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<SEC-DOCUMENT>0000897069-09-000806.txt : 20090430
<SEC-HEADER>0000897069-09-000806.hdr.sgml : 20090430
<ACCEPTANCE-DATETIME>20090430163651
ACCESSION NUMBER:		0000897069-09-000806
CONFORMED SUBMISSION TYPE:	ARS
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20081231
FILED AS OF DATE:		20090430
DATE AS OF CHANGE:		20090430
EFFECTIVENESS DATE:		20090430

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:		ARS
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33035
		FILM NUMBER:		09784364

	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>ARS
<SEQUENCE>1
<FILENAME>cmw4267.htm
<DESCRIPTION>ANNUAL REPORT TO SHAREHOLDERS
<TEXT>
<HTML>
<HEAD>
<TITLE></TITLE>
</HEAD>
<BODY>

<p align=center><IMG SRC="widepointlogo.gif"></p>




<!-- MARKER FORMAT-SHEET="Head Right-TNR" FSL="Project" -->
<P ALIGN=RIGHT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>April 30, 2009&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  </FONT></P>


<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Dear Stockholder: </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>During 2008, your Company realized a
number of important strategic objectives, and positioned itself for meaningful future
growth and profitability. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>In summary, from a financial
standpoint, WidePoint&#146;s 2008 Revenues exceeded $35 Million, an increase of over 150%
versus the prior year. We experienced a full year Operating Loss of $0.7 Million, of which
$1.6 Million constituted non-cash items. Importantly, our fourth quarter featured the
strongest performance period during the calendar year, with Revenues in excess of $10
Million. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>At our most recent Quarterly Investor
Call, we referred to the difficult financial and economic times that we all were
experiencing throughout the nation, but advised you that WidePoint was financially solid,
and well-positioned as a provider of products and services to the government market
sector. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Although we did not forecast nor
anticipate the serious and continuing economic decline that has occurred since the
beginning of the fourth quarter of 2008, I was pleased to be able to report that the
Company nevertheless experienced a robust fourth quarter, with strong revenue growth and
the achievement of bottom line profitability. In addition, we believe that this
performance, with appropriately cautious optimism, is a trend that will continue for 2009
and beyond. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>From a strategic perspective,
WidePoint successfully concluded the acquisitions of iSYS, LLC, and Protexx, Incorporated.
Both acquisitions complemented our existing capabilities to our target markets, while
opening market expansion opportunities for us as well. Each of our now-enhanced business
segments participated in our Revenue growth throughout 2008. In addition, we have enhanced
our marketing and sales capabilities and resources, focused on expense management and cash
flows, and strengthened our capital base through private equity financings resulting in
net proceeds to the Company of approximately $4 Million. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>As we look forward to 2009 and
beyond, we see the opportunity for enhanced organic growth for the Company, supplemented
by additional strategic initiatives, that should deliver increased market capitalization,
and incremental value to our stockholders. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Sincerely, </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>/s/ Steve L. Komar </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Left-TNR" FSL="Project" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Steve L. Komar <BR>Chairman and Chief
Executive Officer </FONT></P>








<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>






<DIV align="center" style="font-size: 14pt; margin-top: 7pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>
</DIV>

<DIV align="center" style="font-size: 12pt"><B>WASHINGTON, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 7pt"><B>FORM 10-K</B>
</DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 7pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#254;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 7pt; margin-left: 12%"><B>For the fiscal year ended <U>December&nbsp;31, 2008.</U>
</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 7pt"><B>OR</B></DIV>

<DIV align="center">
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%" style="font-size: 12pt">
<TR style="font-size: 7pt">
    <TD width="7%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="88%">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD align="center"><FONT face="Wingdings">&#111;</FONT></TD>
    <TD>&nbsp;</TD>
    <TD><B>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.</B></TD>
</TR>
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 7pt; margin-left: 12%"><B>For the transition period from <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> to <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U>.
</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 7pt"><B>Commission File Number 001-33035</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 7pt"><B><FONT style="border-bottom: 1px solid #000000">WIDEPOINT CORPORATION</FONT></B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter.)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR style="font-size: 7pt">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">Delaware
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">52-2040275</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction of
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(I.R.S. Employer</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">incorporation or organization)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Identification No.)</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR style="font-size: 7pt">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top">18W100 22<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> St., Oakbrook Terrace, IL
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">60181</TD>
</TR>
<TR style="font-size: 1px">
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 7pt">Registrant&#146;s phone number, including area code: <u>(630)&nbsp;629-0003</u>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 7pt">Securities registered pursuant to Section 12(b) of the Act:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 7pt"><u>Title
of each class</u>:</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 7pt">Common Stock, $.001 par value per share</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 7pt">Name of each exchange on which registered</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 7pt">NYSE Amex</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 7pt">Securities registered pursuant to section 12(g) of the Act: None
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 7pt; text-indent: 4%">Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule
405 of the Securities Act.  <FONT style="white-space: nowrap">Yes <FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#254;</FONT></font>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 7pt; text-indent: 4%">Indicate by check mark if the registrant is not required to file reports pursuant to Section
13 or Section 15(d) of the Act.  <FONT style="white-space: nowrap">Yes <FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#254;</FONT></font>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 7pt; text-indent: 4%">Indicate by check mark whether the registrant (1)&nbsp;has filed all reports required to be filed
by Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12&nbsp;months (or
for such shorter period that the registrant was required to file such reports), and (2)&nbsp;has been
subject to such filing requirements for the past 90&nbsp;days: Yes <FONT face="Wingdings">&#254;</FONT> No <FONT face="Wingdings">&#111;</FONT>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 7pt; text-indent: 4%">Indicate by check mark if disclosure of delinquent filers pursuant to Item&nbsp;405 of Regulation
S-K is not contained herein, and will not be contained, to the best of registrant&#146;s knowledge, in
definitive proxy or information statements incorporated by reference in Part&nbsp;III of this Form 10-K
or any amendment to this Form 10-K. <FONT face="Wingdings">&#111;</FONT>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 7pt; text-indent: 4%">Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company (as defined in Rule&nbsp;12b-2 of the
Act).</DIV>



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR style="font-size: 7pt">
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD nowrap align="center" valign="top">Large accelerated filer <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Accelerated filer <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">Non-accelerated filer <FONT face="Wingdings">&#111;</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>Smaller Reporting Company <FONT face="Wingdings">&#254;</FONT></TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top" nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 7pt; text-indent: 4%">Indicate by check mark whether the registrant is a shell company (as defined in Rule&nbsp;12b-2 of
the Act).
Yes <FONT face="Wingdings">&#111;</FONT> No <FONT face="Wingdings">&#254;</FONT>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 7pt; text-indent: 4%">State the aggregate market value of the registrant&#146;s voting and non-voting common equity held
by non-affiliates of the registrant computed by reference to the price at which the common equity
was last sold, or the average bid and asked price of such common equity, as of the last business
day of the registrant&#146;s most recently completed second fiscal quarter.&nbsp; <FONT style="white-space: nowrap">$ 56,310,369.</font>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 7pt; text-indent: 4%">As of March&nbsp;24, 2009, the registrant had 58,305,514, shares of its Common Stock issued and
outstanding.
</DIV>
<DIV align="center" style="font-size: 10pt; margin-top: 7pt">DOCUMENTS INCORPORATED BY REFERENCE</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 7pt ; text-indent: 4%">The information called for by Part&nbsp;III of the Form 10-K is incorporated by reference from the
registrant&#146;s definitive proxy statement which will be filed pursuant to Regulation&nbsp;14A not later
than 120&nbsp;days after the end of the fiscal year covered by this report.
</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 7pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
        <TD width="3%"></TD>
        <TD width="3%"></TD>
        <TD width="3%"></TD>
        <TD width="3%"></TD>
        <TD width="3%"></TD>
        <TD width="3%"></TD>
        <TD width="3%"></TD>
        <TD width="3%"></TD>
        <TD width="76%"></TD>
</TR>
<TR><TD colspan="9">PART I</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 1. BUSINESS</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 1B. UNRESOLVED STAFF COMMENTS</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 2. PROPERTIES</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 3. LEGAL PROCEEDINGS</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 4A. EXECUTIVE OFFICERS OF THE REGISTRANT</TD></TR>
<TR><TD colspan="9">PART II</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 5. MARKET FOR REGISTRANT&#146;S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 7. MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 9A. CONTROLS AND PROCEDURES</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 9B. OTHER INFORMATION</TD></TR>
<TR><TD colspan="9">Part&nbsp;III</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 11. EXECUTIVE COMPENSATION</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES</TD></TR>
<TR><TD colspan="9">Part&nbsp;IV</TD></TR>
<TR><TD></TD><TD colspan="8">ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES</TD></TR>
<TR><TD colspan="9">SIGNATURES</TD></TR>
<TR><TD colspan="9">EXHIBIT INDEX</TD></TR>
<TR><TD colspan="9">Exhibit 21</TD></TR>
<TR><TD colspan="9">Exhibit 23.1</TD></TR>
<TR><TD colspan="9">Exhibit 31.1</TD></TR>
<TR><TD colspan="9">Exhibit 31.2</TD></TR>
<TR><TD colspan="9">Exhibit 32</TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<!-- link1 "PART I" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>PART I</B>
</DIV>

<!-- link2 "ITEM 1. BUSINESS" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>ITEM 1. </B><U><B>BUSINESS. </B></U>

