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LT Lawrence & Co. Issues Report on Aim Smart Corporation

 BW)(LT-LAWRENCE/AIM-SMART)(AIMS) LT Lawrence & Co. Issues Report on 
                    Aim Smart Corporation

                    Business Editors
                    NEW YORK--(BUSINESS WIRE)--June 2, 1998--
                    AIM SMART CORPORATION (OTC:AIMS)
                    Initiating Strong Buy -- Growth May Accelerate      
                    Short-Term Rating:  BUY
                    Long-Term Rating:  STRONG BUY
                    Price Objective -- $12 - $15 per share

                    Price:                                           $8.00       
                    52-Week Price Range                     $4.75 - $14.00  
                    Shares Outstanding (MM)                          27 MM           
                    Shares in the Float                            858,000         
                    Market Capitalization (MM)                     $216 MM         
                    Long Term Debt (3/31/98)                          none            
                    Book Value Per Share (3/31/98)                     n/a     
                    Dividend Per Share                                none     
                    Average Daily Volume                            50,000   
                    Insiders Holding                                   67%      
                    Institutional Ownership                          0.36%    
                    Next Earnings Expected                         8/15/98  

                    Year   Revenue  Revenue  Gross   Operating Net Income  EPS  P/E   EPS
                    (Mar.)   (MM)   Growth   Margin   Margin      (MM)              Growth  

                    2002E   $462.0    43%     65%      45%      $54.14   $2.00   20   43%
                    2001E   $323.4   133%     62%      42%      $37.90   $1.40   22  133%
                    2000E   $138.6   131%     60%      40%      $16.24    $.60   42  131%
                    1999E   $60.00   333%     58%      38%       $7.03    $.26   77  420% 
                    1998E   $13.86  6500%     56%      36%       $1.39    $.05  300   n/a
                    1997E    $.210    n/a     24%      n/a       ($2.6)  ($.10) n/a   n/a

                    Investment Highlights

                    --  Partnership with Microsoft has re-designed Internet Explorer 4.0
                        into The Smart Shopper Explorer and provides free Internet access
                        to the millions of households within a 5 mile radius of 300+
                        shopping malls.

                    --  Joint venture with Simon Brand Ventures, a division of The
                        DeBartolo Group, providing The Smart Shopper Explorer / Smart
                        Pavilion service to 240+ malls, 32 million households, and an
                        eventual 100 million shoppers nationwide. 1 mall has been
                        installed and the rollout is in progress.

                    --  Joint venture with The Rouse Company providing The Smart Shopper
                        Explorer / Smart Pavilion service to 59 malls. 8 malls have been
                        installed and the rollout is in progress.

                    --  Joint venture with Wells Park to provide Smart Shopper Explorer to
                        30 malls. 

                    --  Strategic relationship with major provider of Internet
                        connectivity hardware solutions.

                    --  Contract with WPP Group, the largest advertising and marketing
                        company in the world.

                    Fundamental Highlights

                    --  AIM Smart completing $4 - $5 million private placement offering
                    --  Internet companies receiving high valuations based upon projected

                    --  Hardware provider subsidizing rollout of kiosks

                        ADDITIONAL INFORMATION IS AVAILABLE ON REQUEST. Copyright (C) 1998
                    by LT Lawrence & Co., Inc. All rights reserved. The information set
                    forth herein was obtained from sources which we believe reliable, but
                    we do not guarantee its accuracy or completeness. Neither the
                    information, nor any opinion expressed, constitutes a solicitation by
                    us for the purchase or sale of any securities. LT Lawrence & Co., Inc.
                    and/or individual officers and/or employees and/or members of their
                    families may have a position in the securities mentioned and may make
                    purchases or sales of these securities from time to time in the open

