange, DotNetNuke, ColdFusion MX and more. Available Windows shared hosting options range in size from the ”Value plan” with 2GB space, 50 email accounts and 20GB monthly bandwidth to the “Enterprise plan” with 20GB space, 1,000 email accounts and 200 GB monthly bandwidth.

Customer may choose from among more than 20 web-based business and communication applications, including an online shopping cart, news manager, image gallery, banner manager, classified ad system and more.

SharePoint site hosting

SharePoint websites comes pre-configured with a host of built-in features and applications and provide a turnkey solution enabling employees to work collaboratively on documents, tasks, lists, calendars, contacts, events, announcements and images. ALNS SharePoint hosting plans include site FTP access, additional web space, POP/IMAP email accounts and hosting on the Company’s network.

SharePoint sites can be set up as public websites, private intranet/extranet sites or a combination of both. Site

Products and Services


May 4th, 2009


administrators are able to readily coordinate site content and user activity, and SharePoint templates are available from ALNS and its third party vendors.

Reseller and multi-site hosting

The Company’s MultiPlan provides web designers and hosting resellers with a comprehensive, single account package for hosting and managing multiple domains. Websites can be set up with a single log-in and managed with simple point-and-click routines. Coding requirements are minimized by using ultra-fast Xeon servers and full platform support for ASP.NET, SQL Server and MySQL technologies and services.

SecureStorTM remote backup services

SecureStor can be configured in less than 10 minutes and provides ultra-secure back up of the customer’s files at an ALNS data center. Unlike free online data storage or file sharing services, SecureStor does not require an FTP client or web browser or time-consuming manual steps to initiate a file transfer. Customers can use SecureStor’s built-in scheduler to instruct the software to perform nightly back ups and SecureStor can also run as a background program while employees continue to work.

Dedicated and managed Windows servers.

ALNS dedicated servers deliver web and application hosting, SQL server database hosting and SharePoint hosting, and offer flexible, custom-built hardware options; powerful software options; a 99.999% network uptime guarantee; owned/managed data centers and 24/7 server monitoring and support.

Dedicated hosting solutions are highly customizable and available with a variety of upgrades for RAM, hard disk drives, processors, and bandwidth. Dedicated server hosting experts are available to assist customers in tailoring solutions for their specific needs.

MS exchange hosting and mobile services

ExchangeMail is an advanced suite of messaging services that give customers all the power, functionality and security of Microsoft Exchange Server. Customers can add and remove services as desired and are charged only for the services used.

Customers can use a hosted exchange solution from ALNS to share calendars, folders, , contacts and files from their desktop Outlook, Outlook Web Access or from a BlackBerry, Smartphone or Windows Mobile PDA.

Google search servers

This easy-to-use, hosted hardware/software solution enables customers to deliver the power and productivity of Google search across company documents and websites quickly, easily and affordably. No costly hardware purchases are needed and the Company is 100% responsible for managing the equipment, including full replacement coverage.


May 4th, 2009


Industry Outlook

The web hosting industry has been in existence for roughly ten years. Advances in technology, network infra-structure, and availability of broadband access have facilitated growth in web-based computing capabilities. As the Internet continues to evolve, businesses are migrating more of their IT systems and computing resources to hosting companies in an effort to reduce complexity and cost and improve efficiency.

Web hosting describes the basic service of providing power, bandwidth, air-conditioned computer room space, and rack space for servers. Providers “host” these Internet servers, which typically come from organizations that wish to rent space outside of their private corporate data centers. Insight Research segments the web hosting market into the following tiers1.

Industry growth was fueled by the dot.com boom. In the late 1990s, customer-facing websites evolved rapidly and in a decentralized manner. The result was a large number of stand-alone, non-integrated web sites. When business customers and consumers began accessing these websites, however, the need became apparent for a more profes-sional web experience2. The ISPs that provided Internet access to dot.coms were the first to enter the web hosting business, hoping to recoup significant infrastructure investments.

A 2007 research report from Tier1 Research notes that the mass-market web hosting sector (defined as the shared, VPS and standardized dedicated server segments) is evolving. Industry consolidation, IPOs, domain monetiza-tion models and license agreement lawsuits are putting a new face on the marketplace and affecting the market by opening the door for new competitors, while the web leaders seek to increase their share in mass-market sector3.

Web Hosting Segments

Source: www.insight-corp.com

1. www.insight-corp.com2. www.hessberger.com/WTA/Uplink/Fall03/focus4.html3. www.submitexpress.com/news/shownews.php?article=180

Web Hosting

Collocation

Separate ManagedServices

Low-EndShared Servers

Low-EndDedicated Servers

CustomDedicated Hosting

Fully-ManagedHosting

High-EndDedicated Servers

High-EndShared Servers

Shared ManagedServices

Dedicated ManagedServices

ManagedServices


May 4th, 2009


Price-cutting has made services more affordable but impacted industry margins, leading to a new round of consolidation. Oversupply, products and services priced below cost (which is unsustainable), and churning have eroded industry profits.

