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can we change my name because every time we print out a report I have to white out the company name and I have to put it on my letterhead and I have to run it through my printer again, and I m like OK, well, you know and at the time I didn t realize she wasn t a customer because my customers change their company names and so I said, Call me at the office and we ll get that all set up for you, and she never called But I looked her up and she s not one of my customers, so there are very few of them out there because they want their own name on it, and it s a lot of work to, you know, to get around it Smolin: Well that s a good, good theft deterrent, for your market.

You can take $125 million and drop that to bottom line in savings Spend a quarter million for our service, and the shareholders that are interested in getting the information can get it much faster and in a more personal form than they get it now That s how we got started It generated cash immediately, because we charged what we called a subscription fee We didn t want to call it this, but it was really a retainer fee We called it a subscription fee, billed in advance every quarter: $4,000 in advance plus a per-minute charge And rather than going off and buying all the telephone systems ourselves, which would have been my natural inclination as a technology guy, I outsourced that to a large firm in Omaha called West Interactive So I had no capital costs We turned profitable in the summer of 1994..

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Livingston: That s less than 2 years. Gruner: Yes. We had a seed financing in July of 92. Livingston: Who were your investors Gruner: It was just a small group of about 8 to 10 of my friends and business

associates, who put in about $25,000 each. We raised $276,000. I nursed that money very carefully, worked without a salary for quite a while. It turned profitable in the summer of 94, and I just grew the company organically until I sold it to NASDAQ in January of 2006.

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Of course, we had some really good breaks. The Web was a huge one. When that developed, starting in 95, we jumped right on that. People were saying, What are you going to do You re all telephone-based technology, and here s this thing called the Internet. So we thought, It s just another technology. Having learned from Alliant about not moving quickly enough, we were on it right away. Campbell s Soup, for example, was one of our earliest clients, and the first time they had a corporate website was through us. If you look back at their annual report in, I think, 95, they said, If you would like shareholder information, please call 1-800-XXX-SOUP that was their Shareholder Direct line or visit our website at www.shareholder.com/campbell. So we started the web service and took it a day at a time, built the business up. We focused very strongly on client satisfaction. We d do everything it took to keep a client happy. And we focused on the bigger clients.

So how do you price the product J Murphy: When we first started it, I said to Martha, who was the wedding planner, I said, How do we what price should we put on this And she said, We need to have it low enough that the wedding planners can see themselves buying it, but we need it high enough that it gets enough respect that they see it as a professional tool And that s what we did We looked at what our competitors were doing, and we looked at what software for brides cost, and we looked at what, like, the big companies that do catering and stuff are using, and then we priced it accordingly Smolin: And how much do you sell it for J Murphy: It s $365..

Gruner: It really wasn t too hard. The initial costs were very low. We would go in and say, Look, we are investor relations specialists. We know this area very well and we know you have a web development team. But this is a very specialized area. If you want to do this well, you need real-time SEC feeds and stock quotes. When you put up a news release, it needs to be done even back then in a few hours. You can t wait a few days to put a news release up. So that wasn t too hard to sell. Livingston: They could outsource all these things to Shareholder.com Gruner: That s right. In the 80s and early 90s, the investor relations officer

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