Dear Customers & Friends,

Another year has passed by and the team of ESKADENIA is more persistent than ever to achieve the challenge of making our company a global supplier of software products, solutions and services in the Telecom, Enterprise and Internet areas.

2006 has witnessed notable achievements in all areas of our business; ESKADENIA has further reinforced its position as a reliable provider of software to the Middle Eastern, European and African markets and has registered a considerable revenue growth and increase in exports compared to the previous year.

The sales in the Telecom area have exceeded our budget through the award of important billing projects from Comium Group and Korek Telecom. The Billing System has furthermore been well verified in the field through the huge success of VivaCell which has more than 800,000 active subscribers connected to its network. Moreover, major product launchings have taken place in the second half of 2006 including ESKADENIA^® Interconnect system and EPPS^® (ESKADENIA Prepaid System). We are investing in additional products in the Telecom area to make ESKADENIA a major supplier of telecom systems for a wider customer base.

The past year, ESKADENIA has entered the investment market by implementing its advanced Content Management System for Amwal Invest and Awraq Investment, which are leading regional investment banking firms in Jordan.

In the Enterprise Solutions area, the company has deployed its advanced medical insurance and accounting systems for Scope Health Insurance Management Company, an Emirati-Jordanian third party insurance claims administration company. It has also secured an important project to fully automate the operations of JETT, a major transportation company in Jordan, through the usage of a fully Internet-Enabled ERP system.

Throughout the year, ESKADENIA has demonstrated an extra-special presence in local and regional exhibitions and conferences including the 3G>GSM Middle East & Gulf Conference in Dubai and the Jordan ICT Forum. ESKADENIA has also held its first regional conference for the Insurance sector in Jordan and neighbouring countries, which came out with excellent feedback from the audience and the media. On the other hand, the company has increased its brand value through exciting marketing campaigns and activities.

We have notable achievements in the Human Resources area as 27% of ESKADENIA employees have obtained certifications in various advanced IT fields; competence development and regular training workshops were conducted internally and externally; a new rewarding retention program has been implemented; and lucrative recruitment and training opportunities have been provided throughout the year. Employee satisfaction has been on the rise and our employees have an increasing exposure to market, customer and latest technologies.

Planning to build on our bright history of performance, we move into 2007 with consistent momentum resulting from a strong belief that a well-established Jordanian software house is capable of producing and exporting highly advanced software products and solutions to the global market, as well as serving the local industry and market with same effort and enthusiasm.