et3.com Inc.  TM

Ó May 28, 2001, et3.com Inc. Crystal River FL 34423-1423, all rights reserved

Note: This executive summary makes mention of shares, stock, and private placement and compensatory stock offerings associated with current business plans of interest to prospective licensees.  No shares are being offered to the public.  A Stock-offering prospectus discloses risk factors that are beyond the scope of this document.   This document is not to be construed as an offering of shares, or a solicitation to invest.  SEC regulations forbid the offering of shares to the public without filing a registration statement. 

 

Summary of The Company

Vision

We believe that a new field of transportation technology is ready for commercial exploitation.  This field is known as "Evacuated Tube Transport" or ETT.  ETT seeks to use evacuated tubes for the components of transportation infrastructure.   The evacuated tube transport  structures promise to allow transportation that is hundreds of times more efficient than is possible with aircraft, boats, automotive, and rail transportation systems now in use.  We further believe that ETT utilization will fuel much of the worldwide technological and economic advance that will occur over the next thirty years.  Management will attempt to position ET3.COM INC. so as to be the beneficiary of this technological and economic advance.  For this reason, Management believes that Evacuated Tube Transport will grow to supplant the transportation industry that is in place today.  There can, however, be no assurances that this will be the case.

 Aim

Our aim is to generate returns for our shareholders by acting now to acquire control of important blocks of intellectual property (patents and trade secrets) in the ETT field.  We currently own the patent and trade secret rights to Evacuated Tube Transport, the first practical evacuated tube transport technology.   We believe that these ultra efficient and environmentally benign systems, will become key components of numerous future worldwide transport systems.  ET3.COM INC. intends to take full advantage of the generic nature of this unique technology by securing the intellectual property rights on the lion's share of all specific applications, new devices, and novel systems issuing from it.  Management also believes that we are well positioned to gain control of other major intellectual property by developing new patents and trade secrets through our own internal efforts and by developing patent-exploitation agreements for the patents and trade secrets belonging to others.

Customers

Our patent and IP portfolio will form the basis for constructing a network of collaborative joint venture activities, aimed at product creation, with industrial partners from the vehicle transportation, electric power, and civil engineering, and manufacturing industries.  This network is intended to provide both short-term revenues from the licensing of our intellectual properties and long-term revenues from the royalties from successful products.

Financial Strategy

Our financial strategy is to grow the Company's value through expanding licensing and royalty revenues.  We believe that early revenues will come primarily from up front fees paid to the Company by our industrial partners under licensing agreements for the use of pieces of Company intellectual property for product development and sales.  In addition, we expect to receive payment for activities supporting these partnerships during product development.  We further believe that long-term revenues will flow from royalties received from successful products developed by our customers.

Products

The product of et3.com Inc. is mainly intellectual property (IP) relating to evacuated Tube Transport (ETT). This IP is leased, non-exclusively for an initial license fee of $100 and a 6 percent use royalty. The ETT IP is used by licensees desiring to participate in the ETT market with their goods, services, or assets. The Licensee agrees to license any improvements they may make to ETT to et3.com Inc. The ETT license includes license to use (for ETT related use only) any such contributions that a participating licensee shall make. A portion of the royalty income is earmarked for distribution to participating Licensees according to their degree of participation, thus the license gains value, the licensee leverages their contribution, and the company maintains market dominance.

Under the terms of the ETT license, a Licensee may sub-license new licensees under substantially identical license terms. A commission on any sub-license royalty income is paid to the underwriting licensee. In addition, and as incentive to sub-license the ETT technology, the licensee is granted a share of stock for every sub-license underwritten. A portion of the royalty is distributed to shareholders as a dividend.

Licensees are given access to the ever-expanding ETT technology pool and database, over the internet. A marketplace is planned whereby licensees may collaborate, submit ETT proposals, vote on proposals, and bid on accepted proposals. This marketplace is implemented at low cost over the internet.

Management believes that this licensing arrangement will result in rapid development of ETT systems by Licensees.  Licensees can leverage existing goods, services or IP at very low cost to participate in a new and expanding market.  As more licensees participate, the license will become more valuable and this will attract additional licensees, leading to a “snow ball effect”.  Similar IP License pools, and collaborative efforts are revolutionizing growth in the electronics and computer software and hardware markets. To management’s knowledge no companies in the transportation field are promoting such IP licensing strategy. There can be no assurance that the company can attract sufficient licensees in key fields to spark the growth rates of the electronics industry.

We believe that the development of ETT technology by licensees, will lead to a steady and rapid product progression from specific route and cargo applications to sophisticated world transport networks.  This progress can be predicted as a direct result of our unique ability to substantially eliminate aerodynamic and rolling resistance, and to recycle energy normally wasted when a vehicle decelerates.

In the near term (two to five years), we expect ETT technology to be immediately applicable to high priority mail and bulk cargo transport technologies. 

In the mid-term (five to eight years), By fine-tuning the performance of these first devices, Management expects further applications in advanced, low cost, local, regional, and international transportation systems for humans and cargo.  Management believes that the capacity of the ETT system to function as a super efficient energy and water transport device that will be  exploitable to approximately double the amount of energy a electric utility company can sell without consuming additional fuel. 

In the long term, by tailoring the ETT system to satisfy even more stringent performance, alignment, and strength standards, we anticipate the future possibility of space launch and retrieval systems.

