Ascio Technologies in explosive growth with prospects for break-even.  Announcement of capital infusion of USD 3.1 million
Pressemeddelelse på Dansk

Ascio Technologies Inc., who are behind domain registrar Speednames are in growth and rapidly moving towards break-even. Deficits are reducing quarter by quarter – and subsidiary Speednames has already reached break-even.  Furthermore Ascio Technologies has received a capital injection of USD 3.1 million, for further research & development of the “Digital Identity” business area.

Ascio Technologies have released the annual report for 2001 and issued figures for the first 6 months of 2002. The results are better quarter by quarter.  The company has now 6 quarters in succession with increased revenue and reduced costs.

In total the company still has a deficit that is primarily due to continuing investments in Digital Identity, but it’s going in the right direction and break-even for the whole company is expected early 2003. Gross profit for 2001 amounted to USD 2.7 million against USD 1.7 million in 2000 – an increase of almost 60%.  The total deficit was USD 7.6 million against USD 4.3 million the year before.  Due to business related competition the company does not wish to make public their annual revenue.

The company has also considerably strengthened their enterprises.  Thus both gross figures and EBIT have improved quarter for quarter. Half-year balance per. 30th June 2002 show an improvement from USD 1.0 million to USD 2.5 million in gross figures compared to the same period the previous year.

An even greater progress could be traced in EBIT where deficits where reduced from USD 4,6 million to USD 1,8 million – an improvement of USD 2.8 million, as a direct result of continued increasing revenue and adjustment of costs.
“We have, in a very negative market, been able to increase revenue and earnings for 6 concessive quarters.  This has been achieved by taking market shares from our competitors. We are now amongst Europe’s five largest domain registrar’s on all new top level domains i.e. .info, .biz, .us.  Additionally we have focused on severing company’s needs within digital branding, which is a market in growth” says CEO in Ascio Technologies, Mogens Nielsen.
“We have reduced our costs.  Since early 2001 striking reductions in costs have been reached and that tendency has been maintained in 2002” he adds.

An additional USD 3,1 million
As a consequence of good efforts, Ascio Technologies has received capital injection of USD 3.1 million in new net capital within the first half-year of 2002.  The investment is respectively constituted from USD 1.4 million from Vækstfonden, as a new investor, and USD 1.7 million from already existing investors chaired by Danske Venture Partners and Internet Ventures Scandinavia.

Funds will primarily be utilized to strengthen and grow business area Digital Identity, which Ascio Technologies has great expectations to.  Ascio Technologies has already invested a large amount in research & development of Digital Identity and now the product is to undergo  intense marketing.

“The investment from Vækstfonden is a recognition of Ascio Technologies and the development that has found place in connection with Digital Identity.  We have extremely positive expectations to the product and it is this area that will contribute to the continued growth of the company within future years” says Chairman of the Board Frank Ewald from Internet Ventures Scandinavia -share holders with Ascio Technologies.

It’s a huge paradox considering Internet’s popularity and colossal usage when at the same time individuals and smaller companies have limited presence on the net.   

With Digital Identity one can at ease and without pains staking operations have one’s own home page and also appear as a professional on the net.  Digital Identity gives users the opportunity for the Internet to work for them and not the other way around.  Therefore we have great expectations to the product.” says Mogens Nielsen.

Costs for research and development of Digital Identity are stated on costs for 2001, which is one of the reasons for the large deficit.

Speednames reaches break-even
Ascio Technologies’ subsidiary, Speednames who handles domain names and related services primarily for business’s in Scandinavia has experienced prosperity in the first half-year of 2002 in comparison to the same period in the previous year. 

In the first half-year of 2002 gross profit was USD 1.7 million, which is a growth of nearly 200% in comparison to the first half-year of 2001, which was gross profit of USD 0.6 million. In the same period Speednames has reached break-even and therefore contributes positively to Ascio’s bottom line figures for 2002.

