“Making Music Child’s Play” ™. Customers Kids Like compelling, challenging video games, easy to play, difficult to master. Parent & Grandparents Buy

“Making Music Child’s Play” ™



Customers

KidsLike compelling, challenging video games, easy to play, difficult to master.

Parent & GrandparentsBuy toys for kids, can learn side by side with their family.

PeopleWho WANT to be musicians.


New Video Game Market

Market SizeWent from $6 Billion to Over $11 Billion Annually

Expected to double again in next few years, to over $20 billion

Triple that for global numbers. (Korea alone, $5.2 Billion)


Broad Based Demand

Age 3 and Older60% play video and computer games

145 million identify video & computer games as most fun entertainment activity


Broad Based Demand

Surpassed Movie Industry Market

35% of Americans

43% of them women, with few choices for their tastes


Little Known TidbitsMario Bros brought in twice the revenue of all five Star Wars movies combined.Pokemon is multi-billion dollar per year industry.Lara Croft, Tomb Raider, billion dollar game BEFORE the movies.Sims series is a billion dollar franchise. Sim City 2, sold 1 million copies in 10 days.Grand Theft Auto/Vice City made a billion dollars.Tetris sold 50 million units, and 32 million of Nintendo’s Game Entertainment Systems when they bought the rights and bundled the game.Disney just launched a blue PC with Mouse ears, loaded with their video games.EA did almost 3 Billion in revenue last year, mainly through their sports categories.YOU can invest in a future billion dollar game company today. We intend to do with music what EA did with sports, and our niche markets are limitless We are first, only and best in this space.


Logical Exit Strategy:Merger/AcquisitionThe State of the Market

Microsoft, Sony and Nintendo battling it out for control of the living room, the interactive nerve center of the home for the next century. Disney and Infinium jump in this year as well.


Logical Exit Strategy:Merger/AcquisitionHow customers choose.

Popular games drive console purchases. Mario Brothers can only be played on Nintendo. The next 20, or 30 games bought will be on the Nintendo platform.


Logical Exit Strategy:Merger/AcquisitionVideo Market Dilemna.

Demographic dominated by 13 to 34 year old males. Reputation for mindless violence creates public resistance to game market. Gender, age, and violence issues must be overcome to become truly mass market.


The key into the home: Piano Wizard

Non-Violent

Productive

Musical

Educational

FUNHarvard Study

2 years of keyboard lessons increases math and spatial scores by 30-40 percent. We can hard wire our children’s minds to multi-task and parallel process with early access to classical music playing.

Simple

Action Packed

Challenging

Compelling


Probable Exit: Potential Buyers of Company

Game Console Manufacturers

Microsoft NintendoSonyInfinium

Media CompaniesDreamworksDisneyWarner Bros

Keyboard Manufacturers

YamahaCasioGeneral Music

Independent Video Game Manufacturers

EAVivendi Universal


Historical Example of Logical Buyout Scenario:

In September 2002, MICROSOFT Purchases RARE from NINTENDO

RARE produced Donkey Kong, other Nintendo exclusive titles in past.

Accounted for less than 1.5% of Nintendo sales.

MICROSOFT pays 400 million dollars for 49% of company.

MICROSOFT desperately needs EXCLUSIVE hit games to drive customers to their platform (Xbox)

HIT GAMES DRIVE PLATFORM SALES


Opportunities: Logical Buyout Scenario: Allegro Rainbow

Revolutionary Video Game Concept Bypasses and Takes Current Video Game Market by Surprise with Quick, Large Volume sales via Direct TV. Public Relations Bonanza.Wholesome Educational and Musical Values welcomed by Family-Oriented Households and Home Schooling Markets that shun current violent Video Games.Welcomed by Schools, Churches, Libraries, Senior Wellness Centers, and many other Institutional Markets through fund-raisers. Ongoing Revenue Streams via Online club supplying Popular Licensed MIDI files, New Graphics, “Free” Piano Teacher Lessons and Referrals, Musical Online Community and more. Acquires Great Brand with Large Database of Enthusiastic, Involved Customers.Unique Lucrative Sales Channels. Global Replication of US Markets/Sales.


