THOMAS KENNEDY - GLOBAL TREE TECH (GTT.V)
CEO Interview - published 05/28/2001

DOCUMENT # MAH610

THOMAS J. KENNEDY is President of Global Tree Technologies Inc. and
Chief Executive Officer of GTT's subsidiary, World Internet Broadcasting
Network Corp. As Chief Executive Officer, Mr. Kennedy is positioning
WIBN as a leader in developing and licensing Internet broadcasting
services through the use of ad revenue software, e-Targeting. Mr.
Kennedy graduated from the University of British Columbia in 1973 with a
Bachelor of Commerce (BComm), and obtained a Bachelor of Law (LLB) from
UBC in 1974. He worked as a Federal Crown Prosecutor for six years with
the Department of Justice, Vancouver Office. In 1982 he was appointed to
the position of Vice Chairman of the Workers Compensation Review Board,
where he remained for nine years. Since 1991 Mr. Kennedy has been an
entrepreneur and a CEO, President or Director of several public
companies.

ROBERT W. MACKIN, SR., has been President of World Internet Broadcasting
Network Corp. since August 2000. Working for 30 years in the
broadcasting industry, Mr. Mackin has experience in advertising sales,
producing and directing radio shows, and Internet marketing. In 1981 Mr.
Mackin co-founded, and served as Managing Partner of British Columbia's
largest independent retail advertising agency. In 1998 Mr. Mackin began
developing the WIBN concepts. His initial project in the streaming media
industry, SantaTV.com, was launched in the last quarter of 1998. More
than 300 hours of live streaming media was prepared for the SantaTV.com
Website, with a live stream successfully delivered to users in over 70
countries.

DONALD R. MCLEOD is Chief Technology Officer of World Internet
Broadcasting Network Corp. From 1992 to 1994 Mr. McLeod served as
Manager of Information Systems for PCI Realty Inc., a large real estate
company in Vancouver, BC. In 1994 Mr. McLeod formed The Connections
Group Networking Inc., a high tech support group specializing in the
healthcare sector in British Columbia. In 1997 Mr. McLeod founded Total
Connect Communications to fulfill the access and security requirements
of the business and healthcare clients of The Connections Group. During
this period, Mr. McLeod conceived and developed the methodology for the
delivery of targeted advertising content. This enables retailers to
provide different ads, specifically tailored to the demographic
information of the user.

Sector: MARKETING SERVICES

TWST: Could we begin with a brief historical sketch of the company and a
profile of the company as it is now?

Mr. Kennedy: Global Tree Technologies Inc. went public on the Canadian
Venture Exchange in 1989. I became a Director and President that year,
and since 1989, the company has been engaged in several venture capital
business situations, primarily in the natural resource area.
Approximately one year ago, Bob Mackin came to me with an interesting
proposal for a new business venture in the area of marketing,
advertising and technology and at that time, the company changed its
focus and embarked upon a new path. Bob's vision, along with the
technological expertise of Don McLeod, forms the basis of World Internet
Broadcasting Network Corp., a wholly'owned subsidiary of Global Tree
since May 2000. The business of World Internet Broadcasting Network
represents an evolutionary concept in the area of audio/visual streaming
communication, which will be discussed by

Mr. Mackin here shortly, but very briefly, the company is focused on
becoming a leading media Internet broadcaster providing content and
technology for redistribution. With the inception of World Internet
Broadcasting Network, Global Tree has kept up with the ever-changing
technological environment by incorporating technology with the marketing
and advertising needs of today's world. At this stage, Global Tree is
100% dedicated to the growth and success of its subsidiary company's
operations.

