MELY

Dynamo Server Division Goes Live. Dedicated Server and Cloud Hosting now Available through the companies Vancouver Point of Presence, or “POP”

Jenn — Tue, 26 Jun 2012 22:32:41 +0000

MONARCH BAY, Calif., June 26, 2012 /PRNewswire/ — Microelectronics Technology Co. (MELY) — Microelectronics Technology Corporation is pleased to announce its wholly owned subsidiary Cloud Data Corps’s new business center the Dynamo Server Division has completed the deployment of dedicated servers to meet the needs of Cloud Data Corps existing clientele and is now accepting new business for its new Point of Presence or “POP” located in Vancouver, British Columbia, Canada.

The Dynamo server division now is offering valued priced dedicated server rentals to third party customers. The servers are located within Canada in its Vancouver, “POP”.

This division is a response to the significant demand by the company’s customer base, creating a niche market for the company to exploit with the assurance of an in place customer base upon initiation.

“This will enable the company to begin booking revenues from the Dynamo Server Division immediately, which is a significant milestone for a developing Cloud Technology Company,” states company president Brett Everett “The company is actively reviewing additional new potential clients to expand the utilization of the dedicated server division at the companies Vancouver ‘POP.’”

In addition to the Dynamo dedicated server offering, the Vancouver co-location will also house Cloud Data Corps Sproq.com servers.

Sproq next generation cloud application hosting customers will be able to start with a single Sproqet, as they need to scale up they will be able to purchase additional Sproqets.

Sproq.com service is currently under development, with developmental servers and hardware already deployed. Sproq.com is now scheduled for launch third quarter 2012.

For further Information:
Microelectronics Technology Co.
President:
Mr. Brett Everett
1 866 587 2860

www.melypk.com
www.sproq.com
www.domainstutter.com

Forward-Looking Statements
This news release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey Company progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management’s opinion. Whereas management believes such representations to be true and accurate based on information and data available to the Company at this time, actual results may differ materially and are subject to risk and uncertainties. Factors that may cause actual results to differ include without limitation: dependence on key personnel and suppliers; MELY’s ability to commercialize its technology; ability to defend intellectual property; material and component costs; competition; economic conditions; consumer demand and product acceptance, and availability of growth capital.

Additional considerations and risk factors are set forth in reports filed on Form 8-K and 10-K with the SEC and other filings. Readers are cautioned not to place undue reliance upon these forward-looking statements; historical information is not an indicator of future performance. The Company undertakes no obligation to update publicly any forward-looking statements.

MicroElectronicsTechnology Sponsors TheWebtechBlog.com. Establishes social media portal presence

Jenn — Tue, 29 May 2012 17:58:16 +0000

MONARCH BAY, Calif., May 22, 2012 /PRNewswire/ — Microelectronics Technology Co. (MELY.PK): Microelectronics Technology Corporation is pleased to announce it has become a Primary Sponsor of www.thewebtechblog.com for the months of May and June, 2012.

The webtech blog is a social media blog portal, which introduces potential investors, specific to the Internet and web technology industry, to the Sponsor company profile and allows for Microelectronics Technology Corporation to gain a first step into social media in an effort to enhance shareholder communications and corporate visibility.

www.thewebtechblog.com has an associated twitter presence with twitter followers and building daily: https://twitter.com/#/webtechblog

Poltential Investors or potential customers can follow the companys developments by subscribing to the rss feed or following the company on twitter @microelectech. This will provide potential investors and current shareholders with a direct communication with the company on a more timely basis. This is one of many steps the company is employing to establish its presence in social media channels.

Microelectronics Technology Corp through it wholly owned subsidiary Cloud Data Corp is an Incubator of Intrernet and Social Media Technologies.

In addition to the previously announced Dynamo dedicated server offering, the company co-location will also house Cloud Data Corps Sproq.com servers.

Sproq next generation cloud application hosting customers will be able to start with a single Sproqet, as they need to scale up they will be able to purchase additional Sproqets.

Sproq.com service is currently under development, with developmental servers and hardware already deployed. Sproq.com is scheduled for launch second quarter 2012.

