MTI Magnolia Telecom Inc. - Frequently Asked Questions

Frequently Asked Questions: QUESTIONS & ANSWERS

Q. Where are calling card displays located?

A. They are located in conveniences stores, drug stores, grocery stores, truck stops, malls, airports, bus terminals, cheque cashing stores, military bases, universities, hotels restaurants. They are located wherever there are people.

Q. How many hours a week does Servicing a route take?

A. Obviously, it depends on how may displays you purchase and how widely spread out your locations are. but, servicing -- which consists of collecting cash, replacing cards and only nominal maintenance, along with the light bookkeeping that a cash business requires -- is definitely within the bounds of a part-time, home- based business. Alternatively, you can establish a much larger enterprise for the most serious business person who is accustomed to owning and operating their own large business.

Q. Who is this business right for?

A. Our client profile varies widely. It's a perfect business opportunity for those looking for a career change; for entrepreneurs or professionals seeking a new opportunity; someone looking to establish their retirement; people planning for the future. It's perfect for husbands wanting to buy their wives a small business, for women with children desiring an additional income, for retirees wishing to supplement fixed incomes or those looking to become self-employed for the first time. In other words, this business is suitable for anyone, aged 18 to 80, who is self-motivated and who desires additional income combined with the flexibility to set their own schedule.

Q. How does the industry compare with other business opportunities?

A. We have found our potential clients are sometimes investigating other vending opportunities such as soda or candy machines. Phone cards are a much easier product to manage. Typically, a soda or candy vending business needs much more servicing. Ordering the product, restocking, servicing the product and equipment, and dealing with spoilage. Additionally, one must buy or rent extra equipment such as hand trucks, carts, vans, dollies, refrigeration and/or storage facilities. With phone card displays, you have none of that trouble, expense or risk.

Q. What is a Prepaid Phone Card?

A. The prepaid phone card is the most revolutionary way to make a telephone call today. It's as easy as 1,2,3. and the instructions are printed on the back of each card.

1. Call the 800 toll free number on the card. 2. Enter the ID number on the card. 3. Enter area code and telephone number you are calling.

The prepaid phone card is a necessity for everyone-- student, military personnel and business travelers and vacationers--everybody needs the prepaid calling cards. coins or credit cards are never needed to call locally, nationally or internationally. $5, $10 or $20 gives the consumer the appropriate amount of telephone time. No one should leave home without one.

Q. Are there any tax benefits?

A. As an owner of this type of equipment, you may write off through depreciation the total purchase price of the equipment, usually over a period of 3-5 years.

In addition, and this is most important, as the business goes on and on, display owners are allowed tax deductions for expenses incurred in generating and collecting income and in operating and servicing the equipment.

Besides the direct expense, the business portion of the following costs can be deducted from your gross income:

HOUSE: House payment or rent - taxes and insurance -telephone - electricity, gas and water - repairs and maintenance - depreciation (if owned)

AUTO: Gas and oil - repairs - insurance - depreciation - licenses

See your accountant for verification and application to your own individual tax situation.