</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">This Annual Report on Form 10-K contains forward-looking statements that involve substantial risks
and uncertainties, many of which are outside of our control. We believe that these statements are
within the definition of the Private Securities Litigation Reform Act of 1995. You can often
identify these statements by the use of words such as &#147;may,&#148; &#147;will,&#148; &#147;expect,&#148; &#147;intend,&#148;
&#147;anticipate,&#148; &#147;believe,&#148; &#147;plan,&#148; &#147;seek,&#148; &#147;estimate,&#148; &#147;continue&#148; and other similar words or
variations on such words. You should read our forward-looking statements carefully because they
discuss our future expectations, make projections of our future results of operations or financial
condition or state other &#147;forward-looking&#148; information. Although forward-looking statements in this
Annual Report reflect our good faith judgment, such statements can only be based on facts and
factors currently known by us. Consequently, forward-looking statements are inherently subject to
risks and uncertainties and actual results and outcomes may differ materially from the results and
outcomes discussed in or anticipated by the forward-looking statements. The factors that could
cause or contribute to such differences include, but are not limited to, those discussed elsewhere
in this Annual Report. We undertake no obligation to update any forward-looking statement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In this document, unless the context indicates otherwise, the terms &#147;Company&#148; and &#147;WidePoint,&#148; as
well as the words &#147;we,&#148; &#147;our,&#148; &#147;ours&#148; and &#147;us,&#148; refer to both WidePoint Corporation and its
consolidated subsidiaries. The term &#147;registrant&#148; refers only to WidePoint Corporation, a Delaware
corporation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Industry and market data used throughout this Annual Report on Form&nbsp;10-K were obtained through
surveys and studies conducted by third parties, industry and general publications and internal
company research. We have not independently verified any of the data from third-party sources nor
have we ascertained any underlying economic assumptions relied upon therein. While we are not aware
of any misstatements regarding the industry data presented herein, estimates involve risks and
uncertainties and are subject to change based on various factors.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Overview</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint Corporation (&#147;WidePoint&#148; or the &#147;Company&#148;) is a technology-based provider of product and
services to both the government sector and commercial markets. WidePoint was incorporated in
Delaware on May&nbsp;30, 1997. We have grown through the merger of highly specialized regional IT
consulting companies. Since the first merger in 1998, all the WidePoint companies are united by a
common set of corporate values.
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The belief in 100% customer satisfaction.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">An innovative and entrepreneurial approach to business problems.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">A reputation for being an employee-centric organization where the concern for, and
appreciation of, its highly skilled and competent staff encourages both personal and
professional growth.</DIV></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our expertise lies in three business segments. These segments offer unique solutions in identity
management services utilizing certificate-based security solutions; wireless telecommunication
expense management systems; and other associated information technology (&#147;IT&#148;) consulting services
and products through which we provide specific subject matter expertise in IT Architecture and
Planning, Software Implementation Services, IT Outsourcing, and Forensic Informatics. For
additional information related to our three business segments, see Note 9 of our consolidated
financial statements in this Form 10-K.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint has three material operational entities, Operational Research Consultants, Inc. (ORC);
iSYS, LLC (iSYS), which we acquired in January&nbsp;2008; and WidePoint IL, Inc., operated together with
Protexx Acquisition Corporation doing business as Protexx, which we acquired in July&nbsp;2008.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">ORC specializes in IT integration and secure authentication processes and software, and
providing services to the U.S. Government. ORC has been at the forefront of implementing
Public Key Infrastructure (PKI)&nbsp;technologies. PKI technology uses a class of algorithms in
which a user can receive two electronic keys, consisting of a public key and a private key,
to encrypt any information and/or communication being transmitted to or from the user within
a computer network and between different computer networks. PKI technology is rapidly
becoming the technology of choice to enable security services within and between different
computer systems utilized by various agencies and departments of the U.S. Government.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">iSYS specializes in mobile telecommunications expense management services, forensic
informatics, and information assurance services, predominantly to various agencies and
departments of the U.S. Government.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">Protexx, which was in the development stage when we acquired it, specializes in
identity assurance, and mobile and wireless data protection products and services.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">By delivering advanced, federally certified and other customized technologies, the Company enables
organizations to deploy fully compliant IT services in accordance with government-requirements and
the demands of the commercial marketplace.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We are led by an experienced management team and our competencies are aligned with evolving
security and economic priorities. Our proven experience, top secret security clearances, contract
vehicles and fluency across many technologies puts us in an elite group of advanced solution
providers serving a wide array of customers&#146; needs.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our staff consists of business process and computer specialists who help our government and
civilian customers augment and expand their resident technologic skills and competencies, drive
technical innovation, and help develop and maintain a competitive edge in today&#146;s rapidly changing
technological environment. Our organization emphasizes an intense commitment to our people, our
customers, and the quality of our solutions offerings. As a services organization, our customers
are our primary focus.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The
Company&#146;s revenues in 2008 increased by approximately 151% from approximately $14.1&nbsp;million in
2007 to approximately $35.4&nbsp;million in 2008. The increase in revenues in 2008
compared to 2007 was primarily the result of our acquisition of iSYS and the addition of the iSYS
wireless telecommunication expense management systems segment. While we anticipate revenue gains
for our 2009 calendar year at each of our three business segments, the realization of those gains
may be subject to timing delays in project implementation phases that may be outside the control of
the Company, and there can be no assurance that our revenues will increase in 2009.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Business Services</B>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B><I>Identity Management</I></B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We believe a trusted digital identity is critical in today&#146;s information age. WidePoint has
operational experience in all facets of identity proofing, credential issuing and public key
technology. In government as in business, knowing whom you&#146;re dealing with is essential when using
any form of electronic communications. Businesses need identity assurance for commercial
enterprises such as e-Commerce, online banking and trading, Internet-based enterprise solutions for
process automation, or digital form signing.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Widepoint understands and has delivered compliant identity management solutions critical to our
customer&#146;s success. The Company believes that, through its ORC and Protexx subsidiaries, it is
positioned at the forefront of implementing Public Key Infrastructure (&#147;PKI&#148;) solutions. With
WidePoint, our clients get the strength and experience of a premier organization in the Information
Assurance industry. We believe we implement a system that&#146;s right the first time and ready to
support our clients through the lifecycle of identity management solutions.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint also provides an analysis of an organization&#146;s business and technical policies across
application and data resources for the implementation of various devices such as smart cards,
security tokens, cell phones and personal computers, and efficiently implementing these
capabilities by incorporating higher levels of automated infrastructure. Our implementation
enables an organization to quickly deploy a fully operational capability, providing the highest
levels of identification and authorization of users and devices, securing of sensitive data,
time-stamping and archiving of data, and an auditable process flow. Further, our credentials used
to accomplish all of these requirements are interoperable with any other U.S. federal agency or
organization choosing to accept U.S. federally-compliant credentials.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint&#146;s wholly-owned subsidiary, Operational Research Consultants (&#147;ORC&#148;) is certified by the
Federal Government to facilitate public access to the services offered by Government agencies
through the use of information technologies, including on-line access to computers for purposes of
reviewing, retrieving, providing, and exchanging information. Our Digital Certificate Credentials
are authorized to provide trusted individual or business identity information for use by the
Department of Defense (&#147;DoD&#148;), FirstGov and participating U.S. Government agencies. These
Credentials can be used to:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Authenticate to government and organization websites containing &#147;Sensitive But
Unclassified (SBU)&nbsp;information.&#148;</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Contract for the purchase of goods or services.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Verify the identity of electronic mail correspondents.</DIV></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

