From the President and CTO, J. F. Johns III

Xstream Mobile Solutions offers a comprehensive line of communication software products; this particular evaluation is based on our safety products “Safe” and “Alert.” Our corporate line consists of “Biz” and “Gold.”

Xstream Mobile Solutions line of add-on software and plug-ins including; DBM 1, IWatch and TFTalert, will represent a significant revenue stream outside of these projected numbers. We are very excited about these new products and what they will mean to our company.

The following revenue projections are based on current discussions and previous meetings with various County cities and municipalities.

We are now installed and operating in the County of Will in the state of Illinois. This contract currently represents approximately $15,000 in revenue and a proportionate annual residual.

We are currently in negotiations and discussions with Kankakee County in Illinois. These pending contracts could result in sales as high as $50,000 and a residual of $12,000 annually. This particular sale is in the final stages, the contract includes cities of Kankakee, Manteno, Grant Park and other cities located in Kankakee County.

To protect the city of Chicago through the utilization of our software, we are in discussions with IBM through a third party distributor, Net-Structure a minority owned company. This particular contract would represent a substantial increase in sales if consummated.

XSM is also currently in discussions with Deutsche Boerse Systems, Inc. of Germany regarding a European distribution deal or some subsequent partnership in regards to distribution and infrastructure usage in Europe. This particular contract currently has no dollar amounts assigned to it but could constitute a substantial increase in sales and revenue if consummated.

We are in discussions with educational organizations such as high schools and grammar schools to notify their students and parents through the utilization of our product. These particular contracts represent between $5,000 and $10,000 on initial sales per school and bear residuals of one quarter of the original sales annually with potential updates and upgrades representing other possible revenue. Schools we are currently negotiating with are Homewood-Flossmoor High School and Lincoln-Way Central High School located in Illinois. These contracts would represent a substantial increase in sales and annual residuals on a state-by-state basis.

There are currently 102 counties in the state of Illinois, and based on the fact that we are currently a sole source provider and also have

no serious competitors, we can consider the market to be wide open. Although we don't know if this situation will continue indefinitely.

One projected scenario would be: There are 102 counties in Illinois, with an average initial sale of $10,000 each, equaling $1,440,000. In addition, annual 25% residuals would be equal to $360,000. These numbers are projected based on one sale per county. We consider that these estimated numbers are extremely conservative, since our expectation is to have multiple sales in each county.

Estimated revenue numbers by the end of fiscal year 2006 are $100,000 in gross sales. This numbers based on current contracts and software in place in the local municipalities such as Lemont, New Lenox and Will County.

The above numbers do not reflect any sales of our corporate software products, which we believe at some point will constitute similar numbers in that sector.

Xstream Mobile Solutions believes that given the appropriate market attention and sales effort we may far exceed these expectations. The product line that we have developed is solid and reliable. The customer base that we appeal to have been without exception very receptive to our systems. The ability to sell and implement our systems is only inhibited by our ability to put our products in front of as many potential end-users as possible. In addition we have currently achieved certification with Cingular wireless and are now listed as a certified third-party supplier with this nationally renowned cellular company.

I would like to personally thank all the people that have been instrumental in our growth, helping to build our company. XSM will always persue the highest possible standards in everything we do, and will never settle for second best. Our commitment to safety is not just part of our business, it is our passion.

There is no guarantee that the company will in fact complete all or any of the matters discussed above.

This press release contains “forward-looking” statements as that term is defined by Section 27A of the Securities Act of 1933 (the “Securities Act”), as amended, and Section 21E of the Securities Exchange Act of 1934 (the “Exchange Act”), as amended. All statements that are included in this press release other than statements of historical fact are “forward-looking” statements. Although management believes that the expectations reflecting in these forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors could cause actual results to differ materially from the expectations as disclosed herein, including without limitation, in conjunction with these forward-looking statements contained in this press release.