Market

The current worldwide market for transportation is around 5 trillion dollars.  The demand for transportation is 13% of the world economy. In developed countries it is 20%.  In the United States one Trillion dollars per year is spent on transportation.  Since the dawn of civilization and the invention of the wheel, transport devices have experienced an exponential growth in revenue. The growth in transport spending is double the growth of the world economy. It is the biggest growth market in the world and shows no signs of slowing.  Our clear and immediate niche in this market would be to provide technology and plans for a transport system with an order of magnitude improvement in efficiency and ecology.  We believe that we will have an advantage in this niche because the Company believes that it will be in a position to implement a snowball effect as existing technology is pooled to the mutual benefit of companies seeking a new market for their existing technology or products.   There can, however, be no assurance of this. 

Very closely related to the transportation of people and cargo is the transportation of energy; and taking off from it, is the use of the ETT system to enable high efficiency energy transportation. The electrical energy market in the United States alone is currently valued at 200 billion dollars.  ETT technology can approximately double the amount of energy a power company can sell.  There can be no assurance that energy companies will utilize this option.  As et3.com Inc. moves the technology on to where individual ETT systems are built and in use will find its most natural application (i.e., massively networked systems for the transportation of goods, persons, energy, water, sewage, etc.), we believe that our potential for increased revenues will expand enormously.  While et3.com Inc. has to date sold more than 20 ETT licensees, there can be no assurances given, however, that any additional revenue opportunity at all will materialize for et3.com Inc..

Competitive Position

To the best of our knowledge, we are the first company organized to make a business and a profit from capturing and exploiting the intellectual property of Evacuated Tube Transport Technology.  Marketing experts claim that being first is better than being better.  As a matter of corporate policy, Management intends to energetically exploit the Company's position of being first.  Et3.com Inc. intends to be everywhere in the field: in the universities, in the government research labs, in the technology partnership offices of its future partnership corporations, and in the U.S. Patent and Trademark Office.

Patents

We own the worldwide rights to the economic exploitation of United States Patent Number 5,950,543 (the "Patent") issued September 14, 1999 to Daryl Oster.  Daryl Oster is also the Company's CEO and a major shareholder in the Company (See "Management" and "Security Ownership").  The Patent claims cover apparatus and method of evacuated tube transport.  Foreign Patent application is pending.  No assurance can be made that world wide patents will issue.  While there can be no assurances given at this time that we will be proven correct, we believe that Evacuated Tube Transport will be the major means of transportation of the future.

Cash Requirements

In order to conserve resources, the Company's executive officers have agreed to work without pay until such date as the Board of Directors decides that the Company has attained capital sufficient to pay their salaries.  The Company can continue in its present mode of operations for at least a year, and possibly indefinitely, without any proceeds.  Any and all proceeds will be used to accelerate the Company's progress and amplify the Company's influence on Evacuated Tube Transport.

Company Contact

Daryl Oster, CEO; Et3.com Inc.; P.O. Box 1423;
Crystal River Florida 34423-1423 (physical address is: 222 NE 2nd Court in Crystal River)
Telephone: (352) 795-5415
E-mail: et3@et3.com

 

RISK FACTORS

Purchase of a license to use the ETT technology involves a high degree of risk.  Prospective licensees should carefully consider all of the information in this summary, including the following risk factors.

We are a Startup Company in Advanced Technology

We are a startup company seeking to exploit an advanced technology, Evacuated Tube Transport. The individual components of the system are, by themselves well understood, but to date have not been tested together, and remain theoretical.  Because a working ETT system has not yet been built, progress in the field is being driven by research and invention, not by products and sales.  To the best of our knowledge, no proven products based on ETT currently exist anywhere in the world.  There can be no assurance given that we will ever be successful in our aim to revolutionize the transportation industry by exploiting the technology of ETT and to profit from the development of products, product sales, licensing fees, and royalty streams.

Our Intellectual Property Protection May Not be Adequate

Our strategy is to expand our intellectual property (i.e., our existing patent license and trade secrets in ETT) and to use this intellectual property to deter competitive encroachment, as well as to develop products, product sales, license fees, and royalty streams based on this intellectual property.  There is no assurance that the intellectual property, as currently controlled by us or as expanded in the future, will be adequate either to protect us from competitive encroachment from existing or future companies in such fields as Transportation, vehicle manufacture, energy production, etc.; or to generate significant products, product sales, license fees, and/or royalty streams based on this intellectual property.

License Fee is non-refundable

The $100 license fee is non-refundable, and may be lost if the plans to implement ETT fail.

We Have No Operating History

We incorporated in Florida on May 21, 1999.  We have no operating history.  Through December 31, 1999, we had only attracted fourteen licensees.  No major companies have been approached yet, and no assurance can be made that the company will be able to attract a critical mass of licensees to exploit the ETT technology.  No assurance can be given that future revenues will result from our plans to develop and exploit our intellectual property in ETT.

We are Dependent Upon Key Persons

The vision and persistence, and technical skills of Daryl Oster, are currently and in the foreseeable future, the major driving force of the company.  Additional Management, organizational and selling skills are essential to our success. We do not carry key person life insurance on any of our key persons.  The loss of the services of any of our executive officers or other key personal could have a material adverse effect on the business, results of operation, and financial condition of the Company.

Our future success also depends on our ability to attract and retain highly qualified technical and managerial personnel.  Competition for such personnel is intense and there can be no assurance that we will be able to retain our key technical and managerial employees or that we will be able to attract and retain additional highly qualified technical and managerial personnel in the future.   The inability to attract and retain the necessary technical and managerial personnel could have a material and adverse effect on our business, results of operations, and financial condition. The ability of the company to attract needed key persons is limited by lack of financing.  The incentive of stock may not be sufficient to attract and hold key persons.