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<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Verify the identity of web/ application servers.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Verify the identity of individuals accessing data servers.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Verify the integrity of software and documents posted on data servers.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our Digital Certificate Credential services include the Department of Defense External Certificate
Authority (DoD ECA), Access Certificates for Electronic Services (ACES), and the GSA Shared Service
Provider (SSP).
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B><I>Wireless Telecommunications Expense Management Services (TEMS)</I></B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Widepoint, through our wholly-owned subsidiary iSYS, utilizes our extensive experience working with
government and commercial enterprises to develop well-managed solutions that take the pain out of
managing wireless telecom expenses and devices. We work with carriers to build a complement of
services that work in our clients&#146; interest. A key to our success is providing a single source
from which to manage the wireless assets of our clients. We establish a standard process that
focuses on the goals of the entire organization rather than counter-productive individual desires
that often occur with personal communication devices. Our approach allows our clients to take an
overall look at their communication network and identify issues that affect mission requirements,
cost to the organization, and employee performance. We provide a variety of reports that provide
data for periodic reviews and strategic decision-making. We find that our mobile services
generally save our clients 30% to 65% of their current wireless costs.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">At the core of our approach is a comprehensive database of all of our client&#146;s telecom assets. Our
web-based portal allows our clients to view where their assets are located throughout their
organization. By understanding the types of devices that are deployed and how they are used, our
clients can effectively manage their current inventory and control new procurements. We also take
advantage of bulk savings for our clients by utilizing all available voice, data, and message plans
offered by the carriers, so our clients only pay for the services they utilize. We also secure our
clients valuable telecom assets. We believe that Telecom resources are extremely valuable assets
to our client&#146;s organizations &#150; valuable both in terms of equipment and information capture. With
a strong record of working with some of the most sensitive government and corporate clients, we
build solutions that ensure the privacy of both corporate and personal information. Our
centralized approach helps to prevent security breaches and ensure that information resides within
our client&#146;s organization instead of within individual user populations.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B><I>Consulting Services</I></B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint offers a full range of consulting services and products to support our clients&#146; IT needs.
We draw upon the expertise and talents of our consultants and combine this with our business
knowledge, so that our clients see results quickly and responsively. Through the combination of
select products that we offer along with our consultants&#146; subject matter expertise we provide our
clients with a diverse selection of IT integrated consulting services. Among these services are:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>IT Architecture and Planning</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint offers IT architecture and planning services to ensure that our clients get the most from
their IT investments. Our experience enables us to help our clients make important decisions that
align IT with business goals and objectives. Our approach is to be our client&#146;s strategic advisor
without vendor or technology specific bias in the following areas:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">IT Strategic Planning</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Software Selection</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Project Management</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Software Implementation Services</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint&#146;s software implementation services team provides our clients with the creative and
technical expertise needed to execute projects of any size. Our consultants follow a rapid,
iterative methodology that provides benefits and reduces the risks typically associated with
software implementation projects. We possess specific competencies and experience in the following
areas:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Application Development</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Application Integration</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Business Intelligence</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>IT Outsourcing</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Within today&#146;s business environment, less time spent worrying about the Information Technology (IT)
needs of our clients means more time spent on the success of the core activities of their
businesses. WidePoint&#146;s Information Technology Outsource specialists work with our clients to
develop a customized solution that cost effectively provides for their IT needs. We specialize in
the following areas:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Infrastructure Management</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Applications Management</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">IT Strategic Planning</DIV></TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Information Assurance (IA)</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint&#146;s wholly-owned subsidiary iSYS provides a full range of Information Assurance support
services to help our customers to protect and defend information and information systems by
ensuring confidentiality, integrity, authentication, availability, and non-repudiation.&nbsp;
Additionally, our IA Services include strategic risk analysis and management support that includes
physical security, reliability, continuity of operations planning (COOP), and support for other
enterprise governance issues such as privacy, compliance, audits and disaster recovery.&nbsp;&nbsp; Our IA
services include:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Certification and Accreditation</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Security Architecture Design</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">System Security Planning</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Security Risk Assessment and Mitigation Planning</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Vulnerability Testing and Remediation</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Customizable IA plans and processes to correspond to customer needs</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Continuity of Operations Planning</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Forensic Informatics</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint&#146;s wholly-owned subsidiary iSYS provides systems engineering services that specialize in
Forensic Informatics to federal, state, and local government agencies throughout the U.S. As the
need for faster and more efficient information systems in support of our nation&#146;s law enforcement
personnel continues to increase, we team with our customers and other IT partner companies to
provide superior information technology (IT)&nbsp;services support.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our support services address on-going enhancements to existing IT systems along with developing new
IT systems that incorporate the evolution of long-term advanced hardware and software technologies.
In supporting the Federal, State, and Local government agencies, we provide full lifecycle system
support services that include: software development, system integration, testing, security
engineering, training, and operations &#038; maintenance services to our customers.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Business Growth Strategy</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our objective is to grow our business profitably as a premier technology-based provider of product
and services to both the government sector and commercial markets with a current emphasis placed on
growing our government sector in two managed services segments: Identity Management, and Wireless
Telecommunications Expense Management Services. Our strategies for achieving this objective
include the following:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>Expanding our Customer Base.</I></DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Since inception, and with each of the companies we have acquired, we have focused on providing
information technology-based solutions and services to our customers. We have several long
standing customer relationships. We intend to capitalize on our long-term relationships with our
customers and our reputation within the Department of Defense and other government agencies and
corporate clients, to attract new customers and to cross-sell our array of solutions to our
existing customers. Under the &#147;best value&#148; contracting process that has resulted from reforms in
the government procurement process, past performance and technical approach are key factors that
the government may consider when evaluating competitive bids. Based on our long-term support to
many of our customers, we believe we have a successful past performance track record and have
demonstrated technical expertise that gives us credibility with
these customers and enhances our ability to be successful in bidding on follow-on contracts and
in
competing for new programs of both existing and new customers. Because many of our personnel are
on-site with our customers or work in close proximity to our customers, we develop close
relationships with them and are often able to enhance our customers&#146; operations by rapidly
identifying and developing solutions for customer-specific requirements.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>Targeting High Growth Segments of the Market</I></DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We believe the projected growth in government information technology spending and outsourcing of
key components of their processes, such as identity management services and mobile telecom expense
management services, will offer opportunities for the management and delivery of advanced
technology solutions for enterprise applications and information systems. We intend to continue to
target and expand our service offerings in high growth program areas. In particular, we intend to
focus on developing or providing new or improved solutions in cyber security/information assurance,
including cyber security and homeland defense programs, and other identity management and
infrastructure solutions for secured system environments. We also plan to continue to target
customers seeking to improve their information technology infrastructures and systems, especially
those charged with building and operating enhanced web-based collaboration/sharing platforms.
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>Preparing our Infrastructure for Growth</I></DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We continue to place emphasis upon developing our operational competencies and disciplines, and our
sales/marketing and financial infrastructure, to allow us to both support and expand our growth
opportunities. We believe it is important to strengthen the underlying infrastructure so we can
develop new marketing channels, develop new and continuing customers, identify new market
opportunities, and support the general and administrative requirement attributable to our growth
strategies.
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>Attracting, Training and Retaining Highly Skilled Professionals</I></DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We continue to attract, train and retain skilled professionals, including engineers, scientists,
analysts, technicians and support specialists, to ensure that we have the capabilities to fulfill
our customers&#146; requirements. We target candidates who have served in the military or as civilian
experts, as well as those who are leading specialists in their technology disciplines. We believe
we can continue to retain our employees by offering competitive compensation and benefit plans,
opportunities for career growth through company-supported education programs and diverse,
challenging assignments.
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>Pursuing Strategic Acquisitions</I></DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We plan to enhance our internal growth by selectively pursuing strategic acquisitions of businesses
that can cost-effectively broaden our domain expertise and service offerings and allow us to
establish relationships with new customers. We are focused primarily on acquiring businesses that
provide value-added solutions for our present service offerings and customer base, but we will also
consider opportunities to acquire other businesses where we can leverage our reputation, core
competencies and experienced management team.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>2008 Acquisitions</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>iSYS, LLC. </I>In January&nbsp;2008, we completed the acquisition iSYS, LLC. The iSYS acquisition expanded
our U.S. federal customer base and our information assurance offerings while adding forensic
informatics, information assurance, and mobile telecom managed services to our product and service
offerings. iSYS was formed in, with operations in the greater Washington, D.C. area and Columbus,
Ohio. iSYS provides services predominantly to the U.S. federal government and has recently expanded
its operations into local and state jurisdictions and to commercial enterprises. We believe that
the introduction of our capabilities in providing credentialing services to the iSYS client base
may provide an attractive cross-selling opportunity consistent with our product portfolio strategy.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Protexx, Inc. </I>In July&nbsp;2008, we completed the purchase of the assets and intellectual property of
Protexx, Inc. Protexx was a development stage provider of software-based authentication and
encryption solutions to government, military, first responder and commercial enterprises. We
believe that the acquisition of Protexx should allow us to cost effectively expand our capabilities
within our identity management segment, expanding our customer base beyond the federal marketplace
and providing a less expensive alternative to our existing, government certified public key
infrastructure managed service offerings.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Clients</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our government client base is located predominantly in the Mid-Atlantic region of the U.S. while
our commercial client base is located throughout the continental U.S. We have experience and
expertise in the following industries: U.S. federal government agencies and associated contractor
suppliers, manufacturing firms, consumer product goods firms, direct marketing firms, healthcare
firms and financial services firms. Our clients are, for the most part, large governmental
agencies, federal government contractors or large commercial enterprises. Historically, we have
derived, and may continue to derive in the future, a significant percentage of our total revenues
from a relatively small number of clients.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">During 2008, three customers, the Transportation Security Administration (&#147;TSA&#148;), the U.S.
Department of Homeland Security (&#147;DHS&#148;), and the Washington Headquarters Services (&#147;WHS&#148;), an
agency of the U.S. Department of Defense (&#147;DoD&#148;) that provides services for many DoD agencies and
organizations, individually represented 26%, 20%, and 14% of revenues, respectively, and we
therefore are materially dependent upon such customers. During 2007, no customer individually
represented at least 10% of revenues. Due to the nature of our business and the relative size of
certain contracts which are entered into in the ordinary course of business, the loss of any single
significant customer, including the above customers, would have a material adverse effect on
results.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Marketing and Sales</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We focus sales and marketing efforts on targeting federal government and corporate clients with
significant and or critical mobile telecom expense management budgets and requirements, U.S.
federal agencies and large corporate
user groups requiring identity management compliant solutions
for logical and physical access to federal installations and systems, and large corporate users
with significant IT budgets and requirements. While we perform work for companies in various
industries, the majority of our revenues for 2008 and 2007 were derived from contracts and projects
with U.S. federal government agencies, U.S. federal government contractors, manufacturing clients,
consumer products clients, healthcare clients, and financial services clients. Prospectively, we
expect a majority of our revenue to be derived from contracts with the federal government and
related contracting opportunities.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We market our solutions through our direct sales force, and alliances with several strategic
partnerships in specific industries. The direct sales force is responsible for providing highly
responsive, quality service and ensuring client satisfaction with our services. Strategic
partnerships and alliances provide us with additional access to potential clients.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Government Contracts</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We have numerous Government contracts and contract vehicles. Our major prime contracts are with
various departments of the Department of Defense (&#147;DoD&#148;), the Transportation Security
Administration (&#147;TSA&#148;), the Department of Homeland Security (&#147;DHS&#148;), the Centers for Disease
Control (&#147;CDC&#148;), and Customs and Border Protection (&#147;CBP&#148;). We also hold a number of large
indefinite-delivery, indefinite-quantity (&#147;IDIQ&#148;) contracts that extend WidePoint&#146;s capability to
expand its revenue base, including, but not limited to:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The General Services Administration (&#147;GSA&#148;) contracts for the Federal Strategic Sourcing
Initiative (FSSI)&nbsp;for Telecommunications Expense Management (TEM), Federal Supply Schedule
for Management, Organizational and Business Improvement Services (&#147;MOBIS&#148;), the Federal
Supply Schedule for Professional Engineering Services (PES), the Solutions and More
(&#147;SAM&#148;), Streamlined Technology Acquisition Resources for Services (<B>STARS</B>), and the
Information Technology (&#147;IT&#148;) Schedule &#150; 70.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The Department of Justice
(&#147;DOJ&#148;) Information Technology Support Services (&#147;ITSS&#148;) 3
contract,</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The Federal Bureau of Investigation (&#147;FBI&#148;) Technical Support and Development Contract
(TSDP),</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">The SeaPort-e Contract to provide engineering, technical, and programmatic support
services to the Naval Surface Warfare Centers (NSWC)&nbsp;and the Naval Undersea Warfare Centers
(NUWC).</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We also have various relationships with other contractors that allow us to act as a subcontractor,
thereby providing us access to various other contracts and contract vehicles in biometrics and
identity management infrastructure support, and Information Technology Support Services.
</DIV>