Hosting services providers are being forced to “raise the bar” to remain competitive. Some service providers are promising 99.99% uptime, which only allows 53 minutes of “down time” per year for system maintenance. Many hosting providers are bundling services. In addition to providing rack space and managing servers and storage, these providers are managing applications that run on their customers’ websites4.

The largest web hosting competitors include Hostopia, Hostway, iPOWER, MelbourneIT, Microsoft, NetBenefit, Oversee.net, Rackspace, SWsoft, The Planet/EV1Servers, Tucows, United Internet, VeriSign, WebCentral, Web.com and .Active24, Affinity Internet, Alabanza, Demand Media, eBay, Endurance International, Freenet, GeoTrust, GI Partners, and Go Daddy. Even so, the market continues to expand, creating space for new competitors.

Tier1 Research estimated the size of the worldwide hosting market at $12.3 billion in 2007 and projected annual growth of 26% to $24.4 billion by 2010. Revenues come from three major categories – managed hosting, dedicated hosting, and shared hosting5. Rackspace held the industry-leading market share in 2007, with annual revenues of $362 million, followed by AT&T ($349 million) and Savvis ($227 million)6.

Google Trends in Worldwide Search Traffic for Web Hosting

Scale is based on the average worldwide traffic of web hosting in all years.

Source: www.google.com/trends?q=web+hosting&ctab=0

4. www.3fn.net/guide/The_Web_Hosting_Market_Today.html5. http://sec.edgar-online.com/rackspace-hosting-inc/s-1a-securities-registration-statement/2008/06/18/Section3.aspx6. www.altaterra.net/members/blog_view.asp?id=288668&tag=Hosting


May 4th, 2009


ALNS generates revenues from various web hosting services (mainly shared and dedicated hosting and managed services) and from managed converged voice, unified messaging, WAN connectivity, co-location, and dedicated Internet connectivity solutions. During 2008, the Company’s revenue grew 624% to $6.4 million, the result of higher sales volume and acquisitions.

The Company’s net income decreased from $64,325 in 2007 to $-744,853 in 2008 as a result of higher cost of sales, depreciation and amortization and other expenses.

Worldwide Hosting Market Revenue, $billion

Source: www.altaterra.net/members/blog_view.asp?id=288668&tag=Hosting

Financial Analysis

Revenues Cost of Revenues Gross Profit Total Operating Expenses Operating profitInterest expenseNet Income EPS

Normalized EBITDA* Gross MarginOperating MarginNet Margin

883,933159,596724,337603,398120,939

56,61464,325

0.003

183,34581.94%13.68%

7.28%

6,398,9941,691,4564,707,5384,742,566

-35,028709,825

-744,853-0.012

712,88673.57%-0.55%

-11.64%

624%960%550%686%

n/m1154%

n/mn/m

289%-8.38%

-14.23%-18.92%

% Chg2008 2007

Income statement, $

Source: SEC Filings


May 4th, 2009


On a quarter-over-quarter basis, revenues declined sequentially in Q4 2008, reflecting the generally deteriorating business climate worldwide. ALNS reported fewer new customer sign-ups, resulting in a modest decline in its overall customer count, consistent with other companies in this business space.

As of December 31, 2008, ALNS had $22,224 in cash, $462,265 in accounts receivable, $1,426,705 in property and equipment, and$8,649,607 in goodwill and acquisition costs. The Company’s debt consisted of $5,939,935 in Notes Payable, including $3,350,000 associated with its senior credit facility and approximately $1,500,000 in seller notes associated with acquisitions.

In 2008, the Company used $1,716,021 and $1,059,867 for operating and investing activities respectively. Spend-

Revenue by quarters, $

Source: SEC Filings

Total Current Assets, includingCash and EquivalentsNet Property & Equipment Total Other Assets TOTAL ASSETS

Total Current Liabilities, includingShort-term Debt Long-term Liabilities, includingLong-term Debt Total LiabilitiesTotal Stockholders’ Equity

320,797109,302

1,043,5825,042,8426,407,222

2,915,8341,646,0121,963,0081,963,0084,878,8421,528,380

744,19350,954

1,967,8878,634,846

11,346,926

7,107,1824,211,0011,705,0001,705,0008,812,1822,534,744

504,886 22,224

1,426,705 8,764,632

10,606,223

7,862,407 5,092,261

847,674 847,674

8,710,081 1,896,143

31-Dec-07 30-Sep-08 31-Dec-08

Balance sheet, $

Source: SEC Filings


May 4th, 2009


ing was funded with $2,688,811 generated from financing activities, consisting of issuance of additional debt and equity. The Company is planning additional acquisitions in 2009 and is presently engaged in discussions with several parties regarding restructuring its debt and issuing equity to finance its business plan over the next twelve months.

