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COTELLIGENT, INC.
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* RELEASED TO SECURITY HOLDERS ON JULY 8, 2003
100 Theory, Suite 200
[LOGO] COTELLIGENT Irvine, California 92612
July 3, 2003
Dear Stockholder,
I am writing to you today to provide information on our recent public
announcements. For your information I have attached three press releases that
are important for you to know about. I'd like to take a moment to tell you why
these are important indications that Cotelligent is on its way to restoring
shareholder value.
On Monday, we announced new engagements the Company recently sold that represent
revenue we will realize over the next couple of years. As you will see in the
attached press release, these new engagements are with both existing clients and
clients new to Cotelligent. These new engagements are important because 1) both
clients and prospects are beginning to spend money on these kinds of engagements
again following two years of depressed spending 2) our existing clients continue
to have confidence in Cotelligent to deliver critical applications to their
workforce and 3) companies we have not worked with previously are entrusting
Cotelligent to extend, integrate and enhance their information technology in new
and productive ways.
Wednesday afternoon, we announced the signing of a non-binding Letter of Intent
to acquire a field force automation software company which we believe, when
combined with Cotelligent, presents a strong and compelling force. As you may
recall, in April I sent you a letter indicating our strategy to gain scale and
improve our opportunity to compete by merging with or acquiring two to three
companies with technology in mobile business applications that compliment our
capabilities. The announcement of this Letter of Intent demonstrates that we are
effectively executing this strategy and, we expect the result will help to
improve our share price and valuation.
Also attached you will find a press release from our partner IBM that presents
how Cotelligent is working together with IBM to provide important technology. I
feel our partnership with IBM is gaining strength. They have confidence in our
capabilities and are bringing us into more new opportunities than we've seen in
the past.
I hope you find the attached press releases to be of interest. Despite what you
may be reading elsewhere, your Company is executing a sound strategy, our
performance is improving following a very challenging downturn in the technology
sector and we're intent upon improving the value of your Cotelligent shares. I
would greatly appreciate the opportunity to continue to lead the Company and
resurrect our success. Please fax your white proxy card in support of my
election as Director at your earliest opportunity to Mackenzie at 212.929.0308.
Sincerely,
/s/ JAMES R. LAVELLE
James R. Lavelle
100 Theory, Suite 200
[LOGO] COTELLIGENT Irvine, California 92612
COTELLIGENT, INC. AWARDED $7 MILLION IN CONTRACTS
EXTENDING THROUGH 2005
Company Enjoys a Flurry of Activity in the last Thirty days as Clients Agree to
Multi-year Commitments
Irvine, CA -June 30, 2003 - Cotelligent, Inc. (OTC BB: CGZT), a leading
developer of business solutions that enhance, integrate and extend enterprise
information to mobile and Web technologies, announced today that it has entered
into agreements with several clients resulting in $7 million of revenue through
2005.
The contracts are significant for several reasons. The clients represent a cross
section of industries which reduces Cotelligent's dependence on any one industry
sector. Additionally, the engagements encompass the entire breadth of
Cotelligent offerings including, software development, help desk, hosting and
maintenance.
"The multi-year agreements reflect the confidence these clients have in
Cotelligent and its ability to deliver winning solutions and post-implementation
support for the long term," said James Lavelle, Chairman and CEO. "These new
contracts validate our strategy of deploying reusable technology to build
solutions that precisely fit each client's needs and extend information to
mobile workforces and remote customers."
Three factors were significant in Cotelligent's ability to win these contracts.
First, Cotelligent differentiates itself with its experience developing custom
business applications that integrate legacy systems and extend information
across a variety of mobile and Web-centric technologies. Cotelligent is making
the "Real-time Enterprise" a reality and providing its clients a competitive
advantage through improved employee productivity and customer satisfaction.
Secondly, Cotelligent is dedicated to a strategy of reuse that optimizes design,
architecture and application development to enhance system performance. This
reuse strategy allows Cotelligent to develop solutions that are typically
deliverable in half the time and at half the cost of traditionally developed
custom solutions, resulting in a more immediate positive impact on user
productivity.
Finally, the Company has an unbiased view with expertise in several technology
environments and is a partner of both IBM and Microsoft. Cotelligent is one of
only ten IBM partners certified to develop applications for their new Websphere
Everyplace Access (WEA) platform. Cotelligent is also a Microsoft Gold Certified
Partner and has the distinction of being one of only twenty companies in the
Southwest Region to have also been selected as a Microsoft Managed Partner.
