TWST: Could you give us an introduction by way of an overview and
summary of Cyber Group Network?Mr. Evans: The Cyber Group Network has three main goals; one, computer
security products and services; two, public Internet access and kiosk
devices; three, acquisitions. We are currently trading on the Over The
Counter Bulletin Board, but we plan to file to trade on NASDAQ within
the next year. That is also one of our goals. One of the biggest
products that we are developing right now is a patented security device
called the Electronic Snitching Device, also known as E-Snitch. This is
a device that can track a missing or stolen computer anywhere, to within
five feet of its location. In most locations, E-Snitch is able to
retrieve the information from the computer and delete the information
that is stored on the computer, even while the computer is turned off.
It can also destroy certain parts of a computer, leaving the perpetrator
with nothing but a high-tech paperweight. This is one of our leading
products, and we are looking to team up with some major manufacturers to
help our product become standard in all computer systems sold.TWST: Is that an interactive device where the owner can signal the
destruct button, or is it something that if left unattended or outside
of a certain geography it signals itself?Mr. Evans: No, what happens is this: if your computer is stolen, for
example, you're standing at the airport; you walk up to the ticket
counter and set your laptop bag down. Someone walks past, picks it up
and runs off with it. You notice that your computer is stolen. You whip
out your cell phone, dial a toll-free number, and say: 'My computer was
stolen, here's the ID number.' Within 60 seconds we're tracking your
computer live. Now, when I say tracking it, I mean that we can tell you
the exact location down to the street address where the computer
actually is, in real time.TWST: Then the destruct command is an interactive command.Mr. Evans: Yes. While we are on the phone with you, you tell us exactly
what you would like to have done. 'Retrieve the information from the
computer,' option one. In that case, we retrieve the information. If you
say, 'Destroy all the information on the computer,' we destroy all the
information on the computer. Our operators will then ask you, 'What do
you want us to do next?' 'Continue to track the computer and call the
police,' is another option. If you choose we can call the police and
tell them, 'We're tracking a stolen computer,' almost like a Lo-Jack
system for tracking stolen cars. 'We're tracking the stolen computer
right now and it's at 1234 Main Street, now it's at 1235 Main Street.'
So the police can actually go to the location and investigate. It will
have some other security features built into it that I cannot discuss at
this time.TWST: Obviously, the information is the most valuable part.Mr. Evans: Exactly. It's the information. Laptop computers, right now,
are a commodity. You can get them a dime a dozen. It's the information
on the computer which makes it valuable. I can go out and buy a used
computer for $500, but if I put my secrets about the E-Snitch on that
computer, then it's worth millions to me.TWST: The competitive landscape may be unknown to most investors. Can
you give us an idea of what you see as the peers and competitors for
your company and its products at this point?Mr. Evans: At this point, an equivalent to our E-Snitch device does not
exist. No one has a device where you can actually track a computer in
real time and retrieve information from the computer while the computer
is turned off. There are other devices focusing more on software that
get installed on your computer. With those, once someone steals your
computer, you cannot do anything until that computer is plugged into a
telephone line or an Internet connection. Then it will start e-mailing
and relaying its Caller ID information, or its IP information. From
there it starts transmitting the information off the computer back to a
call center whereas with E-Snitch, the person does not need to plug it
into the Internet, or plug it into a telephone line. If your computer is
stolen, we don't have to wait for the perpetrator to do anything in
order to start tracking your computer. We can do it ourselves, almost
instantly, within 60 seconds after the computer has been stolen. That's
the difference in our product and someone else's product. The CEO of
Qualcomm had his laptop computer stolen while traveling. I mean, we're
talking a major CEO here with secrets on his computer. Lord knows what
may be there. But if he had a device like the E-Snitch, as soon as his
computer was stolen, we could have retrieved that information and
disabled key components of the computer itself.TWST: The mobile access and continuousness that you described through
the kiosk function, what do you see as a competitive landscape there
today?Mr. Evans: There are a lot of people out there right now with computer
kiosks. You see them in the malls and airports. What we're trying to do
is hit an untapped market by placing them in vehicles where people spend
a lot of time, especially here in California. In California, you have
entertainment buses that take you from Los Angeles to Las Vegas for the
day and bring you back. That's a four-hour drive. Well, for four hours
we can capture those people. For four hours they have nothing to do but
listen to their Walkman. With a computer kiosk on the bus right where
they are, they can surf the Internet, check and send e-mails, and even
play games on it from educational all the way to poker and blackjack. No
one else out there, right now, is doing that.TWST: As you look at your growth strategies, is cash or capital a
limitation on your company?Mr. Evans: Yes. That's a big factor for a lot of companies, especially
when you're an OTC company. Soon, we'll be doing an SB2 as well as some
other types of financing to raise money to continue the growth that
we've initiated. As a matter of fact, on June 1st, we started opening up
what we call Spy America Shops. Our first one opened at the Fox Hills
Mall in Culver City. What we sell there are high-tech security gadgets
and covert security gadgets. For instance, we have the NannieCam, a
regular clock radio with a built-in camera. We sell anti-surveillance
devices, or 'bug detectors.' You want to find out if your office is
tapped? We sell all that equipment. If you want to make sure that no one
is recording your telephone calls, we have that. You can visit us online
at www.SpyAmericaonline.com, and we also have Spy America outlets in the
malls. We are also selling Spy America shops as authorized dealerships.TWST: There seem to be multiple sources of revenues, can you give us an
idea of what the current revenue structure is and how these initiatives
might change that flow?Mr. Evans: We went public a little over one year ago. Since that time,
our company has been in the development stage, developing products and
services that we are now able to take to the market to bring in revenue.