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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our contracts with the U.S. Government, and many contracts with other entities, permit the
government client to modify, curtail or terminate the contract at any time for the convenience of
the government, or for default by the contractor. If a contract is terminated for convenience, we
are generally reimbursed for our allowable costs through the date of termination and are paid a
proportionate amount of the stipulated profit or fee attributable to the work actually performed.
Although contract and program modifications, curtailments or terminations have not had a material
adverse effect on us in the past, no assurance can be given that such modifications, curtailments
or terminations will not have a material adverse effect on our financial condition or results of
operations in the future.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In addition, the U.S. Government and other government entities may terminate a contract for
default. If a contract is terminated for default, we may be unable to recover amounts billed or
billable under the contract and may be liable for other costs and damages. Although terminations
for default have not occurred to us in the past, and thus have not had a material adverse effect on
us historically, no assurance can be given that such terminations will not have an effect on our
financial condition or results of operations in the future.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Seasonality</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our business is not seasonal. However, it is not uncommon for federal government agencies to award
extra tasks or complete other contract actions in the weeks before the end of the federal
government&#146;s fiscal year (which is September&nbsp;30) in order to avoid the loss of unexpended fiscal
year funds. Additionally, in years when the federal government does not complete its budget process
before the end of its fiscal year, government operations typically are funded pursuant to a
continuing resolution that authorizes agencies of the federal government to continue to operate,
but traditionally does not authorize new spending initiatives. When much of the federal government
operates under a continuing resolution, delays can occur in procurement of products and services,
and such delays can affect our revenue and profit during that period.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Competition</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The competitive profile for the services we provide vary for each of our three segments.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our key competitors in our identity management space currently include a variety of both large and
small companies, including divisions of large federal government integrators such as Lockheed
Martin Corporation, Northrop Grumman Corporation, and other large and mid-sized federal
contractors, as well as a limited number of small to mid-sized subject matter expert organizations
offering specialized capabilities within the identity management space. The same companies that
are our competitors will, at times, team with us or subcontract to us in the pursuit of new
business. We believe that the major competitive factors in this segment are distinctive technical
competencies, governmental approvals to operate within this space, successful past contract
performance, price of services, reputation for quality, and key
management personnel with domain
expertise.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our key competitors in our mobile telecommunications expense management segment within the U.S.
federal marketplace currently include: Avalon Technologies, Profitline (working through Booz Allen
&#038; Hamilton), Tango, and Rivermine. We believe that the major competitive factors in the federal
marketplace are distinctive technical competencies, successful past contract performance, price of
services, reputation for quality and key management personnel with domain expertise. Our key
competitors in the commercial marketplace are currently represented by a large number of
small-sized participants and the marketplace is presently fragmented. The key
competitive factors in the commercial marketplace are the same as in the federal marketplace with
an added focus on cost-effective pricing of services.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our key competitors in our consulting services segment include divisions of large defense
contractors such as Lockheed Martin Corporation, Northrop Grumman Corporation, EDS, Unisys, Science
Applications International Corporation, and Manpower, as well as a number of small and mid-size
companies. Because of the diverse requirements of U.S. government customers and large corporate
customers and the highly competitive nature of large procurements, corporations frequently form
alliances or teams to pursue contract opportunities. The same companies listed as competitors
will, at another point in time, team with us or subcontract to us in the pursuit of new business.
Our consulting services segment is highly competitive in both the U.S. federal government as well
as in the commercial marketplace.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Intellectual Property</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our intellectual property primarily consists of methodologies developed for use in application
development solutions. The services, described above, define the system and process intellectual
property that allows us to be the leader in our markets. In addition, our ORC subsidiary holds a
patent for a digital parsing tool that provides a secure repository gateway that will allow users,
including first time users, the ability to immediately establish and access accounts by presenting
their certificates to a directory validated by the gateway. In this manner, we rely upon a
combination of trade secrets, copyright and trademark laws, and contractual restrictions to
establish and protect the ownership of our proprietary methodologies. We generally enter into
nondisclosure and confidentiality agreements with our employees, partners, consultants, independent
sales agents and clients. As the number of our competitors increase, the likelihood that such
competitors will use similar methodologies increases. Although our methodologies have never been
subject to an infringement claim, there can be no assurance that third parties will not assert
infringement claims against us in the future; that the assertion of such claims will not result in
litigation; or that we would prevail in such litigation or be able to obtain the license for the
use of any allegedly infringed intellectual property from a third party on commercially reasonable
terms. Further, regardless of its outcome, litigation can result in substantial costs and divert
management&#146;s attention from our operations. Although we are not aware of any basis upon which a
third party could assert an infringement claim, any infringement claim or litigation could
materially adversely affect our business, operating results and financial condition.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Personnel</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">As of December&nbsp;31, 2008, we had a total of 90 employees with 81 full time employees and 9 part-time
employees. We also periodically employ additional consultants and temporary employees.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our offices are located in areas populated by military personnel (both retired and active duty),
and highly skilled civilian personnel. Potential employees possessing the unique qualifications
required are readily available for both part-time and full-time employment. The primary method of
soliciting personnel is through recruiting resources directly utilizing all known sources that
include electronic databases, public forums, and personal networks of friends and former coworkers.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
 <DIV align="justify" style="font-size: 10pt; margin-top: 10pt">
We believe that our future success will depend in part on our continued ability to attract and
retain highly skilled managerial, technical, sales and support personnel. There can be no
assurance that we will be able to continue to attract and retain personnel necessary for the
development of our business. We generally do not have employment contracts with our employees, but
we do maintain employment agreements with our key employees. However, confidentiality and
non-disclosure agreements are in place with many of our employees. None of our employees are
subject to a collective bargaining agreement. We believe that our relations with our employees are
good.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Available Information</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our
internet address is <u>www.widepoint.com.</u> We make available through our website our Annual Report
on Form 10-K, Quarterly Reports on Form 10-Q, current reports on Form 8-K, and amendments to those
reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of
1934 as soon as reasonably practicable after we electronically file such material with, or furnish
it to, the SEC.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ITEM 1B. </B><U><B>UNRESOLVED STAFF COMMENTS</B></U><B>.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">None.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ITEM 2. </B><U><B>PROPERTIES.</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company&#146;s principal executive office is located at 18W100 22<SUP style="font-size: 85%; vertical-align: text-top">nd</SUP> St., Suite&nbsp;104,
Oakbrook Terrace, Illinois and consists of approximately 1,500 square feet of office space that
expires in August&nbsp;2009, with an option for an additional year. The annual lease for this office is
approximately $17,000.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint&#146;s ORC subsidiary&#146;s principal office is located at 1723 South Park Court, Chesapeake,
Virginia and consists of approximately 2,400 square feet under a month-to-month lease that expires
on April&nbsp;30, 2009. The annual rent for this office is approximately $31,100.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">ORC also maintains a secure facility in Fairfax, VA. The Fairfax office, which houses the
Company&#146;s identity assurance managed services business segment and its related Secure Network
Operating Center, is located at 11250 Waples Mill Road, South Tower, Suite&nbsp;210, Fairfax, Virginia
22030, and consists of a total rentable area of approximately 11,852 sq. ft. The lease for this
office has been extended and will expire March&nbsp;15, 2014, and costs approximately $343,000 annually.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our acquisition of iSYS in January&nbsp;2008 added two facilities that are leased; the iSYS corporate
headquarters located at 7926 Jones Branch Drive, McLean, VA with an annual rent of approximately
$51,000 expiring November&nbsp;30, 2009 and a call center for the iSYS mobile telecom managed services
group in Columbus, OH with an annual rent of approximately $66,000 expiring May&nbsp;31, 2012.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our acquisition of the operating assets of Protexx in July&nbsp;2008 added one facility at 10 Fairway
Drive, Suite&nbsp;216, Deerfield Beach, Florida under a month-to-month lease with an annual rent of
approximately $14,000.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint believes that it can obtain additional facilities required to accommodate its projected
needs without difficulty and at commercially reasonable prices, although no assurance can be given
that it will be able to do so.
</DIV>
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<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ITEM 3. </B><U><B>LEGAL PROCEEDINGS</B></U><B>.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We are not involved in any material legal proceedings.
</DIV>
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<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ITEM 4. </B><U><B>SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS</B></U><B>.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company&#146;s Annual Meeting of Stockholders was held on December&nbsp;18, 2008. The following four
persons were elected by the following votes to serve as Class&nbsp;II and Class&nbsp;III directors of the
Board of Directors. Class&nbsp;II directors will serve for three years or until their resignation
and/or their successors are elected and qualified. Class&nbsp;III directors will serve for one year or
until their resignation and/or successors are elected and qualified:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="49%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Votes Against or</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Abstentions and</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Votes For</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Withheld</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Broker Non-Votes</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Steve L. Komar &#150; Class&nbsp;II</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,141,785</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,289,016</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">James T. McCubbin &#150; Class&nbsp;II</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">44,788,829</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,141,972</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Otto J. Guenther &#150; Class&nbsp;III</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,929,673</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,001,128</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">George W. Norwood &#150; Class&nbsp;III</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">46,929,573</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,001,228</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In addition, the terms of current directors Morton S. Taubman, Ronald S. Oxley and James M. Ritter
continued following the Annual Meeting of Stockholders.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Stockholders approved the Company&#146;s 2008 Stock Incentive Plan by a vote of 13,634,285 shares votes
for, 5,406,242 shares votes against, and 29,890,274 shares votes withheld or abstained.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Stockholders ratified the selection of Moss Adams LLP as the independent accountants for the
Company for the fiscal year ended December&nbsp;31, 2008. Such proposal was approved by a vote of
48,103,493 shares for and 725,656 against, with 101,652 shares abstaining.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<!-- link2 "ITEM 4A. EXECUTIVE OFFICERS OF THE REGISTRANT" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ITEM 4A. </B><U><B>EXECUTIVE OFFICERS OF THE REGISTRANT. </B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The following sets forth information regarding the executive officers and certain significant
employees of the Company as of March&nbsp;31, 2009:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="28%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Name</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000"><B>Age</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Position</B></TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Steve L. Komar
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">67</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer and Chairman of the Board</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">James T. McCubbin
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">45</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President, Chief Financial
Officer, Secretary, Treasurer, and Director</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Ronald S. Oxley
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">62</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Executive Vice President &#151; Sales and Marketing,
and Director</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Daniel E. Turissini
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">49</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Technology Officer and Chief Executive
Officer and President &#151; Operational Research
Consultants, Inc.</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Jin Kang
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">44</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Chief Executive Officer and President &#151; iSYS LLC.</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Steve L. Komar has served as a director since December&nbsp;1997 and became Chairman of the Board of
Directors in October&nbsp;2001. Mr.&nbsp;Komar has also served as Chief Executive Officer since December
2001. From June&nbsp;2000 until December&nbsp;2001, Mr.&nbsp;Komar served as a founding partner in C-III Holdings,
a development stage financial services company. From 1991 to June&nbsp;2000, Mr.&nbsp;Komar served as Group
Executive Vice President of Fiserv, Inc., a company that provides advanced data processing services
and related products to the financial industry. From 1980 to 1991, Mr.&nbsp;Komar served in a number of
financial management positions with CitiGroup, including the role of Chief Financial Officer of
Diners Club International and Citicorp Information Resources, respectively. Mr.&nbsp;Komar is a graduate
of the City University of New York with a Bachelor of Science Degree in Accounting and holds a
Masters Degree in Finance from Pace University.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">James T. McCubbin has served as a director and as our Secretary since November&nbsp;1998. In May&nbsp;2008,
Mr.&nbsp;McCubbin was promoted to Executive Vice President and Chief Financial Officer. Prior to that
time, from August&nbsp;1998 till May&nbsp;2008, Mr.&nbsp;McCubbin served as our Vice President and Chief Financial
Officer. Prior to that time, from December&nbsp;1997 to August&nbsp;1998, Mr.&nbsp;McCubbin served as Vice
President, Controller, Assistant Secretary and Treasurer. Prior to the commencement of his
employment with WidePoint in November&nbsp;1997, Mr.&nbsp;McCubbin held various financial management
positions with several companies in the financial and government sectors. Mr.&nbsp;McCubbin presently
serves on the Board of Directors of Tianjin Pharmaceutical Company and is Chairman of its Audit
Committee, Nominating Committee, and Compensation Committee. Mr.&nbsp;McCubbin was on the Board of
Directors of Redmile Entertainment until his resignation on March&nbsp;1, 2008. Mr.&nbsp;McCubbin provides
financial consulting services and has served on various Boards of Directors over the past seven
years. Mr.&nbsp;McCubbin is a graduate of the University of Maryland with a Bachelor of Science Degree
in Finance and a Masters Degree in International Management.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Ronald S. Oxley has served as a director since his appointment on August&nbsp;15, 2006. Mr.&nbsp;Oxley became
the Executive Vice President &#151; Sales and Marketing for the Company in May&nbsp;2008 and as a result,
resigned from his position as Chairman of the Corporate Governance and Nominating Committee, and
member of the Audit Committee and Compensation Committee. Mr.&nbsp;Oxley has had a distinguished career
within the U.S. Federal Government and industry. His U.S. federal government career spanned almost
28&nbsp;years with the Office of the Secretary of Defense and with the Departments of the Navy, Army and
Air Force where he held various senior level executive positions. Subsequent to his U.S. federal
government career he also successfully honed his business skills as a senior level executive with
several prominent U.S. federal government contractors that included Litton/PRC, Emergent
Information Technologies and L-3 Communications. Mr.&nbsp;Oxley was president and general manager of
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">L-3
Communications Analytics Corporation based in Vienna, Virginia. L-3 Communications is a provider of information
technology solutions to both industry and government, primarily in the aerospace and defense arena.
Mr.&nbsp;Oxley served in the same capacity at Emergent Information Technologies, Inc. prior to being
acquired by L-3 Communications in November&nbsp;2001. He came to Emergent in April&nbsp;2000, from Litton/PRC
Inc, where he was senior vice president of business development and marketing. Mr.&nbsp;Oxley holds a
top secret SCI clearance with life style polygraph. He holds a Master of Science degree in systems
management from the University of Southern California and a Bachelor of Science degree in business
administration from California State University. He served in the U.S. Army from 1966 to 1968,
including a tour of duty in Vietnam.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Daniel E. Turissini has served as the Vice President and Chief Technology Officer of WidePoint
since December&nbsp;2005. Mr.&nbsp;Turissini has also served as the Chief Executive Officer of Operational
Research Consultants, Inc. (&#147;ORC&#148;), a wholly-owned subsidiary, since our acquisition of ORC on
October&nbsp;25, 2004. Mr.&nbsp;Turissini was a founding partner of ORC in 1991 and served as ORC&#146;s
principal operating officer since its inception. An innovator in systems engineering and
integration, Mr.&nbsp;Turissini has focused in the field of Information Assurance and Information
Security while at ORC. While under his leadership, ORC has played a key systems integrator role
for the DoD Public Key Infrastructure (PKI), the standard information assurance program being
implemented across all branches of the DoD (a user community of approximately 36&nbsp;million personnel,
devices, and applications) and has been certified as the first of three certificate authorities for
the Department of Defense&#146;s External Certificate Authority (ECA)&nbsp;program and by the General
Services Administration to provide Access Certificates for Electronic Services (ACES). From 1982
until 1991, Mr.&nbsp;Turissini held various systems engineering and acquisition management positions in
support of the U.S. Federal Government with a variety of companies including Tracor Applied
Sciences, Inc., National Technologies Associates, Inc., and Gibbs and Cox, Inc. From 1981 to 1982,
Mr.&nbsp;Turissini served in the Merchant Marine on various vessels as Engineer and Mate. Mr.&nbsp;Turissini
is a graduate of the U.S. Merchant Marine Academy with a Bachelor of Science Degree in Engineering
and holds a Masters of Engineering Administration from The George Washington University.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Jin Kang serves as the Chief Executive Officer and President of iSYS LLC. (&#147;iSYS&#148;), a wholly-owned
subsidiary of the Company, since our acquisition of iSYS on January&nbsp;4, 2008. Mr.&nbsp;Kang founded the
company in 1999 and has managed iSYS since its inception. Mr.&nbsp;Kang has over 20&nbsp;years of
professional experience in the Federal Government Information Technology Services field. Prior to
founding iSYS, Mr.&nbsp;Kang was a Division Manager for Science Applications International Corporation
(SAIC). His responsibilities included the Combined DNA Index System (CODIS), a marquee program for
the FBI Laboratory Division. As the Engineering Manager for Northrop Grumman Corporation, Mr.&nbsp;Kang
played a critical role in the successful management of the Defense Medical Information
Systems/Systems Integration, Design Development, Operations and Maintenance Services (D/SIDDOMS)
contract from its inception with zero revenues to a program of $190&nbsp;million in sales. Mr.&nbsp;Kang had
management responsibility for all personnel and contract performance for the D/SIDDOMS contract for
U.S. Health Affairs. Mr.&nbsp;Kang received a Bachelor and a Masters Degrees in Computer Science and
Computer Systems Management from the University of Maryland.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our executive officers are appointed by and serve at the discretion of the board of directors.
There are no family relationships among any of our executive officers or directors.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<!-- link1 "PART II" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>PART II</B>
</DIV>

