Pragmatyxs Update:

Where We've Been and What's Ahead

Just like those holiday or birthday cards that never quite get out on time, this newsletter is long overdue! Rather than dwell on feeble excuses, it's time to bring you up to date on what we have been working on and our plans for 2007.

Much of 2006 was spent working on our new, innovative compliance labeling solution — PXSmartPrint. It is a web-based application that interfaces with Loftware's print server and label design tools to provide enterprise-grade label and RFID smart tag printing for companies with customer or regulatory compliance requirements. Target industries include pharmaceutical, medical device, and aerospace. We have several customers ready for production deployment within the next few months.

We saw increased interest in RFID last year. While supply chain mandates are driving a great deal of the RFID implementations, we are amazed at the creativity of our customers in conceiving applications using this emerging technology. We are currently working with a local customer to implement a mobile RFID solution for asset management of high value, sensitive equipment.

While RFID gets all the buzz, there remain many strong business cases for good old barcodes. We put a lot of effort into the development of operator-friendly handheld data collection applications and were able to streamline and improve the accuracy of order verification processes for several customers with high volume shipment operations. Use of 2D barcodes for one application reduced scanning requirements from 6 scans to 1 scan per transaction, resulting in significant time savings and a much happier workforce!

What's Next?

2007 is shaping up to be a busy year as we strive to bring even more value to our customers with new services and products. Here are just a few of the things our customers are looking forward to in 2007:

• New releases of PXSmartPrint with continued improvement in usability, features, and integration with existing business systems
• A mobile fixed asset application with support for barcodes and RFID tags that can be used as a stand-alone solution or as a front-end to existing asset management systems
• Feature enhancements to the PXSmartTrack material tracking application. A robust yet "easy-lifting" solution with web-based administration and an intuitive wireless handheld application for shopfloor transactions
• Easy online replenishment for barcode printing media and data collection equipment, accessories and software

So as you can see, there is much to accomplish — and yes, we promise to do a better job of staying in touch and keeping you posted on our progress!

Be sure to visit us at www.pragmatyxs.com for more information on how Pragmatyxs can help you tackle your labeling or material and asset tracking challenges.

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