Key Marketing AdvantagesDirect Sales via Demonstration

Little Used in Video Game MarketingExciting and Powerful Instant Gratification Commission Based Marketing, pay AFTER the sale.Measurable Results for Fine Tuning

Demonstration Sales are the Rocket Fuel of Direct TV Home Shopping PhenomenonPiano Commando is a Perfect Product for TV DemonstrationUniversal Appeal, Colorful, Kids, Seniors, Family, Safe, Musical, Educational, Fun Video Game, Affordable, PR opportunities are abundant and constant.


Pricing: Full Version

$249.95 (+-) with Keyboard$125 (+-) Wholesale

$65 (+-) Cost

$60 Gross Profit

$129.95 without Keyboard$60 Wholesale

$5 cost

$55 Gross Profit


Pricing: Easy Mode Version

$99.95 (+-) with mini-Keyboard$50 (+-) Wholesale

$25 (+-) Cost

$25 Gross Profit

$49.95 without Keyboard$25 Wholesale

$5 cost

$20 Gross Profit


Pricing: Lite Bundle Version$0 for 10 song version Partner supplies media, Allegro supplies stickers and rebate.

10 more free songs enabled upon registration, starts email cycle.

20% rebate to customer to upgrade to either Easy Mode or Full version. 20% commission to partner 60% of retail price to Allegro


Where we areFinished ProductFirst RevenueFinal Packaging/BrandingImplementation of Sales and Customer Support SystemsRegional LaunchStrategic Alliances FormingFinancial Partner Opportunity


Future ProductsDrum WizardBand Wizard Karaoke WizardVoice PreciseCaptain KalimbaMusic MobileStand Alone Game Unit (No PC, plugs straight into the TV)


Future PlatformsMacIntosh

Xbox

PlayStation

Nintendo

Arcade

Embedded Chip in Keyboard

Handheld Devices, Phones


Future MarketsHispanic (Spanish)Canada (French)Europe (German, Italian, etc.)JapanSingaporeAustraliaKoreaIndiaChinaAfghanistan


Future GenerationsYour ChildrenYour Grandchildren Your Great-GrandchildrenYour Great Great-grandchildrenTheir ChildrenEtc.100 years from now all people can play and read music as a birthright, and do so with great joy. Even You.


Near Term Goals

Ramp up PR CampaignBegin Marketing Plan

Expand Strategic Partner and Channel NegotiationsRegional Christmas Launch in UtahNational Launch to follow


TEAM

Board of DirectorsChoice Key Management All-Star Advisory Board

Resumes don’t build great companies, great teams do, and this team’s strength is it’s commitment, enthusiasm, perseverance, alignment and integrity. Each plays their part in this symphony, and delights in helping bring music making to the whole world with a new system of thinking and learning about music. All earn their right to be named as part of this team through constant focused effort and results. We are proud to work together, and have not yet begun to render our best and most exciting results, both for the children and our investors.


TEAM

Board of DirectorsNicholas Zaldastani

Harvard Business School (MBA) ; University of Paris (Diploma in French Studies) ; Duke University (BS Engineering and Economics)

Operational Experience: Oracle Corporation (Director), Open Horizon (President & CEO), Ogilvy and Mather (Account Management), SABA (General Manager), FMS (CEO)

Venture Capital Experience: SABA, Continuity, Careerstream, World Energy, PaybyTouch, Talon Audio Boards: CNWE, CNWF, World Energy, PaybyTouch, American Academy in TbilisiAwards: CLEO Nicholas is the CEO of Crocodiles Not Waterlilies, a children’s entertainment company producing wonderful animated stories to help children make wiser, integrity based decisions through vicarious ethical dilemmas, examples and experiences, based on the time proven and deeply loved stories of author and speaker Roger Anthony. Faculty member at IBI Global.


