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<SEC-DOCUMENT>0000897069-08-000970.txt : 20080527
<SEC-HEADER>0000897069-08-000970.hdr.sgml : 20080526
<ACCEPTANCE-DATETIME>20080527165938
ACCESSION NUMBER:		0000897069-08-000970
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20080520
ITEM INFORMATION:		Results of Operations and Financial Condition
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20080527
DATE AS OF CHANGE:		20080527

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:		08861315

	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>cmw3569.htm
<DESCRIPTION>CURRENT REPORT
<TEXT>
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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="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM 8-K </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<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="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date of Report (Date
of earliest event reported): May 20, 2008 </FONT></H1>

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<HR SIZE=1 NOSHADE WIDTH=15% ALIGN=center color=black>

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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>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=33% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2><B>Delaware</B></FONT></TD>
     <TD WIDTH=34% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2><B>000-23967</B></FONT></TD>
     <TD WIDTH=33% 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>~</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>Identification No.)</FONT></TD></TR>
</TABLE>
<BR>


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<TR VALIGN=Bottom>
     <TD WIDTH=67% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2><B>One Lincoln Centre, Oakbrook Terrace, Illinois</B></FONT></TD>
     <TD WIDTH=33% 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>




<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<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>

<!-- MARKER FORMAT-SHEET="Page Rule Single" FSL="Default" -->
     <HR ALIGN=LEFT WIDTH=100% SIZE=1 color=black  NOSHADE>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<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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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[_]  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Written
communications pursuant to Rule 425 under the Securities Act (17 CFR           230.425) </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[_]  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR           240.14a-12) </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[_]  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act           (17 CFR
240.14d-2(b)) </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>[_]  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act           (17 CFR
240.13e-4(c)) </FONT></TD>
</TR>
</TABLE>
<BR>


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<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 2.02 Results of
Operations and Financial Condition </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
May 20, 2008, the Registrant issued a press release announcing certain financial results
for the quarter ended March 31, 2008. A copy of the Registrant&#146;s press release is
attached hereto as Exhibit 99.1 to this Current Report. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, on May 20, 2008, the Registrant conducted a conference call to discuss its
financial results for the quarter ended March 31, 2008. A copy of the transcript of such
conference call is set forth as Exhibit 99.2 to this Current Report. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item 9.01 Financial
Statements and Exhibits </FONT></H1>

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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><B>(d)</B> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Exhibits</B> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>              99.1 </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Press
Release Issued by the Registrant on May 20, 2008 </FONT></TD>
</TR>
</TABLE>
<BR>

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<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>              99.2 </FONT></TD>
<TD WIDTH=85%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Transcript
of Conference Call Conducted by the Registrant on May 20, 2008 </FONT></TD>
</TR>
</TABLE>
<BR>


<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES </FONT></P>

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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></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><BR><BR>&nbsp;</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><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;May 27, 2008</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></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Vice President and Chief Financial Officer</FONT></TD></TR>
</TABLE>


</BODY>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>cmw3569a.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
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<p align=right><IMG SRC="wdptrelease.gif"></p>








<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=4>WidePoint Reports
First Quarter Revenue of $7.2 Million </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Center Italic-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>New subsidiary iSYS
drives 148% year over year revenue increase </I></FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>WASHINGTON, D.C., May 20, 2008</B>
&#151; WidePoint Corporation (AMEX: WYY), a leading provider of advanced information
technology, identity assurance and mobile telecom expense management services, today
announced financial results for the first fiscal quarter ended March 31, 2008. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Revenues in the first quarter were
approximately $7.2 million, an increase of 148% compared to $2.9 million in the first
quarter of 2007. Mobile telecom managed services, a new reporting segment reflecting the
acquisition of iSYS, LLC in January 2008, contributed over $4 million of the increase in
revenues. Compared to the first quarter of 2007, and prior to being acquired by WidePoint,
the mobile telecom managed services segment experienced revenue growth of approximately
53% in the first quarter of 2008. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>First quarter revenue in the
company&#146;s PKI and managed services segment increased by 145% to $760,000 from
$310,000 in the comparable period due to the continued roll out of credentialing programs
to multiple federal government agencies and contractors. Revenue in the consulting
services segment declined by $640,000 from $2.5 million a year ago to approximately $1.9
million in Q1 &#145;08 due to delayed starts on late-period contract awards, which will
begin to be recognized in the second quarter of 2008. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The company&#146;s gross profit in Q1
&#145;08 was approximately $1.1 million or 15% of revenues, an increase of approximately
$376,000 over gross profit of approximately $728,000 or 26% of revenues in Q1 &#145;07.
WidePoint anticipates improvements in costs of sales on a percentage basis as managed
services segments add economies of scale and upfront start-up expenses related to new
contract awards and implementations are realized. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>General and administrative expenses
in Q1 &#145;08 were approximately $1.7 million or 23% of revenues compared to
approximately $937,000 or 33% of revenues in Q1 &#145;07. The increase was primarily
attributable to the acquisition of iSYS and an increase of approximately $300,000
associated with FAS 123R stock compensation expense for options which were issued to key
iSYS personnel which have been expensed in the first quarter and will not re-occur. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As a result of the above, the
company&#146;s net loss for Q1 &#145;08 was approximately $863,000 as compared to a net
loss of approximately $376,000 in Q1 &#145;07. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=1>-MORE- </FONT></P>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>WidePoint Corporation</FONT></TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>Page 1 of 6</FONT></TD></TR>
</TABLE>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The company met its top-line guidance
for the first quarter of 2008 and continues to forecast upside revenue growth in the
second quarter. WidePoint forecasts a sequential increase in revenue growth in the second
quarter across all three segments and believes this trend will continue into the near
future. As a result of new contract wins and modifications to existing contracts late in
the first quarter and certain start-up costs related to those efforts, the company
believes that second quarter margins will improve over the first quarter, resulting in
increases in operational profitability. As a result of these projected improvements in
revenue, gross margins and general and administrative expenses, WidePoint is forecasting
improved financial performance across the board in the second quarter. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Recent Highlights </FONT></P>

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<TR VALIGN=TOP>
<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>Department
of Homeland Security contract award and modification. </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<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>Department
of Defense contract awards with Department of the Army, Defense Logistics Agency,
Washington Headquarters Services, Office of the Secretary of Defense and Pentagon Force
Protection Agency. </FONT></TD>
</TR>
</TABLE>


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<TR VALIGN=TOP>
<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>Transportation
Security Agency contract expansion.</FONT></TD>
</TR>
</TABLE>


