Incode Completes Acquisition of eBusiness Portfolio

Incode Completes Acquisition of eBusiness Portfolio

MOUNT ARLINGTON, N.J., Dec. 9 /PRNewswire/ -- Incode Corporation, a wholly owned subsidiary of BIB Holdings Ltd. ("BIB") (BULLETIN BOARD: BIBO) , today announced the acquisition of assets including four of Incode's planned portfolio of subscription-based eBusinesses from Candent Corporation. The acquisitions include an online dating service, an industrial services subscription portal, a dynamic market and financial information portal, and a web development subscription portal.

Incode's business model is to sequentially develop numerous subscription- based eBusinesses that are capable of generating recurring revenue streams and above-average operating margins. Its tactical plan is to develop and/or acquire these businesses sequentially, driving each to critical mass and leveraging their respective earnings into the continued development of additional subscription-based eBusinesses. The first of these eBusinesses will be in the lucrative online personals industry.

In connection with the completion of the relevant agreements, the Company issued 275,000 of Series A Preferred Stock in its subsidiary, Intrance Corporation, the operating division of the Company that will administer the acquired assets. Intrance Series A Preferred Stock holders will receive a quarterly dividend equal to 10% of Intrance's aggregate operating income until such time as the Intrance Series A Preferred Stock is redeemed or converted. Shares of Intrance Series A Preferred Stock are redeemable by the Company at the rate of $10.00 per share, and are convertible at the holder's option into the Company's common stock at the rate of $0.10 per common share.

Online Dating Subscription Services

In November 2003, Jupiter Research estimated that 2003 revenues for the U.S. online personals industry would be $313 million, growing to $642 million in 2008. "21% of Internet users browsed online personals in the last year and 13% posted their own profiles" (Nov. 2003). Similarly, Hitwise, in February 2004, reported the market share of visits to online dating web sites in the U.S. has grown over 52% from January 2003 to January 2004, making online dating one of the fastest growing categories on the web.

Given the sheer number of singles using online dating services as a compliment to other means of dating, it has become difficult to find and develop a relationship with like-minded people on the majority of the available online matchmaking services. These overcrowded services can be limited by their generality and are becoming increasingly difficult to navigate. Incode believes that community-centric niches, such as the pet and animal community, are inclined to higher rates of conversion and retention and are therefore capable of lower subscriber acquisition costs and higher rates of return relative to generic services.

Jim Grainer, Incode's president and chief financial officer, stated that, "we see niches in the online dating sector as a significant arbitrage opportunity today. Not only do these niches come with highly qualified consumers that are seeking people that share a common interest, but they often come with established grass roots distribution networks that can cost- effectively drive the acquisition and retention of subscription-based memberships."

"Nearly 40 million of the 98 million domestic singles own pets. Pets command a multi-billion dollar sector of our economy and help break the ice for prospective dates. We are very excited by the inclusion of Candent's online dating service in our portfolio of successful subscription-based eBusinesses," added Grainer.

The American Pet Products Manufacturers Association reported in April 2004 that pet spending has nearly doubled in the past decade, from $17 billion in 1994 to $32.4 billion in 2003 and a projected $34.3 billion in 2004.

Industrial Subscription Services

Manufacturers worldwide use raw materials in their production processes. These processes invariably result in the production of partially consumed industrial by-products -- chemicals, fuels, metals, plastics and paper, that often have reuse potential or can be recycled back into commerce. These by- products, or secondary commodities, are the basis of a multi-billion dollar industry that spans the global economy.

Producers of secondary commodities either pay for or are paid for their by-products by brokers, who route these materials to manufacturers worldwide for reuse as raw materials in other production process. While global in scale, the secondary commodities markets are very inefficient and highly fractionalized due to the absence of any meaningful exchange of market information. By contrast, commodities such as gold and oil are fungible today largely because of the existence of markets that enable buyers and sellers to efficiently interact. Incode's belief is that there exists an opportunity to create a pricing mechanism to more efficiently facilitate the exchange of commodities and raw materials.

Incode's plans are to launch the new service in 2005 on the basis of a subscription-based interface, where industrial buyers are introduced to sellers and provided with added-value brokerage management services that enable the completion of the underlying transactions through Incode's service. Incode intends to leverage the initial growth of this service into a clearinghouse for secondary market transactions that is driven by the stability, security, liquidity and efficiency made possible by a free-flowing exchange-based model.

Market and Financial Information Services

More than 60% of Internet users search for financial information when they log on to the Internet. Brokerage firms, financial institutions, and many Web sites consequently seek to incorporate relevant financial and market data into their Web sites. Products such as customizable Level II, real-time or delayed stock quotation modules, stock tickers, charting, and streaming news information can be seamlessly integrated into existing Web sites through downloadable, portable and user friendly code that can be installed rapidly over the Internet. The market for comparable existing products is based on a monthly subscription-based pricing model that increases with the type of module, degree of customization, and number of users.

The technologies that are used for streaming market information can also be used to provide added-value investor relations services such as streaming Internet radio, SEC filings, issuer and insider information, company snapshots, and important company announcements. As is the case for the streaming market information, these products are also easy to incorporate into clients' Web sites. While these offerings are also based on a subscription model, Incode's belief is that additional synergies exist between these products and traditional investor relations services.

Incode's plans are to develop and market these services under the brand MarketCast, with a targeted launch of later this year. MarketCast is expected to generate revenue in the form of recurring monthly subscriptions, as well as through investor and public relations programs that enable issuers to disseminate relevant and timely information about their company throughout MarketCast's planned network of modules.

Grainer commented: "As with our other planned products and services, the planned MarketCast portal demonstrates not only the diversity of our expected product and service mix but its scalability as well. We believe that this scalability will equate to a higher return on our planned initial capital investment and above average ongoing gross margins. We are very excited by the inclusion of MarketCast in our planned portfolio of subscription-based eBusinesses."

Web Development Subscription Services

Incode's acquisitions also included Ignite, an intuitive Web-based utility that allows users to build, edit and maintain their own Web sites and e- commerce stores without any training.

Ignite's technology is based on an easy-to-use and approachable word processor-based interface that gives users the instant ability to build a well-designed Web site and take control of their site and their online sales. Ignite's three basic products, its Web site builder, its Web site editor, and its e-commerce store, are bundled with competitively priced hosting services and are priced on a monthly subscription basis. More information on Ignite's products can be accessed online at http://www.ignitepowered.com/.

About Incode Corporation

Incode was founded to acquire, develop and commercialize innovative and profitable subscription-based eBusinesses in the online dating, information, retail, industrial, and financial services sectors. Incode recently announced its plans to acquire an industrial services subscription portal, several online dating services, and to develop a streaming financial and market information service in connection with the merger with BIB. Additional information is available online at http://www.incodetech.com/.

Safe Harbor Statement

This press release contains statements, which may constitute "forward- looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of BIB Holdings Ltd., and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.


Source: Incode Corporation

CONTACT: Mr. Jim Grainer of Incode Corporation, +1-973-398-8183

Web site: http://www.incodetech.com/
http://www.ignitepowered.com/


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