For further Information:
Microelectronics Technology Co.
President:
Mr. Brett Everett
1 866 587 2860
Follow us:
@microelectech

www.melypk.com
www.sproq.com
www.domainstutter.com

Forward-Looking Statements

This news release includes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. While these statements are made to convey Company progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management’s opinion. Whereas management believes such representations to be true and accurate based on information and data available to the Company at this time, actual results may differ materially and are subject to risk and uncertainties. Factors that may cause actual results to differ include without limitation: dependence on key personnel and suppliers; MELY’s ability to commercialize its technology; ability to defend intellectual property; material and component costs; competition; economic conditions; consumer demand and product acceptance, and availability of growth capital.

Form 10-Q for MICROELECTRONICS TECHNOLOGY CO

Jenn — Tue, 29 May 2012 17:53:15 +0000

Quarterly Report

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations Forward-Looking Statements Certain statements, other than purely historical information, including estimates, projections, statementsrelating to our business plans, objectives, and expected operating results, and the assumptions upon which

those statements are based, are “forward-looking statements” within the meaning of the Private Securities

Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and
Section 21E of the Securities

Exchange Act of 1934. These forward-looking statements generally are identified by the words “believes,”

“project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,”

“will be,” “will continue,” “will likely result,” and similar expressions. We intend such forward-looking

statements to be covered by the safe-harbor provisions for forward-looking statements contained in the

Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of

complying with those safe-harbor provisions. Forward-looking statements are based on current

expectations and assumptions that are subject to risks and uncertainties which may cause actual results to

differ materially from the forward-looking statements. Our ability to predict results or the actual effect of

future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on our

operations and future prospects on a consolidated basis include, but are not limited to: changes in economic

conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally

accepted accounting principles. These risks and uncertainties should also be considered in evaluating

forward-looking statements and undue reliance should not be placed on such statements. We undertake no

obligation to update or revise publicly any forward-looking statements, whether as a result of new

information, future events or otherwise. Further information concerning our business, including additional

factors that could materially affect our financial results, is included herein and in our other filings with the

SEC.

Overview

We are a start-up, developmental stage corporation and have not yet generated any revenues from our

business activities. We were incorporated in the State of Nevada on May 18, 2005. We have four mineral

claims located near Wawa in northern Ontario, Canada that we someday plan to explore for precious

metals. Our plans to explore these claims, however, have been put on hold as result of our recent

acquisition of Cloud Data on August 26, 2011. Through the acquisition of Cloud Data, we are moving into

the Internet incubator space in order to capitalize upon the technology opportunities available today and in

the immediate future within the cloud computing market place.

Results of Operations for the Nine Month Ended March 31, 2012 and Period from April 11, 2011

(Inception of the Development Stage) until March 31, 2012.

We generated no revenue for the period from April 11, 2011 until March 31, 2012. We are a

development stage company and intend to pursue the line of business of internet marking though the

acquisition of Cloud Data.

Our Operating Expenses for the nine months ended March 31, 2012were $147,690. Our Operating

Expenses from April 11, 2011 (Inception of the Development Stage) to March 31, 2012 were $177,290.

For each period our Operating Expenses consist primarily of advertising, management fees and professional fees.

We, therefore, recorded a net loss of $147,690 for the nine months ended March 31, 2012 and a net loss of

$177,290 for the period from April 11, 2011 until December 31, 2011.

We anticipate our operating expenses will increase as we undertake the business of internet marking though

the acquisition of Cloud Data.

Liquidity and Capital Resources

As of March 31, 2012, we had $2,555 in current assets and $486,277 in current liabilities. Thus, we had

a working capital deficit of $483,722 as of March 31,2012.

Cash flow from Operating activities was $306,319 for the nine months ended March 31, 2012. Our net cash

used in investing activity was $(129,274). We had $505 cash used in financing activities for the

period from April 11, 2011 until March 31, 2012.

As March 31, 2012 we have insufficient cash to operate our business at the current level for the next

twelve months and insufficient cash to achieve our business goals. The success of our business plan beyond

the next 12 months is contingent upon us obtaining additional financing. We intend to fund operations

through debt and/or equity financing arrangements, which may be insufficient to fund our capital

expenditures, working capital, or other cash requirements. We do not have any formal commitments or

arrangements for the sales of stock or the advancement or loan of funds at this time. There can be no

assurance that such additional financing will be available to us on acceptable terms, or at all.