TEAMBoard of Directors

Bob MangumHarvard School of BusinessHas long demonstrated commitment to working with entrepreneurs, sharing his core emphasis on integrity in business, and his extraordinary career, including President of MSI, Inc., a developer, manufacturer, and marketer of precision motion control equipment President of McGraw-Edison, Canada, a subsidiary of McGraw-Edison (NYSE), President of Central Foundry Company, a subsidiary of Gable Industries, Inc. (NYSE), (Mr. Magnum also served as a Vice President of GBI); and General Manager of Celco Plant, Celanese Corporation (NYSE), President of Project Arts, Inc., a 501(c)(3) Arts based rehabilitation non-profit for severely mentally ill adults; Director and Vice President of Harvard Business School Club of Arizona; Director and Member of Executive and Trust Investment Committees, First National Bank of Tuscaloosa, Alabama; Director of First National Bank, Narrows, VA, a subsidiary of First Virginia Bankshares (NYSE); Director of Arizona Small Business Association; and Director of Phoenix Rotary Foundation. He has testified before committees of U.S. Senate and House of Representatives on business issues, is the author of numerous published articles, and is a panelist of Business Roundtable on KFNN Radio. He has military and NSA experience with top-secret security clearance.


TEAMBoard of Directors, Chairman

Chris Salter, Founder and CEO2 BA’s, from SIU Carbondale, Linguistics and Music and a Master’s in Music from UCLA.A voracious learner, he speaks 6 languages and plays 4 instruments and has traveled and lived abroad for almost 7 years in 5 continents and 23 countries, including a stint in Botswana for the Peace Corps, and doing his master’s thesis research in Brazil. Previously ran a software sales company and led a team of telemarketers, outside sales reps, computer technicians and administrative personnel from an $8,000 initial capital investment to $1,000,000 gross revenues in 14 months by selling through demonstration at computer shows. He later took intensive courses in web development, project management, database design, graphics and beginning programming, which has proved invaluable in managing the software development process. Since joining IBI, an entrepreneur training network, he founded Allegro Multimedia Inc in August 2001, and in spite of the tech bubble collapse, the scandal and terror economy, was able to raise 1.8 million dollars, develop and finish the core game and software engine that will revolutionize music education in our lifetime. His passion and commitment to children and learning and his vision of a world where everyone feels music making is a birthright not a privilege has led him to leave no stone unturned to create this company of like-minded investors, team, and strategic partners.


TEAM

Key ManagementDan Goldman, Interim CFO

Finance/Accounting-San Diego State UniversityOver 21 years of experience building companies. Extensive experience in corporate development and financing, strategic planning, financial analysis, Tax planning, due diligence, marketing, selling, investing and managing organizations. Acting as a founder, Director, CEO, CFO, VP of Finance or VP of Corporate Development, assists in financial analysis, business & marketing plans, developed pro forma financial statements, business development, structure, acquisitions, accounting, tax planning and assist in raising corporate debt and equity capital.


TEAMKey Management

David Caffey, Interim Director of Bus. Dev.University of Southern California Marketing Manager of Executive Programs for Microsoft since 1991, Focused on Customer Management/Sales Force Automation solutions, for Microsoft. Helped build brands for Microsoft’s Channel programs as the Brand Development Manager.As Director of Business Development, Mr. Caffey led negotiations for the Microsoft Network (MSN) to acquire and implement revenue generation opportunities and strategic partnerships. Specifically, he was pivotal in negotiations and relationship building with varied clients that include Disney, ESPN, Expedia, Ticketmaster, USA Networks, NBC, WebMD, and many others.Prior to joining Microsoft, Mr. Caffey was the Marketing Projects Manager of Jaguar Cars Inc., a division of Ford Motor Company.Mr. Caffey spent 6 years at Nissan Motor Corporation He helped develop the Total Ownership Experience customer satisfaction program.


TEAM

Key ManagementJohn Wheeler, Interim COO

Mr. Wheeler is the Managing Partner with SalesQuest Group, a consulting firm specializing in helping emerging and established firms achieve competitive advantage through the optimization of their sales, marketing, and customer service functions. He has particular expertise in helping firms develop and execute strategic and tactical plans. He has multi-disciplinary expertise in the telecommunications, utilities, high technology, information services, process manufacturing, and insurance industries. Mr. Wheeler is a respected industry leader with over 30 years of experience in sales, marketing, product development, management, operations improvement, and information technology.


