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<SEC-DOCUMENT>0000897069-07-001672.txt : 20070815
<SEC-HEADER>0000897069-07-001672.hdr.sgml : 20070815
<ACCEPTANCE-DATETIME>20070815121533
ACCESSION NUMBER:		0000897069-07-001672
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20070809
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20070815
DATE AS OF CHANGE:		20070815

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			WIDEPOINT CORP
		CENTRAL INDEX KEY:			0001034760
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373]
		IRS NUMBER:				522040275
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33035
		FILM NUMBER:		071058735

	BUSINESS ADDRESS:	
		STREET 1:		ONE LINCOLN CENTER
		CITY:			OAKBROOK TERRACE
		STATE:			IL
		ZIP:			60181
		BUSINESS PHONE:		630-629-0003

	MAIL ADDRESS:	
		STREET 1:		ONE LINCOLN CENTER
		CITY:			OAKBROOK TERRACE
		STATE:			IL
		ZIP:			60181

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ZMAX CORP
		DATE OF NAME CHANGE:	19970530
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>tse107.htm
<DESCRIPTION>WIDEPOINT CORPORATION
<TEXT>
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<TITLE></TITLE>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>UNITED STATES<BR>SECURITIES
AND EXCHANGE COMMISSION <BR>WASHINGTON, D.C. 20549 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM 8-K </FONT></H1>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>CURRENT REPORT <BR>Pursuant to Section 13
or 15(d) of the <BR>Securities Exchange Act of 1934 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date of Report (Date
of earliest event reported): August 9, 2007 </FONT></H1>

<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=CENTER>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>WIDEPOINT CORPORATION</B>
<BR>(Exact Name of Registrant as Specified in Charter) </FONT> </P>

<BR>

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<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=35% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE="2"><B>Delaware</B> </FONT></TD>
     <TD WIDTH=30% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE="2"><B>000-23967</B> </FONT></TD>
     <TD WIDTH=35% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE="2"><B>52-2040275</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>(State or Other Jurisdiction of</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>(Commission File Number)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>(I.R.S. Employer</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>Incorporation)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>Identification No.)</FONT></TD></TR>
</TABLE>

<BR><BR>

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     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="60%" ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE="2"><B>One Lincoln Centre, Oakbrook Terrace, Illinois</B> </FONT></TD>
     <TD WIDTH="40%" ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE="2"><B>60181</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>(Address of Principal Executive Office)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>(Zip Code)</FONT></TD></TR>
</TABLE>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Registrant&#146;s
telephone number, including area code: <B>(630) 629-0003</B> </FONT></P>

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     <HR ALIGN=CENTER WIDTH=85% SIZE=1 NOSHADE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Check the appropriate box below if
the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the
registrant under any of the following provisions: </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[__]&nbsp;&nbsp;&nbsp;&nbsp;
          Written communications pursuant to Rule 425 under the Securities Act (17 CFR
          230.425) </FONT></P>

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     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[__]&nbsp;&nbsp;&nbsp;&nbsp;
          Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
          240.14a-12) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Workstation" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[__]&nbsp;&nbsp;&nbsp;&nbsp;
          Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
          (17 CFR 240.14d-2(b)) </FONT></P>

<!-- MARKER FORMAT-SHEET="Para (List) Flush Lv 0- TNR" FSL="Default" -->
     <P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[__]&nbsp;&nbsp;&nbsp;&nbsp;
          Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
          (17 CFR 240.13e-4(c)) </FONT></P>


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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 2.02 &nbsp;&nbsp;Results of
Operations and Financial Condition </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
August 9, 2007, the Registrant issued a press release announcing certain financial results
for the quarter ended June 30, 2007. A copy of the Registrant&#146;s press release is
attached hereto as Exhibit 99.1 to this Current Report. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, on August 9, 2007, the Registrant conducted a conference call to discuss its
financial results for the quarter ended June 30, 2007. A copy of the transcript of such
conference call is set forth as Exhibit 99.2 to this Current Report. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 9.01 &nbsp;&nbsp;Financial
Statements and Exhibits </FONT></H1>

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<TR VALIGN=TOP>
<TD ALIGN=RIGHT WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>(d)</B> </FONT> </TD>
<TD ALIGN=LEFT WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B>Exhibits</B> </FONT> </TD>
</TR>
</TABLE>
<BR>

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<TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>              99.1  </FONT></TD>
<TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Press Release Issued by the Registrant on August 9, 2007  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD ALIGN=RIGHT WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>              99.2  </FONT></TD>
<TD ALIGN=LEFT WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
Transcript of Conference Call Conducted by the Registrant on August 9, 2007  </FONT></TD>
</TR>
</TABLE>
<BR>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES  </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized. </FONT></P>


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     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>WIDEPOINT CORPORATION</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><BR><BR><U>/s/ James T. McCubbin</U> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Date: &nbsp;&nbsp;August 14, 2007</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>James T. McCubbin</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Vice President and Chief Financial Officer</FONT></TD></TR>
</TABLE>
<BR><BR>


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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>tse107a.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
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<TR VALIGN=Bottom>
     <TD WIDTH=35% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><IMG SRC="widepointlogo.gif"></FONT></TD>
     <TD WIDTH=35% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2> <IMG SRC="hawkassociates.gif"></FONT></TD>
     <TD WIDTH=30% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;<B><I>Investor Relations Contact:</I></B><BR>
&nbsp;&nbsp;Hawk Associates, Inc. <BR>
&nbsp;&nbsp;Frank Hawkins and Cale Smith <BR>
&nbsp;&nbsp;Phone: (305) 451-1888<BR>
&nbsp;&nbsp;E-mail: <U>info@hawkassociates.com </U><BR>
&nbsp;&nbsp;<U>http://www.hawkassociates.com</U> </FONT></TD></TR>
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     <TD WIDTH=60% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2">WidePoint Corporation<BR>
One Lincoln Centre<BR>
18 W 140 Butterfield Rd.,<BR>
Suite 1100<BR>
Oakbrook Terrace, IL 60181<BR>
(630) 629-0003 Phone<BR>
(630) 629-7559 Fax<BR>
<U>http://www.widepoint.com</U> </FONT> </TD>
     <TD WIDTH="40%" ALIGN="LEFT" VALIGN="MIDDLE"><FONT FACE="Times New Roman" SIZE="3"><B>News Release:<BR>FOR IMMEDIATE RELEASE</B> </FONT> </TD></TR>
</TABLE>

<BR>
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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>WidePoint Reports
Second Quarter &#145;07 Results </FONT></H1>