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<TR VALIGN=TOP>
<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>Federal
Election Commission contract award. </FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
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<TR VALIGN=TOP>
<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>General
Services Administration award of the Federal Strategic Sourcing Initiative (FSSI).</FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<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>Expansion
of several strategic relationships.</FONT></TD>
</TR>
</TABLE>


<!-- MARKER FORMAT-SHEET="Para Hang Lv 1-TNR" FSL="Project" -->
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<TR VALIGN=TOP>
<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>Certified
by FiXs.</FONT></TD>
</TR>
</TABLE>


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<TR VALIGN=TOP>
<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>Appointment
of Ron Oxley as EVP of sales, marketing, and business strategy. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WidePoint CEO Steve Komar said,
&#147;As we move into our second quarter we are confident that we have invested in and
built a foundation and market position for each of our business segments that will allow
us to accelerate the growth of revenues, margins and earnings improvements during the
second quarter of 2008, the remainder of 2008, and beyond. Recognizing the recent contract
awards and modifications in support of our enhanced managed service offerings and
proprietary applications, we are convinced that our near-term financial results will be
enhanced and our favorable competitive position in the marketplace strengthened.&#148; </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The company will hold a conference
call at 4:30 P.M. Eastern today to discuss the first quarter financial results and the
company&#146;s future activities. To participate, call 800-762-8779 any time after 4:20
p.m. Eastern. International callers should dial 480-629-9031. 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>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Project" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>About WidePoint </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>WidePoint</U> is a leading
provider of advanced information technology products and services including identity
management and information assurance services, forensic informatics and wireless
technology services. WidePoint has three wholly owned subsidiaries holding major
contracts, <U>Operational Research Consultants, Inc.</U> (ORC), and <U>iSYS, LLC</U>, and
WidePoint Illinois. WidePoint enables organizations to deploy fully compliant IT services
in accordance with government-mandated regulations and advanced system requirements. 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/profile/wyy.cfm</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>widepoint@hawkassociates.com</U>. To receive
notification of future releases via e-mail, subscribe at
<U>http://www.hawkassociates.com/about/alert/.</U> </FONT></P>



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     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>WidePoint Corporation</FONT></TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>Page 2 of 6</FONT></TD></TR>
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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; and (iv) the declaration and payment of dividends. 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 disclosed in the company&#146;s Forms 10-K and 10-Q filed with the SEC.</I> </FONT></P>

<BR><BR><BR><BR><BR><BR><BR><BR><BR><BR><BR>



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     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>WidePoint Corporation</FONT></TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>Page 3 of 6</FONT></TD></TR>
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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 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TD ALIGN=CENTER COLSPAN=3><FONT FACE="Times New Roman" SIZE=2>March 31,<BR>&nbsp;</FONT></TD>
     <TD ALIGN=CENTER COLSPAN=3><FONT FACE="Times New Roman" SIZE=2>December 31,<BR>&nbsp;</FONT></TD></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>2008<BR>&nbsp;</FONT></TH>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=2>2007<BR>&nbsp;</FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD COLSPAN=3><FONT FACE="Times New Roman" SIZE=2><B>Assets</B></FONT></TD>
     <TD ALIGN=CENTER COLSPAN=6><FONT FACE="Times New Roman" SIZE=2>(unaudited)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=71% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Current assets:</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</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>&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>
     <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;&nbsp;&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>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   2,318,760</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   1,831,991</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;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>7,465,067</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>4,808,832</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;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>697,552</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>328,539</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>10,481,379</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>6,969,362</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>472,730</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>435,859</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>7,357,252</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>2,964,355</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>1,165,461</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>166,427</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>167,164</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>  21,442,143</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>  11,263,956</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=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><B>Liabilities and stockholders&#146; 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;&nbsp;&nbsp;&nbsp;Short-term borrowings</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>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   1,769,892</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>        --</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;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>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>5,156,697</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>2,715,180</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;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>1,593,465</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>707,886</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;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>371,064</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>96,674</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;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>116,552</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>118,246</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>9,007,670</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>3,637,986</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><BR>Long-term debt, 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>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   3,512,078</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>        --</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>135,959</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>162,976</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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>12,655,707</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>3,800,962</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&#146; 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;&nbsp;&nbsp;&nbsp;Common stock, $0.001 par value; 110,000,000 shares authorized; 54,090,697</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;&nbsp;and 52,558,697 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>54,091</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></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&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;&nbsp;&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>63,057,843</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>60,873,273</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;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>(54,364,164</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>(53,501,504</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders&#146; 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>8,786,436</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>7,462,994</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders&#146; 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>  21,442,143</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>  11,263,956</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=2></TD><TD></TD>
     <TD COLSPAN=2 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD><TD></TD></TR>
</TABLE>

<BR><BR>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>WidePoint Corporation</FONT></TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>Page 4 of 6</FONT></TD></TR>
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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>
     <TD ALIGN=CENTER COLSPAN=6><FONT FACE="Times New Roman" SIZE=2>Three Months Ended<BR>
March 31,</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TD ALIGN=CENTER COLSPAN=3><FONT FACE="Times New Roman" SIZE=2>2008</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD ALIGN=CENTER COLSPAN=3><FONT FACE="Times New Roman" SIZE=2>2007</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TD ALIGN=CENTER COLSPAN=6><FONT FACE="Times New Roman" SIZE=2>(unaudited)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=71% 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=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>$</FONT></TD><TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   7,150,565</FONT></TD>
        <TD WIDTH=2% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD WIDTH=1% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD WIDTH=10% ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   2,852,370</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 of</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>$213,906 and $110,049, 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>6,046,302</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>2,124,280</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&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>1,104,263</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>728,090</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>165,703</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>180,235</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 (including stock compensation</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>expense 123(r) of $371,702 and $63,976, 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>1,680,274</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>936,938</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>37,315</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>15,550</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></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>(779,029</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>(404,633</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>15,942</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>31,838</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>(99,573</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>(3,305</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></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>    (862,660</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>    (376,100</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Income tax benefit, net</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>--</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Net loss</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>    (862,660</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>    (376,100</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Basic and diluted net loss per share</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD><TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>       (0.02</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=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></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>54,033,687</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>51,937,845</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
</TABLE>

