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ARCHIVED  June 4, 1999

Enter Tech will launch multimedia vending units

LOVELAND — Buying music, software or digital movies may soon be as convenient as running to the nearest vending machine.

The convergence of visual, audio and interactive media to a single platform has set the stage for a new species of vending machines — and Enter Tech Corp., an upstart public company based in Loveland, is building them.

Enter Tech has maintained a low profile since its inception, but with a recent agreement to sell $500,000 of Preferred Series A Stock and the hiring of a new president, the company is poised for a launch into the limelight.

“As we have watched this high-tech Internet concept take shape and emerge through the platform of today’s technology, it is hard to realize that we are very close to completion of this project,´ said Art Hogan, chairman of Enter Tech Corp., in a prepared statement.

Funds acquired through the $500,000 stock offering will be used to complete Enter Tech’s product-development phase, which is nearing completion after more than a year of preparations.

In mid-May, the company hired Chuck Mullin as its new president. Mullin, previously president of Mullin Healthcare of Salem, Ore., succeeds Josh Foss. Foss is now heading up the company’s engineering department as project coordinator and remains the president of EagleNet Online Inc., a subsidiary of Enter Tech based in Orem, Utah.

Enter Tech, was incorporated in Nevada on July 1, 1996, under the name Walnut Capital Inc. and on June 2, 1998, acquired Wyoming-based Links Ltd., a wholly owned subsidiary of Mach One Corp. Following the merger, Walnut Capital changed its name to Enter Tech–an identity that better suits the company’s proposed area of business.

The company’s business, as outlined in its Dec. 31, 1998, 10-k report to the U.S. Securities and Exchange Commission, is the development of “kiosks, or vending machines, through which to market computer software, music and possibly digital video products.”

These kiosks, placed in strategic locations, would potentially allow customers to select almost any CD-portable product, or selection of products (music albums could be custom designed with soundtracks from different artists), and download them to a compact disk in a matter of minutes.

Purchases would be made by credit card–each vending site would be connected by telephone line and modem to Enter Tech’s administrative offices to allow for “monitoring, performance analysis, addition and subtraction of software and music selections and eventually digital television selections.” The telephone link would also allow the monitoring office to verify credit card numbers.

Initial projections for the kiosk-vending system’s performance estimated the time required for imprinting a CD to be on the order of three to four minutes.

“It’s actually a little longer than that right now,” admitted Bill Thomas, a consultant for Enter Tech. “But by the time we’re done, that’s about where it will land. That’s a pretty close estimate.”

As of Dec. 31, 1998, Enter Tech’s operations had not generated any revenue and largely remained in the development stage, but the company is hoping to begin mass production of the kiosks by September 1999, Thomas said.

“We’re probably about 60 days away from actual beta testing of the project,” he added. “We have a lot of pre-sales on the product. What we’re doing is selling in 10 packs — 10 kiosks for $500,000 to $550,000 dollars. Because it’s the type of project it is, there’s accelerated appreciation: 90 percent or so of the total cost over three years. We’re passing that benefit to all our joint venture partners.”

Mach One Corp., of which Links Ltd. was a subsidiary prior to the merger with Walnut Capital, remained the majority shareholder with 65.7 percent ownership in the company as of Dec. 31. Enter Tech shares its corporate office in Loveland with Mach One, a manufacturer of automotive products, and originally purchased the kiosk technology from the company. Mach One may be phased out as Enter Tech takes off, Thomas said.

Enter Tech’s board of directors includes Foss, Hogan, Gene Gregory and Roger Myatt, the board’s newest member.

Enter Tech will distribute its kiosks worldwide to locations where they will gain the most exposure from pedestrian traffic.

“We have a lot of malls under contract right now–areas with major, major foot traffic,” Thomas reported. “The military will also be a prime target for us. We actually had our best beta test [for a previous generation of the kiosks] with the military. Some tremendous opportunities. The key is high volume of foot traffic where there’s the ability to drive people to the machines.”

After years of anonymity, Enter Tech appears to be ready to make a name for itself. The company does not foresee direct competition, Thomas said: “There’s some stuff out there, but it’s a long ways from our approach.”

LOVELAND — Buying music, software or digital movies may soon be as convenient as running to the nearest vending machine.

The convergence of visual, audio and interactive media to a single platform has set the stage for a new species of vending machines — and Enter Tech Corp., an upstart public company based in Loveland, is building them.

Enter Tech has maintained a low profile since its inception, but with a recent agreement to sell $500,000 of Preferred Series A Stock and the hiring of a new president, the company is poised for a launch into the limelight.

“As we have watched this…

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