Shareholders Letter May 28, 2014

Dear Shareholders,

In conjunction with the recent filing of our 1st quarter financials I would like to take this opportunity to give you an update on our progress as we begin  commercialization of our 5Barz Network Extender device.  As most of you know we officially launched the 5Barz Network Extender on February 25th in Barcelona during the Mobile World Congress.  The response by the wireless industry was extremely positive and confirmed our belief that the industry is looking for a solution to improve coverage in poor coverage areas within their networks.  The following details the steps we are taking to commercialize the 5Barz Network Extender.

January / February = Pre-Barcelona / Mobile World Congress

We spent the first two months of the quarter largely focused on finalizing the technology development in preparation for our official product launch during  Mobile World Congress, the largest conference in all of Telecom annually.  On February 25th, we held an invitation only event at the Majestic Hotel in Barcelona, Spain which was well attended by industry luminaries, executives, investors and the press from around the world.  Our presentation, which was mc’ed by a top executive from Telecom Italia, started with Gil Amelio, our Chairman, giving a wonderful opening speech about 5Barz potential to “change the world of telecom and mobile,” what we now refer to as the “I believe” speech.  I had the privilege to follow Gil and unveiled the 5Barz Network Extender then introduced Naresh Soni, our CTO, who highlighted the incredible leaps forward made by the company in its technology and product development.  You can visit our website at www.5barz.com to watch a video of the presentation in its entirety.  Since Barcelona we have been preparing to deliver 5Barz Network Extender devices to our collaboration partner for testing and qualification on their network.  We expect to complete delivery within the next couple of weeks.  We will issue a press release upon shipping devices to our collaboration partner.

March / April / May = Post Barcelona

While Barcelona proved to be a watershed moment for 5Barz, the ten weeks that have followed have proven to be as equally, if not more, important to the growth and success of our company. Due to the overwhelming response from the Barcelona event, many market opportunities have become available to us in various regions around the world.  As such, during the next quarter we intend to begin shipping 5Barz Network Extender devices, for initial testing, to multiple network carriers, in four different market regions.  Our focus since Barcelona has been working in each of the four regions simultaneously.  They include Latin America (LATAM), India, Africa and here in the United States.  Some further detail is provided below:

  • LATAM, for the moment, is our most mature regional opportunity.  We have been working directly with the carriers in the region for several years and have built a deep knowledge base and strong contacts all of which will be necessary for us to execute our business plan in the LATAM region.  We look forward to the delivery of devices to the network carriers in the immediate future;
  • India is the second largest, by population, market in the world.  Naresh and I recently visited Bangalore, Mumbai as well as Delhi to set up our local business development team as well as meet with many of the carriers, key executives, and begin the process of building our Indian market business plan.  In short we found India’s mobile market is still growing and maturing though the network infrastructure has seemingly not caught up to the growing demand, hence, increasing congestion significantly as well as poor coverage in many areas of India.  These are ideal market conditions for the 5Barz Network Extender.
  • Africa is yet another incredible opportunity for us.  We have initiated our business development efforts in Africa and have met with all of the major carriers.  Africa is currently the fastest growing mobile market in the world and given the similar infrastructure conditions as India is a market greatly in need of our solution.
  • The United States.  The US is our home market where we have the most intimate understanding of the nuances and issues the industry faces.  We have met with key executives at the two largest carriers, and both are eager to begin testing the 5Barz Network Extender on their networks.  Given our contacts, access and current management team the US market opportunity is relatively easy for us to penetrate but requires that the 4G version of our technology be ready for adoption which we expect to deliver in the third quarter of this year.

As you can see we have a lot going on in many different time zones.  Since our product launch in Barcelona I am very pleased with the speed at which we are executing on our business plan and strategy.  To that end, we recently announced a manufacturing partnership with Flextronics, whom we consider to be the number one manufacturer of consumer electronic products in the world.  The Flextronics deal along with the many carriers around the world who are eagerly awaiting the 5Barz Network Extender to begin testing and qualification on their respective networks shows undoubtedly, that our product and technology solution has the potential to be the answer the industry has been looking for in the last mile of wireless connectivity.