We are closing a deal, our first acquisition, for $2.25 million, of a
very large marketing and advertising company in our local area, which
will help us to market and sell our products. The agency we are
acquiring is doing that right now for some other small, dot-com
companies, and we expect that they can also do it for us. With this
acquisition, we're bringing in new revenues. They did about $1.2 - $1.3
million last year in revenue. That does not include the additional
revenues from our Spy America shops, as well as other products that we
have already and the ones still in development. We've also launched a
publishing division to help technology authors get their books published
and marketed.TWST: In your opening remarks you mentioned acquisitions as a key focus
for this company. What criteria are you using as you review those
opportunities?Mr. Evans: It's very broad right now. When we first set out, we were
looking at doing acquisitions of anything that had to do with dot-com
companies. But, right now, the dot-com business is so saturated;
everyone is doing the exact same thing whereas back in 1994, 1995, and
1996, it was easy to call yourself the largest bookstore on the Internet
because there weren't that many people selling books on the Internet. It
was easy to say you were the largest search engine. Now those are a dime
a dozen. So we're looking for a certain niche, and our biggest niche is
in the computer security market. Because we all know, when you want to
buy a book on the Internet, people think of Amazon.com or Barnes &
Noble. If you think about a search engine on the Internet you think of
Yahoo! Well, when you think about computer security, who can protect
your laptop? Or, if you want to know what your babysitter is doing, or
whether you can really trust your employee, who should you go to? Right
now, there's no true security company out there with a brand that people
will know off the top of their heads. That's what we're trying to
establish for ourselves. We want to be known as a 'Tier 1' brand when it
comes to security. It goes from computer security to industrial
security.TWST: Give us a quick assessment of your management team at this point.
Do you feel you have the bench strength and skill sets to take the
company through the next 12-24 months?Mr. Evans: We will know once our ad agency acquisition is completed. As
I said before, we are a development company with a lot of computer-tech
guys with good ideas and the skills to develop their ideas. But
management was something we were weak in. After we do this acquisition,
we're bringing in totally new management. So by the time this is
reported I'm sure we will have a new management team brought onboard, or
be well on our way toward that goal.TWST: For the investor audience today, what's the summary statement
then, the three or four key points that would convince an investor to
buy in?Mr. Evans: Three or four points why someone should invest in our
company? One, we are innovators; we are not reinventing the wheel. At
The Cyber Group Network we come up with new ideas, things that no one
else is doing. That way, we're building our own markets. Second, we are
a fast-growing company. We are not growing too fast, like a lot of other
dot-com companies or small technology companies that were here one day
booming at $100 a share, and then the next day were gone. We are taking
our time in the way we expand, but we are expanding. Three, investing in
a company that comes out with new products and new ideas all the time is
better than investing in a company that's already out there doing the
same old thing. Those are only three reasons why you should invest in
The Cyber Group, but there are more. Our new management team is one. We
have a very strong management team coming in. One thing that's different
about us is that now, once this acquisition is complete, we will have
the best of two worlds. Most people out there in the computer business
are either one of two things. They are either very computer-oriented and
they just know computers. They know how to develop software and build
products, but that's all they know. Then you find a lot of people who
know business and marketing well, but they don't know the technical side
of actually building a product. People such as Bill Gates know both
ends. Over here at The Cyber Group, we know both sides also. For
instance, we know how to build an innovative product and we know how to
go out and find a market for the product. That's one thing that we are
getting when we complete this acquisition. We're getting a team together
and combining marketing and advertising expertise with the technical
dynamics of a computer company. A lot of times other computer companies
have to go out and subcontract or contract with others to market their
products. Now we will have what we need to do everything in-house.TWST: Thank you. (DWA)GREGORY D. EVANS
CEO
Cyber Group Network Corp.
720 East Carnegie Drive
Suite 200
San Bernardino, CA 92408
(909) 890-9769
www.cybergroupnetwork.comEach 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.Copyright 2001 The Wall Street Transcript Corporation
All Rights Reserved
Communications Equipment >> CEO Interview >> September 24, 2001
Gregory Evans
GREGORY D. EVANS is Chief Executive Officer of The Cyber Group Network
Corporation, a publicly traded company that is becoming the leading name
in computer security. His first job was as a salesman for Computer
Connections in Victorville, California. From there he worked for
Computerland, where he received his Apple, IBM, Novel, and Microsoft
certification... More