Going Concern

Page 18 of 27We are in the development stage and have not generated any revenues and have incurred losses of

$177,290 since April 11, 2011. At March 31, 2011, we had $0 in cash and $487,277 in current

liabilities. Further, we incurred a loss of $147,690 for the nine months ended March 31, 2012. In view of

these conditions, our ability to continue as a going concern is in substantial doubt and dependent upon

achieving a profitable level of operations and on our ability to obtain necessary financing to fund ongoing

operations.

To meet these objectives, we continue to seek other sources of financing in order to support existing

operations and expand the range and scope of our business. However, there are no assurances that any such

financing can be obtained on acceptable terms, if at all. The accompanying financial statements do not give

effect to any adjustments which would be necessary should we be unable to continue as a going concern.

Off Balance Sheet Arrangements

As of March 31, 2011, there were no off balance sheet arrangements.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

A smaller reporting company is not required to provide the information required by this Item

Dynamo Server Division Identifies Co-location Partner

Jenn — Mon, 14 May 2012 16:44:12 +0000

Monarch Bay, Calif., May 10, 2012 /PRNewswire/ – Microelectronics Technology Co. (OTC-BB: MELY.PK): Microelectronics Technology Corporation is pleased to announce its wholly owned subsidiary Cloud Data Corps’s new business center the Dynamo Server Division has completed its search for a suitable co-location partner to begin the deployment of dedicated servers to meet the needs of Cloud Data Corps existing clientele.

The Dynamo server offering will consist of valued priced dedicated server rentals to third party customers. The servers will be located within Canada. This division is a response to the significant demand by the company’s customer base, creating a niche market for the company to exploit with the assurance of an in place customer base upon initiation.

The company is currently completing its hardware acquisition.

The company is performing according to its projected time frames and expects to roll out its offering as previously reported, in May 2012.

“The establishment of a co location partner that understands the business model Cloud Data Corp represents and the scalability requirements it’s customers require is essential. Upon the success-full initiation of the Dynamo Server Division the company will immediately begin providing its hosting services to third party clientele,” stated Company President Brett Everett. “This will enable the company to begin booking revenues from the Dynamo Server Division immediately, which is a significant milestone for a developing Cloud Technology Company.”

In addition to the Dynamo dedicated server offering, the Vancouver co-location will also house Cloud Data Corps Sproq.com servers.

Sproq next generation cloud application hosting customers will be able to start with a single Sproqet, as they need to scale up they will be able to purchase additional Sproqets.

Sproq.com service is currently under development, with developmental servers and hardware already deployed. Sproq.com is scheduled for launch second quarter 2012.

For further Information:
Microelectronics Technology Co.
President:
Mr. Brett Everett
1 866 587 2860

www.melypk.com
www.sproq.com
www.domainstutter.com

Forward-Looking Statements

Cloud Data Corp to Expand its DomainStutter Technology Establishing New Brand through White Label Contract

Jenn — Thu, 03 May 2012 18:16:56 +0000

MONARCH BAY, Calif., May 2, 2012 /PRNewswire/ – Cloud Data Corp a fully owned subsidiary of Microelectronics Technology Corporation (OTC-BB: MELY.PK) is pleased to announce that the company is in final contract negotiations with a third party vendor for the establishment of a “White Label” relationship for the companies proprietary DomainStutter technology.

The DomainStutter technology offers clients rapid domain deployment with each domain having unique content automatically inserted into the site. The system harnesses the power of cloud computing to enable clients the ability to deploy thousands of sites with minimal time and effort. Clients can deploy thousands of domain host sites on an accelerated basis, with unique content, with virtually no effort due to use of the proprietary DomainStutter technology.

The practice of multiple domain name deployment is commonly known as domain parking and may also refer to an advertising practice known as parked domain monetization used primarily by domain name registrars and Internet advertising publishers to monetize Internet traffic visiting a parked or minimally developed domain name property.

The domain name will usually lead to a web page containing advertising listings and links. These links will be targeted to the predicted interests of the visitor and may change dynamically based on the results that visitors click on. Usually the domain holder is paid based on how many links have been visited (e.g.pay per click or page view) and on how beneficial those visits have been. The keywords for any given domain name provide the type of profile that will determine the intent of the Internet traffic before arriving.

