John Livingston Quotations

We are pleased to be making such positive progress toward our primary objective of one million users by June 30, 2007,

From a financial perspective, fiscal 2005 milestones include record sales contracts in the fourth quarter and fiscal year, positive cash from operations in all four quarters, strengthening of our balance sheet following a $5.5 million private placement, and a promising sales pipeline in each of our key target markets - education, corporate and consumer. As a result, we are well positioned to continue our sales growth and cash positive trends into fiscal 2006.

Making this list is a testament to the hard work our team has put forward over the past several years in establishing secure asset tracking and computer theft recovery as a new product category for computer security. Our current objective is to more than double our number of subscribers in less than two years, and we believe that we have the right people, product suite, operational platform and distribution partners to achieve that goal and remain one of Canada's fastest growing companies.

We've identified the Embedded strategy as one of our foremost growth drivers. To date we have signed up HP, Lenovo and Gateway as partners and we continue to work with other computer manufacturers to adopt our BIOS initiative.

Computer loss and theft represents a huge security risk to both individuals and corporations. It's absolutely imperative to safeguard computing assets because of the direct financial implications as well as the liability of exposure and malicious use of the data that the computer holds. A single $1,000 laptop may hold credit card numbers, private client information and years of accumulated knowledge that could cost an organization millions of dollars in business and lawsuits. A few simple steps can mitigate risk and prevent a devastating loss.

Fiscal 2005 saw Absolute achieve significant milestones toward establishing our company as the standard for Computer Theft Recovery and Secure Asset Tracking. We reached an agreement with IBM/Lenovo to embed our software in the BIOS of all new ThinkPad laptops, we began enforcing our intellectual property resulting in several competitors choosing to either license our patents or resell our software, we announced an agreement with LoJack to brand our consumer offering under the well-known LoJack name, and we continued to expand our sales and marketing relationships with key OEMs.

As a measure of our success toward achieving our goal of becoming the industry standard, we've set objectives over the coming two years to grow to 1 million subscribers from 440,000 at the end of fiscal 2005, ... A key enabling strategy for these objectives is to establish BIOS relationships with the top tier computer OEMs. We believe that our embedded BIOS relationship with IBM was a key factor in driving Q4-2005 sales contract growth, and is an indication of the future potential of this strategy. We are continuing to advance this strategy, and subsequent to year end we announced Gateway as the second OEM to begin embedding Absolute's software into their BIOS.

The value placed on today's computing assets has made theft prevention and recovery software an imperative tool,

The food that we are sending out for the disaster response is food that we would normally distribute here to the food shelves and people of Minnesota, ... We're hoping that people in the state will step up and help us replenish those supplies.