From the CEO:
A Landmark Year for UltraBac Software

Happy 2007! UltraBac Software has been a successful innovator of backup and disaster recovery products and, in May, we will celebrate our 25th year in the industry. By seeking to serve small to medium-size network users, we have met the needs of the majority of backup consumers. In addition, many of the world's largest companies and organizations hosting hundreds or even thousands of servers have selected UltraBac Software solutions to protect their distributed networks.

In 2007, we will continue to provide both enterprise and SMB customers with new releases of UltraBac, our long-serving file-based backup solution, as well as our exceptional image-based UBDR Gold disaster recovery software. In the second quarter of the year, expect a totally new image backup and restore feature aptly named "Continuous Image Protection" (CIP). CIP allows a user to specify a point-in-time recovery of a partition or disk. After a full snapshot, CIP will continuously back up changed blocks enabling a specified point-in-time restoration after the last full backup.

You can also expect to see continued improvements for dissimilar hardware and virtual based recoveries, which will greatly benefit those who rely on this critical functionality. Additionally, we plan to release a SharePoint Agent, as well as a permanent internal database for storing data generated by backup and restore activities.

For those customers with tightly locked down firewalls, UltraBac Software will be releasing a significantly updated version of our namesake product, UltraBac, which will support backup within such a secure environment. This strategic feature was the direct result of a critical requirement from a state government agency that had tested every major Windows backup product in the market unsuccessfully before UltraBac delivered a working prototype. We appreciate good ideas and suggestions from our users. As demonstrated by this case, these ideas are frequently incorporated, along with market-driven features and functions, in our new product versions.

Lastly, UltraBac Software has also made a commitment to redesign our software's GUI to enhance your user experience and navigation through our products. This is no small undertaking and is targeted for release concurrent with UltraBac Version 9.

We are deeply committed to improving UltraBac's ease of use so that customers can install, configure, back up, and restore with little or no training. For those who do need help, our best-in-the-industry technical support team remains ready to answer questions and resolve issues.

By continuing to build on our successful products, UltraBac Software is well positioned to provide a total solution from the largest to the smallest of customers. Our primary goal remains the same today as when we started business in 1982 - to provide customers with reliable, easy-to-use, high performance software with the right features and functions needed to get the job done at an affordable price.

Sincerely,
Morgan Edwards