<!-- link2 "ITEM 5. MARKET FOR REGISTRANT&#146;S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>ITEM 5.</B></TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify"><B><U>MARKET FOR REGISTRANT&#146;S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES</U></B><B>.</B></DIV></TD>
</TR>
</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company&#146;s Common Stock trades on the NYSE Amex under the symbol &#147;WYY&#148; and the Frankfurt and
Berlin exchanges under the symbol &#147;ZMX&#148;. From July&nbsp;6, 2000 to September&nbsp;25, 2006 the Company&#146;s
Common Stock was traded on the OTC Bulletin Board under the symbol &#147;WDPT&#148;. From July&nbsp;5, 2000 to
March&nbsp;1, 2001 the Company&#146;s Common Stock was traded on the NASDAQ SmallCap Market under the symbol
&#147;WDPT&#148;.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The stock prices listed below represent the high and low closing prices of the Common Stock on the
NYSE Amex for each of the periods indicated:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">High</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Low</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.15</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.17</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.35</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.02</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.44</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.14</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">High</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Low</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fourth Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1.19</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.80</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Third Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.70</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Second Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.98</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.81</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">First Quarter</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.42</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.74</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 0%">As of March&nbsp;20, 2009 there were 162 registered holders of record of the Company&#146;s Common
Stock.
</DIV>
<P align="center" style="font-size: 10pt; text-indent: 4%">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>Equity Compensation Plan Information:</U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The following table sets forth information as of December&nbsp;31, 2008, with respect to the Company&#146;s
compensation plans under which its Common Stock is authorized for issuance:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="43%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><b>(a)</b></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center"><b>(b)</b></TD>

