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[IMAGE] =09 SPECIAL ALERT: HyperDynamics Corp (OTC BB: HYPD) January 2002 [IMAGE= ] REASONS TO BUY HYPD [IMAGE] 1. HYPD is well positioned to grow its = business substantially to achieve a niche market dominance 2. HYPD opened = up access to significant and recurring long-term revenue streams 3. HYPD'S-= SCS acquisition represents an ideal fit...synergy will offer an industry s= uperior solution for the oil and gas industry exploration process... 4. HY= PD's Revenue potential estimated to exceed $25 million per year for fiscal = year 2003 5. HYPD has brand new tier 1 data facility that is cost effectiv= e for companies to outsource 6. HYPD has an AT?Dedicated Entrance facility.= AT?laid fiber to HYPD'S data center that can be scaled to an OC48 (Huge br= oadband capacity) SYMBOL: HYPD SHARES OUTSTANDING: 15.7mm FLOAT (est.= ): 6.1mm 52 WEEK HIGH/LOW: 1.34 - .25 SHORT TERM PRICE PROJ.: $1.95 12 = MONTH PRICE PROJ.: $4.30 [IMAGE] 7. HYPD is an Intel Premium Provider -= licensed to sell the highest-level processors. 8. HYPD is a Great Plains = and Microsoft Solution Provider 9. HYPD is a Computer Associates partner 10= . New management team with proven track record of business success. 11. HY= PD'S business model is targeted on obtaining recurring revenue streams [IM= AGE] INVESTMENT SUMMARY HYPD is a premier provider of comprehensive = integrated technology services (ITSP) and solutions for a client base in = the rapidly growing ITSP marketplace for small-to-medium sized businesses. = HYPD is capable of handling a wide range of its clients' unique ITSP need= s, with services ranging from conventional IT services to enterprise migrat= ion and comprehensive IT HyperSource solutions (outsourcing all of a client= 's e-business needs). HYPD has positioned its future business strategy aro= und the development of uniquely designed Integrated Technology Centers (ITC= s), which will offer client companies comprehensive bundled ITSP services a= nd solutions integrated with its state of the art facilities. The first Ho= uston based ITC has recently begun operations, and is offering its clients = a full and expansive range of outsourced IT and back-office services. HYPD'= s first ITC is designed around an AT?Dedicated Entrance Facility with on-ne= t redundant fiber provisioning offering scalable bandwidth up to an OC-48 a= nd beyond. This comprehensive Ti! er-1 hosting center enables HYPD to offe= r clients complete end-to-end IT services in a fully redundant and seamless= environment. Through recently developed Hyperserve connection products, H= YPD has been able to improve the functionality of its services by offering = clients remote server appliances that connect to the ITC. Bolstered by str= ategic alliances and strong working relationships with major players in tec= hnology and telecommunications, including Microsoft, Intel, AT&T, and Great= Plains, HYPD has demonstrated a superior ability to cater to the unique ne= eds and limitations of small-to-medium sized businesses, effectively creati= ng a business model that partners HYPDS' success with that of its clients. = Utilizing this innovative approach, HYPD should be able to grow its busine= ss in conjunction with client business growth, and position itself as the I= TSP provider of choice for an emerging market of small and mid sized compan= ies. Within t! he Houston region, and with this small and mid sized target= market, HYPD is well positioned to grow its business substantially over th= e near to intermediate term and achieve niche market dominance within an ap= preciable time period. HYPD has recently aimed its full-service IT hosti= ng business model towards the unique needs and growth strategies of small t= o medium-sized businesses, a rapidly growing market that is relatively unde= served by major IT service providers such as Level 3, UUNet, and Sprint. = HYPD has based this approach around the potentially lucrative, long-term re= venue streams afforded through association with growing companies. For exa= mple, HYPD has recently initiated long-term Hypersource IT hosting arrangem= ents with Eagle Wireless International and Premiere Media Group. Eagle Wir= eless is a leading supplier of broadband wired and wireless equipment and s= ervices for a variety of markets, including the Internet, digital set-top b= oxes, and wireless convergence products, and is anticipated to reach nation= al market penetration within the next several years. As the client company= grows its business over the next several years, the highly scalable nature= of the Hyperdynamics' IT hosting model will enable the Company to offer ad= ditional needed services readily while retaining high margins. By being ab= le to refine and scale up c! lient IT services in a quick time period, and = for minimal additional expenses, HYPD has opened up access to significant a= nd recurring long-term revenue streams from smaller and mid-sized business = clients. Moreover, HYPD offers client companies an unprecedented degree of= personalized attention and customization, when compared to major national = ITSP providers. The infrastructure of HYPD'S first ITC, designed to supp= ort end-to-end ITSP services can also be leveraged for easy and smart diver= sification. With its recent acquisition of Seacon Computer Systems, Inc. (S= CS), HYPD has been able to enter the vertical seismic data management marke= t. Thus, in addition to its horizontal industry approach for ITSP services,= new and innovative vertically oriented business opportunities offering div= ersified revenue streams are coming to HYPD. For example, SCS is a seismi= c data management company that has developed a unique and cost saving metho= d for transferring seismic and geologic data for oil and gas companies on 8= mm and 9mm magnetic tapes to state of the art DVD (optical) storage. The c= urrent methods of storing this type of data on magnetic tapes are time cons= uming, prohibitively expensive, outdated (the technology is over 40 years o= ld), and inefficient. SCS will enable