BUSINESS PLAN - The VitalWatch LifeBand Health Monitoring & Information System

-EXECUTIVE SUMMARY-

The new LifeBand from VitalWatch (tm) is the world's first Personal Healthcare Assistant (PHA), and a must for anyone with any form of illness. The LifeBand has the ability to record your vital statistics and allows your doctors quick and easy access to your medical information and history. It can store blood type, allergies, and any other necessary medical notes. A revolutionary electrocardiogram (EKG) sensor system gives doctors highly accurate, reliable results. The spectrophotometric sensor embedded next to the EKG will aid in the detection of emphysema, respiratory failure, carbon monoxide failure and asthma attacks. This new product utilizes state-of-the-art technology to allow quick access to patients' information via the VitalScan reader, resulting in shorter delays and fewer hassels for you. The LifeBand is an indispensable resource at the doctor's office - nurses can quickly retrieve medical history through the VitalScan, preventing you from ever having to fill out an HMO form again. We recognize that your life is busy enough; your health shouldn't have to wait.

-DESCRIPTION OF BUSINESS-

Saving Lives, Saving Time

Our goal is to save lives and save time. In our initial run, we will cater exclusively to the healthcare industry, targeting doctors who work with the elderly and the ill. Although LifeBand is an amazing product for anyone, we will focus our care business on selling to medical professionals, who will in turn prescribe the watch to their patients (it is, however, "over the counter," and there are no side effects associated with the watch). Our research indicates that there is a great demand for a product of this nature, and with a superior design and relatively no competition VitalWatch believes that LifeBand will successfully reach this untapped market.

Turning a Profit in One Year

VitalWatch programs its own software and subcontracts the building of its hardware to industry veteran Timex and National Insturments. In an exclusive co-branding arrangement, the LifeBand will feature VitalWatch's company name in association with Timex. VitalWatch handles all shipping through FedEX Ground. With proper funding, we expect to turn a profit within only one year.

-PRODUCT DESCRIPTION-

The LifeBand system has three major parts: the LifeBand watch device, the VitalScan reader, and the VitalWare PC software.

The LifeBand itself is a sleek waterproof watch utilizing a 32-bit Motorola microprocessor. The band includes numerous sensors including a state-of-the-art EKG, a temperature meter, and a spectrophotometric (blood gas) sensor, which can aid in the detection of emphysema, carbon monoxide poisoning, respiratory failure, and even asthma attacks. A VHF radio frequency transceiver is capable of sending the 4 megabytes of memory to the VitalScan Reader. Flexible rechargable plastic batteries embedded in the watchband provide enough power for the device to operate for 1.5 months without any maintenance. Each LifeBand user will be able to quickly recharge their watch while they go for their monthly checkup with their doctor. LifeBand also doubles as a multi-function digital watch with medication reminders and loud alarms, all in a sleek, durable, and stainless steel enclosure. The LifeBand provides noninvasive monitoring of vital signs and storage of patient information in a discreet package. The watch will not bother or distract its wearer, and a doctor or healthcare provider may only retrieve the information.

The VitalScan reader resembles a portable barcode reader or a UPS Package scanner. Based on a similar, but higher end architecture, VitalScan, the reader, has 8MB of internal memory, a 40 MHz 32-bit microprocessor, and a rechargeable Lithium-ion battery yielding 72 hours of constant use. Data is displayed on 320 x 240 LCD backlit display, while a USB connector allows easy PC connectivity. The VitalScan Reader is enclosed in an industrial strength rubber casing, and a Lexan plastic body (the same material used in bulletproof windows) for durability in the event of an emergency. Whoever will be administering the LifeBand will have the ability to configure the watch via an onscreen menu system. Vital statistics will be available according to its most recent day and by day of the month. Data will be analyzed on the device and viewable on the display in a graphical and numerical representation. Onscreen menus will aid the administrator in selecting common allergies, diseases, and blood types for quick and efficient programming. Whether the VitalScan is used in an ambulance, hospital, or a nursing home, it will provide easy, accurate access to the patient's health information.

VitalWare provides an interface for information collected by VitalScan. The software provides a powerful and intuitive graphical user interface. It integrates with common medical systems for HMO data, and has the ability to parse the information into graphs and charts. VitalScan information is retrieved via the PC's USB port, and also contains the ability to run diagnostics on the VitalScan device itself. This software will aid integration of VitalWatch's LifeBand system into any hospital information network.

-MARKETING PLAN-

VitalWatch's marketing plan incorporates numerous strategies which will virtually guarantee acceptance within the healthcare industry. Our initial ad campaign targets hospitals, nursing homes, insurance companies, pharmacies, and other large medical institutions. Elderly and chronically ill patients will be the primary participants in the program. The program will be initiated in major metropolitan areas and suburbs, then trickle down to rural areas and independent practitioners.

VitalWatch plans on a major advertising and public relations campaign, increasing national awareness of our product while maintaining dignity and respect in the health community. Ads will be placed in medical journals, newspapers, magazines, and on billboards. Good relations with healthcare networks will serve to increase awareness, and build customer loyalty. If only one life is saved by the VitalWatch LifeBand, media coverage and national awareness will skyrocket.

-COMPETITION-

VitalWatch's LifeBand far surpasses any existing portable health monitoring products. Among LifeBand's competitors are Suunto and The Sharper Image. Neither company, however, offers nearly the depth of features or quality of product as the LifeBand. Other products remotely similar to LifeBand provide limited features and are targeted at niche markets, such as professional athletes. LifeBand will revolutionize the industry with features such as vital information storage, accurate readings, identification, information transfer, and the innovative Passive Monitoring System (PMOS), which tests the user's vitals without bothering the user, all in a compact rugged construction. Targeted markets are mass health care providers, nursing homes, and eventually individual patients. VitalWatch's LifeBand is an unsurpassed product in a previously untapped market.

-MANAGEMENT & PERSONNEL-

As a startup, VitalWatch will initially function with around 25-30 employees. The staff will range from interns to industry veterans. Six top level managers will handle key business decisions, earning upwards of $80,000 per year and equity totaling 30% of the company. President and CEO Paige Stephenson is one of the industry's only female presidents. Twenty programmers will be hired to produce the operating system, software, and updates for the product (hardware manufacturing will be subcontracted by National Instruments and Timex), and earn starting salaries of $60,000 per year. Assuming market acceptance and expansion of the company, the possibilities for the future are endless.

-FINANCIAL ELEMENTS-

Initial startup cost will be approximately $9 million. In addition to venture, we are seeking funding from the government, philanthropists and charities. Money is needed as soon as possible in order to start manufacturing, testing, and the eventual product release. The LifeBand system will be ready within 10 months of raising the necessary financial investments.

-ETC-

-Statistics-

* Every year, 98,000 people die due to communication errors among doctors.
* In 1999, doctor error was the 8th leading cause of death in the United States. With the VitalWatch LifeBand, more patient information will be readily available in readable text; minimizing the possibility of miscommunication.
* Medical Errors have cost over $37.6 billion, of which $17 billion was preventable. The main cause of these errors is illegible handwriting.

-Quotes-

"I see the LifeBand as a very palpable means of revolutionizing the healthcare industry. This product could help make healthcare more accessible than ever before."
-Dr. Leslie Serchuck, Lieutenant General, National Institute of Health (NIH)

"The LifeBand has great potential. There is definitely a market for this innovative product."
-Dr. David Joyner, Physician for the United States Olympic Committee (USOC)