Mr. Mackin (President, WIBN): As Tom said, a number of years ago the
development of the marketing aspect of this project began. My background
is in broadcasting, but more importantly, it's in advertising agency
ownership, management and creative direction. We looked at the new media
and its impact. Obviously, three years ago it was growing very rapidly
in its impact on local marketing, as opposed to the worldwide marketing
aspect. We saw that local marketing, local advertisers, local companies,
local products, were very difficult to market in a local marketplace
without getting involved in the global Internet. The Internet users are
becoming, or have become quite an interesting demographic, and a good
demographic for marketing products, services, etc. So the question was,
how do you tap into a local marketplace? The answer we believe is a
local media presence using the Internet as the delivery system, delivery
of local content and delivery of advertising, both from the point of
view of audio and video, and of course from the point of view of text.
Out of that came a product called MYCityRadio.com. MYCityRadio is a
local, on-the-ground bricks and mortar member of the media here in
Canada, specifically in greater Vancouver, and it delivers what one
could only call television style webcasting, live, seven days a week in
various forms and in various formats. That content is viewed, and the
advertising in it is sold to advertisers who wish to market their
products in the local marketplace. The project depends on a system of
targeting advertising called e-Targeting, and that is something that
allows us to take products, take advertisers and deliver their message
to a very tightly targeted group, whether it's from a geographical point
of view or from a demographic point of view. So it allows us to compete
on three levels; from a television perspective, from a radio
perspective, and from a print perspective we can deliver an electronic
file into a neighborhood, rather than to the entire world. So we compete
with television, radio, print, and now we compete very favorably with
direct marketing and direct mail.

TWST: How unusual are you, or how original?

Mr. Mackin: I don't know of anybody else who is doing this with a
complete package business model all in one setup. There are those who
are doing webcasting on the Internet, and they are streaming advertising
and they are using banner ads, but very few of them are live, almost
none of them have the ability to target directly into a community. We
can narrow our targeting down to city blocks, as opposed to regions of
countries, etc. So we are very narrowly focused in our marketing. From
our development here in Vancouver, we will begin to open affiliates
around North America. Our first affiliate is due to open in the interior
of British Columbia shortly. We have interest from other areas of Canada
and of North America, and we will set up turnkey operations in various
communities and cities around North America, and joint venture them with
affiliate partners, who will, like us, be able to work within their own
marketplace, and market advertisers' products within their community and
within their marketplace, using the Internet under the branded name of
MYCityRadio.

TWST: What are the barriers to entry?

Mr. Mackin: Barriers to entry, from the point of view of somebody who
wants to become one of our affiliates; the only barrier to entry is a
small amount of cash and a large amount of understanding of media sales.
Whether those are barriers or opportunities, we present to a businessman
in a community or in a large city an opportunity to basically develop
televised content on the Internet, tap into our Internet network of
content which comes out of Vancouver, develop his own, and begin doing
business within his marketplace. We see him being able to move into the
black within 18 months of beginning his business operation.

TWST: What about barriers to entry for those who would like to compete
with you?

Mr. Mackin: Barriers to entry for those who would like to compete with
us would be first, having the knowledge and the understanding and the
marketing expertise to begin this type of operation, and number two, to
have the technology that will allow for the delivery of the advertising
system. We think that we're about 18 months to 24 months ahead of the
curve in this particular marketplace. We are unusual in that we are a
local marketing initiative on the Internet. We don't see ourselves as a
worldwide dot-com, as much as we do a local community media presence
using the Internet to deliver our services and our content on behalf of
ourselves and on behalf of our advertisers. From the technology
perspective, Don McLeod has developed a patent pending e-Targeting
software technology. This technology ties into our overall system of
delivery, allowing us to offer a complete turnkey package. There are
people doing pieces of what we do, but nobody has managed to pull it all
together and do what we're doing in a profitable business model.

TWST: Speaking of profitable business model, can you give us some idea
of the progress you hope to make over the next two or three years? What
are your expectations?

Mr. Mackin: Our expectations over the next 12 months would be to
continue to open affiliates. We are in negotiations on joint marketing
situations, which will allow us to roll out quickly. Our goal is simply
to open somewhere in the neighborhood of a half a dozen affiliates by
the end of this year, a further 46 affiliates in year two, and be up to
96 affiliates by the end of year three.

TWST: You're not profitable yet, are you?

Mr. Mackin: No.

TWST: Do you have any ideas about when that might occur?

Mr. Mackin: There are two ways of looking at it. One way of looking at
it is whether we are profitable here on the ground as MYCityRadio, or
profitable as World Internet Broadcasting Network. We see World Internet
Broadcasting Network moving into a profitable stage sometime later in
the year, or possibly early in 2002.