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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Conference Call
Scheduled for 4:30 p.m. EDT Today </I></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>FAIRFAX, Va. &#150; </B>August 9,
2007 &#151; WidePoint Corporation (AMEX: WYY), a leading provider of information
technology assurance and identity management services, today announced financial results
for the second quarter ended June 30, 2007. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The company reported total revenue of
$3,289,000 for the second quarter of 2007, including revenue from the Public Key
Infrastructure (PKI) credentialing and managed services segment, which increased 488% for
the quarter, from $201,000 in second quarter of 2006 to $1,186,000 for the second quarter
of 2007. Second quarter total revenue of $3,289,000 compared to revenue of $4,842,000
million in the year ago period. The consulting services segment witnessed a decrease in
revenues from $4,640,000 in the second quarter of 2006 to $2,104,000 in the second quarter
of 2007 due primarily to a non-recurring software resale of approximately $1.5 million
that occurred during the comparable year ago period. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Gross profit margins for the quarter
increased to 33% from 17% in the comparable period, due primarily to greater margins
associated with the company&#146;s PKI and managed services segment. Net loss for the
quarter was approximately $1,000, or $0.00 per share, compared with a net loss of
$230,000, or $0.01 per share, in the year ago period. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Second quarter 2007 highlights
include: </FONT></P>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
488% increase in PKI revenues represented an absolute increase of $985,000 over the
comparable period, driving an improvement in segment operating income from a loss of
$103,000 in the second quarter of 2006 to an operating gain of $366,000 in the current
period. Assets in the PKI segment grew 81% on a year over year basis, from $1,001,000 to
$1,817,000. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Growth
margin expansion from 16.8% a year ago to 33.4% for the current quarter represented an
increase in gross profit of $283,000 and included depreciation and amortization expense
in the company&#146;s cost of goods sold. Adjusted for those non-cash expenses, gross
margins improved from 18.9% a year ago to 36.7%, or $291,000 total, in the second quarter
of 2007. </FONT></TD>
</TR>
</TABLE>
<BR>


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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>WYY <BR>Page 1 of 6</B> </FONT> </P>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WidePoint
realized cash from operating activities for the quarter of $730,000 and increased its
total net total cash flow for the quarter to $553,000. The company ended the period with
working capital of approximately $3.5 million and cash and equivalents of approximately
$3.3 million. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The
company self-funded investments of $170,000 for internal equipment purchases and software
development cost during the quarter allowing for a pending approval for an additional
three-year Authorization to Operate (ATO) for the General Service Administration&#146;s
ACES (Access Certificates for Electronic Services) program and expansion of its core PKI
capabilities. </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&#149;</FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>United
Space Alliance, LLC, selected WidePoint subsidiary ORC&#146;s PIVotal ID&copy;solution to
implement an enterprise-wide Smart ID Badge solution. The scope includes a
cradle-to-grave turnkey solution from card request to card termination. The chosen
solution complies with Homeland Security Presidential Directive (HSPD-12), Federal
Information Processing Standards Publication Series 201 (FIPS 201) and Personal
Identification Verification (PIV II) requirements and regulations. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Steve Komar, CEO of WidePoint,
stated, &#147;During the quarter we expanded our PKI managed service business with the
addition of the United Space Alliance contract and the expansion of work with several of
our existing business partners. Through these relationships we continue to leverage our
historical expertise and fully compliant solution designation to issue certificates for
the U.S. Government. The expansion of our credentialing and managed services business
remains among our highest growth priorities over the next few years.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WidePoint CFO Jim McCubbin said,
&#147;We were pleased with our revenue growth in the PKI and managed services segment and
we are actively pursuing several initiatives which should continue to accelerate our
growth within the identity management and information assurance markets.&#148; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WidePoint will hold a conference call
with CEO Steve Komar and senior members of the management team today at 4:30 p.m. Eastern
Time. The call will cover the company&#146;s second quarter results. Komar will open the
call and a question-and-answer session will follow. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>To participate, call <B>(866)
328-4270</B> any time after 4:20 p.m. Eastern Time on August 9. International callers
should dial <B>(480) 629-9561</B>. While in conference, if callers should experience any
difficulty or require operator assistance, they can press the (*) followed by the (0)
button. This will call an operator to the line. </FONT></P>


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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>WYY <BR>Page 2 of 6</B> </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>About WidePoint </B><BR>
WidePoint is a leading provider of
information technology assurance and identity management services to the government sector
and commercial markets. WidePoint specializes in providing systems engineering,
integration and information technology services. WidePoint&#146;s wholly owned subsidiary,
ORC, is at the forefront of implementing government-compliant eAuthentication identity
management managed services and associated systems engineering and integration. ORC has
earned four major U.S. federal government certifications offering the highest levels of
assurance for transactions over the Internet. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WidePoint&#146;s portfolio of
customers encompasses U.S. Federal Government agencies, including the Department of
Defense, the Department of Homeland Security and the Department of Justice as well as
major U.S. defense contractors and several major pharmaceutical companies. For more
information, visit <U>http://www.widepoint.com</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>An investment profile about WidePoint
may be found at <U>http://www.hawkassociates.com/wyyprofile.aspx</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>For investor relations information
regarding WidePoint, visit
<U>http://www.hawkassociates.com</U> and <U>http://www.americanmicrocaps.com</U>, or contact Frank Hawkins or Cale Smith, Hawk
Associates, at (305) 451-1888, e-mail: <U>info@hawkassociates.com</U>. To receive these
releases via e-mail, subscribe at <U>http://www.hawkassociates.com/email.aspx</U>. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Safe-Harbor Statement: Under the
Private Securities Litigation Reform Act of 1995. This press release may contain
forward-looking information within the meaning of Section 21E of the Securities Exchange
Act of 1934, as amended (the Exchange Act), including all statements that are not
statements of historical fact regarding the intent, belief or current expectations of the
company, its directors or its officers with respect to, among other things: (i) the
company&#146;s financing plans; (ii) trends affecting the company&#146;s financial
condition or results of operations; (iii) the company&#146;s growth strategy and operating
strategy; (iv) the declaration and payment of dividends; and (v) the risk factors
disclosed in the Company&#146;s periodic reports filed with the SEC. The words
&#147;may,&#148; &#147;would,&#148; &#147;will,&#148; &#147;expect,&#148;
&#147;estimate,&#148; &#147;anticipate,&#148; &#147;believe,&#148; &#147;intend&#148; and
similar expressions and variations thereof are intended to identify forward-looking
statements. Investors are cautioned that any such forward-looking statements are not
guarantees of future performance and involve risks and uncertainties, many of which are
beyond the company&#146;s ability to control, and that actual results may differ
materially from those projected in the forward-looking statements as a result of various
factors including the risk factors disclosed in the company&#146;s Forms 10-K and 10-Q
filed with the SEC.</I> </FONT></P>