Voting Control is in the Hands of a Single Shareholder

Our stockholders are not entitled to cumulative voting rights.  Consequently, the election of directors and all other matters requiring stockholder approval will be decided by majority vote except as otherwise provided by law.   Mr. Daryl Oster currently owns 77 percent of the outstanding common stock.  Mr. Oster has an option to at all times be issued stock to maintain at least 51 percent of the outstanding shares. and, assuming all of the Shares offered hereby are sold, after the Offering , Mr. Oster will own 51 percent of the outstanding common stock.  Thus, Mr. Oster is, and will be in a position to control the election of our Board of Directors and our management and policies.  (See "Security Ownership").

We May Have a Need for Additional Financing

Based on current projections, we may decide to raise additional capital in the future in order to fully achieve our goals.  There can, however, be no assurance that such funds will be available, or if available, on terms acceptable to us.  If we are unable to obtain such funds, our business operations could be adversely affected which, in turn, could cause a deterioration of our financial condition and our ability to generate revenue.

There May be Competition in the Future

If the technology of ETT becomes a viable method for Transportation, the competition to control the intellectual property of this technology and to develop and market the products based on this technology will be substantial.  We believe our future competitors could include existing companies engaged in the field of transportation, virtually all of which have greater financial, engineering, R&D, production, marketing, and distribution resources than the Company (see "Business").

We are Subject to Government Regulation

Transportation products are regulated in many ways by the government at various levels. Products and activities based on ETT may likewise become subject to future governmental regulation.  It is possible that such regulation would come to affect our business in ways that are difficult or impossible to predict.

There are a Limited Number of Outside Directors

The Company has one director.  None is an outside director.  (See "Management - Directors and Executive Officers").

Our Articles of Incorporation Provide for Indemnification of Officers, Directors, Employees and Agents

The Articles of Incorporation of the Company, as required by law in the state of incorporation, provide that the Company shall indemnify any person who incurs expense by reason of such person acting as an officer, director, employee, or agent of the Company and that this indemnification is mandatory in all cases in which indemnification is permitted by law.

 

Summary of Financial Information

Summary of Pre-Operations Expense

 

Inception through 11-30-99

 

Income

$1400

 

Pre Operating Expense

($900)

 

Net Income

$500

 

Net Income Per Share

3.8 Cents

 

 

As of December 31, 1999

ASSETS

Current Assets:

 

   Cash Deposits

$1400

Participating Licensee contributions

$20,321

 

 

Organization Costs

$280

Patent assignment and IP

$50,000

 

 

 Total Assets

$72,001

LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)

Current Liabilities:

 

   Accounts Payable

($620)

 

 

Total Current Liabilities

($620)

Stockholders' Equity:

 

   Common Stock Issued

$70,321

   Stock Issuance Expense

0

   Retained Earnings

$900

   Net Income

$500

Total Stockholders' Equity

$71,381

 

$72,001

 

 

LEGAL COUNSEL

Jennifer Hampton represents the company in licensing, trademark, unfair competition, copyright, advertising, internet and other legal matters.  Ms. Hampton is an intellectual property/internet attorney at one of the top ten law firms in the country, where she counts numerous internet companies among her clients.   She received her J.D. from Fordham University School of Law, her M.A. from Fordham Graduate School of Arts and Sciences, and her B.A. from Hamilton College.  Ms. Hampton provides legal services to the company in exchange for stock valued at ten shares per one hundred dollars worth of services normally billed at the rate of $250/hr (see Compensatory Stock Program).

 

LEGAL PROCEEDINGS

Neither the Company nor its property is the subject of any current or pending adverse legal proceedings.

 

MANAGEMENT

Directors and Executive Officers

The Company's directors and executive officers, who will hold office until removal or resignation, are as follows:

Name

Age

Position

Date of Election/Appointment

Daryl Oster

37

CEO

May 21, 1999

 

 

 

 

 

 

 

 

 

Director and Executive Officer Compensation

We currently do not pay monetary compensation to our directors and executive officers for their services.  In the future, after we have completed our startup phase of business (see "Business - Startup Phase"), executive officers may be compensated for their services as executive officers or directors.   Presently, all executive officers of the Company are serving without compensation.  This is one of the reasons that we are able to function for a year with or without proceeds.

 

Biographical Sketches of Management

Daryl Oster was born in Washington DC in 1962, He studied Mechanical Engineering from ‘80 to ’84 At Walla Walla College Washington. His  experience includes Mechanical design, in marine, aerospace, and commercial fields.  Mr. Oster has served as an elected City Council member, and on a 5 county planning board.  He has held series 7, 63, and 24 securities broker and principal licenses.  Mr. Oster is an avid inventor; his farm heritage and work ethic are evident in his common sense approach, steadfast determination, and respect for the environment.  His wide skill set has been refined into an innovative, simple, low cost solution to the transportation dilemma.

TECHNICAL ADVISORS

Technical Advisory Committee

The Company has formed a Technical Advisory Committee (TAC) which serves to advise on legal, technical and scientific matters relating to exploiting the field of ETT for economic gain.  The Committee is composed of individuals with exceptional backgrounds in their fields.  Each member is an expert in an area critical to the success of et3.com Inc.  All members serve on the Technical Advisory Committee in exchange for Company stock or stock options.  A few vacancies exist on this Committee, preference is given to licensees, and shareholders.