clients in the expanding oil and gas= industry to migrate the estimated 3 billion magnetic tapes that degrade in= 8-20 years to DVD storage, with an expected lifespan of over 50 years, at = a cheaper price point and with easy accessibility. The SCS acquisition, mo= reover, provides an ideal strategic fit to the core data center business of= HYPD, and opens up significant and highly lucrative revenue streams. SCS = will derive revenue! s from three principal sources: (1) conversion of exis= ting tapes to superior DVD storage technologies; (2) accessing DVD data thr= ough HYPD's ITC facility; and (3) a vertical ASP approach to remote seismic= interpretation processing of data through the Houston ITC using technical = and hardware support from Intel. In addition to opening up an innovative a= nd new business through the SCS acquisition, HYPD believes that it will be = able to apply this type of vertical ASP approach towards other target indus= tries, such as insurance services, either through additional acquisitions o= r joint ventures. HYPD's projected revenue and business growth will be l= argely driven by several principal catalysts, including: (1) continuing to = implement its full service IT hosting solution, Hypersource, through the Ho= uston-based, state-of-the-art Integrated Technology Center and future plann= ed ITC's in regional markets; (2) orienting its ITSP solutions and services= towards the unique needs of expanding small-and-medium sized businesses; (= 3) entering into long-term, recurring revenue contracts by growing with its= clients, and providing additional services at higher margins as these clie= nt businesses expand; (4) opening up new and lucrative revenu! e streams th= rough its subsidiary SCS, and integrating this business opportunity through= internal synergies with its core IT hosting and services business; and (5)= positioning itself within a competitively underserved marketplace for ITSP= services and products for small and mid-sized business clients. VALUAT= ION Consolidation within the ITSP industry has been a consistent theme wi= thin the past several years. Major ITSP hosting players have been acquired= in a series of recognizable transactions. Notable among these has been th= e acquisition of Verio by NTT, and the acquisition of Digex by WorldCom. W= ithin the remaining players in the IT hosting industry, remaining players h= ave been devastated by the decline in valuations accorded, based on consist= ently increasing earnings deficits and increased cost of services provided.= In addition, these players have suffered due to aggressive acquisition st= rategies undertaken during the previous two years that have not proven out = as significant growth catalysts and increased debt structures. By contrast= , HYPD has pursued a conservative growth strategy with limited acquisitions= carefully calculated to directly and immediately benefit aggregate revenue= s and earnings. Relative to comparative companies within the ITSP industry= , HYPD could realize superior growth in business and earnings over the near= -to-intermediate term period. A grouping of comparable companies within th= is sector currently trades at an average price to sales multiple of 2.70 X.= On a forward looking basis, using FY 2003 revenue and earnings estimates = for the Company (fiscal year 2003 starts July 1,2002), this represents roug= hly a 8-fold premium to current trading levels. Thus, when applying the co= mparative grouping's average price to earnings and price to revenue multipl= es to HYPD we can arrive at a relative valuation of $4.30 per share over th= e next 12 months. SUMMARY Aggressive investors looking for above-aver= age return potential on a portion of their investment capital should give H= YPD a serious look. Management of the Company, headed by CEO Kent Watts, a= re highly talented and educated in their technical areas. We believe HYPD = has assembled an astute, goal oriented, sophisticated team committed to HYP= D becoming very, very successful. Investors at current levels may be rewar= ded in the short term, and beyond, as HYPD'S business plan is executed. HY= PD may very well be one of the stock market's best secrets! [IMAGE] Di= sclaimer: [IMAGE] StockInfoKing (SIK) publishes reports providing informati= on on selected companies that SIK believes has investment potential. SIK = is not a registered investment advisor or broker-dealer. This report is pr= ovided as an information service only, and the statements and opinions in = this report should not be construed as an offer or solicitation to buy or = sell any security. SIK accepts no liability for any loss arising from an i= nvestor's reliance on or use of this report. An investment in HYPD is cons= idered to be highly speculative and should not be considered unless a pers= on can afford a complete loss of investment. An affiliate of SIK has been = hired by a third party consultant, and is contracted to receive 200,000 fr= ee trading shares of common stock for the publication and circulation of t= his report. SIK intends to sell all or a portion of the of the HYPD stock= at or about the time of publication of this report. Subsequently SIK may = buy or sell shares of HYPD stock in the open market. This report contains = forward-looking statements, which involve risks, and uncertainties that ma= y cause actual results to differ materially from those set forth in the fo= rward-looking statements. For further details concerning these risks and u= ncertainties, see the SEC filings of HYPD including the company's most rec= ent annual and quarterly reports This email was sent to you because you= asked to receive information about stocks and stock trading. Periodically= we will send out alerts and newsletters about stocks and stock trading. I= f you do not want to receive this type of information via email, please re= ply to this email with the word "Unsubscribe" in the subject or email us a= t sik@businessworldwide.net . Please allow 48 hours for your address to be= removed. =09
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