TEAM

Key ManagementDavid Sipple, Interim VP of Sales

University of Wyoming, Broadcast Journalism and an MBA from the University of South Florida . President of Brainy Computing Inc. and owns his own consulting firm, Poseidon Dynamics.Nationally renowned sales, marketing and management expert, with a successful professional history of increasing revenues at The Home Shopping Network, Quarterdeck Software and SAS Institute. His unique insights and approaches have consistently led to record setting sales and ROI’s, while minimizing expenses and costly mistakes. With extensive experience in acquiring and managing customers and partners in corporate, government and higher education and consumer goods markets, David’s plain speak and direct approach appeals to professionals across all industries. His management philosophy is to lead by example and his training philosophy is preparation equals performance. He revels in proving that high integrity sales is the true road to success.


TEAM

Key ManagementRex Hale, Interim CTO

Brigham Young UniversityDeep high level experience with such companies as Intel Corporation and Novell Inc. Experience building dozens of networks from the ground up. Extensive PC hardware experience and troubleshooting skills. Designed, implemented, and administered Novell, Windows, Linux and LANtastic Networks. Extensive programming experience in Delphi, C, C++, Java, JavaScript, PERL, CGI and FoxPro. Database experience in MySQL, Advantage, MSSQL Minimal experience in Visual Basic, dBASE and Fortran. Proficient in HTML, PHP and web communications protocols. Teaching experience in C and NetWare troubleshooting.


TEAM

All-Star Advisory Board

And Strategic PartnersSee Business Plan for full scope, but what follows is a choice sampler of Allegro Multimedia’s team and resources.


Linda Chandler serves as strategic advisor to technology ventures. The former securities executive and investment banker from Silicon Valley takes a select number of assignments each year. She and her firm Chandler-Drew, LLC specializes in software firms, telcom ventures, and financial services companies.

Leading Authority On Venture Capital and Emerging Growth CompaniesLinda is former senior vice president of Sutro & Co. She was the first woman broker hired by the prestigious securities firm in the Bay Area. In 11 months, she made associate vice president, and full vice president in two years! She became the youngest person and first woman to become vice president of a major U.S. securities firm. Chandler went on to co-found and serve as CEO of the nation's first all-women's securities firm. After two brilliant years, she merged her firm with the leading investment banking firm on the West Coast. They named Linda senior vice president and she helped take a number of Silicon Valley startups public. During her career, Chandler personally raised over $1 billion in investor funds.


Steve TaylorLead technical / production direction

Twelve years software development experienceEight years developing video gamesHead of production at Wahoo Studios for the last 2 yearsInvolved in projects on numerous platforms including PS2, GameCube, Xbox, GBA, N64, PS1, PC, Mac, and NuonHas credits on more than a dozen published titles, developed at Wahoo Studios and Saffire Corp.


Cynthia Dominic Hall was instrumental in negotiating the landmark purchase by Nintendo of the worldwide licensing rights to TETRIS, and she has signed on as Allegro Multimedia Inc.'s exclusive licensing agent for Piano WIzard.

Cynthia Dominic Hall


President of Corn Music Services, Inc.(www.cornmusicservices.com), a consulting company specializing in new media, business development, and licensing for the music industry. Clients range include both online and offline music-based companies including Universal Music Publishing, Encore Karaoke, Sounddogs, and Taxi.com. Prior to creating CMS, he was Executive Vice President for LicenseMusic.com, a pioneer in online music licensing. His background also includes VP/GM at Megatrax Production Music, one of the most successful independent music libraries. Prior to joining Megatrax, he served as executive in charge of music for many theatrical and home video releases at LIVE Entertainment (now Artisan Entertainment). He negotiated soundtrack deals and administered their catalog of publishing rights in over 60 films.

Steve Corn


Infomercial queen, known for her work with Ed McMahon, George Foreman, Ron Popeil, Chuck Norris, Magic Johnson, etc, has signed on to the team and offered to write, direct, produce and star in the Piano WIzard infomercials for nothing up front, only a percentage on the back end, after bringing it personally into QVC.


