Xcellink International Inc. provides consumer-centric e-commerce solutions. These solutions can be applied to advertising, order, supply and funds transfer for the supply of goods and services to customers.

These technologies can, and we believe will, be applied to a vast range of commercial activity, ranging from communications, banking, warehousing and taxation through to data services, consumer protection and every day retail transactions.

Xcellink is built around a core of international patents that cover the automated data interchange between merchant and customer over a local or wireless electronic link, and an infrastructure that operates on behalf of all customers. The Company's patents and technology will continue to increase in importance as mobile phones and mobile internet devices controlled by the customers become ever more key to the way we interact.

Xcellink's unique global commerce solution addresses all the key issues of security and inter-operability with existing systems. The system has the potential to perform every transaction type, and become the global low cost alternative to cash, replacing all credit, debit, charge and smart cards.

Xcellink uses a highly structured and disciplined approach to development in order to facilitate the integration of existing systems into the feature-rich architecture that will be the core of 21st Century consumer-centric e-commerce facilitated by Xcellink's patented technology - with many of the existing systems gaining desired features of the Xcellink architecture.

The patented Xcellink local link provides automated data transport and processing between a customer and a trader which is essential in a system that will be totally automatic. The mode of operation facilitated by the local link is unique in its customer centric approach and its ability to enact a two-way transaction; with automatic or semi-automatic electronic data linking between a customer and a merchant, and extending the functions to include banks, manufacturer's warehouses, distribution systems, and delivery agents using protected communications links and a novel approach to trusted messaging in near real time.

A core element and point of reference in the architecture is a common agent of the customer, the Financial Service Provider ("FSP").

The FSP processes the information forwarded from the customer's mobile phone or other information appliance, and generates all the messages necessary to complete the transaction including, but not limited to:

• Goods and Service Delivery
• Payment & Account Management
• Quality Control
• Taxation & Record Keeping

These messages are not classical messages that advise people or organizations that activities have to be performed, but are automated process based commands that achieve their aims without intervention from the Financial Service Providers' processing system. They have the ability to apply contextual filtering that will attack fraud and accidental error, previously only available in the highest rated command and control systems.

Xcellink is also unique in that it centrally supports the emerging social standards for consumerization; with a customer centric solution that includes customer control of their own environment by shifting much of the capability to control all aspects of the transaction in a contract from the trader to the customer, yet assures the trader that a transaction in progress is being achieved.

The Xcellink environment is a trading methodology that satisfies the customer's desire for control and the trader's need for marketing, payment and innovative trade - with the process capable of automating all the elements of trade including advertising, order and delivery, quality control, taxation, and consumer protection.

Xcellink offers the ability to achieve all financial transactions between institutions directly and on behalf of individuals. Since the security is an integral part of the Financial Service Provider's management system then some lower security links such as the internet can be utilized to improve security.

XCELLINK HAS CLEAR ADVANTAGES FOR EACH PARTY TO A COMMERCIAL TRANSACTION:

CONSUMERS

Gain control, privacy and security along with ease of operation and speed of transactions.

MERCHANTS

Gain certainty of payment, dramatically reduced payment costs and charging and billing support costs.

THE FINANCIAL SERVICE PROVIDER

Becomes a point of strong relationships with customers and managing all transaction and supply elements of trade.

The Xcellink local link mode of operation is unique in its customer centric approach and its ability to enact a two-way transaction; with automatic or semi-automatic electronic data linking between a customer and a merchant using communications interfaces between the user, merchant, bank, manufacturer's warehouse, distribution system, and delivery agent.

The Xcellink architecture is built around the use of near real time messaging and the management of a common agent of the customer, the Financial Service Provider ("FSP").

The FSP processes the information forwarded from the customer's mobile phone or other information appliance, and generates all the messages necessary to complete the transaction including, but not limited to:

• Goods and Service Delivery
• Payment & Account Management
• Quality Control
• Taxation & Record Keeping

These messages are not classical messages that advise people or organisations that activities have to be performed, but are automated process based commands that achieve their aims without intervention from the Financial Service Providers' processing system. They have the ability to apply contextual filtering that will attack fraud and accidental error, previously only available in the highest rated command and control systems.

Xcellink is also unique in that it centrally supports the emerging social standards for consumerisation; with a customer centric solution that includes customer control of their own environment by shifting much of the capability to control all aspects of the transaction in a contract from the trader to the customer, yet retains the ability of the trader to be assured that a transaction in progress is commercially sound.

The Xcellink environment is a trading methodology that satisfies the customer's desire for control and the trader's need for marketing, payment and innovative trade - with the process capable of automating all the elements of trade including advertising, order and delivery, quality control, taxation, and consumer protection.

Xcellink offers the ability to achieve all financial transactions between institutions directly and on behalf of individuals. Since the security is an integral part of the Xcellink Service Provider's management system then some lower security links such as the internet can be utilised to achieve secure financial transfers at the higher security level.

Xcellink has clear advantages for each party to a commercial transaction:

Parties to the Transaction	Benefits
Consumer	Control, privacy, security Ease of operation Speed of transaction processing
Merchant	Certainty of payment Dramatically reduced payments fees Reduced fraud with a centralised registry for all transactions
Provider of the Xcellink	Stronger relationship
Financial Payment Services	with customers Potential to grow revenues from Merchants (other than the fees traditionally associated with payments)

The provider of the services to merchants and consumers might be a different entity than the operator of the payment services, just as the banks are different to Visa and MasterCard.

This Customer Centric Payments Model would suit one or more of the following:

Parties to the Transaction	Benefits
Consumer	Control, privacy, security Ease of operation Speed of transaction processing
Merchant	Certainty of payment Dramatically reduced payments fees Reduced fraud with a centralised registry for all transactions
Provider of the Xcellink	Stronger relationship

Xcellink, by virtue of its customer centric nature and the extended facilities documented in the patent, is ideally suited to being part of the overall process by which customers find what they want, how they make payment and ultimately how they take delivery.

Broader Uses of Xcellink

Broader uses of Xcellink that might be considered in the future, include:

1. Some licensees would, in the circumstances where the connection between the consumer and merchant was facilitated, seek fees from merchants in the form of a commission similar to the business model of a travel agent rather than the smaller or micro fees paid to a payments provider.

   Portals such as Google, Octopus and AMEX are examples of customer aggregators who derive fees from merchants and intermediaries who seek access to customers.

   Yellow Pages receives substantial profits from their role in helping consumers reach what they want, as does Overture from paid listings in search engines.

2. Xcellink can be implemented to readily align identity, the ability to pay, and the means of finding and taking delivery of products and services - and hence has greater value than a payments method alone.
3. Xcellink can help redefine the billing relationship between a business and its customers. Businesses that today establish a charging and billing relationship with consumers (such as telephone companies) might in future prefer to establish a payments relationship and avoid the cost associated with managing credit, billing, bad debt and receiving payments.

   This is already the case for most Internet Service Providers ("ISPs") who only provide services once a credit card has been provided. In the case of both ISPs and Mobile Operators, prepaid services are also proving popular.

4. Xcellink could provide substantially more options for suppliers of services and businesses that want to be customer aggregators. For example, a mobile operator might provide Xcellink to customers at no charge, but seek a percentage of the transaction value from the providers of services to customers on small or very large transactions. DoCoMo's "iMode" is a similar example of this model.