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Slide 1: 

eHouse – an example of successful project of e-commerce in Russia. OCTOBER 21, 2003 Vladislav Oulendeev CEO, eHouse Holding SA,

Slide 2: 

Slide 2 What is eHouse ? eHouse is an e-commerce holding of different B2C and B2B projects in Russia. We have been on the market for 4 years and have been developing using only internal funds Sales April 1999 30 000 USD October 2003 over 3 million USD More than 350 000 customers We are the leader of e-commerce in Russia

Slide 3: 

Slide 3 Plans Sales in 2003 – 40 million USD Sales in 2004 – 80 million USD Regular customers in 2004 - over 500 000

What Led to Success ? : 

Slide 4 What Led to Success ? We were the first Ideal situation in 2000 –2001 Abrupt change of the situation on the market from agiotage to complete loss of interest in Internet No competion Understanding that electronic commerce will inevitably prevail off-line commerce Experience of the eHouse team

What Is Next ? : 

Slide 5 What Is Next ? We realize that In the nearest future most deals between companies will be in the form of electronic transactions Agents will either turn to rendering additional services or simply disappear Offering services to clients will be the determining factor in all spheres of business

Slide 6: 

Slide 6 Electronic Marketplaces Will Join People Together In Real Time eMatrix Manufacturers Distributors Accessories Suppliers Integrators Courier Services Retailers Dealers Internet Stores

eMatrix Project : 

Slide 7 eMatrix Project First independent electronic marketplace for the IT market participants Joining together market participants for mutually beneficial exchange of commercial information and business transactions Over 2500 participants registered in the system Over 20 000 orders for more than 120 million USD daily

What does eMatrix give to the participants of the market ? : 

Slide 8 What does eMatrix give to the participants of the market ? Real time information about the actual market situation Makes searching for sellers and buyers easier Cuts down expenses Speeds up business transactions

What eMatrix Gives to Sellers? : 

Slide 9 What eMatrix Gives to Sellers? Seller in the eMatrix system (distributor or other company specializing in wholesale of computer equipment) has the opportunity to offer its goods to all participants of the market simultaneously Seller has the opportunity to view actual prices offered by its competitors and basing on the current demand, make alternatives to its offer Seller has the opportunity to gradually and smoothly start transition from traditional distribution to modern Internet sales technologies

What eMatrix Gives Buyers? : 

Slide 10 What eMatrix Gives Buyers? Buyer in the eMatrix System gains direct access to offers made by major distributors Buyer can quickly find and buy products which are available at the moment of purchase at the Sellers warehouse. Resellers do not have to do painstaking analysis of the actual market situation Buyer gets access to basic and constantly updated database of computer equipment and receives detailed technical descriptions and specifications of the products Buyer can easily get detailed information about sectors of the market in which he doesn’t work regularly or specialize. This allows it to offer its clients the best services

Slide 11: 

Slide 11 Clearing House Clearing House Bank Escrow

eMatrix System Solves Main Problems Of The Market : 

Slide 12 eMatrix System Solves Main Problems Of The Market Optimizes regular business processes of an enterprise (sales, supply) Saves time when searching for products and suppliers Mechanism of the System guarantees optimal prices Cuts down costs and overhead expenses

Universality of eMatrix System : 

Slide 13 Universality of eMatrix System Branch ?2?-scheme. Joining together subjects of branch market for commercial and informational cooperation Corporate ?2?-scheme. Vertical interaction. Achieving sales or supply goals. Integration with databases of enterprises

Why eMatrix ? : 

Slide 14 Why eMatrix ? The System is open for any participant of the market The System is universal and can be keyed to different tasks The System is neutral, it’s participants do not depend on major market players The System is easy to use No geographical barriers

Slide 15: 

Slide 15 Why eHouse ? Why have we taken responsibility to offer such solutions to the market ? The leader on the e-commerce market Understanding needs and problems of the market Real customer of the system Experience in developing complex programs No-one else can do it Those on the top don’t want to Those at the bottom are not able to If not us, who else?

Keys to Success : 

Slide 16 Keys to Success Experience of eHouse Team: Knowledge of the market, products and technologies Understanding of the problems of the market Knowledge obtained from mistakes Openness – any participant of the market can join the system Neutrality – independence on major market players Easy to use – no barriers, focus on business transactions

Slide 17: 

Slide 17 We don’t know what will happen in the future We will not predict what it all will lead to We only tell how it all will start

Thank You! : 

Slide 18 Thank You! Vladislav Oulendeev CEO eHouse Holding SA.