`next generation' Internet service targeting small and medium sized European enterprises. Cathy Stovell reports.

Bermuda has been chosen by principals of a new Internet service company to be the headquarters of their new venture.

Portico International Ltd. has already been formed under Bermuda law and will be a subsidiary of the multi-million dollar Canadian firm, Integrated Communications Industries Inc.

Integrated Communications' plan to finance the formation of the new company in a private placement of up to $3 million (CND$) of its common shares.

Subject to all requisite regulatory approval, the Company will issue up to one million common shares at an issuance price of CDN$3.00 per share.

Integrated Communications' board of directors have also approved a debt settlement offer to help finance Portico. According to a Press release, Portico is currently assembling a management team to develop a model for "a next generation Internet service to reach small and medium sized enterprises in Europe through strategic alliances with competitive local telephone exchange carriers and Internet service providers''.

Flyn Bucy, of the Bucy Group of California, and other consultants conceptualised the business model and have been installed as senior officers of Portico International.

They will be responsible for its development and implementation and are entitled to an aggregate 12.75 percent equity interest.

Integrated Communications will retain a 63 percent equity interest in Portico International while the balance of the ownership will be held by certain investors who have provided funding for the key personnel and their conceptual work on the business model.

Portico International plans to develop a business plan for Internet-related services based on a model which aggregates a wide range of Web enabled business applications (including hosting, transaction processing, software, technical support) to be provided through strategic alliances between Portico International and third party application service providers.

The goal proposed in the model is to enable small and medium sized enterprises (SMEs) to obtain turn-key access to online business via a single Internet portal of Portico International. SMEs may subscribe directly, or through Internet service providers (ISPs) and competitive local telephone exchanges that have partnering agreements with Portico International.

Internet venture based in Bermuda The company claims that such arrangements would give the exchanges and ISPs an ever-expanding aggregate of value-added services necessary to attract and retain their customers.

The Letter of Intent contemplates that the model be developed into a business plan for implementation by the following key personnel of Portico International: Flynn Bucy, Chief Executive Officer; Kenneth O'Neal, Chief Operating Officer; Robin I.T. Brown, Chief Marketing Officer; and Andrew Salisbury, Chief Technology Officer.