Xcel Associates Announces Investment Opinion on American Internet Technical Center

Business Wire, Sept 14, 1999

HAZLET, N.J.--(BUSINESS WIRE)--Sept. 14, 1999--

STRONG BUY RECOMMENDATION TARGET $5.00

AmeriNet Group.com, Inc. ABUY OTC - BB $1.40 is due to release the audited financial statements for its recently acquired subsidiary, American Internet Technical Center, "American Internet" for the year ended Dec. 31, 1998. (ABUY represented a clean shell that has now acquired a profitable entity in Amer. Internet - www.aitc.com.). In its first nine months of operation, the AITC subsidiary produced revenues of approx. $784,463 - with a gross profit of $646,711 and net income of $144,500. Amer. Internet realized a profit of $0.084 per share. (Due to a one-time charge for discontinued operations, parent ABUY reported a loss of $0.068 per share).

American Internet specializes in custom installations of Internet commerce and customer support systems for businesses of all sizes. The AITC team provides high-security Web Hosting, Advertising and Web Interface Design. Their "Online Education to go" virtual school offers over 50 popular Internet, Computer, Business and Management Courses that students from anywhere in the world can take from the comfort of their home.

Mr. Bruce Gleason, AITC's president stated that he "anticipates a material increase in American Internet's financial results once it receives the additional $250,000 in expansion and marketing capital from AmeriNet." Mr. Michael Jordan, ABUY's President stated that he expects that American Internet's performance will make AmeriNet's efforts to develop diversified, full-Internet-service capabilities through acquisition of compatible businesses and recruitment of cutting edge talent "an easier task, with even more promising potential results."

ABUY's Management team is dedicated to growth through acquisitions of Internet-related businesses. A source tells us that possible strategic acquisitions are in the works with a six-year old full service business Internet provider that has strategic alliances with Microsoft and Cisco. During the last year, this prospect had sales of approx. $1.8 million with EBITDA of approx. $650,000 and approx. $330,000 in cash reserves.

A second possible acquisition involves a fourteen-year old, profitable company involved in sales of jewelry and other items to hospital employees made through arrangements with their employers that include payments through payroll deductions. By expanding their sales to the Internet, it is believed that this company could increase its sales margins from 11.5% to the 22% area. Sales last year were approx. $6 million, of which approx. $700,000 was realized as pre-tax profits.

A third possible acquisition may involve a company that provides sophisticated Internet-based worldwide matchmaking services for single men and women.

John Sculley, the former Apple Computer chairman and visionary, recently stated in an article in the WSJ about new Internet ventures that: "In the new economy, every product business turns into a service business - and the customer is in control of virtually everything." ABUY defines their business strategies with this new order at the forefront - to service the customer through the application of the latest in web-based technologies. According to the Sept. 12 Technology Review featured in the Washington Post, a hot niche is quickly emerging that will be as dynamic as the one the Internet Service Providers (ISP's) share at present. Application Service Providers (ASP's) are at the forefront of another new maxim: the outsourcing of crucial enterprise computing applications accessed over the Internet. Clients, who a few years ago launched Web pages, have now realized those on-line technologies can, provide significant savings for their firms. Smaller and medium-sized firms who discovered it was much cheaper to outsource their Web design and hosting to an outside company (e.g. ABUY) than hire the talent in-house to run it, have recognized that having an outside firm handle their e - commerce operations is more cost-effective as well. ABUY, through Amer. Internet is positioned well for this strategic market shift, because they already have a significant clientele of satisfied customers that they have done web-design and web-services for since the Company's inception.

ABUY's current ratio is better than 1: 1 with income from operations of more than $187,000 as of the end of last year; total shares outstanding are 8.5 million with a float of only 900,000 shares. Officers and Directors of the Company own 50.25%. Over the next year, we see very positive results coming from this company - take positions while the market is still unaware of ABUY's enhanced growth prospects going forward.

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"Although Xcel Associates, Inc. ("Xcel"), does not believe that its activities come within the purview of Section 17(b) of the Securities Act, in an abundance of caution and in the interest of full disclosure, we call the readers attention to the fact that Xcel or its affiliates previously purchased approximately 400,000 shares of ABUY common stock at a price of $0.38 per share, and that ABUY granted Xcel the right to purchase 1,000,000 shares of common stock at an exercise price of $0.75 per share, at a time when the market price therefor was materially lower than $0.75 per share."