While we have initiated business development activities in the four market regions detailed above, we continue to attract interest from telco’s in virtually every market region in the world.  And over the next several months we will begin our business development efforts in those markets as we expand operations.  In fact, the focus for the next quarter is about setting up our infrastructure in the four markets detailed above and delivering the 5Barz Network extender devices for testing and qualification to the network engineers.  This will include hiring executives with regional knowledge that will work with our telco partners in designing and implementing product rollout strategies and ultimately securing purchase orders.  In our opinion it is crucial that we establish the necessary  infrastructure in our market regions so that we can fully develop and support our customers as our product is deployed and implemented by the telco networks around the world.  Only until we have successfully set up our infrastructure and delivered devices for testing to the network engineers can we begin to accurately forecast sales volumes.  Regarding our shipment of 1,000 devices to Mexico we experienced unforeseen delays in the importation process as well as incurring substantial costs in handling and import duties.  We are working with our customer to complete the sale and expect a successful resolution in the immediate future.  Lastly, now that we are entering into commercialization we anticipate we will have a more steady flow of business development that will enable us to communicate to our shareholders on a more frequent basis.  In closing I want to thank you all for your continued support and interest in our company.

Sincerely,

Daniel Bland

CEO

5BARz to Present at Two Upcoming Investor Conferences in NYC

5BARz to Present at Two Upcoming Investor Conferences in NYC

5BARz International, Inc. (OTCQB: BARZ), (O5B.BE), (www.5BARz.com) (“5BARz” or “the Company”), a technology leader in “last mile wireless connectivity” solutions for mobile network operators around the world, announced today that it will present at two upcoming investor conferences in NYC: SeeThruEquity 3rd Annual MicroCap Investor Conference and the 3rd Annual Marcum MicroCap Conference.

Event: SeeThruEquity 3rd Annual MicroCap Investor Conference
Location: Convene in Grand Central (101 Park Ave., New York, NY 10178)
Date: Wednesday, May 28, 2014
Time: 9:30 AM (ET)
Room: Madison Hub
Event: Third Annual Marcum MicroCap Conference
Location: Grand Hyatt New York (109 E 42nd Street, New York, NY 10017)
Date: Thursday, May 29, 2014
Time: 3:00PM (ET)
Room: Morosco

5BARz will present an overview of the Company’s growth opportunities and its most recent product launch, the “5BARz Network Extender”, a wireless connectivity solution for mobile network operators around the world. The 5BARz Network Extender is the world’s first, highly evolved innovative, carrier grade technology device delivering improved cellular signal, enhanced voice, data and video reception and extended battery life on cellular equipped devices.

Mr. Daniel Bland, President and CEO of 5BARz International, commented, “I look forward to presenting at the SeeThruEquity and Marcum Conference and showcasing our flagship product, the 5Barz Network Extender to the investment community. It has received a lot of interest from large network carriers throughout the world and we strongly believe the 5Barz Network Extender is positioned to make a big impact in the telecommunications, technology and consumer electronics sectors.”

To arrange a one-on-one meeting with management, please contact Robert Haag at barz@irthcommunications.com or 1-866-976-4784.

About 5BARz International Inc.

The 5BARz International Inc. business is focused on the global commercialization of a patented product technology branded under the name 5BARz™. 5BARz™ is a cellular network infrastructure device for use in the small office, home or for when users are mobile. 5BARz™ incorporates a patented technology to create a highly engineered, single-piece, plug ‘n play unit that strengthens weak cellular signals to deliver high quality signals for voice, data and video reception on cell phones and other cellular equipped devices. 5BARz™ represents a key solution for cellular network operators in providing clear, high quality signal for their subscribers with a growing need for high quality connectivity. 5BARz International Inc.’s shares are publicly traded on the OTCBB under the ticker symbol BARZ.