Biographical Sketches of Technical Advisors

John Alger – Sales VP, Ormond Beach FL

Max Barnes – CPA, Crystal River FL

Ronald Cohen. – CPA, Crystal River FL

Hansel Escobal – Virtual Reality Expert, Ft. Lauderdale FL

John Hambel. – Internet Service Provider, Crystal River FL

Jennifer Hampton- Attorney, New York NY

Edmond McKean - Civil Engineer, Inverness FL

Douglas Miner - Virtual Reality Expert, Inverness FL

Nick Nicholson – Civil Engineer, Brooksville FL

Randy Oehmig, - Insurance Adjuster, Crystal River FL

Brenda Schneidereit, - Consultant, Crystal River FL

Clark Stillwell – Attorney, Inverness FL

BUSINESS

Our Vision

We believe that the field of Evacuated Tube Transport will power much of the worldwide technological, social, and economic advancement that will occur over the next thirty years.  Evacuated Tube Transport (ETT) is the technology of eliminating resistance to travel by the use of evacuated tubes.   ETT could lead to transportation systems hundreds of times more efficient than the best current systems in public use.  Management believes that this enormous efficiency potential will allow Evacuated Tube Transport to create an industry that could supplant the transportation systems that are in place today.

et3.com's mission is to provide the world with technology enabling low cost, non-polluting, 4-hour transportation between any major cities by the year 2032 using the ETT transport system. 

Humans are by nature mobile; increase a person’s mobility and you increase their power to accomplish. Transportation advances chronicle human history: Domestication of the horse, shoes, the wheel, canals and barges, the roman road, the Viking boat, the sailing ship, the locomotive, the steam ship, the motor car, the airplane, the jetliner, the rocket. With every transportation advance comes a jump in the standard of living. ETT is human kind’s future. ETT technology is so revolutionary that it compares to the improvement the steam locomotive was over horse and wagon; or the airplane over the train or ship. Imagine the world of the future with a fully mature ETT transportation system;
* Every home, business and public building has access to 15 minutes; travel to any other location in the local area, 30 minutes; to any location in the state, 2 hours to any location in the country; and 4 hours to any mainland location in the world.
* Travel when and where you want at any time, no schedules to check.
* Blizzards, hurricanes, and ice storms never slow down the ETT.
* The Air in any city is fresh, clean and clear.
* The cost to travel is so low that advertisers pay for most trips.
* Accidental traffic death and property loss is 1/10th what it is now.
* Reduced demand for petroleum, results in a wide variety of low cost plastics.
* Place an order for exotic fruits, clothing, or bicycle, and have it delivered in hours.
* Market to anyone in the world, transportation cost is no longer a barrier.
* New York to Washington DC in 10 min.
* A few will still ride horses or motorcycles, fly airplanes or race boats for entertainment.
* Noise levels are dramatically less.
* Less vigilance necessary to avoid being run over by a car.
This is our vision;
It sounds incredible but we believe it will happen. Just like the transcontinental rail project in the 1800s, ETT will take unprecedented effort to bring it to fruition.  In less than a generation the telephone replaced the telegraph, electricity replaced the kerosene lamp. Many of us remember black and white television and witnessed the first moonwalk. Some cling to the old, but most welcome superior ways. We believe ETT will spark unprecedented creativity and human potential.  With cheap fast reliable transportation available, the world’s petroleum resources can be used for more lasting endeavors. Cleaner, faster, safer, cheaper, and enduring for generations, we believe that ETT is the future of transportation.

The Company’s aim is to generate long-term returns for our shareholders by acting now to capture a rewarding portion of the future of the Evacuated Tube Transport industry.  Management believes that now is the right time to gain control of important blocks of intellectual property (patents and trade secrets) in the Evacuated Tube Transport field.  ET3.COM INC. already controls the patent and licensing rights to the ETT patent by Daryl Oster, a technology that Management believes will be a key component of future Evacuated Tube Transport Systems.  The Company is positioned to attempt to gain control of other prime intellectual property by developing new patents and trade secrets through its own internal efforts, and by developing patent-exploitation agreements for the patents and trade secrets belonging to others.

Management's strategy for generating favorable returns for the Company's shareholders combines a technical strategy for exploiting the field of Evacuated Tube Transport with a financial strategy for building revenues and stock value.

Our technical strategy is to capture and exploit crucial Evacuated Tube Transport intellectual property in order to drive the development of the field.  An important beginning is our ownership of rights to the patented ETT technology. Management intends, through additional patent development, to further enlarge et3.com Inc.'s patent portfolio.  We have also targeted technology exploitation agreements with universities and government labs that are leaders in technologies relating to Evacuated Tube Transport.

The Company’s intellectual property will form the basis for constructing a network of joint venture activities with industrial customers from the transportation, manufacturing, and construction industries aimed at the creation of advanced products based on Evacuated Tube Transport.  Such a customer network is intended to provide two kinds of revenues: short-term revenues from the licensing of the Company's intellectual properties, and long-term revenues from the royalties payable to the Company that result from successful products.  Management believes that our customer network, together with our intellectual property position, will provide us with the business foundation to develop and or acquire related key Intellectual Properties, and right of ways.

Our financial strategy is to grow the Company's stock value through expanding technology licensing and product royalty revenues.  The goal is to own, through intellectual property development, a meaningful portion of the entire revenues generated in the field of Evacuated Tube Transport.  It is the goal of owning a meaningful portion of the entire revenues generated in the field of Evacuated Tube Transport, that the Company was formed to pursue.  It is our firm belief in the reality of that goal that has kept our executive officers working full time without pay for an extended period of time, in the pursuit of it.

We believe that early revenues will come from up-front fees paid to the Company by industrial customers under licensing agreements for the use of pieces of the Company’s intellectual property for product development.  The Company believes that long-term revenues will flow from royalties received from successful products developed by our customers and from sales of expanding product families.

