University Parent, Inc. Fesehaye Abrhaley, Michelle Dorenkamp, Kara Grinnell, Ryan Roth and Sarah Schupp April 21, 2004.

University Parent, Inc.

Fesehaye Abrhaley, Michelle Dorenkamp, Kara Grinnell, Ryan Roth and Sarah Schupp

April 21, 2004

Product/Service Description

•UPI sells website and magazine advertising to businesses interested in marketing to parents of college students

• UPI produces 3 guides per year for each location

• Guide provides comprehensive information:

• Details on university and surrounding community

• Parenting tips

•Website, www.universityparent.com

Opportunity

$70 million dollar market opportunity 95% of college parents want to be more informed No publication addresses their needs/wants 35 businesses have already purchased advertising in

the 2nd Parent’s Guide to Boulder100% of Fall ‘03 advertisers purchased an ad in the

Summer ‘04 guide

Need

Connecting with students Parents stay informed Money Savings/Ability to plan ahead Convenience/Portability

Parents

Building image Generating revenue

Businesses

Target Market

Parents of…College students/prospective students

Parents who…Visit campusAre involved

Advertisers trying to reach…Middle to upper-middle class adultsWho are typically college educatedWith means to send their kids to college

Test Market Competition

No DIRECT competition Indirect competition

Colorado DailyDaily CameraBoulder MagazineRalphie’s Guide

Competition will vary at every campus

Competitive Advantage

Specialized nicheNo one currently reaches

Proven track recordRelationship with 35 advertisers

DistributionAgreements with university, local businesses

Key Marketing Strategies

ParentsDistribution: campus, hotels, & restaurantsWebLogs

AdvertisersDirect MailRelationship BuildingAwards

Risks

Problem Solution

Duplication by competitors Establish brand, quick national roll-out

Universities uncooperative Contact universities for permission before expanding, Internships

Insufficient ad sales Prove ROI, diversify revenue between national and local advertising

National Roll-out

Year 1: 3 Schools

National Roll-out

Year 2: 9 Schools

National Roll-out

Year 3: 22 Schools

National Roll-out

Year 4: 32 Schools

National Roll-out

Year 5: 44 Schools

Revenue

Revenue (In thousands $)

Revenue Model50% Print Ad Sales50% Web Ad Sales

Forecast & Growth40% Avg. Growth Rate$12.3 MM Sales in Year 5

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

1 2 3 4 5

Website Ad Sales

Print Ad Sales

Revenue (in thousands) $

Profitability

Net Income (In thousands $)

BreakevenFebruary of Year 2

Cost DriversSalaries & WagesPrinting

-500

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1 2 3 4 5

Year

Cash Flow

0 1 2 3 4 5

Year

Operating Cash Flows (In thousands $) Year 0

$500,000 from investors

$30,000 from founders

Major uses Expansion

Major Source Increase in ad

revenues

-1,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

1 2 3 4 5

Year

Funding

Investment Requirements$500,000 for 35% of the company60% IRRWill fund: hiring of new employees, regional office,

and expansion to DU, CSU

ValuationMarket value of $70 million in Year 5Industry P/E ratio of 17.3.

Questions?