Frequently asked questions about Intersphere's Competitive Upgrade Program

Why are you offering this trade in program? Obviously you don't make much money (if any) when people trade in their old laser tag systems.

We believe that there is going to be a fairly heavy shakeout very soon in the laser tag industry. When all of the dust settles we want to be the surviving standard in the laser tag business. So to gain market share, we are taking competitive upgrades from anyone currently in the business, that is already open and running a laser tag site. That along with the combination our current sales momentum from our domain name LASERTAG.COM program will repay us, with a continued drop in our manufacturing costs.

So after I trade in my systems, do I pay you and licensee fees or franchise fees?

Nope it's your money. Do with it what you like.

I have looked carefully at the prices that you are giving for a trade in on my system. Maybe you don't know this, but you're giving me more for my equipment than I paid for it!

We are serious about winning market share. We have carefully analyzed our costs in doing this; we can't take into account yours.

Why do you offer $1500 a gun trade in now, and only $1000 after March of next year?

We have a certain amount of money set aside on our balance sheet for this program and it will be used up by March of next year. So after March 1, 2000 we will re-evaluate it then.

Do I get a protected territory?

Sorry, the laser tag industry has spoken, and it has decided that laser tag equipment is now a commodity. There is no value placed by the purchasing customer on value added services. Everyone says they do want these services, but at the end of the day, no one wants to pay for them.

So we will respect the protected territories of or current customers only. So if you are within 15 miles of a Lazer X site, sorry I can't take trade in from you. But this will only affect a handful of people. The rest of the world can upgrade to LaZerware 6.0 equipment now.

But I really do want those value added services like marketing assistance, TV commercials, free upgrades to my software, and the use of your Sky Laser!

Well those services aren't going away, they are just sold as needed rather than being bundled into the Lazerware equipment package. In other words, you pay only for what YOU use.

So many companies have gone out of business in the laser tag business. What assurance do I have that you going to be around 5 years from now?

No ethical company can make a promise that it will never go out of business. However there are some things I would ask you to consider.

First, we are not newcomer to this business. Unless I am mistaken we are the oldest (or at least close to) surviving laser game company that is in business today. We have been making laser tag systems since 1991. The track record speaks for itself.

Second, consider that I own over 12 other international companies that are all highly successful. Some of them have been listed recently in the INC 500, the fastest growing companies in America. So we have a breath of business expertise that many of our competitors don't have.

Third, our domain LASERTAG.COM pretty much assures us of the dominant position in the market. We get more leads than probably all of our competitors combined.

Fourth, we make the best product. We constantly hear even from our competitors that LaZerware is the best of the best laser tag system available. If we have ever had anything negative said, it has always been than our prices were way too high. Never anything negative about our equipment. Our recent round of highly aggressive price reductions has taken away the one selling point that many of our competitors used to compete against us.

So in conclusion we feel we are extremely well positioned to be in this business for the long haul. I want to trade in! What do I do? Call us and tell us when you want it. We'll send you the paper work to make it happen.

--Todd Ferson

For more information about our new, lower prices, Intersphere can be reached at 515-254-0998 in the United States, or bookmark our website at http://www.lasertag.com.