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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>WYY <BR>Page 3 of 6</B> </FONT> </P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WIDEPOINT CORPORATION
AND SUBSIDIARIES                                   <BR>CONDENSED CONSOLIDATED BALANCE SHEETS </FONT></H1>




<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="760" ALIGN="CENTER">
<TR VALIGN=Bottom>
     <TD COLSPAN="3" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2"><B>Consolidated Balance Sheets</B> </FONT></TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE="2">June 30,<BR>
<B>2007</B> </FONT></TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE="2">December 31,<BR>
<B>2006</B> </FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD COLSPAN="3" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE="2"><BR><B>Assets</B> </FONT></TD>
     <TD COLSPAN="3" ALIGN="CENTER"><FONT FACE="Times New Roman" SIZE=2>(unaudited)</FONT></TD>
     <TD COLSPAN=3><FONT FACE="Times New Roman" SIZE=2></FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH="71%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2><BR>Current assets:</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="3%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH="1%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD WIDTH="10%" ALIGN="RIGHT"><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
        <TD WIDTH="2%" ALIGN="LEFT"><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;Cash and cash equivalents</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   3,294,696</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   2,774,813</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;Accounts receivable</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2,813,371</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>6,220,444</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;Prepaid expenses and other assets</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>460,386</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>463,369</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total current assets</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>6,568,453</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>9,458,626</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Property and equipment, net</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>295,170</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>205,231</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Goodwill</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2,526,110</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2,526,110</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Intangibles, net</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,219,806</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,358,212</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Other assets</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>57,411</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>56,192</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total assets</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>  10,666,950</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>  13,604,371</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=3></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=3></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE="2"><B>Liabilities and stockholders' equity</B> </FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Current liabilities:</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;Accounts payable</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   1,600,277</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   4,364,747</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;Accrued expenses</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>975,036</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>786,842</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;Deferred revenue</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>471,833</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>564,594</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;Short-term portion of deferred rent</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>452</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,057</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;Short-term portion of capital lease obligation</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>52,178</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>45,020</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,099,776</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>5,764,260</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Long-term portion of deferred rent</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Capital lease obligation, net of current portion</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>51,926</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>67,851</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,151,702</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>5,832,111</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Stockholders' equity:</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>&nbsp;&nbsp;Preferred stock, $0.001 par value; 10,000,000 shares</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;authorized; 0 and 195,214 shares issued and outstanding,</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;respectively, liquidation value $3,416,245</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>195</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;Common stock, $0.001 par value; 110,000,000 shares authorized; 52,558,699</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;shares and 50,494,759 shares issued and outstanding, respectively</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>52,559</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>50,495</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;Stock warrants</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>38,666</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>38,666</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;Additional paid-in capital</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>60,785,220</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>60,667,229</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;Accumulated deficit</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(53,361,197</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(52,984,325</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>7,515,248</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>7,772,260</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities, temporary equity and stockholders' equity</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>  10,666,950</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>  13,604,371</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=3></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=3></TD><TD></TD></TR>
</TABLE>


<BR>

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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>WYY <BR>Page 4 of 6</B> </FONT> </P>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WIDEPOINT CORPORATION
AND SUBSIDIARIES<BR>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS  </FONT></H1>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH COLSPAN=6><FONT FACE="Times New Roman" SIZE=2>Three Months Ended<BR>
June 30,</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=6><FONT FACE="Times New Roman" SIZE=2>Six Months Ended<BR>
June 30,</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=2>2007</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=2>2006</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=2>2007</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=2>2006</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TH COLSPAN=12><FONT FACE="Times New Roman" SIZE=2>(unaudited)</FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Revenues, net</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   3,289,109</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   4,841,860</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   6,141,479</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   7,525,766</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Cost of sales (including amortization and depreciation</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>of $110,069, $102,126, $220,118, and $203,963, respectively)</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>2,191,798</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>4,027,975</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>4,388,633</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>5,994,956</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Gross profit</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,097,311</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>813,885</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,752,846</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,530,810</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Sales and marketing</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>243,166</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>208,963</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>446,609</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>413,391</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>General &amp; administrative</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>860,886</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>847,898</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,702,061</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>1,628,352</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Depreciation expense</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>21,624</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>6,749</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>37,174</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>13,725</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss from operations</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(28,365</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(249,725</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(432,998</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(524,658</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Interest income</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>30,160</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>20,416</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>61,998</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>38,765</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Interest expense</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(2,567</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(375</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(5,872</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(1,971</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Net loss before income tax</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>        (772</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>    (229,684</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>    (376,872</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>    (487,864</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Income tax benefit, net</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(83</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(83</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Net loss</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>        (772</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>    (229,601</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>    (376,872</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>    (487,781</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Basic and diluted net loss per share</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>       (0.00</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>       (0.01</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>       (0.01</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>       (0.01</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Basic and diluted weighted average shares outstanding</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>52,543,028</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>44,850,655</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>52,242,109</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>42,385,968</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>




<BR><BR>

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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>WYY <BR>Page 5 of 6</B> </FONT> </P>

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<HR SIZE=5 COLOR=GRAY NOSHADE>



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<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WIDEPOINT CORPORATION
AND SUBSIDIARIES <BR>CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=6><FONT FACE="Times New Roman" SIZE=1>Three Months<BR>
Ended June 30,</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=6><FONT FACE="Times New Roman" SIZE=1>Six Months<BR>
Ended June 30,</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>2007</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>2006</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>2007</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1>2006</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH COLSPAN=12><FONT FACE="Times New Roman" SIZE=1>(unaudited)</FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>Cash flows from operating activities:</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD WIDTH=9% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1></FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Net loss</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>       (772</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>   (229,601</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>   (376,872</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>   (487,781</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided by operating activities:</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation expense</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>30,586</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>7,768</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>55,077</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>15,474</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization expense</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>101,108</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>101,107</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>202,215</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>202,214</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock compensation expense</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>17,844</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>23,469</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options expense</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>22,687</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>92,329</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>86,663</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>153,392</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>479,775</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(1,417,917</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>3,407,073</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(716,055</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prepaid expenses and other current assets</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>92,998</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(125,088</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>2,983</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(78,433</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(1,219</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>169</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(1,219</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>35,753</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued expenses</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>4,581</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>2,007,739</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(2,643,435</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>981,771</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>    729,744</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>    454,350</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>    732,485</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>    129,804</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>&nbsp;&nbsp;&nbsp;&nbsp;Cashflows from investing activities:</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(106,241</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(4,622</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(128,630</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(15,197</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Software development costs</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(63,809</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(63,809</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>   (170,050</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>     (4,622</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>   (192,439</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>    (15,197</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>&nbsp;&nbsp;&nbsp;&nbsp;Cashflows from financing activities:</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal payments under capital  lease</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;obligation</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(13,677</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(25,153</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs related to registration statement</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(1,513</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(118,054</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(29,720</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(331,747</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of stock options</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>8,600</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>62,550</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>34,710</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>144,043</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from exercise of warrants</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>24,571</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>44,571</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs related to warrant exercise</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>(166,600</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>     (6,590</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>    (30,933</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>    (20,163</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>   (309,733</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>    553,104</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>    418,795</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>    519,883</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>   (195,126</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents, beginning of period</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>  2,741,592</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>  1,912,714</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>  2,774,813</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>  2,526,635</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents, end of period</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>  3,294,696</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>  2,331,509</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>  3,294,696</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>  2,331,509</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>Supplementary Information:</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Liabilities incurred but not yet paid relating to</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration statement</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>       --</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>     52,755</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>       --</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>     84,438</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>&nbsp;&nbsp;&nbsp;&nbsp;Noncash investing and financing activity -</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;capital leases for acquisition of</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;property and equipment</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>16,386</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>16,386</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;&nbsp;&nbsp;&nbsp;Cash paid for interest</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>      2,567</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>       --</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>      5,872</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=1>       --</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
</TABLE>