<BR><BR><BR><BR>



<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>WidePoint Corporation</FONT></TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>Page 5 of 6</FONT></TD></TR>
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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 CASH FLOWS </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>
     <TD ALIGN=CENTER COLSPAN=6><FONT FACE="Times New Roman" SIZE=2>Three Months<BR>
Ended March 31,</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR>
     <TD COLSPAN=9>&nbsp;</TD></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TD ALIGN=CENTER COLSPAN=3><FONT FACE="Times New Roman" SIZE=2>2008</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD ALIGN=CENTER COLSPAN=3><FONT FACE="Times New Roman" SIZE=2>2007</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN=Bottom>
     <TH COLSPAN=3><FONT FACE="Times New Roman" SIZE=2></FONT></TH>
     <TD ALIGN=CENTER COLSPAN=6><FONT FACE="Times New Roman" SIZE=2>(unaudited)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=71% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Cash flows from operating activities:</FONT></TD>
     <TD WIDTH=1% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</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>&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>
     <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><BR>&nbsp;&nbsp;&nbsp;&nbsp;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>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   (862,660</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>   (376,100</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>&nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net loss to net cash</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;&nbsp;provided by  (used in) operating activities:</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;&nbsp;&nbsp;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>50,114</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>24,491</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;&nbsp;&nbsp;Amortization</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>201,107</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>101,107</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;&nbsp;&nbsp;Amortization of deferred financing costs</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>2,143</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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock options 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>371,702</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>63,976</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;Changes in assets and 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;&nbsp;&nbsp;&nbsp;&nbsp;&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>1,554,121</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>2,927,298</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;&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>(85,121</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>(90,015</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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and 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>1,022,126</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>(2,648,016</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></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;&nbsp;&nbsp;Net cash provided by operating Activities</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>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>  2,253,532</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>      2,741</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>&nbsp;&nbsp;&nbsp;&nbsp;Net cash flows from investing activities:</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;&nbsp;&nbsp;Purchase of subsidiary, net of cash acquired</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>(4,901,745</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></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchase of property and equipment</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>(27,523</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>(22,389</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></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;&nbsp;Net cash flows used in investing activities</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>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2> (4,929,268</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>    (22,389</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities:</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;&nbsp;&nbsp;Borrowings on notes 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>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>3,800,000</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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal payments on notes 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>&nbsp;</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>(609,471</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></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Principal payments under 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>(28,711</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>(11,476</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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs related to registration statement</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>(28,207</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>&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=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>14,400</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>26,110</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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Costs related to financing purchase of subsidiary</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>(13,713</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></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by (used in) financing activities</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>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>  3,162,505</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>    (13,573</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash</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>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>    486,769</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>    (33,221</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>)</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents, beginning of period</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>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>  1,831,991</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</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>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents, end of period</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>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>  2,318,760</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>  2,741,592</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Supplementary information:</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;Liabilities incurred but not yet paid relating to</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;registration statement</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>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>       --</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>      1,513</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;iSYS Promissory Note not yet paid relating to acquisition</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>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>  2,000,000</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>       --</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;Cash paid for interest</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>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>     43,400</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD>
     <TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>$</FONT></TD><TD ALIGN=RIGHT><FONT FACE="Times New Roman" SIZE=2>      3,305</FONT></TD>
        <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;</FONT></TD></TR>
<TR>
     <TD COLSPAN=3></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD>
     <TD COLSPAN=3 ALIGN=RIGHT><HR NOSHADE COLOR=#000000 SIZE=2></TD></TR>
</TABLE>

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<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=60% align=center>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>WidePoint Corporation</FONT></TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>Page 6 of 6</FONT></TD></TR>
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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>WidePoint Corporation
 <BR>First Quarter 2008 Earnings Conference Call<BR>May 20<SUP>th</SUP>, 2008  </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B> Good afternoon
ladies and gentlemen, thank you for standing by and welcome to the WidePoint Corporation
First Quarter 2008 Earnings conference call. During today&#146;s presentation all parties
will be in a listen-only mode. Following the presentation the conference will be opened
for questions. If you have a question, please press the star followed by the one on your
touchtone phone. Please press star, zero for operator assistance at any time. For
participants using speaker equipment, it may be necessary to pick up your handset before
making your selection. This conference call is being recorded today, Tuesday, May
20<SUP>th</SUP>, of 2008. </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
would now like to turn the conference over to Cale Smith of 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>       Thank you
Mary. Good afternoon,  this is Cale Smith from Hawk  Associates.  Welcome to the
WidePoint first quarter 2008  conference  call. On the phone today are Steve Komar,  CEO
of  WidePoint,  and Jim McCubbin,  the  company's  Chief  Financial Officer. </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;d
like to begin by reading the company&#146;s Safe Harbor Statement and then we will hear
from Steve and Jim before they take your questions. </FONT></P>

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<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 detailed
in the company&#146;s periodic filings with the Securities and Exchange Commission. </FONT></P>

