VIDEO

AUDIO

ANCHOR 1:

There’s no guarantee a company that goes public will be ever be a success.

ANCHOR 1:

With today’s fickle economy and sputtering growth it takes a strong conviction and an iron clad business plan to stay afloat.

ANCHOR 2:

On this episode of Business World News we investigate CYAD, a relatively young public company that’s weathered the storm of 2000 and seems to be headed for greener pastures.

ANCHOR 2:

From Palm Springs, CA, REPORTER’S NAME, has more on this company and their strategy as a young conglomerate, headed for NASDAQ.

REPORTER STANDUP:

Anyone who was invested heavily in technology before the "dot com bust" learned the importance of diversity the hard way. But diversification isn’t just a good idea for an investors’ portfolio, it’s also a great strategy for small companies looking to grow.

Some young, hungry corporations are taking note of the tried and true method of Mergers and Acquisitions…after all its been proven to work for the big boys.

When the tech bubble burst a few years ago, it became clear that spreading out your assets is the only way to limit your exposure to a volatile sector.

SOT:

WALT TATUM / CEO – CYBERADS, INC

discusses:

1. The best strategy to limit risk of exposure to a volatile sector

REPORTER VO:

Small Over-the-counter-bulletin-board companies looking for steady growth during uncertain times can mitigate risk by doing the same thing a wise investor would.

When implementing an M & A strategy, most companies concentrate on spreading out before building up.

One company taking this approach is CYAD, Capital Assets and Development Corporation

Their goal is to emerge from the OTCBB world and make it onto NASDAQ. This means they have to be trading over $3.00 per share for at least 40 days and have an asset base of about $5MM. (check fact)

The new CEO of CYAD, Walt Tatum says becoming a NASDAQ traded security is an ideal situation for the company, it’s subsidiaries and shareholders.

SOT:

Walt Tatum / CEO, CyberAds

(discusses how this is a “win-win” situation and what the benefits are of becoming a NASDAQ stock)

REPORTER VO:

CYAD was founded in the year 2000 and thanks to the direction of NovaNet Media CEO, Ken Owen, the company secured its future. NovaNet Media recently acquired a majority stake-holding in CYAD.

SOT:

WALTH TATUM

(discusses how they were able to survive the crash)

REPORTER VO:

Today, CYAD has become a holding company of four subsidiaries spread into three very different sectors. CyberAds, a virtual marketing agency with three divisions. Freecellular.com, a free cellular phone service; ApprovedBankcard.com which offers a pre-paid MasterCard that helps customers establish a good credit rating; and BeneficialHealthCare.com is a discount healthcare card service that provides up to a 60 percent discount on medical bills. All three are operating with customers and are internet domiciled.

This means all their marketing and distribution is done online. They operate in a similar manner to Ebay, Amazon and Buy.com but on a smaller scale.

REPORTER VO:

What CYAD needs now, according to Walt Tatum, is to show consistent cash flow and a secure customer base.

How will they achieve this?

SOT:

WALT TATUM

(to the effect of: “We’re at the point now where we’re acquiring brick and mortar businesses that have tangible products and services”)

REPORTER VO:

This company’s latest endeavor is the acquisition of a 22 percent holding in “The Vineyards”, a luxury motor coach country club near the resort town of Palm Springs California.

Managing Member, Robert Mayer (or Walt Luce) says the acquisition by CYAD is just what they need right now.

SOT:

ROBERT MAYER OR WALT LUCE

Explains to the effect of:

“Going public will enable us to expand our marketing and advertising which we would otherwise not be able to do on our own. It will also create more exposure to the luxury motor coach industry.

Hopefully it will allow us to expand our concept to other areas of the country.”

SOT:

WALT TATUM

(Discusses why this will be a good vehicle for the Vineyards since it will give them access to a larger customer base. Going public will also add credibility to the Vineyards as public co’s are often held to a higher standard than private co’s.)

REPORTER VO:

With so many private companies looking for public ownership, how did CYAD come to choose the Vineyards?

The answer lies in the growth potential.

With 25-million R-V enthusiasts in the United States, and that number growing rapidly, sales of RV’s jumped 21 percent in 2002. This is largely due to Baby Boomers wanting to hit the road in style as well as air- travelers still having jitters over terrorist threats.

The Vineyards, however, fills a certain niche in the R-V world. They are one of the only luxury motor coach country clubs where members actually BUY not RENT the land they park on.

SOT:

ROBERT MAYER OR WALT LUCE

(Discusses their business model and why they sell the land and casitas instead of renting them.)

REPORTER STANDUP:

CYAD and the Vineyards know that there is a need for this type of commodity. Luxury RV’s accounted for $11-billion dollars in sales from 2001 to 2002 - a 27-point-five percent jump! Combine this with the fact that the average age of an RV buyer is 49 and more than 10,000 Americans turn 49 everyday. With a potential market that large and virtually no competition, its no wonder the Vineyards looks like such an attractive deal to CYAD.

SOT:

ROBERT MAYER OR VINEYARDS CUSTOMER / OWNER

To the effect of:

“More and more baby boomers are getting into the luxury RV lifestyle and the Vineyards right now is the only place to that offers these types of amenities…

1. regulation golf course

2. swimming pool, spa

3. beautiful casitas

4. wireless internet access

5. etc.”

REPORTER VO:

With the acquisition of the Vineyards looking so promising, CYAD has decided to branch out even further into other land development projects, thus completely shifting the company’s original acquisitions strategy. The Vineyards has effectively put a $12 million dollar valuation to CYAD’s balance sheet and the prospect of that valuation increasing to over $100 million in 3 to 5 years.

From their start as a service oriented, on-line company to one acquiring tangible assets of real estate and land development projects, CYAD has become the type of conglomerate that many in the market are now keeping on their radar screen.

The Company has already impressed many market analysts as their stock soared from (get most recent data) from .02 a share to a high of $1.50 in 120 days and continues to not only hold its position, but maintain steady growth. Perhaps this is a good indication that their goal of making it off of the OTCBB and onto NASDAQ isn’t far fetched.

ANCHOR 1:

Interesting story. It looks like CYAD has taken a very serious approach to its survival.

ANCHOR 2:

I guess it’s the only way to stay competitive and provide investor confidence.

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