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<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>WYY <BR>Page 6 of 6</B> </FONT> </P>



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<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Workstation" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WidePoint Corporation<BR>Second
Quarter Conference Call<BR>August 9<SUP>th</SUP>,
2007 </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B> &nbsp;&nbsp;Ladies and
gentlemen, thank you for standing by. Welcome to the WidePoint Corporation second quarter
conference call. At this time all participants are in a listen-only mode. Following
today&#146;s presentation, instructions will be given for the question and answer session.
If anyone needs assistance at any time during the conference, please press the star key
followed by the zero and an operator will assist you. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I
would now like to turn the conference over to our host, Mr. Cale Smith from Hawk
Associates. Please go ahead, sir. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Cale Smith:</B> &nbsp;&nbsp;Thanks, Chad. Good
afternoon, this is Cale Smith. Welcome to the WidePoint second quarter 2007 conference
call. On the phone today are Steve Komar, CEO of WidePoint; Jim McCubbin, the
company&#146;s Chief Financial Officer and Dan Turissini, WidePoint&#146;s Chief
Technology Officer and CEO of subsidiary ORC. I&#146;d like to begin by reading the
company&#146;s Safe Harbor Statement and then we will hear from Steve, Jim and Dan before
they take your questions. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
afternoon&#146;s discussion contains forward-looking statements that involve known and
unknown risks, uncertainties or other factors not under the company&#146;s control. Those
risks may cause actual results, performance or achievements of the company to be
materially different from the results, performance or other expectations implied by these
forward-looking statements. These factors include, but are not limited to those details
in the company&#146;s periodic filings with the Securities and Exchange Commission.  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Now
here is Steve with his opening remarks.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B> &nbsp;&nbsp;Thank you Cale,
appreciate the introduction. Good afternoon to everyone on the call. I&#146;m Steve Komar
and as Chairman and CEO of WidePoint I&#146;d like to welcome you all to the
company&#146;s second quarter 2007 investor call. Thank you, as always, for your proactive
and continuing interest in WidePoint. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I&#146;d
like to begin with a few overview comments which would be consistent with our recent SEC
regulatory filings and a press release, both of which were issued earlier today, and I&#146;d
like to mention a few of the highlights that we feel that we&#146;ve experienced in the
second quarter.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;First,
by far, is our PKI and PKI managed service revenue growth. For the three months ended
June 30<SUP>th</SUP>, 2007, we experienced $1.2 million worth of revenues from that
particular product and services sector, compared to the year ago period of $0.2 million,
or in essence something in excess of 475% percentage growth on a year-to-year basis.  </FONT></P>

<BR>
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<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Secondly,
we&#146;ve experienced greatly improved gross profit margins during the second quarter of
2007 versus the prior year. And this pretty obviously is associated with both the PKI
managed services growth and the dropping off of some lesser or lower margin businesses in
the 2006 reference period. In essence, our gross profit margins doubled from 17% last
year to 33% in the second quarter of &#145;07.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
the other hand, our Consulting Services sector was not able to keep up the revenue pace
and in fact, had lower revenues in the second quarter than in the prior year period. This
was due primarily to a $1.5 million non-recurring software sale that we recorded in the
second quarter of &#145;06. The absence of that revenue stream in 2007, plus some
challenges that we&#146;re having in terms of recruiting staff for some new contract
opportunities we have, have resulted in fact in lower second quarter &#145;07 new revenue
for that sector.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Again
to highlight, we achieved a net income breakeven in the second quarter of 2007, versus a
$375,000 loss in the prior 90 days in the first quarter of 2007. We experienced improved
cash flows. Our net working capital is now in excess of $3.5 million and the great
majority of that is in cash and cash equivalents.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moving
right along &#151; well, I think in addition to the second quarter&#146;s results, which
is of course the purpose of this call and this meeting, I think there are some fairly or
equally important matters to consider. I mean, as we exit the second quarter of 2007 we
clearly see the trend that we see at the end of the second quarter continuing through the
second half of 2007 and beyond. We&#146;re observing increased activity levels in both
the commercial and government security markets, and we do expect our PKI and managed
services revenue growth trends to continue. We expect to see growth, but more modest
growth, from our consulting services for the next six months.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some
of you may recall that at the beginning of the year at an investor call we advised you of
some expected weaknesses during the first half of 2007. In effect we experienced that in
the first quarter and have begun to see a recovery from that in the second quarter of
2007. We are now fairly heartened by what we see going forward.  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;What
this means to us, summarizing, is that we envision meaningful improvements in revenue and
earnings performance during the second half of 2007 and in 2008. We expect to achieve
this through a combination of focused organic growth on our existing base businesses; and
second, by further strengthening our business development activities and organization.
And as always, we will continue our exploration for strategic fit acquisition
opportunities to accelerate both our position in the market place and our growth as an
enterprise.  </FONT></P>