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<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>     Thank you
Cale.  Good  afternoon to you all. On behalf of the WidePoint  management  team, I&#146;d like
to welcome you to the  company&#146;s  first  quarter  2008  investor  call and as
 always,  to thank you for your time and  continued  interest  in our company. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;During
the first quarter we experienced the first three months reflecting the impact of our iSYS
acquisition which was consummated in the first day or two of January, 2008. Our revenues
therefore for the first quarter exceeded $7 million, which was almost 150% better than the
comparable quarter last year. The bulk of that increase was indeed attributable to the
inclusion of iSYS revenues. </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
overall result was impacted by and consistent with our earlier indications to you in
regard to seasonally slow contract award activity during the first quarter on the part of
the federal government. We do not believe that this condition will continue into future
quarters. </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 first quarter also, we experienced an operating loss of $750,000 which included
several non-controllable, non-cash items such as stock option expenses of $370,000 and
amortization cost related to the iSYS and ORC acquisitions totaling $150,000. The absence
of these non-recurring items combined with our expected revenue growth, should result in
significant improvements in our consolidated operating income through the remaining
quarters of 2008. Jim McCubbin will expand on these financial metrics during his comments. </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;d
like to also share with you our belief that through a series of actions that we in fact
initiated during this first quarter, we have laid the foundation necessary to support and
enhance accelerated revenue growth and increased performance levels as we move forward. </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&#146;ve
sharpened our organizational focus and allocation of resources to better concentrate on
our two high-growth segments; AIM, as we call it, which is Assured Identity Management,
and MTEMS, which stands for Mobile Telecom Management Systems. The AIM product includes
our PKI and HSPD-12 offerings. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
of these segments are managed service, recurring revenue business models faced off against
rapidly expanding markets that have the potential for 50 plus percent compounded annual
growth rate revenue opportunities to WidePoint. Having said that, I&#146;d like to just
take a minute and profile these two segments for you. I&#146;ll try and do it quickly and
hopefully efficiently. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AIM,
Assured Identity Management, is a fully integrated shared enterprise solution that
authenticates users through a central authority for all electronic transactions and
communications. It provides users data confidentiality, integrity and non-repudiation,
including PKI capabilities and options. This marketplace is estimated to grow to $1.3
billion annually in three to five years and WidePoint today is the leading PKI provider to
the federal government. </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
to MTEMS, Mobile Telecom Management Systems, MTEMS is a proprietary, software-based
managed service that manages, streamlines, optimizes the full life cycle of mobile telecom
devices, of large diverse organizations. The TEM marketplace is projected to grow to $1.7
billion per annum by 2011. Today WidePoint is the leading provider of mobile TEM services
to the US federal government and the General Services Administration of the US federal
government has made mobile TEMS a strategic sourcing initiative in 2008, targeting the
entire US federal infrastructure. Obviously, we are excited about the growth potential for
each of these 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;We
have not forgotten our engineering and consulting business segment activities which are a
meaningful part of WidePoint&#146;s skills and services profile. We are increasing our
marketing and business development efforts on an opportunistic basis to ensure steady,
though more moderate growth, in this particular business segment. </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
go-forward strategy includes leveraging obvious synergies available to us, such as
commercial market cross-sales initiatives for versions of our AIM and MTEMS capabilities,
securitizing our mobile telecom product and cost optimizing our support functions and
resources. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Putting
some teeth into these efforts, I&#146;m pleased to say we have convinced one of our more
active board members to join the WidePoint senior management team in a full time role as
Executive Vice President, Sales, Marketing and Business Strategy. Ron Oxley is an
extremely well respected and proven business development executive, as well as possessing
comprehensive federal government experience and broad contacts and relationships
throughout the 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;Primary
among Ron&#146;s challenges will be assuring that our organization has in place the
necessary skills and resources to maximize the value of the contract awards already in the
pipeline and to identify substantial new business revenue potential to further accelerate
our revenue trajectory. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally,
we have successfully arranged for an infusion of new working capital to help us prepare
for and fund our anticipated revenue growth. This, in the form of a private equity
financing in the amount of $4 million. Jim McCubbin will provide some additional detail on
this transaction in his comments. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Summarizing,
I believe we have confirmed our niche, high value-added products-plus-bundled-services
strategy and positioned ourselves to maximize our government sector opportunity, while
planning for commercial sector expansion. We understand the importance of keeping our eye
on the ball and delivering steady, strong growth and earnings in the three quarters ahead.
And we are committed to that goal. Thank you. </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;d
like to turn the meeting over to Jim, who will guide you through a more detailed financial
and operational review, after which we will open our lines for your questions and
comments. Jim, it&#146;s all yours. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Thank you.
Ladies and gentlemen welcome to our first quarter call. As Steve has already said, the
first quarter was a very good foundation quarter, for which we can build off of a lot of
successes and revenue growth in 2008 and beyond. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;While
the first quarter is traditionally slow, as we witnessed, contract awards are usually
awarded during the period, and as normal, we did witness a lot of these contract awards
coming towards the end of the first quarter and into the second quarter. This is very
normal for the federal government sector that we participate heavily in. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Even
so, given this, we did realize strong revenue growth in two of our three segments,
highlighted by the MTEMS segments, showing 53% growth from $2.9 million last year to $4.5
million this year; PKI which is part of the AIMs segment showing growth of 145% growth
from $310,000 to $759,000. This was all offset a bit by the EMC or the engineering
consulting segment decline of approximately $638,000 from $2.5 to $1.9 million. </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
forward, we expect to witness sequential growth among all three segments, with expected
second quarter revenue targets of approximately $9-10 million. As you recall on our
fourth, on our annual call, we suggested that we would have revenues in the $7-8 million
range in the first quarter. At this point, we&#146;re prepared to approximate revenues in
the second quarter of around $9-10 million. That should provide us with a $16 to $17
million second half, which we&#146;re pleased with, especially given the fact that we see
this continued growth both sequentially and on a comparison basis continuing. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
this, I kind of want to go into two of our segment opportunities so you can kind of
understand where this is coming from. In the first half and first and second quarters, for
the MTEM segment, a lot of the growth has come from our current base of business, just
highly adopting and expanding the acceptance of the services and that being with the WHS,
which is part of the DOD, growing it into the Secretary of Defense&#146;s Office, growing
into the Pentagon Force office, growing it at Department of Homeland Security, growing it
at TSA or Transportation Security Agency &#150; all of these people have been so happy
with the services provided and the savings, that they continue to expand growth within
their own organizations. So that growth is solid, in place and we&#146;re very pleased to
see how it&#146;s been moving and progressing forward. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;What
we haven&#146;t really witnessed yet though, within the MTEM segment, is back in January
an IDIQ contract with the, as part of the federal strategic sourcing initiative out of the
General Services Administration, was awarded to iSYS. This is now heavily being marketed