TWST: What do you have to worry about? What are the risks or concerns or
challenges that might be in your way?

Mr. Mackin: The difficulties and the challenges are the delivery of
stream content. We seem to have overcome that in an efficient and an
effective manner within a reasonable business model, keeping the cost of
bandwidth, etc. down. The world marketplace for bandwidth seems to be
expanding rapidly, and there seems to be a glut of bandwidth on the
marketplace. So we think that that will become very economical for us.
The challenge is to go out into the marketplace and educate what are
traditional media business people about the new media opportunity, and
to show them how it would work, and how it could work for them in their
community. At the same time, we have to educate advertisers on how to
use our particular medium to effectively and efficiently reach their
marketplace. And that's a teaching process for a local advertiser. We
are not dependent on national or world advertisers. We are dependent on
the local marketplace, which represents upward of 40% of the total
advertising dollars spent in North America. So we're dealing on the
ground level with people who are traditionally spending their money on
newspapers and radio and television. And it's an education process of
showing them how they can benefit within the new medium. There has been
an advertising meltdown to a great degree on the Internet as advertisers
did not have the ability to target their advertising effectively.

TWST: Could you say more about the advertising meltdown and how you
stand in opposition to it or in relation to it?

Mr. Mackin: The Internet has always been seen as a global situation, or
a national situation, and it is marketed in that way. And as advertising
dollars are cut back on major brands, it makes it very difficult to
maintain any kind of a profitable business if you're depending on
advertising. But if you are dealing in the local marketplace, people
still have to buy shoes; people buy groceries; people buy cars. And the
local retailer and the local businessman are continuing to advertise in
their local market. We believe that by developing a local presence and
networking it across North America, we can continue to tap into those
dollars, which are not recession-proof, but they certainly are more
stable than national advertising dollars. All advertisers are looking
for a new and effective way to reach people, and we believe we have the
answer. If you own a hardware store on a corner in a small town anywhere
in the world or anywhere in North America, if you want to reach the
customers who come to your doorstep, you want to talk to the people
within a five, six block area, because they're the ones who come to you.
When you are an independent operation, what you traditionally would do
from a marketing perspective is send out a flyer or a handbill. You may
produce, let's say, 50,000 of them. You may deliver them at a cost of
$0.10 each. The production cost is somewhere in the neighborhood of
$0.10 each, so you're spending $0.20 to deliver to 50,000 households
within your trading area. We know that direct mail is read by
approximately 4% of the people who receive it. So you'll be spending
somewhere in the neighborhood of $10,000 to reach 2,000 people. That's a
very expensive proposition, and the cost per lead is very high. With our
program we can define your market, with your assistance, and charge you
just a nickel to $0.10 apiece to reach every one of those households,
and an advertiser only pays for those that they reach. They don't have
to pay for the wastage. So we're very effective and very efficient.

TWST: Could you tell us about the expertise of the three gentlemen
present and of the other major people in the company? You've already
spoken about yourselves a little, but I think some words about your own
expertise and background would be useful.

Mr. Kennedy: My background is quite diverse. Having obtained a business
degree and law degree in the mid-1970s, I spent my early career days
with the Federal Department of Justice in Canada and subsequently with
an administrative appeal board. By the late 1970s, however, being a
young and ambitious entrepreneur, I became very interested in business.
Since then, I've been involved in management and fundraising for a
variety of junior venture businesses and by 1990, I became exclusively
involved with three key public companies and have focused my energy in
those arenas. As President of Global Tree, I bring to the table
expertise in my ability to network, to identify new and upcoming trends
which could potentially enhance the furtherance of our company's
business development and in this particular case, the Global Tree team
has been instrumental in bringing Bob Mackin's vision and Don McCloud's
technical expertise together effectively. Global Tree's role is to
provide a framework of funding for business ventures such as World
Internet Broadcasting Network in order to give guidance and financial
support to new opportunities to gain public exposure and become
successful in today's marketplace. In other words, our primary focus is
to find special niche situations, then fund them and then introduce them
to the public arena to give opportunity for success. When this
opportunity came to Global Tree over a year ago, I brought in people
from Europe and different parts of North America to assess the project
and decide if we had the capability, expertise and dedication to develop
the project. My team did their due diligence and after everything was
said and done, we were in agreement that we had found a particularly
unique situation in a new and exciting niche marketplace and we decided
to push on and make this project successful.

