1. YARC Systems Corporation - Executive Summary

YARC Systems Corporation has developed proprietary software and hardware that enables Corporate computer users to obtain high quality printouts on Canon Laser Copiers and wide format plotters manufactured by Hewlett Packard, Encad and CalComp.

YARC's software allows more than one CPU to operate inside a PC or a Macintosh, yet retains the same user interface as the original PC (or Macintosh). One or more of these additional CPUs are used to drive the Laser and Plotter printing engines, accessing more computing power than the desktop PC or Mac alone can provide.

During the first 6 years of its history YARC's multiple CPU (Coprocessing) Technology has been used in fields as diverse as Medical Imaging, Publishing, PrePress, Optical Character Recognition and 3D Graphics. YARC is recognized internationally as the leading exponent of this technology, which often brings a ten-fold or more improvement in computing power. In 1993 YARC won the prestigious MacUser Eddy Award for the "Best New Accelerator Card" for one of these systems, the "MacRageous". In 1995 YARC's 3D graphics accelerator, the 'Screamer', was the only 3D graphics board to win an Eddy nomination.

YARC is a Corporation which has the ability to rapidly respond to new technological developments. YARC has been contracted to perform R&D; and product engineering by the NASA Jet Propulsion Laboratories, AT&T;, Honeywell Aerospace, Dai Nippon SCREEN, Linotype Hell, AGFA Compugraphic, Caere Corporation, Advanced Micro Devices and MICROSOFT.
The RIP (Raster Image Processor) printing products resulted from a conscious plan, devised in 1994 and executed in 1995, to identify vertical mass-markets where YARC could leverage its technology into rapid growth.

1.1 Capitalization and Growth

Initial capitalization was provided by the employee-founders. A dedicated team of employees, many of whom are also stockholders, has used this limited capital resource to build the strong market presence and diverse product base.

During 1995 approximately $1.7 millions was invested by qualified private investors.
Institutional funding was secured in 1996/1997.

1.2 Management Team

Trevor Marshall PhD, Chairman and CEO, holds a Doctorate in Electrical Engineering. YARC is his third successful startup venture. He is a Consulting Editor for BYTE magazine, and is widely recognized as an industry expert on computing technology.

Dr. Karsten Jeppesen, YARC's Vice President, Development, has years of experience in the pre-press industry in addition to entrepreneurial expertise.

Manny Mendoza, YARC's Director of Sales, has overseen the growth in sales of YARC's RIP products, worldwide.

Professor Nagi Mekheil, Member of the Technical Staff multiplexes his time between California and Toronto, Canada, where he is a Professor at Ryerson University. Nagi specializes in advanced hardware design methodology and is recognized Internationally as an expert in cache memory techniques.

Sharon Knox is the Manager of Administration. Sharon brings to YARC many years of experience in administrative organization, including service as the Confidential Secretary to the Board of Directors of the IBM Hudson Valley Credit Union.

1.3 Product Range

YARC has developed its software products to run on both INTEL PC compatible and Apple Macintosh II platforms, giving the company opportunities in a wide range of markets. YARC's hardware systems are based on the Power-PC CPU family from IBM and Motorola and the 29000 RISC family from AMD.

1.4 Competition

YARC faces no direct competition from the manufacturers of equivalent product at comparable prices. Our new RIP products face competition mainly from systems that are considerably more expensive and less capable. Customers are making the choice whether to buy from their traditional (but more expensive) suppliers, or to convert to using the YARC product.

The major competition for our accelerator products comes from the desktop platforms themselves (the workstations, PCs and Macintoshes). Customers typically are making a decision whether to buy YARC, or to put up with the performance of the host. Consequently the company strategically targets those segments of the market for which the YARC solution is most attractive. These tend to be power hungry, compute-intensive applications such as Simulation, Imaging, 3D graphics and Pre-Press.