2001 has been an exciting and successful year for Machintel Corporation. We started the year with aggressive growth targets, and we are very happy to announce that the results have exceeded our goals.

Inspite of the recent economic slow down and the events of September 11th, our results have been good due to our focus on expanding our offshore development services. Clients have increasingly been looking for better prices for their development projects – and as a result have increasingly been choosing offshore development in preference to local development providers. Combined with repeat business from our previous clients, these two factors have contributed very positively to our success.

We thank all of our employees for their commitment, our shareholders and investors for their confidence, and our alliance partners for their collaboration in supporting our vision.

We thank our clients for their business – and their repeat business! Recently we conducted a survey of clients that have selected us repeatedly to work with them. We asked them why they chose to work with us again and again - the five reasons most often cited are (starting with the most frequent):

1. Final quality

2. Excellent project management

3. Technology strengths

4. Price Advantage

5. Communication

Our intent is to continue serving our clients by leveraging our core skills in development services and continue expanding our reach with clients around the world, especially in the areas of offshore development.

Our combined objectives for the year 2002 are: To implement our strategies to achieve the highest levels of customer satisfaction and loyalty, Setup strategic alliances to continue to grow aggressively in the international markets, Ensure Machintel and its subsidiaries are a great place to work, and Reward all stockholders for their investment in our company

We are well on track, and are committed to meeting and exceeding each of these objectives.

We at Machintel are looking forward to an exciting and successful year ahead!