    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(c)</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of securities</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of securities</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>remaining available</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>to be issued upon</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted average</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>for future issuance</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>exercise of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>exercise price of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>(excluding securities</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>outstanding options,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>outstanding options,</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>reflected in</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>warrants, and rights</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>warrants, and rights</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>column (a))</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity Compensation Plans:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Approved by security holders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,523,412</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.65</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,535,438</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Not approved by security holders</DIV></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-bottom: 1px solid #000000">4,091,045</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 1px solid #000000">$</TD>
    <TD align="right" style="border-bottom: 1px solid #000000">0.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-bottom: 1px solid #000000">- 0 -</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 3px double #000000">&nbsp;</TD>
    <TD align="right" style="border-bottom: 3px double #000000">8,614,457</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 3px double #000000">$</TD>
    <TD align="right" style="border-bottom: 3px double #000000">0.46</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 3px double #000000">&nbsp;</TD>
    <TD align="right" style="border-bottom: 3px double #000000">4,535,438</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>Dividend Policy</U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company has never paid cash dividends on its Common Stock and intends to continue this policy
for the foreseeable future. WidePoint plans to retain earnings for use in growing its business
base. Any future determination to pay cash dividends will be at the discretion of the Board of
Directors of the Company and will be dependent on WidePoint&#146;s results of operations, financial
condition, contractual and legal restrictions and any other factors deemed by the management and
the Board of Directors to be a priority requirement of the business.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>Recent Sales of Unregistered Securities</U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">None.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>Repurchases of Equity Securities</U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company repurchased no shares of its Common Stock during the fourth quarter of 2008.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<!-- link2 "ITEM 7. MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="7%"></TD>
    <TD width="1%"></TD>
    <TD></TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><B>ITEM 7.</B></TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify"><U><B>MANAGEMENT&#146;S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS</B></U><B>.</B></DIV></TD>
</TR>
</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Forward Looking Statements</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The information set forth below includes forward-looking statements. Certain factors that could
cause results to differ materially from those projected in the forward-looking statements are set
forth below. Readers are cautioned not to put undue reliance on forward-looking statements. The
Company disclaims any intent or obligation to update publicly these forward-looking statements,
whether as a result of new information, future events or otherwise.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Overview</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint Corporation (&#147;WidePoint&#148; or the &#147;Company&#148;) is a technology-based provider of product and
services to both the government sector and commercial markets. WidePoint was incorporated in
Delaware on May&nbsp;30, 1997. We have grown through the merger of highly specialized regional IT
consulting companies.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our expertise lies in three business segments. The three segments offer unique solutions in
identity management services utilizing certificate-based security solutions; wireless
telecommunication expense management systems; and other associated IT consulting services and
products in which we provide specific subject matter expertise in IT Architecture and Planning,
Software Implementation Services, IT Outsourcing, and Forensic Informatics. For additional
information related to our three business segments, see Note 9 to our financial statements in this
Form 10-K.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint has three material operational entities, Operational Research Consultants, Inc. (ORC);
iSYS, LLC (iSYS), which we acquired in January&nbsp;2008; and WidePoint IL, Inc., operated together with
Protexx Acquisition Corp., doing business as Protexx, which we acquired in July&nbsp;2008:
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">ORC specializes in IT integration and secure authentication processes and software, and
providing services to the U.S. Government. ORC has been at the forefront of implementing
Public Key Infrastructure (PKI)&nbsp;technologies. PKI technology uses a class of algorithms in
which a user can receive two electronic keys, consisting of a public key and a private key,
to encrypt any information and/or communication being transmitted to or from the user within
a computer network and between different computer networks. PKI technology is rapidly
becoming the technology of choice to enable security services within and between different
computer systems utilized by various agencies and departments of the U.S. Government.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">iSYS specializes in mobile telecommunications expense management services, forensic
informatics, and information assurance services, predominantly to various agencies and
departments of the U.S. Government.
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 8%">Protexx, which was in the development stage company when we acquired it, specializes in
identity assurance, and mobile and wireless data protection products and services.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We intend to continue to market and sell our technical capabilities into the governmental and
commercial marketplace. Further, we are continuing to actively search out new synergistic
acquisitions that we believe may further enhance our present base of business and service
offerings, which has already been augmented by our acquisitions of ORC and iSYS, our asset purchase
of Protexx, and our internal growth initiatives.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">With the addition of the customer base and the increase in revenues attributable to our iSYS
acquisition, WidePoint&#146;s opportunity to leverage and expand further into the federal marketplace
has improved substantially. iSYS&#146;s past client successes, top security clearances for their
personnel, and additional breadth of management talent have expanded the Company&#146;s reach into
markets that previously were not fully accessible to WidePoint. WidePoint intends to continue to
leverage the synergies between its newly-acquired operating subsidiary, and cross sell its
technical capabilities into each separate marketplace serviced by our respective subsidiaries.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our revenues and operating results may vary significantly from quarter-to-quarter, due to revenues
earned on contracts, the number of billable days in a quarter, the timing of the pass-through of
other direct costs, the commencement and completion of contracts during any particular quarter, the
schedule of the government agencies for awarding contracts, the term of each contract that we have
been awarded and general economic conditions. Because a significant portion of our expenses, such
as personnel and facilities costs, are fixed in the short term, successful contract performance and
variation in the volume of activity as well as in the number of contracts commenced or completed
during any quarter may cause significant variations in operating results from quarter to quarter.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">As a result of our acquisitions, which predominantly operate in the U.S. federal marketplace, we
rely upon a larger portion of our revenues from the federal government directly or as a
subcontractor. The federal government&#146;s fiscal year ends September&nbsp;30. If a budget for the next
fiscal year has not been approved by that date, our clients may have to suspend engagements that we
are working on until a budget has been approved. Such suspensions may cause us to realize lower
revenues in the fourth calendar quarter and/or first quarter of the government&#146;s fiscal year.
Further, a change in senior government officials may negatively affect the rate at which the
federal government purchases the services that we offer.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">As a result of the factors above, period-to-period comparisons of our revenues and operating
results may not be meaningful. These comparisons are not indicators of future performance and no
assurances can be given that quarterly results will not fluctuate, causing a possible material
adverse effect on our operating results and financial condition.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In addition, most of WidePoint&#146;s current costs consist primarily of the salaries and benefits paid
to WidePoint&#146;s technical, marketing and administrative personnel as well as vendor-related costs in
connection with our Mobile Telecom Managed Services. As a result of our plan to expand WidePoint&#146;s
operations through a combination of internal growth&nbsp;initiatives and merger and acquisition
opportunities,&nbsp;WidePoint expects&nbsp;such costs to increase.&nbsp; WidePoint&#146;s profitability also depends
upon both the volume of services performed and the Company&#146;s ability to manage costs.&nbsp;&nbsp;As a
significant portion of the Company&#146;s cost&nbsp;is labor related, WidePoint must effectively manage these
costs to achieve and grow its profitability.&nbsp; The Company must also
manage our airtime plans and other vendor related offerings under our Mobile Telecom Managed
Services provided to our customers as they also represent a significant portion of our costs. To
date, the Company has attempted to maximize its operating margins through efficiencies achieved by
the use of its proprietary methodologies, and by offsetting increases in consultant salaries with
increases in consultant fees received from its clients. The uncertainties relating to the ability
to achieve and maintain profitability, obtain additional funding to partially fund the Company&#146;s
growth strategy and provide the necessary investment to continue to upgrade its management
reporting systems to meet the continuing demands of the present regulatory changes affect the
comparability of the information reflected in the financial information presented above.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our staff consists of business process and computer specialists who help our government and
civilian customers augment and expand their resident technologic skills and competencies, drive
technical innovation, and help develop and maintain a competitive edge in today&#146;s rapidly changing
technological environment in business. Our organization emphasizes an intense commitment to our
people, our customers, and the quality of our solutions offerings. As a services organization, our
customers are our primary focus.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company&#146;s revenues for the year ending December&nbsp;31, 2008 increased by approximately 151% from
approximately $14.1&nbsp;million in 2007 to approximately $35.4&nbsp;million in 2008. The increase in
revenues during 2008 as compared to 2007 was primarily a result of our acquisition of iSYS and the
addition of our wireless telecommunication expense management systems segment. While we
anticipate revenue gains for our 2009 calendar year at each of our three business segments, the
realization of those gains may be subject to timing delays in project implementation phases that
may be outside the control of the Company, and there can be no assurance that our revenues will
increase in 2009.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Critical Accounting Policies and Estimates</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company&#146;s consolidated financial statements are prepared in accordance with accounting
principles generally accepted in the U.S., or U.S. GAAP. These accounting principles require us to
make certain estimates, judgments and assumptions. WidePoint believes that the estimates, judgments
and assumptions upon which the Company relies are reasonably based upon information available to it
at the time that these estimates, judgments and assumptions are made. These estimates, judgments
and assumptions can affect the reported amounts of assets and liabilities as of the date of the
financial statements, as well as the reported amounts of revenue and expenses during the periods
presented. To the extent there are material differences between these estimates, judgments and
assumptions and actual results, the Company&#146;s financial statements will be affected. The
significant accounting policies that WidePoint believes are the most critical to aid in fully
understanding and evaluating our reported financial results include the following:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Revenue recognition;</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Allowance for Doubtful Accounts;</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Goodwill;</DIV></TD>
</TR>