DomainStutters capability to deliver unique content to each individual domain automatically, allows the parked domain to better differentiate itself to search engines allowing for higher indexing and ratings resulting in higher traffic generation, which in turn leads to higher per domain revenue generation.

“These negotiations have been finalized subject to formal documentation,” stated Microelectronic Technology company president Brett Everett. ” The company looks forward to the introduction of a new ‘White Label’ partner for the roll out of a unique brand of business for the DomainStutter Technology providing for another revenue stream to Cloud Data Corp from the exploitation of its existing suite of technologies and services.”

Contract finalization is expected by May 31, 2012.

The company continues to progress on its roll out of the Dynamo server offering which will consist of valued priced dedicated server rentals to third party customers. The servers will be located within Canada. This division is a response to the significant demand by the company’s customer base, creating a niche market for the company to exploit with the assurance of an in place customer base upon initiation.

The company is currently completing its co-location selection and sign off, and hardware acquisition.

The company expects to roll out its offering in May 2012. Initiating the company’s entry into this multi billion dollar marketplace in conjunction with the development of the www.Sproq.com.

For further Information:
Microelectronics Technology Co.
President:
Mr. Brett Everett
1 866 587 2860

www .melypk .com
www .clouddatacorp .com
www .sproq .com
www .domainstutter .com

Forward-Looking Statements

Cloud Data Corp Comments on the Market Direction of the Next Generation Cloud Application Hosting

Jenn — Thu, 03 May 2012 18:14:07 +0000

MONARCH BAY, Calif., April 30, 2012 /PRNewswire/ — Monarch Bay, California. Microelectronics Technology Co.( OTC-BB: MELY.PK – News)

Cloud Data Corporation, a wholly owned subsidiary of Microelectronics Technology Corporation is pleased to announce Sproq.com, next generation cloud application hosting.

Microelectronics Technology Corporation President Brett Everett is pleased to provide the following re-post of a previously published news article which gives an indication of the direction the Cloud Computing market sector is heading for the near future.

It appears that companies not established in the cloud sector are buying their way in an effort gain immediate market share.

“In the recent purchase of the software firm Demandforce, a company whose market sector is similar to that of Cloud Data Corporation, for $423.5 million dollars by Intuit, is a signal that company’s offering services for small and medium sized business are in high demand. Demandforce is a software-as-a-service web application that works within a company’s existing business system and provides tools for communicating with customers. It also helps small businesses market over the Internet and through mobile devices and improve their reputation. Demandforce has 35,000 small business users in North American and has helped its clients generate $1 billion in incremental revenue. It should help Intuit continue to grow its SaaS business and appeal even more to SMBs. There’s a big opportunity in helping small businesses grow up and take advantage of online tools.”

The relevance of this type of acquisition clearly confirms that Cloud Data Corp, a wholly owned subsidiary of Microelectronics Technology Corporation SYMBOL: MELY.PK is in the prime market sector of developing architecture for Small Business Applications through Sproq.com

Sproq.com application cloud hosting for small business is next generation software and architecture for cloud computing consisting of:

Automatic load scaling. As your traffic grows, Sproq will expand your resources to handle the load
Pay only for what you use, and only if your site is busy. If your site has low traffic, your hosting is almost free. You can also control how much to scale your application.
Integrated version control. We keep track of all changes, and you can inspect or roll back code as needed
We support a wide range of languages and frameworks. Build your application in Python, Ruby, PHP, or other languages
Testing and staging instances, so you can check your changes before deploying to production
Pre-built application services that you can use to create your application quickly

Sproq next generation cloud application hosting customers will be able to start with a single sproqet, as they need to scale up they will be able to purchase additional sproqets.

A pre- beta launch sign up is available at www .sproq .com where invites will be sent out for our beta.

Cloud Data Corp, a wholly owned subsidiary of Microelectronic Technology Corp is a full service Internet applications incubator within the cloud computing sector.

For further Information:
www.MELYPK.com
www .sproq .com
www .domainstutter .com

Microelectronics Technology Co.
1 866 587 2860

Legal Notice Regarding Forward-Looking Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward looking statements are generally, but not always, identified by the words “expects,” “plans,” “anticipates,” “believes,” “intends,” “estimates,” “projects,” “aims,” “potential,” “goal,” “objective,” “prospective,” and similar expressions or that events or conditions “will,” “would,” “may,” “can,” “could” or “should” occur. Information concerning oil or natural gas reserve estimates may also be deemed to be forward looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed.