Cotelligent has implemented over 100 systems employing Microsoft technologies
including one of the first .Net projects in the nation.
100 Theory, Suite 200
[LOGO] COTELLIGENT Irvine, California 92612
About Cotelligent, Inc.
-----------------------
Cotelligent Inc. (www.cotelligent.com) creates customized business applications
that precisely fit each client's needs and are built from proven, reusable
components on a solid foundation of design and architecture. Through a
collaborative and consultative approach, Cotelligent delivers solutions that
meet each client's unique objectives and extend the reach of their enterprise.
The Cotelligent comprehensive strategy of reuse encompasses our collective
experience that allows us to build customized solutions that deliver immediate
results while reducing costs and implementation time.
Cotelligent (OTC BB: CGZT) was established in 1996 and is a debt-free public
company. We employ 150 people throughout the U.S. with headquarters in Irvine,
California.
Company Contact:
Douglas B. Boxx
Director of Marketing
Cotelligent
100 Theory, Suite 200
Irvine, CA 92612
(949) 823-1674
doug.boxx@cotelligent.com
Safe Harbor Statement
Except for historical information contained herein, the information contained in
this news release includes forward-looking statements that involve certain risks
and uncertainties that could cause actual results to differ materially from such
statements. All forward-looking statements included in this release are based
upon information available to Cotelligent as of the date hereof, and Cotelligent
assumes no obligation to update any such forward-looking statements. Factors
that could cause or contribute to such differences include, but are not limited
to: the extent to which customers invest in IT infrastructures; the availability
of qualified IT professionals; the rate of hiring, productivity, and retention
of revenue-generating personnel; changes in the pricing of Cotelligent's
services; the timing and rate of entrance into new regional and international
markets; the structure and timing of acquisitions or investments; the
possibility that technologies will not perform according to expectations or be
accepted by the market; the market price for Cotelligent common stock and
general economic conditions. Please refer to the discussion of risk factors and
other factors included in Cotelligent's most recent Report on Form 10-Q, Report
on Form 10-K for the year ended December 31, 2002, and other filings made with
the Securities and Exchange Commission.
100 Theory, Suite 200
[LOGO] COTELLIGENT Irvine, California 92612
IBM Release
IBM Makes Wireless Roaming More Secure
WebSphere Software for Wireless Networks Achieves Highest Level of FIPS Security
Certification
ARMONK, NY -- Jun 24, 2003 -- IBM today announced new software and services that
set the bar higher for secure, seamless roaming across multiple types of
wireless and wired networks. The new software and solutions provide mobile
workers with the highest level of secure access to enterprise information from
the growing number of wireless "hot-spots" being rolled out around the globe, in
places ranging from airports and truckstops to coffee shops.
Awarded the U.S. and Canadian government's highest Federal Information
Processing Standard, or FIPS rating, for security certification, the newest
version of the company's WebSphere Everyplace Connection Manager software
provides easier, more secure and more cost-efficient access to key information
through the use of wireless technology. This allows mobile workers to improve
productivity, protect the privacy of important data and maximize companies'
return on their wireless IT investments. Additionally, IBM Global Services
security consultants, using Wireless Security Auditor and other leading wireless
security tools, provide our clients' system administrators a way of assessing
security vulnerability in wireless systems to assure the highest possible level
of security. IGS helps enterprises, as well as Service Providers, deploy the new
high security software and networks.
"WebSphere Everyplace Connection Manager raises the bar to new heights for
mobile workers who need secure access to data from multiple types of computing
devices," said Joe Damassa, vice president, IBM Pervasive Computing Division.
"As hot-spots continue to grow in popularity, IBM is making it easier for mobile
workers to securely access important information across multiple networks
without interruption so they can do business at anytime from virtually
anyplace."
With the new version of WebSphere Everyplace Connection Manager, mobile
employees can use a laptop or a PDA to move from location to location, enjoying
secure, high speed access to information across Wi-Fi, cellular, wireless data
telecommunications, iDEN, CDMA, and PWLAN hot spots, without interrupting Web
connections or losing an existing session. The software creates a mobile VPN for
both Internet Protocol (IP) networks and non-IP or private packet radio
networks, that protects sensitive enterprise data by encrypting data, optimizing
performance and reducing transmission costs.
Without the secure, seamless, cross networking roaming capability in this
software, an end user would be disconnected from their session and forced
to repeatedly restart the application, re-authenticate to the firewall,
obtain a new Internet Protocol address, and renew the VPN connection.
