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Technology Stocks : Harris Interactive, Inc. (HPOL)

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To: Glenn Petersen who wrote (4)12/6/1999 1:59:00 AM
From: westpacific  Read Replies (1) of 16
 
SEC Report:

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September 17, 1999
HARRIS INTERACTIVE INC (HPOL)
S-1 Filing (SEC form S1)
We are the leading Internet-based market research and polling firm in the world, with the largest online panel of approximately 4.3 million unique cooperative respondents. Known for our HARRIS POLL, we have provided our clients with high quality products and services for over 40 years. Our extensive Internet panel and our proprietary technology infrastructure enable us to provide our clients with timely and cost-efficient access to the opinions, experiences and attitudes of people worldwide. We have rapidly grown our Internet panel, in large part, through our relationship with Excite@Home, a leading Internet portal. We also conduct market research and polling services utilizing traditional polling methodologies, which include direct mail, telephone-based surveys, mall intercepts, focus groups and in-person interviews.

We believe we are the largest full service provider of Internet-based market research and polling services, providing such services as:

- CUSTOM RESEARCH. Market research and polling conducted on an issue
specifically identified by a client;
- MULTI-CLIENT RESEARCH. Studies developed for and sold to a large number of
clients who have a similar interest in a particular subject area;
- SERVICE BUREAU RESEARCH. Market research and polling conducted for other
market research organizations; and
- CUSTOMER RELATIONSHIP SERVICES. Outsourced customer service operations for
corporations and organizations.

We provide market research and polling products and services to a broad range of companies, non-profit organizations and governmental agencies. Our key clients include Eastman Kodak Company, Johnson & Johnson, United Parcel Service and Xerox Corporation.

OUR MARKET OPPORTUNITY

Companies are operating in an increasingly complex business environment, characterized by heightened competition, globalization of product markets, shortened product life cycles and rapidly changing consumer preferences. This business environment has escalated the need for accurate and timely information about the preferences, needs, purchase behavior and brand recognition of potential and existing customers. Companies also need continuous tracking capabilities so that they can ascertain product performance and competitive position, monitor consumer satisfaction, measure advertising effectiveness and determine price sensitivity.

Historically, these information-gathering and tracking functions have been performed using traditional market research methodologies. The ability of traditional market research methodologies to deliver accurate and objective data rapidly is limited by high data acquisition costs, small sample sizes and the extensive time required to perform the research. As a result, broad-based research projects, which require a large number of survey participants, are prohibitively costly except for companies and organizations with significant resources. The growth and rapid adoption of the Internet is changing the market research and polling industry, making it possible for the first time to survey a very broad, diverse population at low cost and at speeds that are unattainable through any other method.

We believe that Internet-based market research and polling offers significant advantages over traditional methodologies, including cost efficiency, versatility, speed and productivity.

THE HARRIS ADVANTAGE

We offer a broad suite of Internet-based market research and polling products and services to meet our clients' needs for rapid, comprehensive and accurate information about the views, experiences and attitudes of people worldwide. We possess several key competitive advantages that we believe will enable us to maintain and expand our leading market position. Our key competitive advantages include:

- THE LARGEST INTERNET PANEL. We have developed what we believe to be the largest Internet panel in the world. Currently, our Internet panel consists of approximately 4.3 million unique cooperative respondents, who are individuals that have voluntarily agreed to participate in our various online market research and polling studies. Our large and diverse Internet panel enables us to utilize survey sizes that range from a large representative sample of the overall population to targeted subsets and to develop new products and services for new markets.

- PROPRIETARY TECHNOLOGY INFRASTRUCTURE. Over the past two fiscal years, we have expended, and will continue to expend, substantial financial and management resources in the development of our proprietary technology infrastructure, data analysis techniques and internal systems and procedures to capitalize on the Internet opportunity within our industry. Our technology infrastructure is scalable, which means it can accommodate the expansion of our business without significant modifications to our existing system design.

- STRONG BRAND NAME/LONG STANDING CLIENT RELATIONSHIPS. We believe the HARRIS POLL is one of the best known polls operating in the United States today. For over 40 years, we have been recognized as providing trusted market research products and services to a broad range of companies, non-profit organizations and governmental agencies.

- KEY STRATEGIC RELATIONSHIPS. We have entered into several agreements and relationships to expand and replenish our Internet panel and to develop and promote various market research products and services. Our key strategic relationships include those with Excite@Home, Market Facts, NBC, Gomez Advisors and ZDNet.

OUR FOCUSED GROWTH STRATEGY

Our goal is to expand our position as the leading global Internet-based market research and polling firm by providing high quality products and services to our clients. Key elements of our strategy are to:

- maximize the revenue-generating capacity of our Internet panel by increasing the size and scope of our business with existing and potential clients;

- establish new strategic relationships worldwide to expand our online panel rapidly and to facilitate new product development;

- further enhance our scalable, proprietary technology infrastructure;

- continue to build brand awareness of our Internet-based market research and polling products and services; and

- seek strategic acquisitions of, or investments in, complementary businesses, products, services or technologies.
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