The Company is well-positioned in the marketplace as a supplier of hosting services and a Microsoft Gold Certi-fied Partner, a Red Hat Ready Hosting Partner, and a MySQL Enterprise Ready Partner. By leveraging the existing capacity of its data centers, ALNS could double the number of customers it serves with minimal capital expendi-tures. In addition, the Company has the ability to more than double its capacity over a short period of time.

ALNS plans to grow through organic growth and acquisitions. The Company has already acquired hosting busi-nesses that add more than $4.1 million to annualized revenues. One of these acquisitions is also a domain name registrar, which presents additional sales opportunities.

Emerging as a consolidator in the fragmented web hosting market, ALNS plans to complete one-two acquisitions per year in 2009 and 2010. Assuming two acquisitions per year, the Company’s revenues may rise to $15.6 million in 2oo9 and $22.9 million in 2010.

With the global hosting market expanding at double-digit rates, ALNS is well-positioned to achieve robust rev-enue and earnings growth.

Comparative valuation

ALNS competes in the global web hosting market with other companies that provide dedicated and managed

Outlook and Valuation

Revenue and EBITDA Outlook, $ Mn

Source: Analyst Estimates


May 4th, 2009


hosting and IT-related services. Its industry peers were recently trading at forward Price/Sales multiples of 1.4 times revenues and forward Price/Earnings multiples of 12.5 times earnings.

By acquiring smaller hosting companies at modest revenue multiples, ALNS believes it may potentially realize a three-four times increase in its valuation. In the public and M&A markets, successful web hosting companies are trading at 4.0 times revenue multiples. For example, Hostopia was acquired by Deluxe Corporation last year for multiples of 4.6 times revenues and almost 20 times EBITDA. In August 2008, Q9 Networks was acquired by a private equity firm for multiples of 6 times revenues and 22.7 times EBITDA.

While the global recession has depressed the industry’s valuation multiples, we believe the Company should trade at the higher end of the peer group range, given its strong growth prospects, successful acquisition strat-egy and competitive advantages. We thus value ALNS at a 3.0 times forward P/S multiple of our 2010 revenue estimate. Assuming 30% dilution relating to future equity sales, we obtain a $0.85 target price. We are initiating coverage of ALNS with a Speculative Buy rating and a $0.85 price target. However, we strongly advise investors to consider the risk factors mentioned below since a Company at this early development stage faces many chal-lenges in attaining its revenue goals.

Rackspace Hosting, Inc SAVVIS, Inc.Melbourne IT LtdVeriSign Inc. Web.com Group, Inc. Median

Alentus Corporation

RAXSVVS

MLB.AXVRSN

WWWW

ALNS

8.598.83

AUD 2.22 19.51

4.16

0.22

1,010 473

AUD 171.00 3,750

113

13.64

47.72n/m

9.9615.36

n/a15.36

33.04n/m

9.4912.51

n/a12.51

1.610.540.833.642.091.61

1.360.500.723.291.821.36

P/E P/S2009E 2009E2010E 2010E

Tickersymbol

Share Price, $

Mrkt. Cap.$ Mn

Company Name21-Apr-09

Peer valuation

Source: Reuters


May 4th, 2009


Inherent business risks

So far the Company has been successful in building its customer base and revenues. However, despite an opti-mistic management outlook, there is no guarantee that the Company can complete its targeted acquisitions and leverage its existing infrastructure and sales channels for organic growth.

Need for additional capital

The Company has modest cash, negative working capital and a cash flow deficit. Additional acquisitions are also planned, which may require ALNS to restructure its balance sheet and sell stock. There is no guarantee that the Company will be able to raise the necessary capital for acquisitions on acceptable terms, if at all. Lack of financing may prevent further acquisitions and slow the implementation of the business plan.

Competitive market

The web hosting market has attracted thousands of providers with the lure of profits. Competition is fierce and price-cutting to attract customers is eroding industry profits. ALNS must compete with numerous other web host-ing industry participants for customers, partners, acquisitions, financing and other resources.

Reduced demand for web hosting due to economic downturn

As a result of the recession, fewer companies are launching websites and many more are scaling back plans for multimedia webcasts and brand-building/bandwidth-consuming activities. To remain profitable, hosting services providers must focus on niche industries and promote distinctive capabilities to differentiate themselves from the crowd.