Maintaining a secure seamless connection when roaming is particularly
important while exchanging instant messages because dropping the connection
100 Theory, Suite 200
[LOGO] COTELLIGENT Irvine, California 92612
would result in losing an entire conversation string. This is important to
homeland security and public safety agencies communicating across multiple
jurisdictions, for instance, that may be sharing information across different
networks in a crisis.
IBM business partners like Cotelligent, which build customized business
solutions that enhance, integrate and extend current environments with Mobile
and Web technologies, are benefiting from building mobile applications on the
highly secure WebSphere platform.
"IBM's WebSphere Everyplace Connection Manager provides a secure gateway for
customers to access information remotely across multiple wireless networks,"
said John DeWald, Vice President of Technology Cotelligent, Inc. "WebSphere
Everyplace Connection Manager provides a variety of support services that can
help implement security applications, control wireless usage costs and extend
link complex infrastructures through legacy wireless networks."
Secure access to data and improved efficiency, productivity and cost savings are
among the benefits users will gain from new features in the software and
services which include:
Meets the Highest Industry Standard for Security Certification
IBM WebSphere Everyplace Connection Manager software was recently awarded
the Federal Information Processing Standard FIPS 140-2 level of certification
on AIX 5.2, Trusted Solaris and all Windows clients, widely viewed as the most
stringent security standard internationally. FIPS 140-2 was developed by U.S.
and Canadian governments and defines the requirements for commercial
cryptographic products that may be procured by U.S and Canadian Federal
agencies. It is also becoming a sought-after indicator throughout federal,
provincial, state, and local governments, as well as security-insistent
enterprises to validate the degree of security "robustness" of enterprise
networking products.
Enables Customers to Prioritize Their Network of First Choice
Wireless road-warriors can now benefit from a new customized network roaming
feature, which enables users to customize the software to prioritize the
network they prefer to access data from based on important business priorities
-- for example, determining the most cost-effective network, which network
offers the highest-speed access to data, or provides the most bandwidth
available to wirelessly download a particular kind of data type.
Reduces Costs Through Advanced Data Compression Optimization
WebSphere Everyplace Connection Manager utilizes new advanced data compression
optimization technologies to reduce costs associated with data transmission, by
reducing the size of bytes and the bandwidth of files being transmitted
wirelessly -- thereby speeding the transmission of data across a network or
multiple networks, resulting in lower connection fees for enterprises. Initial
performance testing demonstrates WebSphere Everyplace Connection Manager can
improve network throughput of a typical 15-20 KBS GPRS network to as high as
49Kbps. By compressing data and optimizing transmission-- resulting in dramatic
cost savings, increased mobile worker productivity and improved
100 Theory, Suite 200
[LOGO] COTELLIGENT Irvine, California 92612
customer satisfaction.
Enterprises Protect Data and Maximize ROI:
Some of the customers benefiting from IBM's wireless solutions include:
The Air Force Material Center at Hill Air Force Base, HAFB, in Ogden, Utah,
expects to save millions of dollars a year from a highly secure FIPS-140
certified IBM wireless solution using WebSphere Everyplace Connection Manager to
radically transform the way it manages worldwide logistical support for the
repair, replacement and maintenance of thousands of components for the nation's
fleet of F-16, A-10 and C-130 military aircraft.
IBM and a partnership of public safety and transportation agencies in Virginia,
Maryland and the District of Columbia are building the Capital Wireless
Integrated Network (CapWIN) for the Washington D.C. region. The first
interoperable wireless system to span multi-state government jurisdictions, the
network will enable officials from more than 40 local, state, and federal
agencies to communicate with each other in real time roaming across various
networks via an Instant Messaging application deployed on low cost, industry
standard devices such as PCs, PDAs and data enabled mobile phones running
WebSphere Everyplace Connection software to enable network roaming. Authorized
users will be able to set up response teams -- restricted-access,
high-performance chat rooms -- designed to help handle unexpected events, such
as natural disasters, traffic collisions, fires or terrorist threats.
WebSphere Everyplace Connection Manager version 5.0 is currently available. It
can be purchased as an individual product or as part of IBM's new Mobile Office
Entry Jumpstart solution.
In addition to WebSphere Everyplace Connection Manager software, IBM's Mobile
Office Entry Jumpstart solution also includes WebSphere Everyplace Access
software, IBM eServers and IBM services to help enterprises in numerous
industries pilot and test run the software with Palm Tungsten handheld computers
supporting up to 50 clients. WebSphere Everyplace Access is middleware that
enable s a wide range of pervasive devices to provide mobile professionals
constant wireless access to a wide range of enterprise data in databases as well
as personal productivity applications and Lotus Instant Messaging to support
Sales Force Automation and Fie ld Force Automation.
