Unique Sponsor Looks To Expand Beyond Sports

IEG SPONSORSHIP REPORT(www.iegsr.com), Volume 26: Number 15 - August 6, 2007 - Citing increased awareness, Web traffic and revenue growth as a result of a sponsorship program launched late last year, AlphaTrade.com(OTCBB: APTD) is in the market for additional partnerships.

"Our revenue for third quarter '07 is quadruple what we did last quarter, and we are only a month in," said CEO Penny Perfect, who attributes the increase in large part to the company's sponsorship activity.

"We are in discussions with several sports teams and are actively pursuing relationships with other property types," she said.

The eight-year-old company provides stock quotes, research and other trading information to investors, while also offering advertising and promotional opportunities to marketers interested in reaching its subscribers and other consumers.

It launched its sponsorship program late last year with a tie to the Professional Bull Riders Assn., a deal that it recently extended through 2011. AlphaTrade has since expanded its portfolio with ties to motorsports and pro sports teams.

The Vancouver-based company's sponsorships include the American Drag Racing League, Kenny Bernstein Racing's two NHRA PowerAde Drag Racing Series teams, and the MLB New York Mets and Tampa Bay Devil Rays. It also titled April's NASCAR Grand National Division West Series race at Phoenix Int'l Raceway.

The company also has signage in 22 MLB stadiums through a deal with Arena Media Networks.

Sponsorship Supports Multiple Objectives Of Diversifying Company

AlphaTrade's core business has been the sale of up-to-theminute quotes and other financial market information to individual investors.

But beginning last year, the company began offering advertising inventory connected to its trading data to businesses interested in promoting their stock to AlphaTrade's subscribers. It also began offering participation in mobile-phone text message promotions to marketers.

The move into "digital media marketing and promotion" is allowing the company to diversify its revenue stream and lower the cost of its financial information for subscribers.

On one level, AlphaTrade uses its ties to promote its stock market data service to potential subscribers. For example, as part of its Mets sponsorship, the company provides real-time financial data that is displayed on LED boards in Shea Stadium.

At the same time, the company views attendees and fans of sponsored properties as an additional audience for its advertisers.

It sees AlphaTrade signage and other sponsorship ID as a key driver of Web site traffic, which boosts the value of the online ad opportunities it offers, and it is able to leverage properties as the hook for text-message promotions.

For example, AlphaTrade activates its PBR sponsorship with a text promotion offering fans the chance to watch the action at each stop of the Built Ford Tough Series from the inside of an AlphaTrade-branded cage in the middle of the arena.

After entering the contest, each fan receives a text message asking if they want to receive promotional offers from AlphaTrade and its advertisers. The program has been well received, said Perfect, noting that 40 percent of attendees at each event enter the contest.

Going forward, AlphaTrade plans to offer sponsored properties the opportunity to leverage its text promotions as added value for other partners.

"We're looking at revenue-sharing opportunities with properties, as well as other ways they can use this information to create promotional programs for their other sponsors," Perfect said.

The company last month hired Hackensack, N.J.-based Source Communications to manage its advertising and sports marketing programs, including sponsorship negotiations. Perfect and husband Gordon Muir, AlphaTrade chairman, sign off.

Forward-looking statements: Except for the historical information, the matters discussed in this news release may contain forward-looking statements, including, but not limited to, factors relating to future sales. These forward-looking statements may involve a number of risks and uncertainties. Actual results may differ materially based on a number of factors, including, but not limited to, uncertainties in product demand, the impact of competitive products and pricing, changing economic conditions around the world, release and sales of new products, and other risk factors detailed in the Company's most recent annual report and other filings with the Securities and Exchange Commission.