The estimated annual growth rate in our industry is 12% in Canada.  The motivation for selectively outsourcing infrastructure is consistent with what we see in our daily business. Organizations are looking to improve reliability and performance, mitigate risk and take advantage of technical expertise they may not have in-house.  Our own growth is a testament to this trend.  Earlier this summer, Fusepoint was recognized by PROFIT 100 magazine as one of Canada’s fastest-growing companies. Ranked in the top 50, we have grown revenues 1,400% over the past five years and now serve over 400 customers.

I am also pleased to announce our second quarter results were the highest in our history.
Recruiting highly-skilled staff and investing in technical and infrastructure upgrades has allowed us to keep pace with our customers and their changing IT needs.  Issues surrounding the compliance and regulation of sensitive data is also generating increased demand for our services.  As you may have read in past communications, Fusepoint continues to make significant investments attaining compliance certifications such as CICA 5970, SAS70 Type II, and Tier1 PCI.  To continue our progress, we are also in the process of expanding our Vancouver data centre and planning additional space in our Toronto facility.

Thank you for your continued support and I wish you a successful balance of 2008.

Regards,

George Kerns
President & CEO
george.kerns@fusepoint.com