Fred BrownExecutive Producer of Home Shopping Network (“HSN”) (Consumer Electronics Division) joined Allegro Multimedia Inc.'s Advisory Board in a very proactive capacity, for example helping make key introductions and recommendations to Yamaha’s National Directors of Sales and Marketing.


From an excerpt of an e-mail from Fred Brown, Allegro Multimedia Advisory Board member and Executive Producer at Home Shopping Network, who oversaw the Casio “Magic Light” campaigns, and who views Piano Wizard as a clearly superior product.

"HSN sold over 20,000 Casio Magic Light keyboards IN ONE DAY last November 2000. The magic light keyboard is a fair comparison as a method of teaching people how to play the piano. ”

The relevant number here is 20,000 units X $200 apiece =$4,000,000 in sales IN A DAY.

Fred Brown’s Perspective of Piano Wizard’s Potential


Richard Crawford

Filmmaker/VideographerRichard Crawford's awards include four area Emmy Awards, Gold Cindy Awards for multimedia, a New York Art Directors Award, and he has extensive experience creating effective compelling infomercials.


Founder and CEO of How Studios (www.howstudios.com) is an expert in visual branding, and is the CEO of a world class graphics firm whose clients include Disney, 20th Century Fox, DreamWorks, City of Los Angeles Marathon, Cartoon Network, City of Santa Monica, Cirque du Soleil, Hanna Barbara, Fujitsu and Sanwa Bank to name a few. Howard's graphic and branding expertise help assure that Piano Wizard will be an instant classic, with tight organic integration of the visuals and the branding ensured.

Howard Lim


Howard Lim’s Piano Wizard Work


Allegro Multimedia, Inc.Current Organization

NexationFresh GroundScott Herring

Chris SalterCEO

Board of DirectorsBob Mangum

NicholasZaldastaniChris Salter (Chair)

Board of AdvisorsDonald Beattie

Fred BrownJames Burk

Linda ChandlerSteve Corn

Richard CrawfordParviz FirouzgarAlexey Pajitnov

JohnWheelerInterim COO

Kurt KoenigInterim Director of

Mkgt/PR

Strategic PlanningGroupInterim

David SippleVP of Sales

Kim AutenRon Coston

LegalProduct

Development

Wahoo StudiosQ90QDialHoward Lim

StreetmakerRod RichardsonChris AllenKushal IbrahimRandy Kraft

Burk & ReedyRich Lehman - CorpMcDermott Will and EmeryDave Stewart - PatentsMike Starkweather - PatentsMaria Speth - Trademarks

Dan GoldmanInterim CFO

Web Site

Finance, AccountingJohn Gonzales, CPAWilliam Black, CPA

Administration

Christie Dolan


Make Product VP-Operations

Sell Product VP – Marketing/Sales

Service the Product Chief Service Officer

‘Count the Numbers’ CFO - Administration

Allegro is currently transitioning from a virtual, outsourced team to a dedicated, integrated team.We are gradually filling the following positions.


1. Develops Ops Plan2. Oversees Product

Development3. Interfaces with

Development/Testing Firms4. Provides input to contract

development, negotiations5. Oversees Fulfillment

processes6. Insures quality control7. Contributes to corporate

visioning process8. Contributes to corporate

business plan9. Manages staffing10. Manages to budget

1. Develops Mktg, Sales Plan

2. Oversees execution of Mktg, Sales Plans

3. Oversees development, management of web site

4. Contributes to corporate visioning process

5. Contributes to corporate business plan

6. Drives sales compensation plan

7. Manages staffing8. Manages to budget

1. Develops customer support plan2. Oversees Technical Support

Staff3. Oversees Customer Service

Operation• Billing Issues• Customer Satisfaction



6. Manages staffing7. Manages to budget

1. Develops corporate budget2. Oversees corporate financial

planning3. Oversees corporate financial

reporting4. Acts as interface with external

Law Firm5. Oversees all other

administrative functions• Policies, procedures



8. Manages departmental staffing9. Manages to budget

Chris SalterCEO

VP Operations

VP

Marketing/

Sales

Chief

Customer

Officer

CFO/Administration

Executive Assistant


VP Operations

Mgr- Product Development

Mgr - Fulfillment/

Pkging

1. Develop/Test Product2. Enhance Product

• Existing• New Applications• Extensions to existing

3. If outsourced,interface with development, testing firms4. Provide input to vendor contracts5. Enforce product quality control6. Manage personnel7. Manage to budget8. Evaluate personnel

