Twice each month at Noon EST on Sunday, Stockprowler will bring you his latest hot stock pick...free on the Web! Stockprowler uses state of the art technology to look under the rocks and find those little stocks with the potential to make the BIG moves. Stockprowler screens NASDAQ, NYSE, AMEX, and OTC Bulletin Board stocks trading around $3 or under. These stocks offer considerable leverage at minimal cost. It is not uncommon for these stocks to make moves of 30%, 50%, or more. Please read our disclaimer before trading in any stocks mentioned on this Web site. So are you ready? Here's the Stockprowler report for the week of Sunday June 17, 2001:

Stockprowler's pick this week...

 

Vertical Computer Systems, Inc. (OTCBB: VCSY)

Corporate Web Site: http://www.vcsy.com/indexb.htm

Shares Outstanding: 572.7 million  

Institutional Ownership: (3) – less than 1%

Market Capitalization:  $21.2 million

Closing Price Friday 6/17/01:  3.7 cents

A new technology has begun to transform the computer software industry and the way business will be done on the Internet. The technology, called XML, has been hailed as a revolution by Microsoft CEO Steve Balmer. XML stands for "extensible markup language" and is just the latest descendant of the general markup language invented years ago at IBM as a kind of common style sheet for technical reports. The general markup language led to the standard general markup language that eventually became the hypertext markup language (HTML) that made possible the World Wide Web.

 All these predecessors to XML were simply about describing a page, whether on paper or on a computer screen. Although HTML does a perfectly good job of describing how a Web page will look and function and what words it will contain, HTML has no idea at all what any of those words actually mean… it knows nothing at all about information. If we want to find specific information somewhere on the Internet, we use a search engine. Like every other Web page, a search engine is presented using HTML, but it isn't the HTML that finds us what we're looking for… HTML is not a programming language. People don't write programs in HTML. Instead, HTML describes how a Web page looks, and contains the text of that page; but to HTML, words are just words, not information. It is up to the search engine to employ another program to first read the HTML, stripping away all the parts having to do with page description and leaving only the text. The search engine program is generally looking for key words or word patterns in the text specified by the user. It's a system that literally lacks an intelligence. XML, on the other hand, describes data, not pages. The power of XML is that it makes applications aware of what they are about. XML makes Web content intelligent… it enables us to move beyond the current world where we look at the Internet through browsers to a more advanced world where every application is Internet-aware.

 XML boldly changes the game by introducing the concept of metadata - data about data. In XML, each piece of data not only includes the data itself but also a description of the data, i.e., what it means. The ultimate result of adding XML throughout the Internet will be a change in Web infrastructure. Tomorrow your computer, whether it is on your desk or in your hand, will directly query XML data sources to dynamically generate exactly the Web page you want to see and in real time. 

All this is especially good news for Los Angeles based development stage company,Vertical Computer Systems, Inc. (OTCBB:VCSY).  Its XML (Emily Solutions™) technology allows for intercommunication between XML, HTTP and HTML. Emily™  (MLE) is a patent pending, extensible, multi-platform scripting language with built-in parsing of XML and HTML data, including support for SQL databases. Emily™ is ideally suited for the construction of intelligent, easy to use, fast, dynamic web sites.  Earlier this year, Vertical Computer Systems, Inc. was featured on IBM’s web site as an innovation leader. “As a part of the effort to move XML into the business mainstream, IBM is working with companies like Vertical Computer Systems to develop tools and solutions based on this exciting technology.”

 http://www-3.ibm.com/software/ebusiness/innovations/vertical_middle_no.html

Emily™ facilitates the creation of business websites, translates disparate programs and can construct complex systems dealing with the web that would otherwise be cost prohibitive. With Emily™, different computing systems worldwide will conceivably be able to quickly and effectively share database information to realize the full potential of the Internet between XML servers and clients in the new global economy. For further information on Emily(TM) visit VCSY's website at http://www.emilysolutions.com/.

Vertical Computer Systems, Inc. provides a full range of Internet services that includes offering B2B, B2C, and B2C e-commerce solutions using its proprietary Emily™ technology and distributing content, services and products via global network of online Home Country Gateways. Vertical Computer Systems is committed to building profitable e-commerce businesses that specifically cater to the needs and desires of targeted communities around the world. IBM’s Web site provides background information and streaming video describing VCSY’s Home Country Gateways (HCGs), particularly focusing on theIndiaBridge.com, which is powered by Emily™, VCSY’s powerful new proprietary XML-based technology. “IBM has clearly been the leader in promoting XML as the new global open standard. We are particularly proud to be highlighted on this Web site alongside such companies as Ameritech, Primerica, and Cap Gemini Ernst & Young,” stated Richard Wade, President of Vertical Computer Systems, Inc.

Interestingly on May 24, 2001 Vertical Computer Systems Inc. announced that Industrial Automation Engineer Aluizio Cruz has become a consultant to the company. For the past five years, Cruz has conducted research in the field of fiber optics, stating “I envision optics communication as the next technological frontier.” Among other distinctions, he is a co-holder of a patent pending for an Internet-based video switch that permits true video transmission over minimal bandwidth. Cruz has granted an exclusive license of his patent-pending fiber-optic image encoding technology to Vertical Computer Systems. His system provides an efficient means for transmitting full-motion images over long-haul fiber-optic connections. It is designed to deliver video images with clarity and precision, representing a significant improvement over other fiber-optic technologies developed to date. This is very significant because one inevitable result of the adoption of XML is data expansion… and that means the need for more and efficient use of bandwidth. ‘Vertical Computer Systems is fortunate and proud to be working with such an eminent and multitalented expert as Aluizio Cruz,” commented Richard Wade, president of Vertical Computer Systems. “His work in enhancing fiber-optic communications allows us to extend our technology portfolio into that exciting area, which many industry observers agree has the potential to dramatically enhance the state of the art in data transmission. We look forward to leveraging the power of our Home Country Gateways to market his fiber-optic innovations worldwide.”

Last week, Vertical Computer Systems, Inc. announced a partnership with Epsylon Technologies, Inc. and Taurus Global LLC to form Wireless Learning Systems (WLS). WLS intends to provide low-cost, rapidly deployable and fully interactive school and corporate classroom wireless educational systems, featuring a device on every student's desk similar to a PDA (personal digital assistant) enhanced with “smart” technology from Vertical and Epsylon. VCSY's President Richard Wade commented: ``Our wireless technologies are important for several reasons. Wireless solutions are generally less expensive to deploy when starting from scratch, and certainly much more rapid. In the field of education, and especially outside of the U.S., low cost is critical. Only through a low-cost, rapidly deployable system can we provide a solution that will offer a meaningful contribution to global education. We supply this solution through proprietary Emily and Epsylon software, which takes a relatively inexpensive ‘dumb’ device and makes it much smarter. This will enable the full degree of wireless interactivity between teacher and student that can provide a very important benefit all day long in classrooms around the globe.” Vijay Amritraj, VCSY's advisor, partner and Chairman of VCSY's joint venture www.theIndiaBridge.com, welcomed VCSY's latest venture as “another important step in delivering on its promise of making appropriate technologies available to the world markets.”

VCSY closed Friday at 3.7 cents on volume of 2,004,700 shares. Stockprowler.com views VCSY as a high risk opportunity to cash in on what may be the next sleeper stock of the new millennium. Stockprowler.com does not receive compensation from companies profiled or from third parties associated with the companies profiled. Readers are urged to read the company SEC filings before investing in this or any other stock.

                                                                        Good trading… Stockprowler