Additional information on risks for the Company can be found in the Company’s periodic filings filed from time to time with US Securities and Exchange Commission at www.sec.gov.

Dynamo Servers to roll out Dedicated Server Division During May 2012. New Client Acquisition in Process.

Jenn — Thu, 03 May 2012 18:13:15 +0000

MONARCH BAY, Calif., April 27, 2012 /PRNewswire/ –Microelectronics Technology Co. (MELY.PK): The Companypreviously announced incorrectly that the roll out of the Dynamo Server Division of Cloud Data Corp would be during May 2102. This date was to read May 2012.

The company is pleased to announce that it has entered into formal negotiations with two potential clients for dedicated serverrentals to initiate the roll out of the Dynamo Server Division. The company anticipates that these will be the first of many new contracts the company will be establishing during the roll out phase.

Clients have identified and requested the advantage of renting, rather than purchasing, a dedicated server since co-location hosting for rented servers can be set up to include cloud-based backup or hybrid hosting. This is ideal for E-commerce webmasters and bloggers who experience peak and seasonal increases in bandwidth demands, and need to have a backup available in the event of increased usage or scalability. Clients that take advantage of the hosting company’s cloud servers for dedicated server sql backup as well as for resource support are the most reliable and cost-effective choices for E-commerce and internet marketing. Bloggers, especially those who may be met with unpredictable demands for additional resources, also find rental of dedicated servers along with a cloud backup to be an ideal solution to their needs.

The ability to easily upgrade rental packages, as well as to take advantage of cloud backup for co-located rented servers, enables clients to maintain the highest possible server capacity and bandwidth at a reasonable price.

The company is currently completing its co-location selection and sign off, and hardware acquisition.

The company expects to roll out its offering in May 2012. Initiating the company’s entry into this multi billion dollar marketplace in conjunction with the development of the sproq network.

“The potential for rapid expansion into the dedicated server market and instant cash flow makes the creation of the Dynamo Server division a significant step in the maturity of the company,” statesMicroelectronics Technology President Brett Everett. “This is the first of many significant developments the company plans to implement in order to satisfy the company’s growing customer demands.”

In addition to the Dynamo dedicated server offering, the Vancouver co-location will also house Cloud Data Corps Sproq.com servers.

Sproq next generation cloud application hosting customers will be able to start with a single Sproqet, as they need to scale up they will be able to purchase additional Sproqets.

Sproq.com service is currently under development, with developmental servers and hardware already deployed. Sproq.com is scheduled for launch second quarter 2012.

For further Information:
Microelectronics Technology Co.
President:
Mr. Brett Everett
1 866 587 2860

www.melypk.com
www.sproq.com
www.domainstutter.com

Forward-Looking Statements

Microelectronics Technology Corporation Expands Cloud Data Corp, Establishes Dynamo Server Division

Jenn — Thu, 03 May 2012 18:12:22 +0000

MONARCH BAY, Calif., April 25, 2012 /PRNewswire/ –Microelectronics Technology Co. (MELY.PK): Microelectronics Technology Corporation is pleased to announce its wholly owned subsidiary Cloud Data Corp is in the process of developing a new business model under the Dynamo Server Division.

The company is currently completing its co-location selection and sign off, and hardware acquisition. The company expects to roll out its offering in May 2102.

“The potential for rapid expansion into the dedicated server market and instant cash flow makes the creation of the Dynamo Server division a significant step in the maturity of the company,” states Microelectronics Technology President Brett Everett, “This is the first of many significant developments the company plans to implement in order to satisfy the company’s growing customer demands.”

In addition to the Dynamo dedicated server offering, the Vancouver co-location will also house Cloud Data Corps Sproq.com servers.

Sproq next generation cloud application hosting customers will be able to start with a single Sproqet, as they need to scale up they will be able to purchase additional Sproqets.

Sproq.com service is currently under development, with developmental servers and hardware already deployed. Sproq.com is scheduled for launch second quarter 2012.

