Welcome to expressHR's Partner Newsletter for 2006 There have been some fantastic developments within expressHR over this year and we thought that the festive season was a good time to update you on what has been happening. One of the most significant milestones has been the appointment of Nick Ray as expressHR's CEO and securing our first round of VC funding. Both of these are instrumental and reinforce our further growth plans and provide us with a solid platform for 2007 and beyond. During 2006 client adoption of expressHR solutions has seen dramatic increases User numbers have grown by over 390% to now stand at 14,186 Timesheet hours processed per quarter have grown to over 17.2M, an increase of over 45% Candidates placed per quarter has grown to over 66,000, an increase of 40% Candidates submitted per quarter has grown to over 82,000, an increase of 64% Transaction volumes per quarter have increased by over 30% and now stand at over £300M pa. expressHR has a strong pipeline of sales activity and has increased new Client wins by 32%. We expect this pattern of organic growth to accelerate during 2007. Despite these increases, support tickets have also come down dramatically and even as we continue to grow, greater levels of customer support will be provided. This will be accomplished by rolling out more user tools and expanding the use of our Issue Tracking System so that it delivers greater customer business information such as transaction charge monitoring. We have launched a new web site which now better outlines what we do and how we do it (www.expresshr.com). Any customer feedback would be gratefully received. Following an internal security review as part of BS7799 accreditation, expressHR has invested over £50,000 in the deployment of several key security enhancements to further protect all client data. This will continue to ensure that expressHR remains at the forefront of security arrangements and reinforce its commitment to Partners in this business critical area. Additionally, an independent audit report will be available in the New Year. expressHR has been selected to participate in the highly prestigious Microsoft Live Partner Advisory Council (PAC). The purpose of Live PAC is for Microsoft to engage with a broad set of partners who are thought to be leading companies in the emerging Software + Services partner community to help define joint opportunities; develop business models and review product strategy. The Live PAC consists of 25 members selected globally, who serve a two year term, meeting two to three times per year in person. expressHR was chosen to participate in Live PAC because of its market leading position in the software as a service (SaaS) arena and its mature working relationship with an offshore provider. This exciting opportunity for expressHR puts it in the forefront of influencing future trends in the rapidly developing SaaS area. During the first quarter of 2007 we will roll out to all Partners enhancements which will speed up the filling in of system forms. This investment by expressHR is anticipated to save users at least 20% of time in filling in these forms and we are sure you will welcome this chance to increase your user's productivity. Our scheduling functionality was released this year and has been deployed very successfully to manage staffing in the Care working environment and Retail sectors where shift work is frequently requested at short notice. We are confident you will see a significant rollout of this through coming years. As you can see, as 2006 draws to a close expressHR has made considerable progress and consolidated its position as the UK's market leading VMS software provider. We have some exciting plans for 2007 some of which are mentioned above and others which we will update you on nearer the time.