for task orders and we believe we are in a number of first, first position to win more
than our fair share of most of those task orders, for initially 14 agencies. And as you
may or may not know there are greater than 40 agencies federal government wide. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This
leads us to feel very good about our third and fourth quarters and strong continued
revenue growth within this segment in &#145;08 and beyond. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
that, the AIM segment we&#146;re also extremely pleased with because we continue to see
strong revenue growth within this sector. What we haven&#146;t really discussed with many
of you, is where this is coming from. We are being a little bit cagey, more so to protect
our strategic position among our competitors. We have won a strategic opportunity, okay,
and formed some strategic alliances that is allowing us to penetrate a very large user
base of up to two million users, that is coming on line in the second quarter, and
we&#146;re looking at expansions of this user base over the next two to three years. We
are very strongly positioned in it. We are at this time not going into great detail with
who it&#146;s with, besides that it is federal government related. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Augmenting
this as well, in the second quarter for further growth, is we have been seeing strength in
the adoption and movement of the Transportation Worker&#146;s program, in which case we
are part of Lockheed Martin&#146;s team, and we&#146;re very pleased with where
that&#146;s taking us. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Given
those two events, okay, and those two opportunities alone, is giving us comfort in where
we&#146;re seeing the company driven to from a revenue-opportunistic potential in 2008. We
do hope that this clarifies some of this for you as we can describe it in more detail in
hopefully over the next two, three months &#150; we will, but we are very pleased with
some of the strategic actions that we&#146;ve taken over the last six months to position
us with these opportunities. </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 margins, our gross profit, we did witness an absolute growth of approximately $376,000
from $728,000 to $1.1 million. This is driven predominately by our recent acquisition of
iSYS in January of 2008. On a percent basis we saw a decline from 26% to 15%, which was
due to a higher blend of lower margin sales during the period, along with some initial
startup costs to get the new projects started that I&#146;ve already described. </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
forward, we do anticipate this blend of service offerings will improve in the second
quarter, augmented by both no longer having some of those startup costs and the higher
blend of margins coming from the higher profit margin related two segments that I&#146;ve
described as MTEMS and AIMs. </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
looking at SG&amp;A, we also witnessed an increase as a result of the iSYS acquisition and
our actual SG&amp;A costs, which drove costs from approximately $900,000 to $1.8 million.
You know, a lot of this cost was associated with us booking non-recurring, non-cash costs
associated with the iSYS acquisition. It was our belief and intent that getting that
behind us as quickly as we could in the first quarter would only improve our SG&amp;A and
our measurements in the future. We didn&#146;t want to kind of ladle it over us and carry
it for a number of years. We thought it&#146;d be better just to kind of get rid of it in
the first quarter &#150; that is what we&#146;ve done. And with that, we&#146;re looking
for SG&amp;A improvements on a percentage basis and on an absolute basis as we move
forward into 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;Factoring
a small amount of depreciation of approximately $37,000 and some income expense that was
net about $84,000 led us to the net loss of about $863,000 as compared to $376,000 last
year. When we back out some of the non-cash, non-recurring items and we really take a look
at earnings before interest, taxes, depreciation and amortization, or as some people call
it EBITDA, the loss looked closer to $150,000. That&#146;s also one of the reasons our
cash flow improved dramatically as well, if you take a look at it. </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
we managed to try to kill two birds with one stone and improve our position. So as you can
see, factoring in the revenue growth expectations that we&#146;re witnessing and the
reasons why, the improvements to margins that we&#146;re expecting because of the increase
in the blend, the improvements in SG&amp;A, you can see why we&#146;re anticipating
improvements across the board in the second quarter among all three segments and
operationally across the board as well. </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 liquidity, we also finished the quarter with approximately $1.5 million in working
capital. We&#146;re poised to continue to grow and hopefully grow our working capital into
the future, but given the contract awards and the size of the market opportunities, when
we took an honest look at what we had to work with, we felt that our working capital was
just too thin given these multi-million dollar contracts and we sought out an infusion of
a minimum amount of equity, or working capital that we thought would help augment what we
needed to do to provide the stimulus for what we needed to do. So two of our current
institutional holders provided that liquidity and we raised approximately $4 million that
we&#146;re going to use to bolster working capital. A small bit of it we&#146;re going to
use to pay down some of our line of credit, so we have that line of credit to fall back on
as we expand revenue growth, because of timing differences. </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 we think we&#146;ve come out of a very good foundation quarter going into a very
nice growth quarter, in the second quarter. And that gives you a financial overview of
where we are at this time. And Steve, back to you with that. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B> All right, thank
you Jim, appreciate that. I think we&#146;d like to turn this back over to our operator
now and open the session to your questions or comments, whatever you feel appropriate. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B> Thank you sir.
Ladies and gentlemen, at this time we will begin the question and answer session. As a
reminder, if you have a question, please press the star key followed by the one on your
touchtone phone. If you would like to withdraw your question, please press the star key
followed by the two. We do ask that if you&#146;re on a speaker phone that you please lift
the handset before making your selection. </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
our first question comes from the line of Jeff Miller with JMG Capital. Please go ahead. </FONT></P>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B> Hi guys,
nice quarter. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B> Thank you
Jeff. </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B>      Just wanted
to clarify the $4 million raised, was that the private placement of restricted common
stock at $1.02? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B>That&#146;s
correct.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeff Miller:</B>      Okay.
 Great, thank you. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B>         Thank you.
 Next question comes from the line of Steve Mazur with CRT Capital.  Please go ahead. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Mazur:</B> Jim, can you just
go over the backlog numbers, what we have firm right now on the books, because you&#146;ve
been announcing contracts here. Maybe you can tell us what we have for this year and you
know maybe a year beyond. And I have a second question. Can you tell me, you know, in two
minutes or less, what the business model is for TEMS? What does it do and how do you get
paid for it? What&#146;s the box, what&#146;s the model? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin</B>: Steve I
don&#146;t have an absolute backlog number at my finger tips right now. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Mazur:</B>      Okay. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> I mean, we
came into the quarter with &#150; firm &#151; between $50 and $75 million in firm backlog
that was task ordered. We&#146;ve added probably around, I think, $12 million or so
without getting into some of the unfunded contract opportunities. In the second quarter
after we realize some of the FSSI task orders and some of the other things we&#146;re
working on, I&#146;ll try to firm up that number better. If you don&#146;t look at just
past quarter base backlog and just look at totality of backlog over the next five years, I
mean, we&#146;re approaching if not, if we have not already exceeded $100 million. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Mazur:</B>      What does
task order backlog mean? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Task order,
task order is when the federal government can only provide funding to you on an annual
basis. So they&#146;ll maybe give you a contract that&#146;s good for a period in excess
of that, but they need to fund it much like a PO against that contract vehicle, on a
shorter period, and never to, you know, exceed one year or the government fiscal year. The
government&#146;s just not allowed to operate otherwise. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Mazur:</B>      Okay. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B> I think the