                    Company Description

                        AIM Smart Corporation is a Microsoft Solution Provider and has
                    developed the state-of-the-art interactive electronic marketing system
                    called "The Smart Shopper Explorer." The Smart Shopper Explorer
                    service is a joint venture with Microsoft's Internet Explorer 4.0 and
                    allows users to surf the Internet free of charge using local shopping
                    malls as their Internet Service Provider (ISP).
                        Combined with the Smart Shopper Explorer is AIM Smart's "Smart
                    Pavilion", an advanced multimedia kiosk based in shopping malls around
                    the country. The system turns regional malls into Cybermalls. Shoppers
                    are advised of special sales, promotions, entertainment and product
                    offerings. Each Pavilion sits in the center court of a mall displaying
                    4 sides of touch screen displays and television monitors. Shoppers can
                    find directions to stores, coupons, play games, enter contests, read
                    horoscope, view online catalogs and much more at the touch of a
                    button. Specialized commercials are played during each stop to the
                    Pavilion indentifying which stores offer specific products.
                        For those who wish to shop from home, the Smart Shopper Explorer
                    provides free access to the mall and Internet. Mall stores can
                    continuously update their sales, promotions and special offerings and
                    can immediately notify their customers in the local community. This
                    streamlines the entire advertising process and allows each store to
                    interact with its customers electronically. The computer interface
                    looks and acts just like a television. Advertisements stream across
                    the computer screen while shoppers are browsing stores or going to
                    their favorite places on the Internet. Customers can purchase products
                    using a variety of payment methods and have the product delivered
                    directly to their home or office in as little as one hour. Ease of use
                    and simple installation makes the Smart Pavilion / Smart Shopper
                    Explorer service an industry breakthrough.

                    Price Objective  $12 - $15

                        We have continued our coverage of AIM Smart Corp. with a BUY
                    rating. Our 6 month price target of $15 per share is 88% above current
                    levels. Our 12 month price target is $20. The new service capabilities
                    and expanded reach of the Smart Shopper Explorer / Smart Pavilion
                    combination should prove instrumental in boosting the company's
                    revenues and earnings growth rate.

                    Strong Competitive Advantage in the "E-tailing" Industry

                        There are approximately 600 dominant shopping malls in the US.
                    With DeBartolo Group, Rouse and Wells Park being the top mall owners
                    in the US, AIM Smart is cornering the market on Cybermalls. While
                    there is competition in the kiosk industry, there are no companies
                    offering a fully integrated shopping / advertising / merchandising
                    network like the Smart Shopper Explorer / Smart Pavilion service. Many
                    E-tail companies are strictly web-based with one or two potential
                    revenue streams. AIM Smart has a diverse revenue structure that is not
                    dependent on the success of any one line of business. The shopping
                    mall business paradigm lends itself to this unique revenue structure
                    that includes the following:


                    --  Mall owner / store owner contracts with AIM Smart to provide
                        in-mall interactive directory and home shopping service. Contract
                        is written as part of the store owner's lease with the mall owner.
                        The two enter into a co-op advertising arrangement which provides
                        AIM Smart with a monthly revenue stream from each store within the

                    --  Each store receives a service package which includes a listing on
                        the kiosk and a webpage on the home shopping service. The store
                        may purchase premium packages which may include kiosk
                        infomercials, coupon printing, digital catalogs, kiosk print
                        advertising, email features, special promotions

                    --  AIM Smart receives 7 - 10% of gross sales from electronic commerce
                        between stores and shoppers.

                    --  The Smart Shopper Network offers advertising spots to in-mall
                        stores, local and national advertisers.

                    How Does it Work?

                        The Smart Pavilion / Smart Shopper Explorer Service is physically
                    installed in the center court of each shopping mall. AIM Smart
                    employees meet with each store owner and design an online presence
                    including digital pictures, prices, special coupons, advertisements,
                    commercials etc. Approximately 100 stores per mall participate in the
                    program. When shoppers enter the mall they are greeted by the Smart
                    Pavilion. A Smart Pavilion representative guides shoppers to the kiosk
                    and introduces its many features. Shoppers can browse the interactive
                    mall directory, receive coupons, play games, read horoscopes etc. Then
                    the representative offers the shopper a free Smart Shopper Explorer
                    4.0 CD-Rom and tells the shopper to load it onto their computer when
                    they get home. The shopper may continue to browse the mall, visit
                    stores and possibly purchase items from a store. Whenever a shopper
                    buys goods or services from a store, the store clerk asks the shopper
                    for their email address and whether or not the shopper is on the Smart
                    Shopper Explorer home shopping service. If not, the store clerk will
                    provide a free CD-Rom to the shopper. If so, the store clerk will book
                    the customer's order and note the customer's email address. This data
                    becomes very important as the store will then have an electronic
                    connection to each of its shoppers. The shopper goes home, loads the
                    Smart Shopper Explorer onto the computer, and the rest is history.