<BR>
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<BR>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition there were a number of other highlights during the second quarter, but I&#146;m
going to let Dan and Jim discuss these in their respective comments. With that I&#146;ll
say thank you and I will pass the microphone to Dan. Dan, if you would.  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Dan Turissini:</B> &nbsp;&nbsp;Thank you,
Steve. From the ORC point of view, we had a strong second quarter. It was marked with
increased strategic agreements, increased revenue in our managed PKI related service, and
an increased activity in federal and commercial request for proposals. We&#146;ve
specifically strengthened our relationships with Northrop Grumman, Lockheed Martin and the
Federation for Identity and Cross-Credentialing Systems, which has opened large
opportunities in both commercial and first-responder markets, representing two large pools
of people to be credentialed with both ECA and ACES certificates. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Specifically,
our introduction of combining the physical credential with the ECA certificate at the
recent FIXs West Coast conference, which will provide cross-credentialing and combined
physical and logical access to DOD resources, was very well received.  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have also seen an increased vigilance towards the enforcement of identity assurance
mandates within the DOD. This has included the establishment of a new identity assurance
directorate at the OSD level, as well as a broadening of the requirements for contractors
to use these credentials to get into things such as the requirements for contractor
performance requirements. We have seen an up-tick in our credential orders, much to do
with these performance assessment reporting requirements as well as our increase in now
providing certificates to non-US citizens abroad who work for these various DOD
contractors.  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We&#146;re
also preparing our GSA E-authentication, managed validation and translation service to
support the broad PIV deployment and become a government enterprise validation service
that will enable cross-credentialing in government to government and business to
government transactions across PIV, ECA, and ACES communities. And we&#146;re seeing a
lot of activity on the application side to prepare for this PIV deployment within the
Federal Government.  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within
the &#151; specifically within the shared service provider PIV Managed service
environment, we are very encouraged with the recent resurgence of RFP activity and are
currently pursuing approximately six opportunities, both as a prime and in a sub role.  </FONT></P>

<BR>
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<BR>


<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally,
as announced in our recent press release, we are extremely confident that the deployment
of our United Space Alliance PIVotal ID Smart ID badge solution will be a replicable
model, one that will enable industry to leverage these specs, such as FIPS-201 to comply
with Federal acquisition requirements, HIPAA, Sarbanes Oxley, and establish strong
identity assurance systems that are necessary to meet both these external requirements
and their internal information assurance needs. We believe these accomplishments over the
last quarter have confirmed our expectations of a strong second half of &#145;07 and
going forward into &#145;08.  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That&#146;s
all I&#146;ve got, Steve. Thank you.  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Steve Komar: </B>&nbsp;&nbsp;Thank you, Dan.
Now I'll pass across to Jim for your comments. </FONT> </P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jim McCubbin:</B> &nbsp;&nbsp;Hello everyone.
Jim McCubbin here, Chief Financial Officer of WidePoint Corporation. Well, the second
quarter of 2007 was again a very productive quarter for us at WidePoint as both Steve and
Dan have just pointed out. We were awarded several contracts and renewals, continued in
our joint effort in expanding into new service areas, associated with several additional
pools of people that continue to need to be credentialed in the future and continue to
expand our internal infrastructure &#151; of which right now we&#146;re working on a ATO
for our ACES certificates, so we&#146;ll be allowed to issue them under the federal
mandates and be approved to do so for the next three years. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;That's
very  important  for us as well as we  differentiate  ourselves from our competitors and
stay in front of the pack as we&#146;ve always said that we would attempt to do, and we
have continued to do. We believe all these positive events continue to prime the pump for
what we believe will be our future financial success for the company as we look toward
the second half of 2007 and 2008. </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
the financial front, we experienced continued sporadic growth within our PKI segment
along with some contractions within the consulting segment as we witnessed a bump this
time last year associated with the material software resale, along with some contraction
as a result of some hiring issues we faced in filling a number of open positions that we
have. These are just choppy events that on a quarter-to-quarter basis tend to smooth out,
but we did experience the contraction on the consulting side that was more than offset,
if you factor in the PKI growth, and especially given the fact if you back out that
one-time software resale, which was approximately $1.5 million.  </FONT></P>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So
given the marketplace that we&#146;ve been working in, you see choppiness given both
seasonality and contract delays and awards that, at times, are beyond our control as we
work within a team environment.  </FONT></P>