other, if I may, I think the other aspect of task orders is that most of these contracts
be it for the full contract life, or for the current period year, have an umbrella amount.
Then individual agencies and departments take advantage of that on a PO basis as per
Jim&#146;s comment, to issue specific work orders under that umbrella agreement. Those
work orders are subject to some competitive bidding by qualified vendors. In the case, in
the case of the FSSI contract, which of course is a fairly substantial one, a $93 million
umbrella, what we&#146;re talking about here is basically three qualified vendors of which
iSYS or WidePoint is one, and we like to think the most qualified of the three. So we
expect some pretty substantial success from that relationship. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Mazur:</B> You know you
mentioned that iSYS basically had the, it looked good, promising for about 14 agencies out
of 40 that you thought were out there. Could you quantify what you know, getting 14
agencies could really mean to the firm? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Let me turn
around and kind of answer your business model question. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Mazur:</B>      Okay, let&#146;s
do that first, okay. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Maybe what
I&#146;ll do is I&#146;ll back in, and Steve they&#146;re very good questions. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Mazur:</B>      Okay. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> And I&#146;ll
back in to an answer to what it means, okay. The iSYS business model, they have three
product areas, okay. So I think you&#146;re more interested in the mobile TEMS product
area&#133; </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Mazur:</B> Exactly.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Okay, because
the others are more engineering consulting and informatics, the forensic informatics and
information assurance. The mobile TEMS space is really a full life cycle software based
outsourcing model that the federal government is taking advantage of, to outsource all of
their, all of the mobile devices that they have, be it, you know, PDAs, be it
Blackberry&#146;s, whatever, they&#146;re outsourcing everything and what we&#146;re doing
is we&#146;re optimizing the software, I mean, we&#146;re optimizing the billing,
we&#146;re providing the lifecycle, we&#146;re providing asset management and we&#146;ve
packaged it all up into a nice solution, in which case we have some great software
that&#146;s proprietary that handles a lot of it for us. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;With
that we charge on a monthly basis, somewhere between $5 and $7 per device, per month, and
that&#146;s the main driver. Now there&#146;s other costs and services built around that,
but that&#146;s the main metric, okay. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Now
getting back to where you said what does this FSSI contract mean, just on its own. The
FSSI contract on its own for 14 agencies they&#146;re estimating to be around 220,000
units that we&#146;re talking about. We&#146;re estimating right now that we believe the
federal government as a whole, especially with the growth of devices, are going to
represent a million unit opportunity. And the FSSI contract is just starting up now and we
expect that to be expanded federal government wide. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Did
that help you a little bit? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Mazur:</B>      Yeah, how
many units do you have right now? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Actually I
don&#146;t have that at my fingertips. I know that it&#146;s changed dramatically over the
last three weeks. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Mazur:</B> Right.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B>   I would
definitely have to get that back to you.  You know I just don&#146;t have it exactly... </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Mazur:</B> Is there a number
that you can throw out that says this is, you know, what your costs are basically per
unit, per month, or something like that so we can kind of hypothetically put up a model in
our heads on this thing? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Steve, with us
going after and getting ready to get this FSSI work, I really don&#146;t want to talk
about our cost structure&#133; </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Mazur:</B>      Okay.
Understood. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> ...for
obvious reasons.  I think you can understand that as well. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Mazur:</B>      I can, I
can.  Okay.  Okay thank you. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B>         Thank you.
 Your next question comes from the line if Ian Wallace with River Run Management.  Please
go ahead. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ian Wallace:</B>      Hi. With
respect to your revenue  forecast,  you said the second quarter is $9 to $10M the second
half is $16M, so that&#146;s kind of $8M per quarter in the second half? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B>   No that
was, I said... </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B>      You said
quarter but meant percent. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Yes, first
quarter,  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B> First half.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Yeah first
half, I&#146;m sorry. We&#146;re projecting nine to ten million in the second quarter, and
we had $7 million in the first quarter. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B>      Jim meant
to say first half when he said $16M. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ian Wallace:</B>      Yeah okay.
 So do you have a projection for the second half or...? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Well right now
we&#146;re, we&#146;ve been giving quarter by quarter because we&#146;re just started
giving projections for the first time. So we do anticipate that you know we&#146;re gong
to see sequential quarter-in quarter-out growth. I&#146;m not prepared at this time to
start giving a number. As we get into the second quarter, we&#146;ll probably try to
project out for the rest of the year. So, but we have a lot of contract wins under FSSI
that could materially change it, you know, in which case it&#146;s going to be kind of
hard to say. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ian Wallace:</B> You&#146;re, the
$100 million backlog number &#150; what&#146;s the, what&#146;s the burn on that backlog?
How long will that take to cycle through revenue? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> That&#146;s
about; right now that&#146;s about five years. We&#146;re looking at $50 million plus
right now over two years, just in backlog. And that doesn&#146;t represent all of our
revenue. We do have revenues that occur kind of on a quarterly basis that doesn&#146;t get
burned out of backlog. So that&#146;s not the only predicator, otherwise it would, you
know, it would look like we&#146;re only going to do $25 million for this year and $25
million next year. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ian Wallace:</B> Okay and I guess
when, I mean, the company&#146;s been long on potential for a long time. When do you think
we get into a little steeper trajectory here on the top line? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Well I mean,
I&#146;m actually you know, we&#146;re projecting second half, well, we believe without
getting into it, that we&#146;re going to see sequential growth quarter-in quarter-out for
the rest of the year. We also believe that the opportunities associated with the MTEMS
business and FSSI, depending on how quickly that comes on, and that, the government&#146;s
doing that because it&#146;s saving them money. It&#146;s going to be quicker than slower.
We also believe that the large opportunity that we have with our AIM division will start
coming on line stronger in the second half as well and building into &#145;09. So with
that, you know, we&#146;re looking at a strong, the potential for a strong second half
&#145;08 and continued strong growth in &#145;09. </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,
and I would like to address one thing, I mean, &#145;07, we have been long in promise,
there&#146;s no question of that. But a lot of that length in promise came from, in
&#145;07 where we had a continuing resolution that just did not allow any funding for us
to do anything. For all intents and purposes, a lot of us went home and just took the year
off, except we really didn&#146;t. We went and looked for other opportunities and built
what we could. Coming into &#145;08 we&#146;ve seen that dynamic go away and now
we&#146;re seeing that opportunity finally blossom for us. </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
does that help you a little bit? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ian Wallace:</B>      Yeah,  and
do you think are you fully funded now based on your  present  working  capital,  or do
you expect to be back to the market before the end of the year? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Well being a
major shareholder myself, as well as Steve, I don&#146;t like to go to the marketplace
period. So I would hope that we don&#146;t have to, especially if we&#146;re producing
cash going forward. Our problem was just having one point what, one and a half million in