                    Overview -- The Internet Retail Electronic Commerce Industry

                        International Data Corp. estimates the total number of web users
                    will grow from 28 million in 1996 to 175 million by 2001. IDC also
                    estimates the dollar amount of transactions over the Internet will
                    increase from $2.6 billion in 1996 to $220 billion by 2001. There is
                    no doubt that the Internet has emerged as the next communications
                    medium complementing radio, television and cable. There are several
                    companies competing in the electronic retail industry ("E-tail").
                    These include Cendant,, Barnes & Noble, N2K, CDNow, Onsale,
                    Cybershop, etc. While sales have been focused on books, music, finance
                    and travel, more products and services are coming online daily. The
                    key to "E-tail" can be broken into 9 categories:


                    Opportunity: the Internet is growing 5 times faster than radio,
                    television and cable's early growth years.

                    Brand: AIM Smart is the leading provider of free Internet and home
                    shopping to shopping malls.

                    Cost Structure: For every dollar spent on free Internet, $25 in
                    advertising revenues will be generated.

                    Information Database: WPP contract gives AIM Smart access to largest
                    consumer database in the world.

                    Fulfillment & Distribution: AIM Smart has no inventory. Local stores
                    house and distribute products.

                    Cutting Edge Technology: Microsoft Solution Provider for 11 years puts
                    AIMS on top of technology.

                    Sense of Community: Local shopping mall structure enhances
                    neighborhood feel of Smart Shopper.

                    Ease of Use: Microsoft Plug-n-Play technology makes Smart Shopper
                    simple to install and use.

                    Speedy Delivery: Products delivered within 1 hour to customers living
                    in 5 mile radius of mall.


                        AIM Smart has approximately 325 malls under contract with 194
                    malls earmarked for immediate rollout. The Company has been installing
                    malls at a rate of 1 per week and is ramping up to 2 per week. There
                    are 9 malls in operation with 4 additional malls in production. The
                    main fee-for-service product is the IH-9 package which bills $300 per
                    month per store and provides a video catalog and Internet presence.
                    Premium packages are priced upwards of $1000 per month. Advertising
                    revenues consist of print advertising on the outside of the kiosk,
                    video advertisements in the Smart Shopper Explorer home service,
                    infomercials on kiosk screens, coupons, special promotions, banner
                    advertising, email campaigns etc. Electronic commerce revenues consist
                    of AIM Smart receiving 7 - 10% of gross sales of products and services
                    over the Smart Shopper network.
                        Current revenues are at $30,000 per month per mall and are
                    expected to ramp up to $64,000 per month per mall over the next 6
                    months. Our 1998 projection of $13.86 million in revenues is derived
                    from a mean number of 18 malls fully operational for 12 months. Each
                    mall will have approximately $770,000 in revenues for the 12 month
                        Looking to 1999, we expect the Company to be installing 10 malls
                    per month and have an average of 78 malls up and running for the full
                    12 month period. We have capped our $64,000 per month per mall revenue
                    projection at this time and will adjust it as the business model
                    progresses. We have also capped our kiosk deployment projection at 10
                    malls per month out to 2002. This will get AIM Smart to approximately
                    600 malls fully operational, which is our projected critical mass for
                    the Smart Shopper Explorer service.

                    Earnings Outlook

                        We project AIM Smart to be profitable in its second full year of
                    operation. 1997 showed a loss of $2.6 million with nearly all of the
                    loss attributed to accrued research and development expenses. 1998
                    will be the first year of profitability as the Company's revenues
                    increase from $210,000 to $13.86 million and margins begin to
                    increase. With 27 million shares outstanding we believe the Company
                    will earn $.05 for 1998 and $.26 for 1999.


                        1998 has proven that Internet companies need revenues, not
                    earnings, to receive strong valuations from Wall Street. EPS are out
                    the window and price/sales ratios are in. With the field spanning from
                    5 - 50, many price/sales ratios are landing between 15 - 20. With
                    $13.86 million in projected 1998 revenues, AIMS has a projected market
                    cap between $208 million and $277 million. With 27 million shares
                    outstanding we see a price range of $7.75 and $10.25. Looking to 1999,
                    with $60 million in revenues AIM Smart should have a market cap
                    between $800 million and $1.2 billion. The price is projected to
                    exceed $30 per share if these price/sales valuations continue.