<BR>
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<BR>


<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Workstation" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Moving
on, given these events, what I would like to do is say our total revenues decreased by
approximately $1.4 million from $7.5 million for the six months ended June 30<SUP>th</SUP>,
2006, to $6.1 million for the six months ended June 30<SUP>th</SUP>, 2007, again
predominately due to that $1.5 million software resale that happened last year, as well
as some continued softness in the segment of consulting that we&#146;re focused on &#151; more
than offset by the growth in our PKI business where we have continued to focus on.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So
WidePoint&#146;s total revenue as a result of this decreased by approximately $1.5
million from $4.8 million for the three months ended June 30<SUP>th</SUP>, 2006, to $3.3
million for the three months ended June 30<SUP>th</SUP>, 2007. Again, the material cause
in this reduction in revenue during the three and six months periods were the
non-recurrence of the one-time software resale and some softness within filling some
positions, more than offset by the growth in our PKI managed service segments.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;And
expanding on PKI &#151; our PKI credentialing and managed services segment experienced
revenue growth of approximately 252%, with revenues increasing approximately $1.1 million
from approximately $424,000 for the six months ended June 30<SUP>th</SUP>, 2006, to
approximately $1.5 million for the six months ended June 30<SUP>th</SUP>, 2007, all as a
result of the continuing adoption of several governments various mandates to rollout our
credential programs to various agencies and contractors.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
the three months ended June 30<SUP>th</SUP>, 2007, our PKI credentialing and managed
services segment experienced revenue growth of approximately 488%, with revenues
increasing approximately $1 million from approximately $200,000 for the quarter ended
June 30<SUP>th</SUP>, 2006 last year. So with that, we&#146;re very pleased to see that
growth to $1.186 million for the quarter ended June 30<SUP>th</SUP>, 2007. We do
anticipate the credential sales and managed services sales should continue to increase in
the medium to long-term horizons as we continue to fulfill contract wins and we witness
the further adoption of the ECA program by the DOD, the HSPD-12 program. It finally
starts to rollout as well as various other groups on pilot programs come on line
associated with the various other federal government mandates.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Looking
at this and moving into cost of sales, we witnessed a decrease in our costs primarily
attributable to strength in our PKI segment, driven by new client award and expansion of
past client requirements. We were very pleased to see this growth segment &#151; as the
revenue starts coming on line &#151; how strongly the margins improve and grow; in which
case, going from approximately $100,000 loss on $200,000 in revenue in the prior period
quarter, to a jump over $300,000 in profitability as it grew to over $1 million. As those
numbers increase within that segment, we like the business model and managed service
model and how it drives free cash flows ultimately to this business model.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So
with that, I&#146;d like to move on to SG&amp;A and do a quick review of SG&amp;A. We
also witnessed a slight increase, primarily attributable to higher bid and proposal costs
and some recurring, non-recurring legal expenses associated with some contract document
review costs. We believe that the increase in the investment in bid and proposal cost
represents money well spent, given the potential opportunity that we&#146;re starting to
see bear fruit. We&#146;ve had a very stagnant period when things stalled in the first
quarter of &#145;07, and as we took the time in hand to start looking at other pools of
people and expanding into it in the first quarter, we realized some benefit from that
change. In fact, in the second quarter and with this investment that we&#146;ve made just
in SG&amp;A, we&#146;re seeing it bear fruit, and in this case, in the second quarter in
June, and hopefully moving forward into the third and fourth quarters and &#145;08.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
remaining other costs within depreciation and interest expense, net, really didn&#146;t
change that much and as a result of all these things, we only realized a loss of a little
less than $1,000 for the period ended June 30<SUP>th</SUP>, 2007, compared to
approximately $230,000 in loss in the prior quarter, which again, we&#146;re very pleased
with and which we also believe represented how our business model can work in scale, not
just on the top line, but throughout the entire business model.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Well,
addressing cash, the second quarter was also very interesting given the event that yes,
revenues did fall slightly with the various topics I&#146;ve already addressed, but we
also managed to shift to a different business model and cash flows from operating
activities actually grew $730,000. With this we also invested $170,000 in investing
activities along with $106,000 in capital expenditures.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So
ladies and gentlemen, for the quarter we financially grew our revenues within our key PKI
segment; we won additional contracts; we positioned the company with additional partners
and opportunities; improved cash and cash equivalents over just the past quarter alone;
maintained working capital approximately $3.5 million, incurred no debt, and continue to
invest in the company. As we look forward and the marketplace starts picking up, we truly
believe that we have built the basic financial infrastructure to take advantage of the
market opportunity that we&#146;re witnessing, and that Dan has described in his prior
conversations, as well as Steve.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So
thank you gentlemen and ladies. Back to you, Steve.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B> &nbsp;&nbsp;Thank you, Jim
and Dan. Hopefully that was a well received summary of our activities over the past 90
days. At this time I think I would like to pass this back to our moderator, Chad, who
hopefully can help us open the lines for a question and answer period. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B> &nbsp;&nbsp;Thank you sir.
Ladies and gentlemen, if you would like to ask a question, please press the star key
followed by the one on your push button phone. If you&#146;d like to decline from the
polling process, please press the star followed by the two. You&#146;ll hear a three-tone
prompt acknowledging your selection. Your questions will be polled in the order they are
received. If you are using speaker equipment, you will need to lift the handset before
pressing the numbers. Once again, if you&#146;d like to ask a question at this time,
please press the star followed by the one on your touchtone phone. One moment please, for
our first question. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Our
first question comes from the line of Jeff Miller with JMG Capital. Please go ahead, sir,
with your question.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Jeff Miller:</B>&nbsp;&nbsp;Thanks. Hi guys. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Steve Komar:</B>&nbsp;&nbsp;Hi Jeff, how are
you doing? </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> &nbsp;&nbsp;Good. Nice
quarter. I know this is kind of the Gobi desert period for you, or was in Q1, but can you
go into a little more depth about how many credentials you credentialed this quarter, what
are the sizes of the contracts that you won, and can you anticipate in Q3 getting some
meaningful jump in credential contracts, you know, in the 10,000 and 20, 30,000 range like
you had I think in Q4 &#145;06? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jim McCubbin:</B> &nbsp;&nbsp;Well, I think
Dan and I can probably address that because it really is two questions or a couple of
questions in various different areas. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Jeff Miller:</B> &nbsp;&nbsp;Sure. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jim McCubbin:</B> &nbsp;&nbsp;One, we actually
didn&#146;t list credential sales because the business segment and what we&#146;ve been
doing product wise hasn&#146;t been credential specific. We&#146;ve been expanding our
services &#151; servers, boxes and various other tools within our managed services &#151;
that&#146;s focused on providing more of a solution. So with that, we did see a jump, a
meaningful jump in credentials that will be issued over a period of time as well as in the
quarter. So they&#146;re starting to become segmentational within our segmentation, if you
can follow that. We do see meaningful growth coming within the segment over the next two
quarters and in &#145;08, and you know, our partnerships that we&#146;re working on right
now, we believe may bear fruit, and us capturing some of those pools of people that I
think you may witness, or see first hand, near term, but we can&#146;t really disclose
that yet. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I&#146;m
also kind of covering us a little bit on the next two quarters because also from a
revenue recognition perspective, some of those partnerships that we have, they drive when
we issue or when we stand up the services and it&#146;s not us working alone.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Jeff Miller:</B>&nbsp;&nbsp;Right. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jim McCubbin:</B> &nbsp;&nbsp;So, but we are
witnessing us coming out of a fog, like you said, about us and the Gobi desert. We&#146;re
very pleased also that we turned around and started focusing on other pools of people, not
