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Activeworlds Inc. provides software products and online
services that permit users
to enter, move about and interact with others in a computer generated,
three-dimensional virtual environment using the Internet. Unlike a
two-dimensional environment, which permits movement on a computer screen
only along flat horizontal and vertical axis (up, down, left and right),
a three-dimensional virtual environment enables users to move in three
dimensions by allowing them the added capability of moving forward and
backward. In the virtual worlds created in our three-dimensional
environment, users are also able to create objects and structures which
other users can see and move in real time.
We serve what we believe is an emerging market for three-dimensional
Internet interactive technologies and applications. We host hundreds of
virtual worlds. In addition to our
own worlds, we have been engaged by other companies to develop worlds
for them, and we have granted them a license for our technology. We have
also licensed our technology to clients who create their own worlds.
Our most popular world is AlphaWorld,
which consists of virtual real estate on which users can create virtual
structures using objects from our library of more than 6,000 objects and
textures. As of January 2005, users had placed more than 170 million
building blocks on AlphaWorld. Other worlds are based on specific
themes, which are selected either by us or by our licensees.
Our goal is to be the leader in three-dimensional Internet virtual
environments and interactive communication. We believe that by
continually enhancing our technology, developing new applications for
the three-dimensional Internet market and implementing an extensive
marketing effort, we will be able to achieve this goal.
The market for three-dimensional interactive Internet technologies is
growing due to both an increasing demand for interpersonal interaction
between Internet users and an expanding interest in Internet-based
applications. Active Worlds’ robust architecture, ease of use, speed,
reliability and scalability have attracted users worldwide. We believe
that three-dimensional Internet applications provide enhanced richness
that would be of interest to users developing Internet-based
advertising, distance learning, training, entertainment, e-commerce,
chat and other online activities.
Since Active Worlds is primarily an Internet-based platform, the
potential market for all Active Worlds-based products is global. We
currently have over 2 million individual users worldwide who have
downloaded the browser and visited the one UniServer we operate. We
generally receive more than 1,000,000 hits to our universe server per
day, and more than 500 new users download our browser each day. To
date more than 70,000 users have registered to be a "citizen"
of our Active Worlds universe. These users receive enhanced
capabilities in the Active Worlds environment. Users who do not register
are called "tourists."
In addition to offering clients the ability to create worlds on the
UniServer which we maintain, we sell UniServers and Galaxervers to
others and license our technology to them to allow them to establish
their own three-dimensional world independent of our universe.
Our Uniserver licensees include many fortune 500 organizations and well over 250
schools and Universities accross the world.
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