All three revenue sources: licensing fees, royalty payments, and related product sales will enhance the Company's stock value.  Early revenues from licensing fees will be used to grow our technology base.  Longer-term revenues from royalty streams and Company products will be used with the intent to dominate the field of Evacuated Tube Transport with the aim to maximally grow our stock value.

 

 

Why Evacuated Tube Transport?

It is fair to say that the enormous economic boom of the last 225 years in the United States; and since recorded history in the world; has been driven largely by transportation advances.  The never-ending quest to move products and people as fast, safe and inexpensively as possible is universal. The roman road and water transport aqueducts doubled the world standard of living 2000 years ago. The development of the ocean sailing ship doubled the standard of living during the 16th century. The railroads and trains doubled it again in the 1800s.  In the first part of this century the automobile and airplane did it again. The long, stable exponential growth curve of the world transportation market is undeniable.

Management estimates that the world transportation market (vehicles, fuel, roads, etc.) will exceed 5 Trillion dollars annually by the close of 2000.

Much of this 5 trillion dollar annual market depends upon the continued growth of the average speed and efficiency of transportation.  Without continued improvements, this growth cannot be sustained. 

It is clear to many observers that the end to the continuously faster and more efficient vehicle is here.  The road infrastructure is crumbling faster than it can be built.  The average speed on most interstates is less than it was in the 50s because of inadequate capacity.  It is clear that the entire world population cannot enjoy the same standard of transportation that we enjoy in the United States. If they did we would soon be out of fuels, and the environment would be in ruins.  In fact many energy experts predict that world oil production will peak before 2012.

It is our view as well.  The end of the ever-more expensive transportation is the beginning of Evacuated Tube Transport.  The automobile and airplane are reaching their limitations. The best alternative is EET.  Evacuated transport the way nature maintains stable travel of the planets, solar system, and universe for that matter.   Let’s mimic the perpetual motion of the heavenly bodies and get back in tune with nature.

ET3.COM INC.'s Evacuated Tube Transport

The Patented Evacuated Tube Transport Technology ultimately offers:

·         Speeds faster than one mile per second.

·         Miami to New York in 25 minutes.

·         New York to Hong Kong in 3 or 4 hours

·         Much lower cost.

·         Almost no pollution.

·         Enduring for generations

·         Immune to bad weather.

·         No schedules to conform to.

·         For a given speed, safer than any other mode of transportation.

 

A car traveling at 70 miles per hour will quickly coast to a stop if the engine is turned off.   A satellite in orbit will coast at speeds of 25 thousand miles per hour, for years with no energy input. The difference is aerodynamic drag and rolling resistance. In space there is no drag or resistance Since it is impractical to put vehicles up in space, let’s bring space conditions down to earth, in a tube that is, an Evacuated Tube.  et3.com (Evacuated Tube Transport Technologies) is dedicated to bringing ETT (Evacuated Tube Transport) to the world. 

 

Abstract of the invention:  An evacuated tube transport (ETT) system comprises: 

Evacuated tubes constructed along a travel route for both directions; Capsules to transport occupants or cargo within the tubes; Equipment providing continuous transfer to tube while preserving vacuum; Capsule suspension that substantially eliminates drag; Coordinated capsule acceleration means; Energy recovery capsule braking; Vibration control structures; Tube alignment devices; Automatic capsule switching and synchronization; Automated operation, inspection, and maintenance; Methods of construction; and Redundant data, safety, and security  systems.

Low and high technology embodiments are comprehensively disclosed in the ETT patent.  Possibilities include replacement or augmentation of:  vehicles, power lines, energy storage devices, power plants, heaters, air conditioning, water and sewer pipes, and communication cables and satellites.   ETT provides continuous, environmentally benign, sustainable, local and international travel.  Aerodynamic limitations, weather exposure, and obstacles are essentially eliminated.  The system enables a quantum improvement in safety, speed and efficiency.

 

ETT systems can be divided into three basic categories according to design speed. 1) Low speed up to 300 MPH, to compete with current ground transport.  2) Medium speed up to 1200 MPH, to compete with air transport. 3) High speed to 24,000 mph, without any current competition.

 

Maglev, and Linear Motor technologies are preferred to rolling contact elements as a suspending and powering means to conduct a capsule through an evacuated tube. This fully exploits the high-speed potential of ETT. With the elimination of aerodynamic forces, magnetic suspension systems are better for ETT systems with a design speed greater than about 300 mph. Conventional rolling elements are cost effective for ETT systems having a design speed less than about 300 mph. 

 

Challenges of ETT are mainly economic, or related to travel at ultra high speed or in an evacuated environment, they include:  High capital requirements with long amortization periods (for a given speed and capacity, capital cost can be much less for ETT). As with roads and tracks, the speed potential is limited by economic considerations over difficult topography, or oceans, however for a given cost and capacity speed potential is much greater than other forms of ground transport. At hyper velocities any malfunction of seals or compromise of the integrity of the tube could destroy capsules because of extreme kinetic energy, thus security of the tube gains importance as speed increases. Reliance on life support systems is a small price to pay for the many advantages produced by an evacuated environment. Once the trip has started there is no stopping or turning back (unless an emergency occurs) so human needs must be taken into consideration according to the length of the trip. Limiting inflow to the capacity of the system can minimize congestion at busy terminals.  Some passengers may experience claustrophobia, this can be mitigated by drugs, or preferably, suitable sensory stimulation.  Prolonged accelerations can cause discomfort; proper seat design can reduce this.  An earth quake, mud slide, flash flood or tidal wave could damage the tube killing many of the occupants and releasing tremendous destructive energy; prudent design precautions mitigate this as known to those versed in the construction and civil engineering arts. Geological movements of the earth are mitigated by an alignment system.  Failure of one of the capsules could cause the failure of many, so reliability is paramount. Failure of the braking system could result in the destruction of the terminal and all occupants of the tube, redundant systems prevent this. Any air leaking into the system must be removed, this results in an energy overhead that can be significant under low use or short trip conditions.  Management believes that the challenges are surmountable with a collaborative development effort.

