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On behalf of ProModel Corporation, I would like to wish all of you a joyous holiday season and a healthy and happy 2007. Additionally, I would like to thank our customers for your support and business in 2006. We sincerely hope that we have contributed in at least a small way to your success this year, as you are obviously responsible for ours. Our goal is to help you make Better Decisions – Faster.

I’d like to take this opportunity to share with you some of ProModel’s highlights from this year and some of what you can expect from ProModel in 2007. As always, we encourage your feedback at any time. We have made tremendous improvements in our products and services based on the invaluable customer input we have received over the years


Customer Recognition and Celebrations:
• Pfizer – Renewed Strategic Collaboration Agreement with ProModel through 2008.
• US Army – Forces Command (FORSCOM) Awarded Multi-Year Contract to ProModel.
• MORS (Military OR Society) – Awards 2006 RIST Prize to the Center for Army Analysis for their Army Force Generation Model Simulation study.
• Raytheon – Raytheon, Computer Sciences Corporation Selects ProModel Corporation for Warrior Training Alliance.
• U.S. Government – ProModel Received a GSA Contract for Schedule IT-70 facilitating our ability to provide technology and related services to the U.S. Government.


Conferences:
As many of you know, we hosted our Solutions Conference again this year in Park City, UT. We tried the April/May timeframe and it worked out beautifully. We had over 150 people in attendance, and the customer feedback indicated it may have been our best conference ever.

Continuing on the conference theme, we also hosted our first industry specific conference, Capacity and Productivity Improvement for the Pharmaceutical Industry - Using Simulation Technology to Improve Decision Making Capability. The conference was held in New York City in October and focused specifically on predictive analysis solutions utilized in the Pharmaceutical industry. We had a mix of customers, future customers, industry experts, and ProModel experts, so we designed in extra networking and leisure time. Attendee feedback indicated this was a very beneficial forum, so look for other events like this from us in 2007. We are considering themes like different industry segments, business initiatives (Lean/Six Sigma) and/or geographic regions. If you have input or suggestions let us know.


Consulting and Customer Support:
In the consulting area, we continue to improve our ability to rapidly develop and deliver appropriately customized solutions for companies large and small. Our experienced consultants are all now involved in Six Sigma training and certification. In addition, we are continuing to enhance our library of flexible, re-usable model-building technologies as we deliver cross-industry and multi-initiative (Six Sigma, Lean, Strategic and Portfolio Planning, etc) projects. This means when we deliver a solution, you get better results, faster. Lastly, some of our customers, with whom we work very closely, are now experiencing the benefits of an enterprise decision modeling approach, by integrating solutions across Strategic, Tactical, and Operational decision levels. We believe this is the future direction companies will be going in order to compete in increasingly competitive markets.

We continue to bring you what we believe are innovative new Customer Support ideas. We have had more than 250 people attend our free training webinars launched this year, and have also added flexibility to our annual support subscription options.


Technology:
On the technology front, we released the following major version upgrades - ProModel, MedModel, ServiceModel version 7.0, and Process Simulator 5.0. In addition, minor upgrades were released for Portfolio Simulator and 3D Animator. In 2007, we are planning exciting changes to many of our products, particularly aimed at making them easier to use, and facilitating faster decision making. Additionally, keep an eye out for the development of new targeted applications. Again, your feedback is critical here from both a technical and business standpoint, so please provide us with your input.

The people at ProModel look forward to working passionately on your behalf in 2007 to bring our customers the most valuable simulation-driven performance improvement solutions in the world.

Best wishes for the holidays,

Keith Vadas
President and CEO
ProModel Corporation


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