</TABLE>
</DIV>
<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Intangibles; and</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Accounting for income taxes.</DIV></TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->21<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In many cases, the accounting treatment of a particular transaction is specifically dictated by
U.S. GAAP and does not require management&#146;s judgment in its application. There are also areas in
which management&#146;s judgment in selecting among available alternatives would not produce a
materially different result. The Company&#146;s senior management has reviewed these critical accounting
policies and related disclosures with its Audit Committee. See Notes to Consolidated Financial
Statements, which contain additional information regarding accounting policies and other
disclosures required by U.S. GAAP.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Revenue Recognition</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">A portion of the Company&#146;s revenues are derived from cost-plus, or time-and-materials contracts.
Under cost-plus contracts, revenues are recognized as costs are incurred and include an estimate of
applicable fees earned. For time-and-material contracts, revenues are computed by multiplying the
number of direct labor-hours expended in the performance of the contract by the contract billing
rates and adding other billable direct costs. In the event of a termination of a contract, all
billed and unbilled amounts associated with those task orders where work has been performed would
be billed and collected. The termination provisions of the contract would be accounted for at the
time of termination. Any deferred and/or amortization cost would either be billed or expensed
depending upon the termination provisions of the contract. Further, the Company has had no material
history of losses nor has it identified any material specific risk of loss at December&nbsp;31, 2008 or
December&nbsp;31, 2007 due to termination provisions and thus has not recorded provisions for such
events.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Additionally, revenues are derived from the delivery of non-customized software. In such cases
revenue is recognized when there is persuasive evidence that an arrangement exists (generally a
purchase order has been received or contract signed), delivery has occurred, the charge for the
software is fixed or determinable, and collectability is probable.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Revenue
from our mobile telecom expense management services (&#147;MTEMS&#148;) is recognized upon delivery
of services as they are rendered. Arrangements with customers on MTEMS related contracts are
recognized ratably over a period of performance.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Revenue from the sale of PKI credentials is recognized when delivery occurs. Arrangements with
customers on PKI related contracts may involve multiple deliverable elements. In these cases, the
Company applies the principles prescribed in Emerging Issues Task
Force Abstract (&#147;EITF&#148;) 00-21
Revenue Arrangements with Multiple Deliverables. The Company analyzes various factors, including a
review of the nature of the contract or product sold, the terms of each specific transaction, the
relative fair values of the elements required by EITF 00-21, any contingencies that may be present,
its historical experience with like transactions or with like products, the creditworthiness of the
customer, and other current market and economic conditions.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Should the sale of product or software involve an arrangement with multiple elements (for
example, the sale of PKI Credential Seats along with the sale of maintenance, hosting and support
to be delivered over the contract period), the Company allocates revenue to each component of the
arrangement using the residual value method based on the fair value of the undelivered elements.
The Company defers revenue from the arrangement equivalent to the fair value of the undelivered
elements and recognizes the remaining amount at the time of the delivery of the product or when all
other revenue recognition criteria have been met.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Allowance for Doubtful Accounts</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint determines its Allowance by considering a number of factors, including the length of time
trade accounts receivable are past due, previous loss history, the customer&#146;s current ability to
pay its obligations, and the condition of the general economy and the industry as a whole. The
Company makes judgments as to its ability to collect outstanding receivables based on these factors
and provide allowances for these receivables when collections become doubtful. Provisions are made
based on specific review of all significant outstanding balances. Because of the Company&#146;s history
of minimal credit losses and the nature of the Company&#146;s customers at the time, no allowance for
doubtful accounts was believed necessary at December&nbsp;31, 2008 or at December&nbsp;31, 2007.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Goodwill</I>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Goodwill represents costs in excess of fair values assigned to the underlying net assets acquired.
The Company has adopted the provisions of Statement of Financial Accounting Standards (&#147;SFAS&#148;) No.
141, &#147;<I>Business Combinations</I>,&#148; and SFAS No.&nbsp;142, <I>&#147;Goodwill and Other Intangible Assets.&#148; </I>These
standards require the use of the purchase method of accounting for business combinations, set forth
the accounting for the initial recognition of acquired intangible assets and goodwill and describe
the accounting for intangible assets and goodwill subsequent to initial recognition. Under the
provisions of these standards, goodwill is not subject to amortization and annual review is
required for impairment. The impairment test under SFAS No.&nbsp;142 is based on a two-step process
involving (i)&nbsp;comparing the estimated fair value of the related reporting unit to its net book
value and (ii)&nbsp;comparing the estimated implied fair value of goodwill to its carrying value.
Impairment losses are recognized whenever the implied fair value of goodwill is less than its
carrying value. The Company&#146;s annual impairment testing date is December&nbsp;31. Goodwill is a
significant item on the Company&#146;s balance sheet and represents approximately 36% of our total
assets as of December&nbsp;31, 2008. Goodwill is identified on the face of the Balance Sheet.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Intangibles</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Purchase Accounting Intangibles:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company recognizes an acquired intangible apart from goodwill whenever the intangible arises
from contractual or other legal rights, or when it can be separated or divided from the acquired
entity and sold, transferred, licensed, rented or exchanged, either individually or in combination
with a related contract, asset or liability. The application of purchase accounting to a business
acquisition requires that the Company identify the individual assets acquired and liabilities
assumed and estimate the fair value of each.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The intangibles recognized in the acquisition are amortized over the Company&#146;s estimate of their
useful lives. Impairment losses are recognized if the carrying amount of an intangible subject to
amortization is not recoverable from expected future cash flows and its carrying amount exceeds its
fair value.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Internally Developed Intangibles:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company recognizes an internally developed intangible whenever the costs of the internally
generated intangible are beyond the research and development stage and is provable for which the
costs of such efforts are specifically identifiable, has a determinate life, and is not inherent in
a continuing business and is not related to a reporting entity as a whole. The intangibles
recognized as internally developed are amortized over the Company&#146;s estimate of their useful lives.
Impairment losses are recognized if the carrying amount of an intangible subject to amortization
is not recoverable from the expected future cash flows and its carrying amount exceeds its fair
value.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company reviews its long-lived assets, including property and equipment and identifiable
intangibles whenever events or changes in circumstances indicate that the carrying amount of the
assets may not be fully recoverable. To determine recoverability of its long-lived assets, the
Company evaluates the probability that future undiscounted net cash flows will be less than the
carrying amount of the assets.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">As of December&nbsp;31, 2008, the Company is not aware of any known trends, demands, commitments, events
or uncertainties that are reasonably likely to occur and materially affect the methodology or the
assumptions the Company has used to value long-lived assets. Long-lived assets are a significant
item on the Company&#146;s balance sheet and represent approximately 46% of our total assets. Any
impairment as a result of the estimate utilizing undiscounted net cash flows to determine the
assumed value of long-lived assets could have a significant impact on the Company&#146;s financial
condition, changes in financial condition and results of operations. Long-lived assets are
identified on the face of the Balance Sheet as Intangibles. Amortization of Intangibles is
identified on the face of the Statement of Operations within Cost of Sales.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Specific intangibles materially arose as a result of the Company&#146;s acquisitions of ORC, iSYS, LLC,
and the assets purchase of Protexx, Inc. The Company allocated approximately $1,145,000 ($224,000
net book value at December&nbsp;31, 2008) to customer list and relationships and approximately
$2,526,000 to goodwill for its acquisition of ORC. The Company allocated approximately $1,230,000
($972,000 net book value at December&nbsp;31, 2008) to customer relationships, internally generated
software and the iSYS trade name and approximately $6,050,000 to goodwill for its acquisition of
iSYS, LLC. The Company allocated approximately $506,000 (approximately $436,000 net book value at
December&nbsp;31, 2008) to internally generated software and systems as a result of the asset purchase
of Protexx, Inc. The Company&#146;s senior management has discussed the development and selection of
the accounting estimates relating to the purchase accounting for the ORC, iSYS LLC, and Protexx
acquisitions, the amortization period of the acquired intangibles and the lack of impairment of the
assets, and the MD&#038;A disclosure regarding those estimates, with the Audit Committee of the
Company&#146;s board of directors. Also, the Company engaged a valuation firm to perform an
independent analysis to
provide a qualified opinion on the Company&#146;s methodology and calculations in determining the
related intangibles valuations associated with the purchase accounting for the ORC acquisition and
engaged a valuation firm to perform an independent analysis to provide a qualified opinion on the
related intangibles valuations and purchase price allocations associated with the purchase
accounting for the iSYS, LLC acquisition.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Accounting for Income Taxes</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint accounts for income taxes in accordance with Statement of Financial Accounting Standards
No.&nbsp;109, &#147;Accounting for Income Taxes.&#148; Under the asset and liability method of SFAS No.&nbsp;109,
deferred income taxes are recognized for the expected future tax consequences of temporary
differences between financial statement carrying amounts, and the tax bases of existing assets and
liabilities using enacted tax rates expected to apply to taxable income in the years in which those
temporary differences are expected to be recovered or settled.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company has incurred historical net operating losses, or NOLs, for federal income tax purposes.
Accordingly, no federal income tax provision has been recorded to date and there are no taxes
payable. In assessing the realizability of deferred tax assets, management considers whether it is
more likely than not that some portion or all of the deferred tax assets will not be realized. The
ultimate realization of deferred tax assets is dependent upon generation of future taxable income
during the periods in which those temporary differences become deductible.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Based upon the level of historical losses that may limit utilization of NOL carry forwards in
future periods, management is unable to predict whether these net deferred tax assets will be
utilized prior to expiration. The unused NOL carry forwards expire in years 2010 through 2028. As
such, the Company has recorded a full valuation allowance against net deferred tax assets.
WidePoint believes that its estimates are reasonable, given the lack of historical earnings and the
fact that there may be significant limitations placed on the use of the NOL carryforwards. There
is, however, a significant possibility that the Company will have sufficient income in the future
to utilize substantial portions of the deferred tax assets. No assurance can be given that the
final outcome of these matters will not be different than that which is described above. Such a
change in the estimate reflected in the historical income tax provisions could have a material
effect on the income tax provision and net income in the period in which such determination is
made. The Company has not performed a section 382 analysis.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>New Accounting Pronouncements</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>EITF 07-01</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In December&nbsp;2007, the EITF reached a consensus on EITF No.&nbsp;07-01, Accounting for Collaborative
Arrangements Related to the Development and Commercialization of Intellectual Property, or EITF
07-01. EITF 07-01 discusses the appropriate income statement presentation and classification for
the activities and payments between the participants in arrangements related to the development and
commercialization of intellectual property. The sufficiency of disclosure related to these
arrangements is also specified. EITF 07-01 is effective for fiscal years beginning after December
15, 2008. As a result, EITF 07-01 is effective for the Company in the first quarter of fiscal 2009.
The Company does not believe EITF 07-01 will have a material impact on its condensed consolidated financial statements.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SFAS 141(R) and SFAS 160</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In December&nbsp;2007, the Financial Accounting Standards Board&nbsp;&nbsp;(&#147;FASB&#148;) issued Statement No.&nbsp;141
(Revised 2007), <I>Business Combinations </I>(SFAS 141(R)) and Statement No.&nbsp;160, <I>Accounting and
Reporting of Non-controlling Interests in Consolidated Financial Statements </I>, an amendment of ARB
No.&nbsp;51 (SFAS 160). These statements will significantly change the financial accounting and
reporting of business combination transactions and non-controlling (or minority) interests in
consolidated financial statements. SFAS 141(R) requires companies to: (i)&nbsp;recognize, with certain
exceptions, 100% of the fair values of assets acquired, liabilities assumed, and non-controlling
interests in acquisitions of less than a 100% controlling interest when the acquisition constitutes
a change in control of the acquired entity; (ii)&nbsp;measure acquirer shares issued in consideration
for a business combination at fair value on the acquisition date; (iii)&nbsp;recognize contingent
consideration arrangements at their acquisition-date fair values, with subsequent changes in fair
value generally reflected in earnings;&nbsp;(iv)&nbsp;with certain exceptions, recognize pre-acquisition loss
and gain contingencies at their acquisition-date fair values; (v)&nbsp;capitalize in-process research
and development (IPR&#038;D) assets acquired; (vi)&nbsp;expense, as incurred, acquisition-related transaction
costs; (vii)&nbsp;capitalize acquisition-related restructuring costs only if the criteria in SFAS 146,
<I>Accounting for Costs Associated with Exit or Disposal Activities </I>, are met as of the acquisition
date; and (viii)&nbsp;recognize changes that result from a business combination transaction in an
acquirer&#146;s existing income tax valuation allowances and tax uncertainty accruals as adjustments to
income tax expense. SFAS 141(R) is required to be adopted concurrently with SFAS 160 and is
effective for business combination transactions for which the acquisition date is on or after the
beginning of the first annual reporting period beginning on or after December&nbsp;15, 2008 (the
Company&#146;s fiscal 2009). Early adoption of these statements is prohibited. The Company believes the
adoption of these statements will have a material impact on significant acquisitions completed
after December&nbsp;31, 2008.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SFAS 162</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">&nbsp;In May&nbsp;2008, the Financial Accounting Standards Board (&#147;FASB&#148;) issued Statement of Financial
Accounting Standard (&#147;SFAS&#148;) No.&nbsp;162, &#147;The Hierarchy of Generally Accepted Accounting Principles&#148;.
This standard is intended to improve financial reporting by identifying a consistent framework, or
hierarchy, for selecting accounting principles to be used in preparing financial statements that
are presented in conformity with US GAAP for non-governmental entities. SFAS No.&nbsp;162 is effective
60&nbsp;days following the Securities and Exchange Commission&#146;s approval of the Public Company
Accounting Oversight Board amendments to AU Section&nbsp;411, the meaning of &#147;Present Fairly in
Conformity with GAAP&#148;. The Company is in the process of evaluating the impact, if any, of SFAS 162
on its consolidated financial statements.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>FSP 142-3</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In April&nbsp;2008, the FASB issued FSP 142-3, <I>Determination of the Useful Life of Intangible Assets</I>, or
FSP 142-3. FSP 142-3 amends the factors that should be considered in developing renewal or
extension assumptions used to determine the useful life of a recognized intangible asset under SFAS
No.&nbsp;142, <I>Goodwill and Other Intangible Assets</I>. FSP 142-3 is effective for
fiscal years beginning after December&nbsp;15, 2008. The Company is currently assessing the impact of
FSP 142-3 on its consolidated financial position and results of operations.
</DIV>
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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>EITF 03-6-1</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In June&nbsp;2008, the FASB&nbsp;issued FASB Staff Position Emerging Issues Task Force (EITF)&nbsp;No.&nbsp;03-6-1,
&#147;Determining whether Instruments granted in Share-Based Payment Transactions are Participating
Securities,&#148; or FSP EITF No.&nbsp;03-6-1. &nbsp;Under FSP EITF No.&nbsp;03-6-1, unvested share-based payment
awards that contain rights to receive non-forfeitable dividends (whether paid or unpaid) are
participating securities, and should be included in the two-class method of computing earnings per
share. FSP EITF No.&nbsp;03-6-1 is effective for fiscal years beginning after December&nbsp;15, 2008, and
interim periods within those years. It is not expected to have a significant impact on the
Company&#146;s financial statements.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Results of Operations</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U>Year Ended December&nbsp;31, 2008 Compared to the Year ended December&nbsp;31, 2007</U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Revenues</I>. Revenues for the year ended December&nbsp;31, 2008, were approximately $35.4&nbsp;million, an
increase of $21.3&nbsp;million, as compared to revenues of approximately $14.1&nbsp;million for the year
ended December&nbsp;31, 2007. This increase was materially attributable to our acquisition of iSYS.
iSYS provided approximately $24.2&nbsp;million of our $35.4&nbsp;million in revenues for the year ended
December&nbsp;31, 2008. Prior to the acquisition of iSYS in January&nbsp;2008, iSYS had revenues of
approximately $20.0&nbsp;million for the year ended December&nbsp;31, 2007. We anticipate further growth of
our iSYS subsidiary in fiscal year 2009 as it continues to experience adoption of its mobile
telecom services by U.S. federal agencies under the General Services Administrations (&#147;GSA&#148;)
Federal Strategic Sourcing Initiative (&#147;FSSI&#148;) contract vehicle for mobile telecom services. We
have been awarded the first two contracts under this contract vehicle during 2008 and we are
actively marketing our services under this contract vehicle to all U.S. federal agencies and
departments. We believe we are competitively positioned to win additional awards under this
contract vehicle in fiscal year 2009.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our mobile telecom managed services segment experienced revenue growth of approximately 38% with
revenues increasing approximately $5.8&nbsp;million from approximately $15.2&nbsp;million for the year ended
December&nbsp;31, 2007 (prior to our acquisition in January&nbsp;2008), to approximately $21.0&nbsp;million for
the year ended December&nbsp;31, 2008, as a result of continuing adoption of the Federal Government&#146;s
GSA FSSI contract vehicle award along with the expansion of our current customer base. In the
long-term we anticipate our mobile telecom managed services segment should continue to expand as we
witness further adoption by the U.S. federal agencies and departments.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our PKI credentialing and managed services segment experienced revenue growth of approximately 5%
with revenues increasing approximately $0.2&nbsp;million from approximately $3.6&nbsp;million for the year
ended December&nbsp;31, 2007, to approximately $3.8&nbsp;million for the year ended December&nbsp;31, 2008, as a
result of the adoption of the Federal Government&#146;s mandate under HSPD-12 and the continuing
adoption of several U.S. federally-sponsored programs currently migrating from various pilot
programs and or programs that are expanding their deployment as a
result of continued adoption by the Department of Defense, the Transportation Security
Administration and other U.S. agencies and departments. In the long-term we anticipate that our
PKI credentialing and managed services sales should continue to increase as we witness continued
adoption of these programs and the launch of various other initiatives. In the short-term we do
anticipate a greater variability in revenue growth as we either await contract awards that have
been delayed or as certain pilot programs expand to fully implemented programs in support of the
HSPD-12 initiative.
</DIV>