Legal Notice Regarding Forward-Looking Statements

The information contained in this release consists of forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, market acceptance, future capital requirements, and competition in general that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. The Company is under no obligation to (and expressly disclaims any such obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

 

Copyright Business Wire 2014
Business Wire
May 21, 2014 – 7:00 AM EDT
How Apple eventually delivered on Gil Amelio’s promise

How Apple eventually delivered on Gil Amelio’s promise

By Mike Wehner | April 25th 2014

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Nobody really talks about Gil Amelio any more. Serving as CEO of Apple for just over a year, his tenure is overshadowed by the return of Steve Jobs and the eventual rise to greatness that the company is still enjoying today. But Gil Amelio was a smart man, and he identified a lot of what was wrong with Apple’s game plan and message at the time, as is evident by this internal address that he put out just weeks after becoming CEO. Looking back, it’s remarkable how accurate Amelio was regarding how Apple could get its groove back, and he paints a near perfect picture of the company Apple would later become, even without him at the helm. “We need to do some financial house cleaning, ridding ourself of some assets and infrastructure which just don’t figure into our future game plan.” That meant killing off a lot of the seemingly random product categories that Apple had begun to unsuccessfully dabble in. Jobs is often credited with actually delivering on this promise — axing unpopular projects like the Pippin — but it’s clear that Amelio saw the problem and had at least partially begun the culling process. “The essence of our plan is simple: We’re going back to our roots.” Amelio certainly delivered on this, not only in terms of product focus but more literally by bringing back Steve Jobs… who would eventually lead a coup to oust him. “We think computer-based tools should be fun as well as fulfilling. This means we must put the customer — the Apple user — at the center of everything we do, and frankly, I think we’ve lost sight of that.” Amen! Apple was at a strange crossroads in 1996. The company’s scattershot approach was clearly a failure and a new direction was needed. The user-first model is something that Apple would eventually grasp on to and has yet to let it go. “We must simplify our line of products while differentiating them through innovation, deliver greater perceived customer value, increase the clarity and intensity of our marketing message, improve the value proposition for our family of third party developers, and simply and strengthen the organization while rebuilding many of our basic business processes.” This reads like a list of things any current CEO could propose today if they wanted their company to be more like modern-day Apple. Apple knocked each and every one of these ideas out of the park. Today, Apple’s product line is fairly simple but sets itself apart from the competition with unique features and overall quality, perceived customer value is what drives Apple’s premium product pricing, its marketing is world class, third party developers flock to Apple’s devices, and the company’s business processes, while sometimes opaque, are serving it splendidly. “You will see a world full of graphics and visualization. You will also see new breakthroughs in the area of usability from Apple. Up until now, we’ve had to learn our computers. In the future, our computers are going to learn us.” Is this man a psychic? Gil Amelio’s days were numbered as soon as he completed the deal that brought Steve Jobs and NeXT into the fold, so his opportunity to deliver on these promises was practically non-existent. Despite this, everything about his vision for the future of Apple eventually came to fruition, and the company is now thriving. How much Amelio actually played a role in the turnaround can obviously be debated, but his eerily accurate predictions can’t be denied. [Source]

5BARz to Enter U.S. Market with Cellphone Extender

By Jason Knott, April 03, 2014

While cellular network signals are getting clearer and stronger in the sky following the new FCC mandate, it sure is getting crowded down on the ground on the manufacturing side.

Yet another cellphone signal booster company, 5BARz International Inc. (OTC: BARZ), is entering the fray. While the company is currently focused outside the U.S., primarily in Latin America, it has its sights set on the U.S. market later this year. As part of that expansion, the Seattle-based company announced it has selected San Diego-based Flextronics (NASDAQ:FLEX) as its supply chain solutions and manufacturing partner for the 5Barz Network Extender.

The partnership greatly expands 5BARz’s manufacturing capabilities to serve the rapidly growing global market demand for improved cellular infrastructure connectivity. The differentiator that 5BARz brings to the table for its plug-and-play, network-specific $200 device is its patent.

According to Daniel Bland, president and CEO, the company has a U.S. patent that allows for the signal booster to automatically adjust the system gain in order to not interfere with the macro-network. For example, using software the device can change from 70dB gain to 90dB gain.

“We are the only company that can do that and we will aggressive defend the patent,” Bland tells CE Pro.

Also the 5×3.5×1.6-inch Network Extender has the ability to cancel out the echo or feedback that can occur when antennas are mounted too close together.

“That is a game-changer,” comments Bland.