working capital and looking at, you know, a very large revenue run-rate. It was obvious
that we were just under capitalized. If you notice we did it on the best terms we could do
it on as well, and we did not, I mean, we did it in-house, so there wasn&#146;t placement
fees associated with it either. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Ian Wallace:</B> Right, thank
you.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Thank you.  </FONT></P>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B>         Thank you.
 Your next question comes from the line of Sam Donaldson a Private Investor.  Please go
ahead. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Sam Donaldson:</B> Yes, my
question is built on your last series of answers. Let me just sort of pin down an
overview. You&#146;re optimistic about the sector that we are working in. You&#146;re
talking about sequential growth, quarter-by-quarter; you&#146;ve explained the startup
costs of the first quarter which you say are non-recurring. It seems to me that sort of
adds up, unless you can tell me otherwise, to a fairly good idea for profitability as the
quarters go on this year and you say into next year? Is that your assessment also? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Hey Sam, I
think you&#146;re analysis is pretty good. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Sam Donaldson:</B> We talked about
it and I understand you said it in different ways, but for someone who&#146;s not as
sophisticated as I am, I&#146;m not sophisticated at all, I wanted to hear the word yes, I
think we&#146;re going to be profitable. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B> Sam I think
we&#146;ve both nodded here at this end, and we think your analysis is right on. I think
this question was asked of me at the last quarterly call&#133; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Sam Donaldson:</B> By me &#150; yes.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B> And I was perhaps foolish
enough, I&#146;m not sure, to say that we expected robust profitability by the end of this
year. From my perspective, I still stand on that comment. I think we&#146;re feeling quite
positive about our trends in terms of revenue growth, but also the obvious, in terms of
increased margins and good old numbers in the black. And that&#146;s where we think
we&#146;re going the rest of this year. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Sam Donaldson:</B>    And I was
pleased to hear you say into &#146;09 you don&#146;t see anything on the horizon that
would stop that. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B>      No we do
not Sam. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Sam Donaldson:</B> Well
congratulations guys.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Sam this is
predicated of course upon things happening and you know the government&#133;nothing bad
happening, the government not shutting down or anything like that. But your analysis is
coming close to the mark. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Sam Donaldson:</B> I&#146;m not
going to be partisan about this, but for two years, not just one year, the congress
refused to fund the federal government. Continuing resolutions were what they thought was
the order of the day. There&#146;s still some problems up there, but it does look like
this congress or maybe the next congress will decide that one of the things they ought to
do is fund the federal government. And let&#146;s hope so. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B>   Thanks Sam.
  You want to hear something great - on the mobile TEMS side? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Sam Donaldson:</B> Yes, you bet.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> On the mobile
sound side, the even a continuing resolution doesn&#146;t stop it because all of the
budget money is already in place and since there&#146;s cost savings associated with the
mobile TEMS work, even if you have that happen, the agencies could still move forward and
a continuing resolution does not stop that growth. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Sam Donaldson:</B> Well great.
Well I&#146;ll get off the line except to listen. But Steve and Jim, congratulations, I
mean, I think you&#146;re doing a great job and I think the potential here is terrific. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar</B>:      Thank you
Sam. Much appreciated. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B>         Thank you.
 Your next question comes from the line of Jeremy Grant with Stanford Group.  Please go
ahead. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeremy Grant:</B> Hi good
afternoon guys.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Hi Jeremy.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B> How&#146;re you
doing Jeremy?  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeremy Grant:</B> Real good, real
good thanks. Hey, I wanted to talk a bit about margins. You know, it seems like both on
gross margin and SG&amp;A, at least on the latter, you know, quite a bit impacted this
quarter just from some of the one-time processes associated with the acquisition. I
realize you&#146;re still absorbing the iSYS group in, but as you sort of look going ahead
and your informal projections for the year, starting from the base effect, you know, gross
margins at 15% this quarter. Where do you look to try to be getting these margins in Q-2
and beyond? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> I don&#146;t
know if I&#146;m ready to peg down an absolute number, besides saying Jeremy, I think
they&#146;re going to go up from there. I mean, it&#146;s the revenue mix of the higher
margin work which tends to be in the high 20&#145;s and low 30&#145;s is going to be a
greater and greater blend. So I mean a little of that&#146;s going to have to depend on
how the blend plays out. But we&#146;re anticipating that it&#146;s going to improve, and
hopefully improve quarter-in quarter-out. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeremy Grant:</B> Okay.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Some of its
managed service and there&#146;s economies of scale which is going to further drive that
as well. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeremy Grant:</B> Okay and I guess
kind of conversely on the SG&amp;A side where you know, the blend of work will probably be
less dependent on where things go forward. Do you have a target in terms of percentage of
revenues where that comes in, or are there some fixed numbers we should keep in mind? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> I think after
the second quarter we&#146;ll be able to kind of get more of a baseline for SG&amp;A. We
know right now without even doing any hard work, that there&#146;s $300,000 alone in
non-recurring just 123R expense that gets eliminated, beside anything else. So we know the
absolute cost is going to fall and I think as I recall we&#146;re around $1.6 million, so
that&#146;s taken us down to $1.2 million. We may want to make some investments in sales
and marketing, so I mean, I think you can probably, we can make some guesses, but in the
second quarter we&#146;re going to get a better measure for it. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeremy Grant:</B> Okay. And it
sounds like sort of with what you&#146;re coming with some of the one-time costs going
away; if you look I guess under an adjusted EBITDA basis, excluding stock comp costs, you
know, the target would be right around break even for Q-2? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Well I mean in
Q-1 our EBITDA was about negative $150,000. So I would hope for in the second quarter,
given all things occurring, is for a positive EBITDA. </FONT></P>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeremy Grant:</B>     And that
would be excluding stock compensation or not? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B>   Excluding -
it&#146;s a push there - but excluding stock comp, I feel very comfortable making that
statement.  Okay? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeremy Grant:</B> Okay. And then
the other question I had on the consulting side. You mentioned that some of the issues in
Q-1 were some contracts that were, I guess, won, but the work was delayed a little bit. I
wondered if you could talk just a little bit more about, you know, what those issues are
and how that is different coming up in this quarter? </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Well what
happened is really in January and February we had some people sitting on bench, which
drives your costs up. It also, on the SG&amp;A side, then also we have been doing other
things, so you throw a little bit more costs to some of the work that you have. Two, some
of those contracts were awarded late in the quarter, so all of a sudden they&#146;re
starting work in the second quarter. So that&#146;s kind of pretty much a normal kind of
problem that you have, some times, with some seasonality in contract awards. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeremy Grant:</B>     Sure.  So
you&#146;re saying now utilization is up, folks are not on the bench as they were a couple of
months ago. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Yeah,
utilization is up and you know our problem is focusing on all of it with the iSYS
acquisition, it took up some management time, so some of our optimization of talent, you
know, wasn&#146;t fully utilized either. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeremy Grant:</B>     Sure.
 That sound like the reaction that&#146;s sort of beyond you at this point.  </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B>   Yeah. I