1. Develop/Manage Fulfillment, Packaging processes2. Manage inventory3. Manage copies4. Identify distribution partners5. Manage distribution process6. Enforce quality control, according to standards


1. Contributes to Marketing Plan2. Executes Marketing Plan

(including Public Relations)3. Identifies Marketing

performance metrics4. Reports on Market initiative

returns5. Manages staffing (as required)

• Hiring, firing, evaluations

6. Manages to budget

1. Contributes to Sales Plan2. Executes Sales Plan3. Identifies Sales performance

metrics4. Reports on sales results5. Manages staffing

• Hiring, firing, evaluations• Sales effectiveness

6. Works to continually improve sales effectiveness

7. Manages to budgets

1. Contributes to Sales Plan• Sales Support Area

2. Manages Sales Compensation Program

• Definition (in conjunction with Sales Mgr)

• Review of compensation

• Payout accuracy

• Approves adjustments (as needed)

3. Manages sales training program

• Identify needs• Develop/deliver training

4. Manages staffing1. Hiring, Firing,

Evaluations

VP Marketing/

Sales

Mgr - Marketing

Sales MgrMgr - Sales

SupportMgr - Web Site

1. Contributes to Market Plan

2. Develops Site design spec

3. Develops Site4. Enhances Site, as

needed• Through

tracking, other metrics

5. Manages Staffing• Hiring, Firing,

evaluations6. Manages to Budget


Chief Customer

Officer

Mgr - Technical Support

Mgr - Customer

Service

1. Develops Technical Support Requirements• Evaluates technologies to enable technical support

2. Develops Technical Support materials and tools• If outsourced, manages relationship with vendors• If outsourced, contributes to contract development

3. Manages technical support operation• provides technical support, as needed

4. Manages Resource needs• Hiring, Firing, Evaluations

5. Insures Support in accordance with established standards6. Manages technical support customer satisfaction process

• Contributes to development of satisfaction instrument7. Manages to budget

1. Develops Customer Service support requirements• Evaluates technologies to enable customer

service2. Develops training requirements, materials3. Directs Svc Rep training 4. Manages Customer Service operation5. Provides customer service activities, as required6. Insures customer service activities provided in

accordance with established standards7. Manages Resource needs

• Hiring, Firing, Evaluations8. Manages customer support customer satisfaction

process• Contributes to development of satisfaction

instrument


CFO/Administration

Legal Counsel - External Firm Mgr - FinanceMgr -

Administration

1. Develops, negotiates contracts2. Researches, files patents/copyrights3. Resolves legal disputes

• Product, personnel,…4. Provides counsel to Executive Team

1. Drafts corporate policies, procedures for executive review/approval

2. Manages headquarters operation3. Maintains corporate files4. Manages administrative resources

• Hiring, Firing, Evaluations5. Coordinates administrative support to

Executives6. Coordinates company meetings7. Works with Marketing on all internal

communications8. Manages to group budget

1. Develops corporate financial plans, as part of corporate planning process

• Includes corporate budgeting process

2. Defines key corporate financial performance metrics

3. Evaluates technologies to enable financial management

4. Manages collection of financial information

5. Completes analysis of financial results6. Develops/delivers financial results and

analyses to Executive team7. Manages financial group personnel

• Hiring, Firing, Evaluations8. Manages to departmental budget


Coming soon to an Infomercial near you.

Documents

“Making Music Child’s Play” ™. Customers Kids Like compelling, challenging video games, easy to play, difficult to master. Parent & Grandparents Buy