 

Advantages of ETT over traditional transportation methods are many; safety, efficiency, speed, convenience and ecology are the main advantages. 

 

 

 

Safety:  Potential for destruction varies as the square of velocity and linearly with mass.  For a given speed the object with lighter mass is the safer.  The ETT system minimizes moving mass, thus safety is greater.  ETT enables hyper velocities, hence more potential for destruction exists due to that velocity.  For any given speed over about 20 mph and distances over about 10 miles ETT is the safest method of travel. Safer than walking because while in the tube it is improbable to be hit by a motor vehicle, bullet or bolt of lightning.  Safer than motor vehicles because the path of travel is always under control; no collisions with a fixed object or another motor vehicle, less mechanical failure to worry about, not subject to adverse weather.  Safer than trains because most train accidents are caused by something on or wrong with the track, with ETT this is virtually impossible.  ETT is safer than marine travel because of no weather exposure; and because chance of collision is mostly eliminated. Safer than flying because most plane crashes are due to; bad weather, human error, or mechanical failure, all of which are drastically reduced by ETT.  It is impossible for children, pets, or animals to wander into the way to be run over. No fuel is carried and the materials used can be fire resistant. The major causes of accidents of classic transport are either eliminated or drastically reduced by ETT.

 

Efficiency:  ETT is the most cost efficient method of travel for many reasons:  At a given speed the energy usage is the lowest possible. With few moving parts, and minimal contact, the operating life is longer and wear is less than other forms of transportation.  Long amortization periods are possible.  For a given capacity, the fixed and dynamic loads for an ETT bridge or span are much lower than rail or road, leading to lower costs.  The separate technologies needed for the implementation of the system are already in use and well proven.  The ETT does not rely on super conductor technology, but greater, capacity and efficiency are possible when superconductors become cost effective.  ETT can use electricity that can be derived from renewable sources.  Most of the materials used are low cost and can be recycled.  Existing manufacturing capacity and methods can be used, lowering cost.  Worn out roads that need replacing anyway is an ideal location for ETT.  Many identical components result in economies of production.  Low speed ETT systems require much less right of way because the path of travel is protected, this results in greater land use efficiency, and lower construction and maintenance cost. ETT is compatible with many existing right of ways. For a given speed and for long distances the energy used per person or ton is less than one percent of the most efficient form of classic transport (99% + energy savings).

 

 

Speed:  ETT is the fastest possible method of travel between two points on earth greater than about 2 miles apart. The speed is limited by human limits of acceleration tolerance. The curvature of the tube determines the acceleration due to centripetal motion. Thus the minimum radius to be traveled limits the speed.  For a straight tube, the linear acceleration that can be produced, and the distance, determines the top speed limit.  As speed increases so does the energy requirement to maintain the maximum acceleration that an occupant can tolerate. The maximum speed is limited by waste heat build up in the capsule, and the amount of power that the acceleration device is rated for. Sandia National Labs have developed linear motor technology capable of speeds of over 2 kilometers per second.     Speeds to 8 kilometers per second are considered to be possible by experts in the field.

 

Capacity: the theoretical capacity of a single 5 foot dia. tube is about 1 capsule per second at 35 mph, 2 capsules per second at 70 mph, 4 capsules per second at 140mph, 8/sec at 280mph, 16 at 560, 32 at 1120, and 64 capsules per second at 2240 miles per hour. 64 capsules per second equates to 640 persons per second or 38,000 persons per min. or a whopping 2.3 million people per hour.  (This assumes the tube’s ability to reject waste heat).  It is not likely that this capacity potential will be fully exploited.  Capacity can be added, as demand increases.

 

 

Ecology:   If renewable, non-fossil electricity is used the ETT is non-polluting, yielding lower environmental costs.  ETT is ideally suited to non-polluting energy sources like; wind turbine, solar, hydroelectric. ETT can be used to transport energy, thus reducing the need for electric power transmission lines. Extremely long useful life minimizes the waste of materials associated with other forms of transport. The ETT is quiet.  The impact to the environment is minimal compared to a road that animals can't cross without danger. There is minimal storm water runoff impact.  ETT is less than 5 percent as disruptive to wetlands than a road. ETT utilization results in a sustainable world transport system.

 

Other advantages:  The transport market is huge, with favorable trends toward faster and more efficient travel. The need of transport is basic, resulting in low market dependence.  Obsolescence of ETT is unlikely in the foreseeable future.  Less reliance on oil will result in cheap plastics.  Low risk proof of concept for non-life-support versions can minimize initial product liability.  Virtually continuous, non-intermittent operation results in no scheduling required.  No advance booking or ticket needed.  ETT is weather independent, no storm delays.  Travel from any city, to any city on earth within 4 hours (after the system is built). No driver license required. Minimal training required. No fueling required. No odors or fumes produced. Servicing and operation can be automated. Lightweight simplifies repair and construction.  Convenience and social interaction enhanced by mechanization.  Can use existing production facilities with minimal tooling cost.  Travel imbalances can be used to transport waste. Aerodynamic instabilities and supersonic heating are virtually eliminated.  ETT does not rely on, or improve directly upon superconductor technology.  It is believed that superconductor technology will advance much faster as a result of ETT utilization. ETT can fully exploit the advantages of super conductors.  There will be much more incentive to develop cost effective superconductors when ETT becomes utilized. 