On the technology side of the domain businesses, Ascio Digital Brand Services, research & developments are positive.  In the first half-year of 2002 gross profit was USD 0.8 million against USD 0.4 million in the previous year – a growth of 100%

The two domain businesses Speednames and Ascio Digital Brand Services are anticipating break-even in the end of 2002.

Economic figures for Ascio Technologies Inc:

Annual Report (USD)
	2001	2000
Gross Profit:	+ 2.7 million	+ 1.7 million
Net Loss:	- 7.6 million	- 4.3 million
6-month Balance (USD)
	1. halvår 2002	1. halvår 2001
Gross Profit:	+ 2.5 million	+ 1.0 million
EBIT	- 1.8 million	- 4.6 million

Due to business related competition the company does not wish to make public their annual revenue.

About Ascio

Since its launch, Ascio has grown to become the most advanced international name technology provider.We aim to to be the leading provider of Digital Brand Services and Digital Identity solutions, pioneering new technology to empower both businesses and individuals to establish and manage their permanent and protected Digital Identity globally. Ascio has taken a leading role in establishing a global infrastructure for Digital Identity, in partnership with host providers all over the world. Ascio has more than 120 international partnerships with leading Telcos, Internet Service Providers, and Internet Portals. The company has offices in Copenhagen and Munich.

Our products:
Ascio provides solutions and technology to enable telecom operators, web hosting companies, Internet access providers, Internet portals and other partners all over the world, to offer services in Digital Brand Services and Digital Identities to their individual and corporate customers.We design, market, and support software products and related value-added services in Digital Brand Services (registration and management of domain names and related services) and the management of Digital Identity solutions. Our solutions enable our partners’ customers to establish and manage their online presence themselves on a global basis.We offer our partners a range of integrated technology solutions adapted to their specific needs. These solutions include a variety of associated services and our partners are able to customise and deploy rapidly, new value-added, localised services for their customers.

The market potential for personal identity:
Ascio believes that a brand-new market for online personal identities is fast emerging, as more and more people and companies are using the Internet. There will be a growing need for personal identification and communication controls between people on the Internet, whether conducting business and/or acting in their private roles. Today, there are about 40 million domain names and it is increasing significantly every day. This market is very attractive and Ascio remains at the forefront of development, having offered a technology solution for domain name registration and management since 1999. We have also, more recently, created a new technology, Digital Identity, which builds naturally on top of the current domain name structure, thereby enabling our partners to generate revenue from a further set of products.

About Speednames

Speednames, headquartered in Denmark, is one of the leading providers of domain name registration and digital internet solutions. We provide both businesses and consumers with an array of services that enable them to create a web address and unique online identity quickly and easily.

Speednames was created in 1999 and since its launch in Europe and Asia Pacific, the company has become the largest and most advanced international digital domain name registrar. Speednames has the most versatile search and registration engine in the world.

Through our website speednames.com, customers can digitally search, register and manage their domain names, from a choice of more than 110 different top-level domains (TLDs). We offer registration in all the generic TLDs (.com, .net, .org, .info, .biz and .name) and country code TLDs (such as .us, .de, .se, .dk, .jp etc.).

In addition to domain service, Speednames also provides web- and email hosting. Four hosting solutions built on different platforms meet varying demands ranging from a simple web presence for the private individual, to a fully-fledged dynamic website for the large enterprise.

Digital Identity, a patented technology, enables individuals to obtain an online presence quickly and easily. This web application is a personal centralisation of the user's business card, curriculum vitae, codes, and web pages, for example. Digital Identity is designed as an everyday web tool based on the individual's day-to-day need to Organise, Express and Interact.

The Speednames services are available in 9 European languages and are supported by superior customer service.

For further information visit www.ascio.com or contact:

Mogens Nielsen,
CEO, Ascio Technologies
Tlf.: 33 88 61 00
Mobil: 20 60 88 11
Mail: mogensn@ascio.com

Frank Ewald,
Chairman of the Board, Ascio Technologies
Tlf.: 70 22 02 28
Mobil: +41 79 204 97 50

Bent Lynghard,
Investment Manager, Vækstfonden
Tlf.: 35 29 86 00