TWST: How many employees do you have right now?

Mr. Kennedy: There are approximately 20 employees.

TWST: How are you doing for cash, and what is your burn rate like?

Mr. Kennedy: We are operating on a very lean, mean burn rate right now
in light of the current market environment. The framework in which we
are working at present has been difficult for all junior venture
businesses and fundraising has been tough. Having said that, during the
first year of operation we have raised approximately $2 million dollars
to advance this project to its current level of achievement. We are
currently in the financing process and intend to raise further funds to
ensure that we have the required working capital for the next 12 months.
At this stage, we're on a budget of $100,000 per month, aside from
advertising revenues which will allow us to break into this new field in
a timely manner.

TWST: Is there anything particular in the company that you have to work
on now? Is there anything that you have to strengthen to get where you
want to go?

Mr. Kennedy: At this particular point in time, Global Tree is working
toward the development of its subsidiary's affiliate program. Right now,
World Internet Broadcasting Network has a display suite or flagship
operation, if you will, at MYCityRadio. The first stage for the
affiliate program has been documented by a letter of intent. We intend
to strengthen that area of our business. On the technological side, our
main focus is the initiation of the first level of our new platform for
advertising, which is our patent pending technology called e-Targeting.
We are also concentrating on the e-Targeting to refine and expand the
technology so that we will be in a position to have the software
available for licensing to other parties as a further source of revenue
for the company. This technology, combined with the affiliate network
concept, is what makes this project, in our view, a potentially viable
economic model.

Mr. McLeod (Chief Technology Officer, WIBN): I have done some extensive
research into the competing technologies. Let me go back to earlier
questions you had about how much further ahead we are of the competition
and what makes us different.

Mr. Mackin had alluded to the fact that he felt we were 18-24 months
ahead of the competition with out technology. He also was talking to you
about a significant advantage whereby we look to local advertisers,
instead of just the big international worldwide advertising that
traditional Internet ad delivery systems use. What we have done is
create a system that allows multiple people to listen to or view the
same show, be it television or radio on the Internet. And when it goes
to a commercial break the ad targeting system will deliver a specific
content delivered ad to that end user, which is now one of four, or one
of six, or one of 10, but could be one of 20,000. So if you have got
listeners from St. Petersburg, Florida to Alaska, the person in Alaska
really doesn't care to hear the ad about, say, Bob's Bait Shop in Tampa
Bay. He wants to hear an ad that is local to him. And this is something
that the Internet has never been able to do before. This is something
that our technology does today. So you can see the advantage. You can
sell advertising to local retailers, your mom and pop down on the
corner, as easily as you can, for example, to Visa/Mastercard,
Budweiser, or any of the other international type of advertisers. So now
you are opening up a platform where there is no one to whom you have to
say, no, I'm sorry, I can't deliver your ad content to this user. You
now have unlimited flexibility. And advertiser such as Ford, for
example, not only could give us ads for seven or eight different
automobiles, but they could then drill it down to the point where they
would say, we want to advertise this car to this specific age group in
this specific state. So you could be sitting at your computer in your
office, watching our program and the person in the office next to you
could be watching the exact same program, and because of the demographic
information from your profile, you may not fit Ford's profile requests
for this ad, but the person in the neighboring office may meet the
criteria. So they may get the ad for the Lincoln Navigator, and you may
receive an ad from the local deli down on the corner. That is how fine-
tuned this targeting system can be. Now, there are other targeting
systems on the Internet. A competitor in Pennsylvania is audio only, at
this time, for their ad insertion. They cannot do video ad inserts.
Secondly, their tuned system for delivering ads has a significant
limiting factor, and that's the number of different ads that can be
delivered to a specific user, or the number of ads they can have cued up
to be delivered to all their users. When I stated earlier that we could
have thousands of ads sitting on our ad server, waiting to be served
based on the profiles of those users, our technology is not server
dependent. Our technology is client request dependent which means that
the end user's software (the 'client'), being the Windows Media Player,
requests the appropriate profile'related ad from the server to be
delivered to the end user. This is a tremendous advantage because it
allows the client to request specific ads to meet the profiling needs.
Servers won't have to sort through five, 10 or 15,000 different ads to
deliver those ads to the end user. This is unique; this is secure; it is
built on a tremendously stable Oracle back end. It meets and exceeds the
requirements for advertisers in this market like nobody else can right
now. So I'm confident in

Mr. Mackin's statement that we are truly 18-24 months ahead of our next
closest rival.

