Welcome to 2007! At Safe Systems, Inc., we look forward to the New Year with great anticipation. We continue to expand our “enterprise-wide” approach to providing services and products for our financial institutions. Today’s security, system performance, and regulatory compliance expectations are far greater and complex than in years past. Your need for a partner that helps your institution handle the ever growing responsibility of managing your enterprise systems has never been more important. Safe Systems recognizes this need, and we will continue to embrace the opportunity to help you be successful in your effective use and management of technology.

As we have for the previous thirteen years, Safe Systems showed continued growth in 2006. We have served more than 500 financial institutions, and our consolidated sales for 2006 exceeded $12,400,000. Considering that we do not sell hardware or software, this is an outstanding sales result. We continue to attract new customers and manage our expenses properly which resulted in a 98% improvement in operating profit as compared to 2005. Our sales remain strong with significant improvements in Florida, Alabama, and Tennessee.

Our classroom and on-line training offerings are continuously updated to address current security training and compliance regulations. The training is designed for Information Security Officers (ISO) and System Administrators (SA) to incorporate the new levels of knowledge needed to properly perform their duties. Bundled training packages have continued to be very popular as our training now takes a “stair step” approach and commitment. The “single class does all” days are in the past.

Safe Systems is excited to see the initial response of our NetGUARD managed service offering that addresses proactive remote monitoring, remediation, and reporting for servers and other devices. We expect this aspect of “enterprise-wide” management to grow rapidly in the next few years as financial institutions recognize that performance management of critical devices is as important as security protection of those devices.

We have re-engineered our quarterly system checkups and annual system review to provide more consulting and critical information to your institution. The early feedback we have received regarding the changes have been very positive.

In addition, we plan to open a satellite office in the Orlando, Florida area to help us grow more aggressively in the Sunshine State.

Thank you for your continued support, and we look forward to working with you in 2007!!

Sincerely,

Danny Johnston
President and CEO

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