From a distribution standpoint, 5BARz is focused on selling directly to phone company carriers at this point, not to integrators. But Bland says that while the company does not have a multi-tier sales channel right now, once the company enters the U.S. market it will be evaluating all channels. Since the company is not yet in the U.S. market, it has not yet applied for the FCC certification.

The partnership with Flextronics will enable 5Barz to deliver their Network Extender products in large volumes with high quality. Additionally, Flextronics’ ability to leverage its global scale and manufacture these products in different regions around the world will also benefit 5Barz and its customers.

“We are excited about partnering with a world-class iconic manufacturer for high volume production, allowing us to extend our reach and connect with more customers and channels in several regions,” says Bland. “5BARz is committed to delivering high quality, cost-effective solutions for our cellular network infrastructure devices on scalable level. We recently announced our innovation center launch in San Diego and Flextronics’ location will enable seamless logistics and efficient operational procedures as well as a reduction in time-to-market to meet the needs of our customers.”

“We are thrilled to partner with 5BARz and provide them value that increases their competitiveness in the marketplace,” says Mike Dennison, president of Flextronics High Velocity Solutions. “Specifically, we are pleased to provide them with supply chain solutions, including our global scale, that will help to take the Network Extender to the next level.”

While there are multiple companies now offering cellphone boosters, the market still has very low penetration. Bland estimates the U.S. market for these devices to be $27 billion, which represents only a 3 percent household penetration.

[Source]

5Barz signs deal with Flextronics for volume manufacturing of signal booster

April 3, 2014 | By Tammy Parker

5BARz International’s plug-and-play signal booster is getting its own boost, thanks to a volume manufacturing deal the company signed with Flextronics.

The companies announced that Flextronics will be 5Barz’ supply chain solutions and manufacturing partner for its Network Extender device, which delivers improved cellular signals for voice, data and video reception cellular devices.

5Barz’s Network Extender, announced in February at the Mobile World Congress trade show, measures 5.5″ x 3.9″ x 1.6″ and weighs 10.5 ounces.

The device combines the send and receive antenna into a single form factor, which 5Barz CEO Daniel Bland said is unique for carrier-grade signal boosters. The company has a patent for a process that cancels out parasitic feedback between the antennas, enabling the device to achieve 70 db of system gain, he added.

The San Diego-based vendor hopes to gain business from mobile operators that are seeking ways to slash their individual customer churn rate, which averages about 3 percent across the industry. As mobile communications device usage increasingly shifts indoors, operators are seeking ways to improve their in-building coverage and keep their customers happy.

Bland contends that most signal boosters are not carrier grade. Boosters offered by Nextivity do fit carrier-grade requirements, he said, but are also quite expensive.

Another proposed solution for residential cellular coverage is femtocells, which have largely failed to meet expectations for widespread adoption. Femtocell issues range from service issues as well as their reliance upon residential broadband backhaul, such as cable or DSL, which is often provided by a third party such as a telco or cable operator with which the mobile operator has no relationship.

Mobile network engineers “have had femtocells jammed down their throats for the last five to six years, and they have just not been adopted,” Bland said.

He said 5Barz Network Extender will only cost mobile operators $200 per unit, which is inexpensive enough to enable carriers to distribute the device to customers for free. That differs from the femtocell model, whereby carriers have often tried to generate profits by selling femtocells to their subscriber base.

Bland contends the low price of its signal booster provides the device with wide adoption potential, possibly changing the way network infrastructure is built out. “This is a sea change of huge proportions if we’re right,” he added.

The Network Extender can be set up to amplify only a specific carrier’s signals and can be remotely managed from an operator’s network operations center (NOC). “This really is a network infrastructure device,” he said.

5Barz is slated to begin delivering test devices this month to a major telco in Latin America. Those devices support only 2G and 3G, per that customer’s requirements.

“We’re in negotiations now with several major telcos that we will be signing cooperation agreements with,” Bland said. “We’ll have LTE in the second quarter,” he added.

In February 2013 the FCC approved new rules for cell phone boosters, giving booster makers a major win after years of acrimonious debate over the issue. Bland said that while 5Barz has had positive responses from U.S. telco executives, the company expects the Network Extender’s initial sales momentum will come from Latin America.

[Source]