Risk Factors


May 4th, 2009


Mr. Reineck has been an employee of Alentus since February 2009. Mr. Reineck has more than 25 years ex-perience in the information technology arena in various size companies ranging from startups to $1+ billion in revenues. Mr. Reineck was a founder and President of MIS Technologies, a managed Internet services provider based in Irvine and, prior to that, was Vice President of Technology and Corporate Development for Zland.com, an industry pioneer in the Software-as-Service (SaaS) business based in Aliso Viejo. Prior to that, Mr Reineck was Vice President of Worldwide Sales, Marketing, and Business Development for Zycad Corporation, a NASDAQ company and leader in the semiconductor design and manufacturing tools space based in Silicon Valley. Mr. Reineck was also Senior Manager of Worldwide Business Planning at Prime Computer, where he was a key employee involved in the identification and execution of strategic invest-ments and acquisitions, including the $700 million acquisition of Computervision.

Randy ReineckExecutive Vice President – Corporate Development

Mr. Duncan has been Chief Operating Officer of Alentus since October 2008. He has more than 18 years experience in software systems and development with particular emphasis in the telecommunications, real time and process control systems industries. Prior to Alentus, Mr. Duncan was a Principal and Consulting Engineer with Ingenico UK Ltd., the world’s leading electronic point-of-sales terminal solutions provider. Prior to that, he was based in Glasgow, Scotland as Technical Leader and Architectural Specialist with Cisco Systems, one of the world’s leading telecommunications equipment providers. Before that, he was Senior Technical Architect and Development Leader for Atlantech Technologies in Glasgow, a provider of broad-band network management solutions. Cisco Systems acquired Atlantech Technologies for $180 million, a first of its kind acquisition in Scotland.

Fergus Duncan, Chief Operating Officer

Mr. Danna has over 30 years experience as a President/CEO running both private and public companies, including extensive experience in mergers, acquisitions, franchising and marketing. Currently, he is the President/CEO of O. C. Beverages, Inc. In addition, he is also the Managing Director of Lee Danna & Asso-ciates which provides corporate governance services to micro and small cap public companies. Mr. Danna has been recognized for his accomplishments in several published articles, interviews on television and radio, as well as conducting over 50 press conferences throughout the U.S.

Lee Danna Director

Management Team

In addition to being a founder and CEO of Alentus Corporation since 2007, Mr. King has substantial ex-perience as an entrepreneur in the high tech arena. As founder and CEO of IDC, a major Zland.com Soft-ware-as-Service (SaaS) franchisee, he established a presence in 17 major markets across the United States. As founder and CEO of Global Satellite, he built a top 5 dealership for providers such as DirecTV, Dish Network, and Hughes Net Services. In addition to these operational roles, Mr. King has over 8 years of experience in the investment banking business with key positions at A.G. Dickinson & Co in New York, Cruttenden Roth & Company in LaJolla, First Union in Newport Beach and E*Offering of Palo Alto. Ac-complishments include raising over $35 million for pre-IPO companies and achieving top performance rankings for his company divisions.

William KingChief Executive Officer, President and Chairman


May 4th, 2009


Disclaimer

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The report is a service of BlueWave Advisors, LLC, a financial public relations firm that has been compensated by the companies profiled. All direct and third party compensation received has been disclosed within each individual profile in accordance with section 17(b) of the Securities Act of 1933. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled companies. BlueWave Advisors, LLC, and/or its affiliated will hold, buy, and sell securities in the companies profiled. When compensated in shares, all readers should be aware that is our policy to liquidate all shares immediately. We reserve the right to buy or sell the shares of any the com-panies mentioned in any materials we produce at any time. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled companies. BeaconEquity.com is a Web site wholly-owned by Bluewave Advisors, LLC has been compensated one-hundred twenty-five thousand shares of ALNS stock from Wall Street Grand. We currently do not hold any position in ALNS. as a marketing budget to manage a comprehensive investor awareness program including the creation and distribution of this report as well as other investor relations efforts.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the informa-tion provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

All decisions are made solely by the analyst and independent of outside parties or influence.

I, Victor Sula, Ph.D, the author of this report, certify that the material and views presented herein represent my personal opinion regarding the content and securities included in this report. In no way has my opinion been influenced by outside parties, nor has my compensation been either directly or indirectly tied to the performance of any security listed. I certify that I do not currently own, nor will own and shares or securities in any of the companies featured in this report.

Victor Sula, Ph.D. - Senior Analyst

Victor Sula, Ph.D. has held the position of Senior Analyst with several independent investment research firms since 2004. Prior to 2004, Mr. Sula held Senior Financial Consultant posi-tions within the World Bank sponsored Agency for Restructuring and Enterprise Assistance and TACIS sponsored Center for Productivity and Competitiveness of Moldova, where he was involved in corporate reorganization and liquidation. He is also employed as Associate Professor at the Academy of Economic Studies of Moldova. Mr. Sula earned his Ph.D. degree in 2001 and bachelor’s degree in Finance in 1997 from the Academy of Economic Studies of Moldova. Mr. Sula is currently a level III candidate in the CFA program.

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