 

Products and Services

The Company intends to produce or acquire and pool intellectual property relating to ETT. The license to use this ever-expanding pool is the main product. The Secondary product / service relates to establishing an Internet based marketplace for the collaboration, and trade of licensee’s products, materials, and services. Thirdly, other long-term products are advertising, logo licensing, and development of additional related technologies, etc.

The first product class is a near-term; with some products currently being sold. The second will be implemented within in the first year of operation.  The third is a longer-term product family; the early members of which management hopes to begin selling within the first four years of operation.

The intellectual properties that the Company has, and intends to produce - its patents and trade secrets - are sellable products.  They will be licensed and supported in exchange for the payment of fees.  As such, they will be a continuous and major output of the Company.  The potential customers for these intellectual property products will be individuals and companies interested in exploiting ETT, the same companies we envision will make up our network of future joint venture partners.   We believe that this network will need initial and ongoing access to ETT intellectual property and we intend to provide it to them.

The Company also intends to facilitate the marketing of goods and technical services relating to ETT: Contract R&D and product development support.  Customers for these services will again be the companies in our future customer network.  We believe that ETT support infrastructure will be of value to licensees as they collaborate to develop ETT products.  This expertise will be sold as product development support and as contract R&D.  The Company’s customers will be drawn from transportation, materials supply, manufacturing, and construction industries.  We will choose our customers on the basis of their interests in ecology, technology innovation, and new product development.  While the actual products undertaken for development will be determined by customer companies and not by us, Management would expect these products to include: 1) route selection, environmental impact, survey, acquisition and development; 2) tube design, and construction, including tube support and alignment structures, vibration control, etc. 3) capsule design and construction, including life support equipment, cooling, suspension, and powering apparatus; 4) merge and divide capsule switching; 5) terminal building, airlock, capsule and people handling equipment, life-support recharge systems; 6) automated capsule control systems, capsule and tube position sensors, accelerometers, software, and computation devices; 7)safety and security equipment; 8)power grid interface, transformers, capacitors, etc.; 9)maintenance services; 10)Governmental and regulatory consulting, lobby; 11)education and training; 12)management; 13) Financing; ETC.

Every device, product, service, material, and intellectual property relating to ETT will be classified and have a specified niche to facilitate collaboration among licensees. The internet is the vehicle to implement the collaborative efforts of licensees. Forums open to licensees create a competitive, efficient market for the selection of the best components, materials, and services, based on a propose/vote/bid cycle.  Advertising on the web site is another possible product.

Management also sees key route rite-of-ways (ROW) as a high profit long-term product.  The Company expects that key ROW to be of two types:  key geographic ROW, and key population ROW. The attractive locations to secure ROW agreements will be in low cost key geographic points between widely separated population centers.

Markets

We believe that 3 families of ETT systems will be the major product areas flowing from the field of ETT technology.  1) low-speed / low-tech systems for developing markets and local use at less than 350mph; 2)medium-tech / medium-speed for regional use, and in stronger markets; 3) High-tech / high-speed for intercontinental / international transport and developed markets.  The markets for these products may be an expanded version of today’s markets for automobiles, roadways, and aircraft.

The Company expects ETT systems to serve the same markets as today’s transport infrastructures.  However, since we believe that successful ETT technology will provide much greater performance at a much lower price, our Management further believes that ETT systems will find their way into many new and developing markets like Africa, South America, China and India.

 

Competition

Transportation innovations occur daily, there are several competitors in the rapidly expanding field of proposed innovative fixed guide way transportation systems.  The new systems for the most part, seek to exploit the advances in electronic sensing and control technology, and automation; they fall into 2 main categories: minimally sized PRT (Personal Rapid Transit); and larger DM (Dual Mode) systems. ETT has applications for both PRT, and DM solutions.  The primary ETT advantage is for longer trips, and high speed operation, in this respect, main competition is from the heavily entrenched air transport industry.

The field of ETT is in the development stage, it has recently come to managements attention that there are at least 3, and possibly more companies engaged in promoting travel in reduced pressure tubes, or tubes at atmospheric pressure.  One of these companies declares that they have a patent pending.  In the estimation of management, the existence of these companies will assists in establishing credibility for the scientific validity of ETT.   To the best of our knowledge, no one is selling products based on, or competing directly with ETT technology. We believe that at this stage, competition is for intellectual property that will enable the control of future markets and not yet competition for the products for these markets.

Patents have been and are being granted for innovations in the field or innovations that will impact the field.  It is our opinion, however, that overall, the intellectual property of the field is largely underdeveloped.  Moreover, an essential part of the Company's business strategy is to exploit, under exploitation agreements, existing and future intellectual property belonging to others for the mutual benefit of the Company and such others.  By virtue of these strategies, we hope to control and minimize the impact of the competition that will be seen.

The Company believes that the competition for this intellectual property will come from two sources: Those who will seek to imitate our customer-building strategy and those who will develop and exploit intellectual property on their own.   Currently, Management knows of no companies interested in imitating its customer-building strategy.  Only time will tell whether or not there will be many or few intellectual property developers who have the time, resources, and commitment to undertake exploitation on their own without ET3.COM INC.'s or others’ involvement.

Management believes that the Company's ultimate competitors in the markets for ETT technology will be companies within ET3.COM INC.'s own product-development customer network.  Our customers will have the knowledge, expertise and experience to engage this new market in part because of the Company's work with them.  While Management intends to work its customer agreements to the Company's benefit, we recognize that it will be impossible and perhaps even unwise to prevent our customers from being our competitors in various niches of the market.