think so; I think  everything&#146;s  gone very well so far with the beginnings of the
 integration,  with iSYS and WidePoint.  We&#146;re pleased.  Jin Kang, the President of iSYS
has been a tremendous add to the organization as well. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeremy Grant:</B> Okay. And again,
final question that I had was just looking sort of at the budget situation and you know
obviously, two years ago with the full year CR was a problem. This year we had a CR for a
few months and then got a budget at least funded. It looks like, listening to the pulse of
what&#146;s going on on the Hill, the supplemental that&#146;s being debated in the Senate
right now is probably the last appropriations bill to move before the election, and then
the Dems will have to sort of wait and see what they&#146;re dealt with. If it&#146;s
McCain, they probably want to make a deal kind of quick, and if it&#146;s Obama, then
they&#146;ll probably want to hold the, all the spending though so he comes in January
20<SUP>th</SUP>, and have him sign a bill you know that reflects Democratic priorities. So
that sort of suggests maybe three and a half, four months, of being on a continuing
resolution again. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You
know, outside the, I guess the TEMS business, that sounds like it&#146;s pretty insulated
from that. Are there some vulnerabilities that could creep in in Q-4 this year that we
need to keep an eye on? </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> I mean
there&#146;s always vulnerability. The MTEMS as you know is where we&#146;re looking for a
lot of growth in &#145;08, I don&#146;t think is going to be impacted too much because of
the cost savings. As it goes to the AIM sector, where we&#146;re refocusing growth this
year I think is fully funded for what we&#146;re looking for. So as you go into &#145;09,
what could happen is, you could have some first quarter hiccups. But that doesn&#146;t
impact, that doesn&#146;t really distract &#145;09 total, it just may be some timing
differences between the first quarter and second quarter. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeremy Grant:</B> Sure.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B> I think
Jim&#146;s kind of laid that out pretty well Jeremy. I think that if there is a flank risk
associated with that, we think it&#146;s limited, but if it were to happen, we don&#146;t
think it would hit our second and third quarter. It might be a hiccup somewhere near the
end of the year, but you know, it&#146;s a little too early to tell and we don&#146;t, we
don&#146;t foresee it as a really substantial risk right now. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeremy Grant:</B> Sure. Yeah, no,
the message here is, you know, you&#146;re a government services company, investors who
are part of it, got to be able to follow some of the lumpiness that&#146;s going to go on
with it as the appropriation cycle goes back and forth. But it sounds like you&#146;re not
all that different there, evens out over the course of the year. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B>   Yes, no,
that&#146;s how we view it right now.  Anything else? </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Jeremy Grant:</B>     Yeah,
that&#146;s all I have.  No I appreciate it thanks. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Thanks a lot
Jeremy.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B>         Thank you.
 Your next question comes from the line of Michael Wallach with USCIS.  Please go ahead. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Michael Wallach:</B>  Hi. I&#146;m a
private investor and my question is on the engineering  consulting  business end of it,
that sounds like that&#146;s the area  shrinking  least and having  problems as far as really
making money in there.  Is that the sector that&#146;s  basically having the most difficulty
as far as, and how do you turn that around? </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Well the
engineering consulting business is really made up of your professional services group. And
that, you know we&#146;ve had some shrinkage there because we&#146;ve had a lot of focus
on a lot of absolute growth in the other two segments. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Michael Wallach:</B> Right, they
dropped about $638k.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Yeah, turning
it around, I mean, we want to maintain it, we want some moderate growth out of it because
it provides good opportunities looking at it strategically and the new areas that we could
play in. It&#146;s, you know, right now we are focusing a bit on it to make sure that we
can maintain and grow it. The big bang for the buck though for us is really the MTEM
segment and the AIM segment, because that&#146;s where the absolute growth of the margin
growth is. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Michael Wallach:</B> Okay.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B> So I think
it&#146;s a fair comment to say that some portion of the engineering and consulting
business has historically been high revenue, low margin business. And we&#146;re being
pretty selective and elective about where we place our efforts going forward. Again,
we&#146;re kind of focused on really improving gross margins as we move forward. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Because
that&#146;s an improved income in the bottom line. So I think we&#146;re trying to, from a
management perspective, trying to start optimizing income and income growth, not just
doing, we don&#146;t want to just have a lot of revenues for the sake of having a lot of
revenues. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Michael Wallach:</B>  Right,
because that&#146;s just going to dilute the... </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> It doesn&#146;t
&#133; </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Michael Wallach:</B>  Right, that&#146;s
going to dilute the EBITDA, everything, so... </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> And also burns
a lot of working capital and so we&#146;re being very strategic about it and we want to be
in the higher level markets where also we can have some strong business intelligence
coming into us. Because that&#146;s where you find out where the new managed service
offerings and how you really can perform what you need to perform. That&#146;s very
important. We want to be at the top of the food chain, not at the bottom of the food
chain. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Michael Wallach:</B> Absolutely.
And so, and the other thing I picked up on you said with the EBITDA negative $150,000 of
EBITDA after you take out the adjustments and everything. So you&#146;re thinking even
you&#146;ll be turning the corner in the next quarter toward profitability, or closer to
that at least? </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Those are all
of our mutual goals. We&#146;re trying to manage improvements in revenues, gross margins
and into operational income. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Michael Wallach:</B> Okay.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B> Okay?  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Michael Wallach:</B>  Yeah,  and
I only,  I&#146;m sorry to bother you, but I only had one other  question.  I noticed on the
amount that the goodwill amount for some reason jumped up to $7.2 million... </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B>   We had
goodwill associated with the iSYS acquisition... </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Michael Wallach:</B>  Oh, okay.
 That&#146;s the big jump, okay.  Okay. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>James McCubbin:</B>   Well thank
you so much by the way.  We appreciate it. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Michael Wallach: No
problem. </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B> Thank you. Ladies
and gentlemen, if there are any additional questions, please press the star key followed
by the one at this time. As a reminder, if you are on speaker phone, please lift the
handset before making your selection.<B> </B>One moment please. </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
management, I&#146;m showing there are no further questions. I&#146;ll turn it back to you
for closing comments. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Steve Komar:</B> Thank you
operator we appreciate that. Well on behalf of Jim and myself and our management team I
would just thank you one additional time for your time and attention and both commitment
and support, both ourselves and we, where we believe we&#146;re taking WidePoint. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;So
as I had mentioned earlier in my comments, we&#146;re really committed to delivering some
fairly dramatic improvements between now and the end of the year. That&#146;s where our
focus will remain and as always, we appreciate your patience with us and hopefully that
will result in some pretty attractive returns over a reasonable timeframe to all of our
investors. </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
we thank you very much, and for the moment we&#146;ll say good night. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Operator:</B>         Thank you
gentlemen.  Ladies and gentlemen that will conclude  today&#146;s  teleconference.  We do
thank you again for your participation, and at this time you may disconnect. </FONT></P>














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