About IBM:
IBM is the world's largest information technology company, with 80 years of
leadership in helping businesses innovate. Drawing on resources from across IBM
and key business partners, IBM offers a wide range of services, solutions and
technologies that enable customers to take full advantage of the on demand era.
More information about IBM can be found on the Web at www.ibm.com.
# # #
100 Theory, Suite 200
[LOGO] COTELLIGENT Irvine, California 92612
COTELLIGENT, INC. NEGOTIATING ACQUISITION TO EXPAND
MARKET SHARE OF GROWING MOBILITY MARKETPLACE
Companies' complementary expertise will expand offerings to and support of
clients
Irvine, CA -July 2, 2003 - Cotelligent, Inc. (OTC BB: CGZT), a leading developer
of business solutions that enhance, integrate and extend enterprise information
to mobile and Web technologies, announced today that it has signed a non-binding
letter of intent to acquire a Field Force Automation (FFA) software company that
will strengthen Cotelligent's position in the mobility marketplace.
Cotelligent is currently in advanced negotiations and due diligence with the
undisclosed software company and expects to sign a definitive agreement in July.
Certain conditions must be met prior to closing.
In a letter to shareholders this past April, Cotelligent discussed its on-going
strategy to merge, acquire or invest in companies that would strengthen
Cotelligent's competitive position. One part of the strategy is to build upon
Cotelligent's capability in mobile solutions and post-implementation support.
"Cotelligent now has an outstanding platform with a strong infrastructure, clean
balance sheet, significant operating capital ...and most importantly, the
management know-how to build to greater scale in a tough environment," wrote
James Lavelle, Cotelligent Chairman and CEO.
The other part of the strategy calls for stronger critical mass of revenue and
lower combined company SG&A by leveraging Cotelligent's scalable infrastructure.
The contemplated acquisition achieves these objectives by realizing a
significant incremental increase in revenue and reduction of the combined
operating expenses.
In addition, Cotelligent believes the acquisition will leverage its mobility
application development expertise with an FFA software product which complements
Cotelligent's strategy. "We believe both companies' shareholders will benefit by
merging capabilities compared with a go-it-alone strategy. Their specific
industry expertise and global reach will make Cotelligent an even stronger
contender with our combined global clients and prospects," said Lavelle.
The potential is already being realized by new prospects. Both companies are
currently proposing the use of the software company's product hosted by
Cotelligent and supported by Cotelligent's help desk.
100 Theory, Suite 200
[LOGO] COTELLIGENT Irvine, California 92612
About Cotelligent, Inc.
-----------------------
Cotelligent Inc. (www.cotelligent.com) creates customized business applications
that precisely fit each client's needs and are built from proven, reusable
components on a solid foundation of design and architecture. Through a
collaborative and consultative approach, Cotelligent delivers solutions that
meet each client's unique obje ctives and extend the reach of their enterprise.
The Cotelligent comprehensive strategy of reuse encompasses our collective
experience that allows us to build customized solutions that deliver immediate
results while reducing costs and implementation time. Cotelligent (OTC BB: CGZT)
was established in 1996 and is a debt-free public company. We employ 140 people
throughout the U.S. with headquarters in Irvine, California.
Company Contact:
Douglas B. Boxx
Director of Marketing
Cotelligent
100 Theory, Suite 200
Irvine, CA 92612
(949) 823-1674
doug.boxx@cotelligent.com
Safe Harbor Statement
Except for historical information contained herein, the information contained in
this news release includes forward-looking statements that involve certain risks
and uncertainties that could cause actual results to differ materially from such
statements. All forward-looking statements included in this release are based
upon information available to Cotelligent as of the date hereof, and Cotelligent
assumes no obligation to update any such forward-looking statements. Factors
that could cause or contribute to such differences include, but are not limited
to: the extent to which customers invest in IT infrastructures; the availability
of qualified IT professionals; the rate of hiring, productivity, and retention
of revenue-generating personnel; changes in the pricing of Cotelligent's
services; the timing and rate of entrance into new regional and international
markets; the structure and timing of acquisitions or investments; the
possibility that technologies will not perform according to expectations or be
accepted by the market; the market price for Cotelligent common stock and
general economic conditions. Please refer to the discussion of risk factors and
other factors included in Cotelligent's most recent Report on Form 10-Q, Report
on Form 10-K for the year ended December 31, 2002, and other filings made with
the Securities and Exchange Commission.