These customer-based competitors will probably be the earliest specific competitors that we will be able to identify.  Management expects to know them in more intimate detail than other future competitors.

Competitive Position

Management believes that the Company's competitive position is strong.  We are first.  We are the first company organized to make a business and a profit from capturing and exploiting the intellectual property of ETT.  et3.com Inc. intends to be everywhere in the field: in the universities, in the government research labs, in the technology partnership offices of future customers, and in the U.S. Patent & Trademark Office. There is a maxim that says: Being first is better than being better.  As a matter of corporate policy, we intend to exploit the Company's position of being first. It is believed by being first, keeping price low, and by building the largest pool, that a dominant position may be maintained. We intend to make it cheaper to license the technology than to steal it!  We intend on setting the standards, and dominating the market for Evacuated Tube Transport Technologies.

Patents

The Company has executed an exclusive license and patent assignment agreement ("Patent Agreement") for the worldwide rights to the economic exploitation of United States Patent Number 5,950,543 (the "Patent") issued September 14, 1999 to Daryl Oster.  Daryl Oster is also the Company’s CEO and a major shareholder in the Company (See "Management" and "Security Ownership").

In addition, we will work to developing patent exploitation agreements with universities and government labs that are leaders in the field of targeted technologies, and that own important intellectual property in fields relating to ETT.

The ET3 logo is a trademark belonging to the Company that refers to the Evacuated Tube Transport Technology defined in and covered by the Patent (one “E” and 3 “T”s hence the name et3). The dot com designation points to the key infrastructure in the plan to implement ETT,- the internet.  The company is taking steps to register the trademark.

The Use of the Internet

As a startup, our primary assets are our vision and the intellectual means we have in our possession to achieve that vision.  The Company's primary task is the same as that of every startup: financing its activities in order to succeed.  We have chosen to finance our activities with a combination of income from licensing the ETT patent and technology database, together with offering of private placement compensatory shares.  In both the Licensing effort, and the offering, the Company is using the Internet as the primary avenue for distributing Shares.  The Company is focusing on the Internet for this purpose due to its power to reach great numbers of people, its ability to quickly and interactively provide information to people about the Company, and its futuristic effectiveness in the execution of on-the-spot transactions.

Startup Phase

In order to conserve resources, our executive officers have agreed to work without pay until such date as the Board of Directors decides that we have attained capital sufficient for normal operations. At that time, which is referred to in this document as the "Actual Startup Date", these officers will begin receiving pay for their services.  The time period prior to the Actual Startup Date is referred to as the Company’s "Startup Phase".

 

PLAN OF OPERATIONS

The Company is currently in its Startup Phase of existence.   In this phase, our officers are working without pay and our office is a virtual office utilizing telecommunication interactions (Internet, phone, and faxes) but with no leased office space expense.  The Company can continue indefinitely in this mode.  This is not a "stand still" mode.  Intellectual property, technology exploitation agreements, and R&D plans are under active development in this phase.

We have never, and do not plan to ever have employees, or pay salaries. All operations are “farmed out” to licensees on a competitive bid basis.  For instance the Company’s ISP (internet service provider) is a Licensee.   The Company presently has sufficient cash on hand to support all of these activities for the next year.  No funds from the offering are required to support these activities.

The Company will transition from the Startup Phase of its existence to the Operational Phase when it has accumulated sufficient Key licensees / or capital to do so.   At that time, the Company's executive officers, may receive salaries, additional space may be leased, capital equipment may be purchased, and other business operating expenses may be incurred.  Prior to that time, activities will be restricted to low cost activities so as to keep the Company within its cash resources. The continuing priority will be to minimize overhead by contracting all possible aspects of operation to licensees.

The sale of the Shares is intended to facilitate getting the Company’s financing steps done quickly and thereby accomplishing a quick Startup Phase.  However, even if no Shares are sold pursuant to the offering, we will still be able to proceed in the development of our intellectual property, continue putting technology exploitation agreements into place, and continue the sale of licenses of our technology and contract R&D services in support of technology development. In this way, the Company will be able to transition to operational status at a future point in time, regardless of the extent to which Shares are sold under the offering. The sale of shares will shorten the time required to achieve a critical mass of key licensees.

Our operational plans are designed for financial safety.   In our current Startup Phase, we are able to continue indefinitely our process of intellectual property development and exploitation without additional funds.   It is our intention to continue to pace the growth of operations to the availability of cash so as to minimize the likelihood of damage to the Company caused by operational requirements that exceed the Company’s financial abilities. No debt is to be incurred other than short term, for the normal time of credit card float 25-30 days. The companies operations are currently profitable, it is anticipated that with the offering that the licensing operation may be scaled up to the critical mass point of sustained growth fueled by the sub-licensing efforts of licensees alone.

For this reason, our operational plans do not require cash from the offering to succeed.  Cash from the offering will be used to accelerate our operational plans.  Management believes that the faster we can grow, the greater will be our participation in the economic potential of the field of ETT; and the greater the likely hood that competition will be unsuccessful.

Activities

The Company’s business currently consists of two major areas of activity: 1.) Research and Development, and 2.) Sales and Corporate Development.

Research and Development

The purpose of our R&D is to capture as large a portion of the intellectual property in the field of ETT as possible and to develop our capability to create products that exploit this intellectual property. To this end, the Company’s R&D consists of the following segments: Research; Intellectual Property Development; Product Technology Development.

These three segments work together.  Research develops the Company’s knowledge by answering the questions that the other two segments need answered.  Intellectual Property Development fashions the Company’s knowledge into patent-protectable or trade-secret-protectable units that can be licensed and other