TWST: That sounds extraordinarily sophisticated, but will it become even
more refined or fine-tuned as time goes by, say, within the next two,
three or four yours?

Mr. McLeod: The whole idea of this technology is that in the last year
since it was originally conceived, it has adapted to become something
far more in-depth and complex than it was ever originally conceived to
be. So to answer your point, absolutely, in the next two to three years,
depending on what advertisers require us to be able to deliver, this
system is fully capable and flexible enough to meet their requirements.

TWST: Where do you reasonably expect the company to be in 2003 or 2004,
and what is the picture that you expect to see?

Mr. Mackin: We expect to see MYCityRadios in at least 96, but probably
closer to 150 different markets. We see WIBN developing new and
different content, moving into areas such as live sports, concerts,
etc., that will attract new and different audiences to the network. We
envision, at the end of the day, or if there is ever any end of the day,
being a traditional, strong, media network, whose delivery system is
totally dependent on the demographics of the listeners, and the
targeting of the listeners, and competing on a level with other networks
of media. Our advantage will be our ability to target, as opposed to
being a mass media deliverer.

TWST: Could you crystallize what you have been saying and give us the
three or four best reasons why long-term investors should take a good
look at Global Tree?

Mr. Kennedy: I believe that long-term investors should take a look at
Global Tree firstly because the company has a very dedicated and capable
team that can accomplish the vision and goals that we are attempting to
achieve. Our company plans to be a leading new media Internet
broadcaster, providing content and technologies for redistribution to
our network affiliates and partners. We are in the business of
developing and selling Internet'based streaming media content for
broadcast, and providing links to broadcasting centers. To date our
revenues are generated from the MYCityRadio flagship station and are
also expected to be from the sale of licenses and advertising sale
royalties. Secondly, current research demonstrates that targeted
advertising is the way of the future as it can command substantially
higher revenues than traditional non-targeted advertising. This is where
our e-Targeting software makes the difference. Finally, we believe that
strong growth can be achieved through the leverage of the affiliate
program and potential licensing of the e-Targeting software.

TWST: Is there anything we have left out of the discussion?

Mr. McLeod: I think one important aspect that I have seen is that a lot
of times you will see a tremendous technology developed by some very
bright guy, or you will see a great business model by a traditional
business person, but rarely do you see a blending of experiences and
technology together into the kind of environment and the kind of entity
that Global Tree has built here with WIBN. Bob is almost legendary in
western Canada for the experiences that he's brought to people through
radio and through his advertising agency. What you have here then is a
team that has experience on both sides of the field, not just some guys
with some great technology that they are trying to run up the flagpole,
but a well-rounded solid business model with good business experience
together with a cutting edge technology. That is a rare combination and
I think that is what long-term investors have to look at. There is
something special here.

TWST: Thank you.

THOMAS J. KENNEDY
 President
ROBERT W. MACKIN, SR.
 President (WIBN)
DONALD R. McLEOD
 Chief Technology Officer (WIBN)
 Global Tree Technologies
 510 Burrard Street
 Suite 910
 Vancouver, British Columbia VC6 3A8
 Canada
 (604) 682-2928
 (800) 456-8733 - TOLL FREE
 (604) 682-6038 - FAX
 www.globaltree.com
 e-mail: info@globaltree.com

Each Executive who is the featured subject of a TWST Interview is
offered the opportunity to include an Investors Brief or other highlight
material to be provided and sponsored by and for the company. This
Interview with Thomas J. Kennedy, President of Global Tree Technologies,
is accompanied by an Investors Brief containing corporate information.

Copyright 2001 The Wall Street Transcript Corporation
All Rights Reserved


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