                        AIM Smart has 50% of top shopping malls in exclusive contracts --
                    Between Simon DeBartolo Group, Rouse and Wells Park, AIM Smart has
                    created a strong barrier to entry for competition in the shopping mall
                    / Internet Retail industry. AIM Smart is aggressively pursuing the 600
                    top shopping malls and currently has contracts with 325 of them.
                        Company well positioned to capitalize on rapidly growing trend --
                    According to a report conducted by Coopers & Lybrand, Internet
                    advertising revenues continued their strong upward trend reaching
                    nearly $1 Billion in 1997. "The industry saw continued spectacular
                    growth ....placing the medium within the ranks of traditional media
                    for the first time," states Rich LeFurgy, Senior VP ABC News/ESPN
                    Internet Ventures. "We are witnessing the evolution of the Internet
                    into a vitally important consumer advertising medium, with increased
                    online spending and consumer usage, underscoring its value to
                    advertisers," added Tom Hyland, Chairman, Coopers & Lybrand New Media.
                        Internet E-tail drawing from the best of both worlds -- Internet
                    Retail has become an entirely new industry drawing from the best of
                    two worlds. Advertising and marketing on the Internet have exploded as
                    highly efficient modes of customer attraction and retention. Coupled
                    with the supply and distribution model of the retail industry, E-tail
                    companies are able to deliver goods and services once the customer is
                    in the door. Repeat purchases per customer are higher in E-tail than
                    most other models.
                        50% of Internet users accessing local content -- over 24 million
                    Internet users are surfing the web for local information, news and
                    other content. AIM Smart is leveraging this need for local content by
                    building 600 local communities with each shopping mall being at the
                    center of the community. This trend is driving local advertisers to
                    the Smart Shopper Network. This means that the appeal of the Smart
                    Shopper service extends to both national and local advertisers.
                        Free Internet expected to bring 5 million users to Smart Shopper
                    Network -- If you build it, they will come. We've been talking about
                    free Internet for 3 years. The time is now and advertising and
                    electronic commerce are paying the bill. America Online has proven
                    that having a controlled dedicated viewing audience is crucial to
                    driving advertising. AOL is up to nearly $300 million in annual
                    advertising revenues alone. AIM Smart expects to have about 1/3 the
                    viewership of AOL and will aggressively pursue a similar advertising
                    revenue structure.
                        Cutting-edge proprietary systems -- AIM Smart has its team of
                    Microsoft certified developers constantly programming and creating
                    innovative solutions for both the retail and Internet industries.
                        Competition is fragmented -- With less than 20 true players in the
                    E-tail business, AIM Smart is competing against companies selling a
                    limited variety of products or representing a small number of
                    manufacturers and retailers. While one leader offers products from 300
                    - 400 suppliers, AIM Smart is building a network of 30,000 - 60,000
                    suppliers. This unparalleled selection and market share should be a
                    strong backbone to AIM Smart's growth strategy.
                        Barriers to quality competition -- The Smart Pavilion / Smart
                    Shopper Explorer has been recognized by Microsoft at the National
                    Retail Federation conference as the "best of breed" technology in two
                    separate categories. With exclusive contracts already signed with 3
                    top mall owners and over 50% of the nation's top shopping malls, there
                    is little opportunity for competitors to take market share from AIM
                    Smart. In addition, the Company has spent many years developing the
                    software / hardware platform which has a price tag of over $10 million
                    in raw development cost. It is easier to partner with AIM Smart than
                    it is to compete against the Company.
                        Management has significant inside ownership -- The two founding
                    senior managers collectively own approximately 67% of the shares
                    outstanding. Additional insiders own another 10% leaving 23% to
                    outside ownership. Management is highly capable of running a publicly
                    traded company as referenced herein:

                    --  Robert Van Duren (age 42) President and Chief Executive Officer is
                        principally employed as the President and CEO of AIM Smart
                        Corporation and WinPoint Retail Consulting. Mr. Van Duren has 16
                        years experience as an officer, director and manager of various
                        public and private companies. He was formerly president of
                        LifeSoft Corporation as well as a real estate development company.
                        He also spent several years as a financial and management
                        consultant to rapidly growing small business. Mr. Van Duren has a
                        Bachelor's degree in Economics and a Masters Degree in
                        Administration from Central Michigan University.