just HSPD-12, because half of our growth came from what we did in the first quarter. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Jeff Miller: </B>&nbsp;&nbsp;Right. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jim McCubbin:</B> &nbsp;&nbsp;So, which was
a&#133;it&#146;s nice being a small company because strategically we could expand and
change roles, and you can see alone what that did in the second quarter from the segment.
With that, I think I can let Dan try to address any other questions you have within, you
know, the thaw and where we are opportunity-wise. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B> &nbsp;&nbsp;Well, I think Dan
can talk a little bit to USA to give an indication why the cert count is not as
immediately relevant as it has been. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Dan Turissini:</B> &nbsp;&nbsp;So, a large
portion of the revenue for second quarter, and this is where some of this model is
changing, two of our new customers, specifically, United States Alliance and our follow-on
effort with XTec and the Department of Labor, both of those were sold as provisioning. So
in the issuance &#151; where there&#146;s two ways to issue these credentials, where
we&#146;re actually doing the manual issuance piece &#151; those two organizations are
doing it themselves, so we sold those credentials as a provisioned credential. So the
credentials are sold, many of them have been issued, but they also have some time to
self-issue the balance, so from our point of view, the machines were provisioned, their
licenses were provisioned and that became a sale. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> &nbsp;&nbsp;So then going
forward how do you get your revenue then from these two new customers if they&#146;re
going to be self-credentialing? Is it just because they&#146;re utilizing your services
and you have those&#133; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Dan Turissini:</B> &nbsp;&nbsp;They&#146;re
utilizing our backend and they have a licensed managed service agreement. We&#146;re
keeping the lights running and we have an annual maintenance cost that is collected each
year to keep that system running. And in addition, on the USA side, there was also a big
piece of systems engineering work to put their system, their issuance system, their local
work stations together that will allow them to do this on an as-required basis. But they
procured the credentials, if you will, upfront and procured them as an initial license
with an annual maintenance agreement. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Jim McCubbin: </B>&nbsp;&nbsp;Jeff, that's kind
of like the renewal. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Jeff Miller: </B>&nbsp;&nbsp;Yes. That's great. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jim McCubbin:</B> &nbsp;&nbsp;So we just, that
way we could also reduce costs dramatically, and increase productivity and profitability
within the managed service. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Jeff Miller: </B>&nbsp;&nbsp;Perfect. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Jim McCubbin: </B>&nbsp;&nbsp;It scales nice, too. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> &nbsp;&nbsp;Exactly, I
mean&#133;I think I recall, I don&#146;t have my notes in front of me&#133;but it ramps up
as the size of the pool of credential people increases, correct, so&#133; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Jim McCubbin: </B>&nbsp;&nbsp;Yeah. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Jeff Miller: </B>&nbsp;&nbsp;Right. Thank you. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Operator: </B>&nbsp;&nbsp;Thank you. Our
next question comes from the line of Ted Karkus with Forrester Financial.
Please go ahead with your question. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> &nbsp;&nbsp;Greetings,
gentlemen. Nice quarter. I think Dan mentioned that there&#146;s six opportunities that
you&#146;re going after right now where you know, where the RFPs are out there or where
you&#146;re looking at both prime and sub roles. Can you give us a little more detail on
that, in terms of how many of them are as prime and how many of them are sub; and the ones
where you&#146;re going as prime, if you lose it, could you also end up with sub roles?
And the ones where you&#146;re going after as prime and secondary&#133;can you break it
down between what&#146;s HSPD-12 and what is isn&#146;t HSPD-12? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Dan Turissini:</B> &nbsp;&nbsp;We are in a sub
role in all of them. We are in a prime role right now, probably we&#146;re considering
four of them, working on four of them as a prime role. All four of them are specific to
HSPD-12, including another GSA; OCI; Office of CIO Environment; DHS has come out with an
RFP, I forget the other two. And then we have two commercial that are
commercial/government if you will. They are, one is FIXs related &#151; that is to provide
cards and credentials to access government resources &#151; and then the other one is an
out-shoot of our health information services pilot that we did last year. They are at
various levels of credential sizes ranging from the 30- to 50,000 all the way up to a
million over a five year period. And they are also various models, including soup-to-nuts
issuance, where we do the whole nut, and that&#146;s where we&#146;re in mostly in the sub
role. And then there&#146;s some that are the model that we just spoke of, where we do the
provisioning and the training for the entity to do its own local issuance. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> &nbsp;&nbsp;Okay. It sounds
like, you know, I&#146;ve been following the company for a while now. Obviously we&#146;re
moving away from just talking about credentials now. We&#146;re talking about where the
revenue streams are going to come from, the cash flow is going to come from, the earnings
are going to come from, in the future. Can you give us an idea, you said 30- to 50,000 on
some of the smaller ones, up to a million over five years? That&#146;s the credentials
you&#146;re talking about, up to a million credentials? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Dan Turissini: </B>&nbsp;&nbsp;A million users. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> &nbsp;&nbsp;End users, okay.
Do you have idea of what kind of revenues we&#146;re talking about with these? And
actually, my real question was, do you have an idea, has your model changed in terms of
what you think the credentials are going to sell for? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Dan Turissini:</B> &nbsp;&nbsp;No, as I said
in the past, the finite cost of the credential is going to be level-loaded. There&#146;s
going to be, the cost of the credential to the end user, or to the person who&#146;s
buying if you will, is going to be between $50 and $100. There is a big portion of that
front end issuance piece which is very labor intensive, that when pulled out of that cost,
may lower the cost, or the price if you will, to us, but will not move very much to grade
the profitability of the credential. In other words, it might go down to $30, $40 a person
say, but we&#146;re still going to see the $20 to $30 profitability in there. And
that&#146;s in general terms. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the larger environments, we are seeing that there is going to be a bigger desire to have
the back-end provisioned and to let the people they already have doing similar things,
like in HR and security, do the vetting and the credentialing. So, you know, that&#146;s
manpower we don&#146;t have to put out there. But that has, and it has been evidenced in
both USA and a couple of other projects, where it has come back, if you will, in the
training and the engineering piece because you can&#146;t just say, here&#146;s a box, go
forth and do. So we are getting, if you will, additional requests for follow-on work, for
training and systems engineering, and putting this, their internal processes together.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I
will let you know we are planning, I won&#146;t tell you the specifics, but we are
planning a release on a project and we see it, we&#146;re seeing opportunities in this
one case, up to $25 million over the next five years. So there is a substantial
opportunity. This opportunity that we&#146;re going to announce in a week or so will
provide not only a short-term increase in revenue, but as the outgoing people are
increasing the issuance, an increase over the years in the annuity.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Ted Karkus: </B> &nbsp;&nbsp;So, just so I
understand this, it sounds like... </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Jim McCubbin: </B> &nbsp;&nbsp;He didn't say
anything Ted. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Ted Karkus: </B> &nbsp;&nbsp;I'm sorry? </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Jim McCubbin: </B> &nbsp;&nbsp;He just was
speaking in general terms. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B> &nbsp;&nbsp;No, that&#146;s
fine; I don&#146;t care about that, that&#146;s not what I&#146;m getting at. The, it
sounds like, I don&#146;t want to use the word <I>sea change</I> but it almost sounds like
it&#146;s a sea change going on in the business model between issuing credentials and now
doing some of the training and engineering and&#133;then where does the annuity come from?
Does it come from managing the credentials after they&#146;re issued, or could you explain
that to me a little bit better? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jim McCubbin:</B> &nbsp;&nbsp;The
backend&#133;the big piece of this has always been the backend life-cycle management of
the credential and that trusted server in the back. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Ted Karkus: </B> &nbsp;&nbsp;Right. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jim McCubbin:</B>  &nbsp;&nbsp;The additional
