Crystal Point Update

Message from Chris Smith, President/CEO                                                                                    October, 2007

Throughout the year, I meet with Crystal Point customers to discuss their NonStop plans and to learn how we can better meet their needs. I also share information about our corporate direction and product roadmaps. The recent announcement that the HP NonStop system console will no longer be shipped with OutsideView has prompted me to provide you with an update on some of Crystal Point’s initiatives and our direction for OutsideView.

We appreciate that OutsideView served as part of the HP NonStop system console for more than 15 years. We understand that the technology road is sometimes bumpy and that change is inevitable. Although OutsideView will not be shipped on new HP systems, HP has stated that they will continue to support the console version of OutsideView until January 2009. Beyond that, you can rely on Crystal Point’s own technical support team to provide OutsideView system console support for years to come.

OutsideView® has set the standard for Tandem 6530 terminal emulation for nearly 20 years. Thanks to our loyal customer base, it is the #1 selling 6530 terminal emulation product and continues to be the #1 recommended NonStop connectivity software, worldwide. It is my goal to maintain Crystal Point’s market leadership and to continue delivering leading products packed with innovation and the robust features our customers need.

A recent survey of our customer base helped us sharpen our focus as we planned our development initiatives for 2008 and beyond. First, we will continue to improve OutsideView’s core technology so we can keep up with the latest advances for more efficient releases and faster customer response. Second, we have a new OutsideView Feature Release scheduled for the first quarter of 2008. This release will deliver improved performance, enhanced security, new licensing and much more. Customer input will remain a cornerstone of our development process. We will keep the communication lines open so we can better understand your business and address your changing product needs.

Crystal Point is well positioned for the future. We remain fiscally strong and poised for growth. I would like to personally thank you for your business and let you know that we are committed to supporting our OutsideView customers. If you have any questions, please feel free to contact me directly at Chriss@crystalpoint.com or on my direct line at 480.703.8056

Sincerely,

Chris Smith,
President/CEO