                    --  Garry Eberhardt (age 42) Chief Operating Officer and Executive
                        Vice President of Operations for AIM Smart and WinPoint Retail
                        Consulting. Mr. Eberhardt is the corporate visionary and technical
                        expert. He is chiefly responsible for new product development and
                        product rollout. Garry has been involved in the development and
                        design of software products since 1978. He was formerly president
                        of LifeWare Systems Designer Team, Inc., a company involved in the
                        sales of transaction-based, backoffice solutions for the stock
                        brokerage industry. He attended the University of Lund in Sweden
                        where he received an education equivalent to a Masters degree in
                        Business Administration and a Masters degree in Computer Science.

                    --  George Winslow -- President of The Winslow Group Consultants has
                        been retained by the Company to provide new business development
                        and sales staff development services to AIM Smart. George Winslow,
                        formerly Vice President/Director of New Business Development for
                        Turner Broadcast Systems, Inc, began his media sales career in the
                        broadcast industry in 1959. At Turner Broadcasting, Winslow
                        pioneered innovative marketing concepts, secured millions in
                        incremental sales and focused in large part on national and
                        regional retailers.

                    --  Peter Gaskins -- Owner of Clarion and Associates. Peter was an
                        Institutional Investor All Star Analyst in the 1970's with Paine
                        Webber, a money manager in the early 1980's, co-founder and CEO of
                        NatWest Securities in the late 1980's and a venture investor
                        consultant in the 1990's. Peter advises AIM Smart on investment
                        banking and strategic planning issues.

                    Risk Factors

                        The Company's strategy is to continue its internal growth and, as
                    strategic opportunities arise, to consider acquisitions of, or
                    relationships with, other companies in related lines of business. As a
                    result, the Company is subject to certain growth-related risks,
                    including the risk that it will be unable to retain personnel or
                    acquire other resources necessary to service such growth adequately.
                    Expenses arising from the Company's efforts to increase its market
                    penetration may have a negative impact on operating results. In
                    addition, there can be no assurance that any suitable opportunities
                    for strategic acquisitions or relationships will arise, or if they do,
                    that the transactions contemplated thereby could be completed. IF such
                    a transaction does occur, there can be no assurance that the Company
                    will be able to integrate effectively any acquired businesses into the
                    Company. In addition, any such transactions would be subject to
                    various risks associated with the acquisition of businesses, including
                    the financial impact of expenses associated with the integration of
                    businesses. There can be no assurance that any future acquisition or
                    strategic relationship will not have an adverse impact on the
                    Company's business, financial condition or results of operations. As
                    suitable opportunities arise, the Company anticipates that it would
                    finance such transactions, as well as internal growth, through working
                    capital or in certain instances, through debt or equity financing.
                    There can be no assurance however, that such debt or equity financing
                    would be available to the Company on acceptable terms when and if
                    suitable strategic opportunities arise.


                        We have continued coverage of AIM Smart Corporation with a BUY
                    rating. AIM Smart has quickly become the leading Internet Retailer
                    associated with shopping malls and their affiliated stores. Through
                    contractual agreements with Simon DeBartolo Group, Rouse, Wells Park,
                    WPP and a strong relationship with Microsoft, AIM Smart is
                    aggressively executing its contracts to immediately rollout 194 - 325
                    shopping malls with a target of 600 malls by 2002.
                        AIM Smart is effectively leveraging new technologies and older
                    proven marketing methods to bring home shopping and 1 hour product
                    delivery to the masses. Parallel to the direct marketing, mail order
                    catalog and infomercial industries, AIM Smart expects strong growth
                    over the next 5 - 10 years as America's love affair with computers and
                    the Internet grows stronger and stronger.
                        In our opinion, AIM Smart has a 5 year window to aggressively
                    complete their 600 mall home shopping network. This will bring nearly
                    60,000 retail stores to desktops across the United States and enable
                    households to shop from home, receive their products in 1 hour or
                    less, videoconference, browse the Internet free of charge etc. With 5
                    million users on the Smart Shopper Network, AIM Smart will have
                    created a niche in the Internet market that should lead to a highly
                    profitable interactive merchandising and advertising network.

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