May 22, 2001 Intelliscan, a provider of data collection, forms processing, imaging and electronic document services, is now part of the Apperson family. This acquisition is critical for us as we continue to re-align our position within existing industries and forge into new areas that will bring us both business forms printing and other types of value-added products and services. The products and services Intelliscan provides positions us closer to becoming and maintaining "critical vendor" status, something that as you know, will put us into more of a "partner" vs. "bidder" status. Over the last 10+ years we have been working hard to penetrate the Education Industry with very steady, healthy success. The release of our Advantage and GradeMaster scanners is providing a foothold in a rapidly growing market through the sale of hardware, software and OMR forms. Data Collection (surveying) services is another area where we have expanded our capabilities in the last few years, that progress is now greatly enhanced by this marriage. Clearly business forms printing as we’ve known it is a declining market. This technology positions us to move with our clients as they adopt newer technologies such as data collection, data archiving, hardware and software sales. We are no longer just a printer, rather we become a partner in securing their future. Below are some of the primary areas that each of the mentioned groups benefit from this acquisition: Benefits to Intelliscan - Additional personnel and resources for national exposure/expansion - Single source for OMR, OCR printing, service bureau and fulfillment capabilities - Full Marketing Dept. support (direct mail, marketing materials, web, advertising, etc.). - New sales opportunities to Apperson’s vertical market base - Enhanced stability due to parallel direction and targeted industry segmentation Benefits to Apperson - Enhanced data collection, imaging, forms processing and electronic document technology expertise - Resell and service bureau solutions - Ability to provide e-document solutions to our clients as necessary - Excellent fit with our vertical industries (I/E, Education, Credit Union, etc.) as they move toward e-document solutions - Apperson to incorporate e-document technology for many internal documents (status notices, product complaints, order entry, change orders, etc.) - Expanded line of high-end hardware sales (fax servers, scanners, etc.) - Expanded line of high-end software sales (data collection, imaging, archiving, electronic documents, etc.) - Positions Apperson with products and services that place us above the competition - Gives Apperson a diverse product and service base that will help attract quality talent - Offices in Irvine, CA will provide satellite offices for select Apperson sales personnel Synopsis of Intelliscan - Specializing in software and hardware for improving document flow and automated processing. - Current operation of 5 individuals (sales, programmers, installer, maintenance and customer support) - Anticipated sales of $1.5 Million in 2001 - Heavy web presence (generate leads, provide information) - Anticipated growth approaching 25% with Apperson support structure - Primary re-seller for Cardiff software products (#2 worldwide in 2000) - Considerable assets in hardware and software along with multiple licenses for represented products - Bruce Genger, President and Pierre van der Westhuizen, Mgr. Of Systems Development are both well respected and considered experts in their field. We are very excited about the pathways this opens. We believe it will provide many opportunities for growth for Apperson and our personnel. Diversification has become a key word in the business world and out of some necessity, we have adopted it and in large part moved ahead of many in our industry that remain focused on a steadily declining piece of the pie. We are not satisfied in just "holding on" to our historic piece of the pie, instead we want to move forward taking control of our own future, laying the framework for continued success in current and related markets both in printing products and related services. This is a major step forward, one that will position us as one of the premier providers of such a wide array of products, services and technological expertise that will put more sizzle in our stature as an aggressive company evolving with the times. We’ve all heard it said that we are barely in the 20th century, well with this move we are solidly in the 21st century and moving forward. The first 45 to 60 days will be dedicated to making a smooth transition and better understanding the products, services and internal processes of Intelliscan. This knowledge will allow us to map out our strategic objectives in growing this part of our business. We do not expect to begin penetrating our current customer base with these products until this process is complete. In the near future we begin extensive training programs for Apperson employees that will be involved with this technology. We will keep all of you up to date on our progress. Kelly Doherty Bill Apperson Abel R. Garcia