Safe Systems, Inc.’s mid-year review is quite positive. We are on pace for another 30 new bank customers in 2006 and de novo contracts have been particularly strong. Our sales revenue has shown good growth and net income has improved by 11% over the same period in 2005.

While bank network configuration requirements continue to evolve, Safe Systems has been active in several areas to address the need for enhancements in network solutions. The company has been recommending centralized backup technology, network hardening solutions, and upgrading servers to address the increased functionality expectations of today’s networks. We have extended our in-house support center hours to allow more real-time support in non-business timeframes to help facilitate adding or working with new technologies. The support center hours have expanded from 8:30 a.m. – 5:30 p.m. EST to 7:00 a.m. – 7:00 p.m EST Monday through Thursday and 7:00 a.m. – 5:30 p.m. on Fridays.

We are also providing new bank training opportunities through monthly webcasts and an expanded class schedule. A bundled training package offers a discount for these services as banks continue to recognize the need for on-going training of personnel on various network and regulatory related subjects. In addition, we are close to launching our new on-line security awareness training module to help your employees learn more about important information security regulatory expectations on an individual basis.

The Annual System Review (ASR) document has been enhanced to provide a more comprehensive view of important system information that will assist your bank in making more informed technology decisions.

Finally, this letter should look much better than previous attempts as we have hired a new Marketing Coordinator. Please welcome Kristen Calkins to the company. Kristen has already made a big difference in the communication needs of the company, both internal and external. The new newsletter format is the latest example of her great work.

Please give me a call if you have any questions or suggestions regarding the company or new technology trends in the financial marketplace.


Danny Johnston
President and CEO

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