Venture 2003: Just the Facts About Total Billings

TOTAL BILLINGS, INC.

Address:

3637 Sycamore Dairy Road
Fayetteville, NC 28303

Phone number: 910-487-8755

Founded: 1990

Management Team:

Gregory C. Stadermann, Founder, President and Chief Executive Officer

Mr. Stadermann has over 20 years of experience in software design, the majority of which has been focused on creating applications that improve mail and billing processes. In 1979, Mr. Stadermann founded Creative Management Corporation, a software design company. In this capacity, he wrote software for the elimination of duplicate mailings to households, a successful campaign for which he received numerous awards. As the President of Creative Management, Mr. Stadermann developed the first Benefit Cost Ratio software program for the State of North Carolina and the Federal Highway Administration.

In 1983, he formed SCS Mailings, the first full service mailing operation in the Fayetteville area. Under Mr. Stadermann’s guidance, SCS became the first in the Fayetteville Postal Division to use ZIP+4, CASS Certified Software, PAVED Certified Software, Automated Bar Coding, De-centralized Printing and NCOA. In 1989, Mr. Stadermann began to focus less on software design and more on the services side of the billing solutions industry. In doing so, Total Billings initiated a strategy focused on one page, high volume bills and notices.

Mr. Stadermann served for seven years as Co-Chairman for the Fayetteville area division of the Postal Customer Council. He was Chairman of the Ethics Committee for the Center of Entrepreneurship at Methodist College, where he received the College’s Entrepreneur of the Year award in 1998. Mr. Stadermann was also a member of the Advisory Board for Marketing at Fayetteville Technical Community College, and was responsible for establishing the Stadermann Family Scholarship Endowment at North Carolina State University. Mr. Stadermann received a Bachelor of Science degree in Civil Engineering from North Carolina State University.

Patrick J. Donahue — Chief Operating Officer

Mr. Donahue joined Total Billings, Inc. as COO in July 2001. From 1997 through 2000, Mr. Donahue was a member of the executive management team at Bell+Howell Mail and Messaging Technologies where he most recently served as Senior Vice President, Document Finishing Group. During his tenure, he was instrumental in the acquisitions of a print stream manipulation software company and an intelligent systems inserting company that dominated the telecommunications market.

Mr. Donahue was employed by Pitney Bowes from 1970 through 1996, where he held several executive level positions. In his most recent as, Director, Large Business Segment, he was responsible for business and product strategy, product management and marketing for over forty software and hardware solutions generating $400 million in annual revenue.

Mr. Donahue holds a Bachelor of Science, Marketing degree form the University of New Haven and a Master of Science, Business Administration degree from Boston University.

Christopher A. Whitfield, CPA, Chief Financial Officer

Mr. Whitfield, a Certified Public Accountant (CPA), has 17 years experience building and running accounting, finance, administrative and human resources functions and six years international public accounting experience. Over the years he has held positions of increasing responsibility including Director Finance, Controller, Executive Vice President and CFO.

Most recently, he founded P2 Solutions, a consulting firm that provides performance planning and project management services to emerging technology organizations. As Managing Principle of P2, Chris worked with Total Billings on a consultative basis since October 2002 prior joining Total Billings as its CFO in March 2003.

Corporate experience prior to Total Billings includes GridSouth, a project of Duke Energy, Progress Energy and SCANA Corporation; Cedalion Education, Inc., a provider of high-end technology training and education; Broadway & Seymour, a publicly traded technology integration firm. Chris started his career with PriceWaterhouseCoopers, where he rapidly advanced to the position of Audit Manager.

Chris holds a Bachelor of Science degree in Accounting from Florida State University and attended the Executive Masters Program at UNC’s Kenan-Flagler Business School. He is a member of the American Institute of Certified Public Accountants.

Keith Nelson, Senior Vice President, Sales and Marketing

Mr. Nelson has over 17 years of sales, business development and executive-level management success in delivering innovative software solutions and services to the telecommunications and the private / public utilities markets. His most recent position was as Senior Vice President, Sales and Marketing for Abiliti Solutions, St. Louis, MO. Abiliti provides software billing, rating and outsourced service bureau solutions to telecommunications carriers and service providers.

Previously, he held a similar position with National Water & Power, Santa Ana, CA where he was a founding member of this venture backed start-up. His initial responsibilities included market strategy, business development and building NW&P’s direct sales channel.

Mr. Nelson holds B.S. degree in Engineering and Resource Management from the University of Wisconsin.

Phillip Dorroll, Vice President, Operations

Mr. Dorroll has seven years of management experience in the billing services industry.

He is currently responsible for Total Billings, Production Operations and Client Relations functions. He has been successful in automating many aspects of Total Billings production process and has led his group in achieving one of the highest SLA attainment ratios in the industry.

Mr. Dorroll graduated summa cum laude as class valedictorian from North Carolina State University – College of Management, where he earned a Bachelor of Science in Business Management with a concentration in Finance.

Mr. Dorroll also serves on the Board for K.E Austin Corporation, a $55 million independent gasoline retailer which operates in North Carolina under the name GOGAS.

Xiaohu Guan, Vice President, Research & Development

Xiaohu (Tiger) Guan has over 10 years of experience in software development and project management. Most recently, he led a software development team at Incellico, Inc, developing leading edge bioinformatics solutions. Prior to Incellico, he was Project Manager at Cisco Systems where his team developed a Test Information Management System that was deployed company-wide.

Prior to Cisco Systems, he was one of the original members of Extensibility, Inc., a leading provider of XML tools acquired by TIBCO Software, Inc. in September 2000. He is a recognized expert on XML and schema.

Mr. Guan holds Masters of Science degrees in both Computer Sciences and Physics from the University of North Carolina at Chapel Hill.

Board of Directors:

Gregory C. Stadermann, Founder, President & CEO, Total Billings, Inc.

H. Dabney Smith, General Partner, Dogwood Equity

Mr. Smith has over eighteen years of experience in venture capital, corporate finance and small business banking. Dabney held key management positions with the Small Business Banking Group at Bank of America.

Andrew Lindner, Managing Partner, Frontier Capital

Mr. Lindner has ten years experience in venture capital and investment banking. Andrew has held various positions at Bank of America Investment Banking in Charlotte, NC and Weiss, Peck & Greer, New York, NY. He currently serves on the Boards of Gazelle Consulting, Digital Envoy, and the University of North Carolina Charlotte College of Information Technology.

Michael Colin Chandler — Vice President, UBS/Paine Webber

Mr. Chandler has more than 16 years experience as a financial consultant. Currently he is a Vice President with UBS/Paine Webber. Mike is on the boards of The Tarheel Challenge and The Fayetteville Sportsman Club. Mike is also a member of the Chamber of Commerce Virtual Business Resource Center education and training team. Mike attended East Carolina University where he majored in political science with a minor in economics.

Advisory Board:

Reid Conrad and Lee Buck of Commerciality, Durham, NC, are members of Total Billings’ Advisory Board providing ongoing counsel on business, market and product strategies.

Investors: $3 million dollars was raised in June 2002 from Dogwood Equity of Raleigh, NC, and Frontier Funds of Charlotte, NC. Both funds are represented on Total Billings’ Board of Directors.

Revenues: Net revenues for 2002 were $2,951,000. Net revenues for 2003 are forecast at $5,846,000, a 98% increase.

Employees: 45 full-time equivalents