For further Information:
Microelectronics Technology Co.
President:
Mr. Brett Everett
1 866 587 2860

www.melypk.com
www.sproq.com
www.domainstutter.com

Forward-Looking Statements

Microelectronics Technology Corporation Enters Into Joint Venture Agreement for Web Application Marketing Network Development.

Jenn — Thu, 03 May 2012 18:10:01 +0000

MONARCH BAY, Calif., April 10, 2012 /PRNewswire/ – Microelectronics Technology Co. (OTC-BB: MELY.PK - News):

Microelectronics Technology Corporation is pleased to announce the completion of a letter of Intent to Joint Venture with Fidelity Capital Partners of Nevis for the development of an industry specific Web Application Marketing Network utilizing Microelectronics Technology’s proprietary technologies such as DomainStutter.

The Web Application Marketing Network will be targeting the Web Applications industry that will be utilizing Cloud Data Corporations proprietary Sproq Network for their cloud hosting needs.

The web application market is set to explode over the next 3 years with the roll out of the Web Application concentrated Windows 8 operating system by Microsoft.

The Development of a Web Application Marketing Network is essential to provide developers a secondary market place to market web apps for retail end users outside of the traditional venues such as the Windows Store or the Apple Store that require certain compliance issues in order to participate in one platform or another but not both. The utilization of the Sproq.com interface and Hosting will enable a seamless entry to market for Web App developers.

“We are very excited to be entering into a joint venture agreement with Fidelity Capital Partners for the development of this Web Application Marketing Network,” states Microelectronics Technology President Brett Everett. “The company is well underway to establishing the foundation of a vertically integrated Cloud Application Hosting company with significant growth opportunities in the near future.”

According to breathtaking new research from Microsoft, the result of a commission to analyst firm IDC, approximately fourteen million new jobs will be created by the year 2015, all of those jobs stemming from a swelling boom in cloud computing. Profits generated from such a boom in cloud activity to skyrocket to more than $1 trillion dollars within the exact same time frame. This combination of revenue heights and a shot in the arm to unemployment woes worldwide could potentially translate into an unprecedented shift in workplace structure. Readers, the take home figure is three years — the amount of time in which cloud’s significance will mushroom.

Sproq.com service is currently under development, with developmental servers and hardware already deployed. Sproq.com is scheduled for launch second quarter 2012 and Cloud Data Corp is planning for the first point of presence in Seattle, Washington.

A pre- beta launch sign up is available at www.sproq.com where invites will be sent out for our beta.

For further Information:
Microelectronics Technology Co.
President:
Mr. Brett Everett
1 866 587 2860

www.melypk.com
www.sproq.com
www.domainstutter.com

Forward-Looking Statements

Microelectronics Technology Corporation Expands Initial Round of Financing to 2.7 Million Dollars for Cloud Data Corp.

Jenn — Fri, 06 Apr 2012 18:23:47 +0000

MONARCH BAY, Calif., April 2, 2012 /PRNewswire/ — Microelectronics Technology Co. (OTC-BB: MELY .PK – News):

Microelectronics Technology Corporation previously announced the completion of negotiations of an initial round of convertible preferred financing in the amount of $240,000.00 by an arms length private Small Cap Venture fund.

The Company is pleased to announce the terms of the financing have been enhanced to provide the company with commitment to invest $2,500,000.00 during the next 3 quarters of 2012. The financing will be available to the company in tranches of $500,000.00 based upon completion of certain milestones by the company concerning network development and customer acquisition.

This will bring a total of Convertible preferred financing commitment to $2,740,000.00. The Company will receive the first tranche of funding under the terms of the agreement this financial quarter.

The proceeds of the initial round of financing are to provide equipment acquisition, servers, software development and general working capital.

The company is at the stage in its development where the application of additional funds will provide for the rapid deployment of addition equipment required to complete the alpha testing of the Sproq Web Application Hosting Module Programming.

Upon successful alpha test completion, the next phase of development will be to establish a commercial co-location facility with the bandwidth, security and reliability required to meet the scalability of the Sproq Node modules.

Sproq next generation cloud application hosting customers will be able to start with a single sproqet. As they need to scale up they will be able to purchase additional sproqets.

A pre-beta launch sign up is available at www.sproq.com where invites will be sent out for our beta.