stuff, if you will, like actually handing the card to a person or handing the credential
to a person, although it may provide additional revenue, was not the place where we were
making money. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Ted Karkus: </B> &nbsp;&nbsp;Okay. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B>  &nbsp;&nbsp;I think Ted, the
only comment I would add to that is I think number one is it&#146;s perceptive that you
picked that up just from this quick conversation but the reality is there is some change
in the revenue dynamic going on, but we don&#146;t think it&#146;s a sea change per se.
It&#146;s a change in mix, but we do not see that as detrimental to our original set of
projections. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B>  &nbsp;&nbsp;Okay. And
I&#146;m, I don&#146;t know if you want to go into, if I could ask one or two more quick
questions. Just in terms of the size of these six opportunities, could you put that in
perspective in terms of total numbers that you&#146;re going after or how big the numbers
could be? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Dan Turissini: </B> &nbsp;&nbsp;Like I said, of
the six, there's two or three that are in the 30-, 50- to 100,000 range. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Ted Karkus: </B> &nbsp;&nbsp;All those with
credentials. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Dan Turissini:</B>  &nbsp;&nbsp;For
credentials, and, well then there&#146;s two or three that over a five year period
we&#146;re looking at a minimum million, up to several million credentials. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Ted Karkus: </B> &nbsp;&nbsp;And these six
opportunities will be award over the next six months? </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Dan Turissini: </B> &nbsp;&nbsp;That&#146;s our hope. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ted Karkus:</B>  &nbsp;&nbsp;Okay, and then
into next year in terms of HSPD-12 actually rolling out the way we thought it was going to
&#151; do you have a better idea of when the flood gates start? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Dan Turissini:</B>  &nbsp;&nbsp;HSPD-12 is
going to be an insignificant piece of this going forward model. We&#146;re seeing a lot
more interest from the first responders, from the medical community. HSPD-12 is happening
and it&#146;s moving along, but I think it&#146;s going to move along at a much slower
pace than the rest of this environment and is going to end up being not as significant. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Ted Karkus: </B> &nbsp;&nbsp;Okay. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jim McCubbin:</B>  &nbsp;&nbsp;That was one of
the reasons we based &#151; that was one of the reasons in the first quarter when we were
looking at everything stalling, where we looked at where people were kind of getting
ahead. And when we started first hand realizing that these other pools of people were not
going to be lagging, but actually leading, that&#146;s when we jumped and changed our
strategy slightly and our mix, to go after these pools before other people could even
realize it. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Ted Karkus: </B> &nbsp;&nbsp;Right. Thank you
very much. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Steve Komar: </B> &nbsp;&nbsp;Thank you, Ted. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B>  &nbsp;&nbsp;Thank you, sir. Once
again ladies and gentlemen, if you&#146;d like to ask a question, please press the star
followed by the one on your touchtone phone. As a reminder, if you are using speaker
equipment, you will need to lift the handset before pressing the numbers. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have a question from the line of Frank Bianca with Argent. Please go ahead with your
question.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Frank Bianca:</B>  &nbsp;&nbsp;Hey guys,
I&#146;ve got three actually. First is, you mentioned that you&#146;re seeing activity
pick up. Can you just give more color as to what might be triggering that? Do you want the
other questions as well? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Dan Turissini:</B>  &nbsp;&nbsp;I&#146;ll start
with that. On the, we&#146;re seeing a lot more activity on the DOD side because recently
they have set up a couple &#151; or locked down if you will &#151; a couple of broad area
databases which are focused on contractor performance reporting. And it&#146;s basically
some of the things you need to report on your government contracts prior to getting paid.
So there&#146;s a big incentive to do it. They&#146;ve shut down user name and password
access recently and only accepting ECA and for DOD folks of course, DOD certificates to
access these websites. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Frank Bianca: </B> &nbsp;&nbsp;So the interest is
coming from the contractors is it, on here? </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Dan Turissini: </B> &nbsp;&nbsp;It's coming from
the contractors and being promulgated by the Department of Defense. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Frank Bianca:</B>  &nbsp;&nbsp;Gotcha. And then
can you just touch on the funding outlook, or is that not a material issue now that you
sort of just changed the way you&#146;re going about your business. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Dan Turissini: </B> &nbsp;&nbsp;Funding for the&#133; </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Frank Bianca: </B> &nbsp;&nbsp;Yeah, the government. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Jim McCubbin: </B> &nbsp;&nbsp;The government. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Frank Bianca: </B> &nbsp;&nbsp;Yeah, government
wide, yes, please. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jim McCubbin:</B>  &nbsp;&nbsp;Well we&#146;re
in the same boat from government piece as we were a couple of months ago. They&#146;re
still scrambling right now with war initiatives. If you walk around town and you ask the
question, the end of year money is not showing up yet. So government spending itself is
not flowing like we would have hoped it would and that&#146;s what&#146;s basically slowed
down the HSPD-12. Now on the other front though, commercially, there are a lot of grants
out there in local and state governments, and a lot of money is moving in that direction,
which is really bringing up that first responder and this commercial activity. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Frank Bianca:</B>  &nbsp;&nbsp;Gotcha. Then you
also, you mentioned acquisitions in your opening remarks. Can you just talk a little bit
about you know, what kind of size you might be looking at, and potentially how you might
fund these. You know, are you guys going to come back to the market any time soon? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B>  &nbsp;&nbsp;Frank, I&#146;m
going to be the bad guy on this. I hope you don&#146;t mind, but I don&#146;t think we
really can give you any guidance. I can, I, the one thing I can say is that we&#146;re
active in that market, we are looking at opportunities and I really don&#146;t think
we&#146;re in a position to share any more than that right now. You have my apologies. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Frank Bianca:</B>  &nbsp;&nbsp;I understand.
Let me ask you this then, would, you know, the stock where it is, would you be comfortable
issuing stock out here? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Steve Komar: </B> &nbsp;&nbsp;I really can't
say, Frank. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Frank Bianca: </B> &nbsp;&nbsp;Sure. Thanks. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Steve Komar: </B> &nbsp;&nbsp;Sorry. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jim McCubbin:</B>  &nbsp;&nbsp;Hey, Frank,
it&#146;s Jim. As we&#146;ve always said in looking at acquisitions, we&#146;d only do
something strategic in nature and also accretive. We would never put anybody &#151; since
we&#146;re all here, large shareholders just at this table &#151; on this side of events,
we&#146;re not going to dilute ourselves. Okay, and I think that&#146;s where you going at
that. And we&#146;re in no panic or rush to out and acquire anything. So we&#146;ve been
saying that we saying that we would look at things all along, we always will look at
things all along, okay, but it is going to be a strategic in nature, and it&#146;s going
to have to offer the growth opportunities that we offer internally. Okay? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Frank Bianca: </B> &nbsp;&nbsp;Okay, thank you. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE="2"><B>Steve Komar: </B> &nbsp;&nbsp;Thanks a lot. </FONT> </P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B>  &nbsp;&nbsp;Thank you sir. Once
again ladies and gentlemen, if you&#146;d like to ask a question, please press the star
followed by the one on your touchtone phone. As a reminder, if you are using speaker
equipment, you will need to lift the handset before pressing the numbers. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
have no further questions at this time. I&#146;ll turn back over to management for any
closing remarks.  </FONT></P>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B>  &nbsp;&nbsp;Thank you Chad,
appreciate it. And again my thanks and Jim and Dan&#146;s thanks as well to the
participants for your continued attention and interest in (inaudible) WidePoint and we
look forward to being with you 90 days from now and talking to you about the fulfillment
of several of the things that we&#146;ve indicated are the current trends today. We look
forward to that and we thank you again for your time and attention. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B>  &nbsp;&nbsp;Ladies and
gentlemen, this concludes the WidePoint Corporation second quarter conference call. You
may now disconnect. Thank you for using ACT. </FONT></P>
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