John Livingston Milestones Quotations

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.

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.