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<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our consulting services segment experienced increased revenues of approximately $0.1&nbsp;million from
approximately $10.6&nbsp;million for the year ended December&nbsp;31, 2007 as compared to approximately $10.7
million for the year ended December&nbsp;31, 2008. The increase in revenues for the year ended December
31, 2008 as compared to the year ended December&nbsp;31, 2007 was substantially the result of our
acquisition of iSYS and the inclusion of their consulting services group into this segment,
partially offset by reductions in our commercial consulting group revenues as a result of the
negative economic conditions.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Cost of Sales. </I>Cost of sales for the year ended December&nbsp;31, 2008, was approximately $28.9&nbsp;million,
or 81% of revenues, an increase of approximately $18.6&nbsp;million above cost of sales of approximately
$10.3&nbsp;million, or 73% of revenues, for the year ended December&nbsp;31, 2007. The absolute dollar
increase in cost of sales was substantially attributable to higher revenues, combined with iSYS&#146;
service offering that includes an option that provides for the payments of carrier charges on
behalf of some of the customer base. These charges are embedded into the service fees associated
with the cost of providing some of our mobile telecom offerings to certain customers. We do not
separately measure our profit margins for contracts with this feature. Depreciation and
amortization applied to cost of sales also increased approximately $400,000 from $446,000 for the
year ended December&nbsp;31, 2007 to approximately $846,000 for the year ended December&nbsp;31, 2008. The
increase was substantially a result of the addition of intangible amortization costs associated
with our purchase accounting valuation of our iSYS intangibles. We believe that as our percentage
of business from our higher margin services expands in relationship to our lower margin services
that our overall cost of sales as a percentage may decrease in the future.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The cost elements related to consultant salaries, benefits and expenses at all of our subsidiaries
are substantially similar.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Gross profit</I>. Gross profit for the year ended December&nbsp;31, 2008, was approximately $6.6&nbsp;million,
or 19% of revenues, an increase of $2.8&nbsp;million as compared to gross profit of approximately $3.8
million, or 27% of revenues, for the year ended December&nbsp;31, 2007.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Sales and marketing</I>. Sales and marketing expenses for the year ended December&nbsp;31, 2008 were
approximately $0.9&nbsp;million, or 3% of revenues, as compared to approximately $0.8&nbsp;million, or 6% of
revenues, for the year ended December&nbsp;31, 2007. The increase in sales and marketing expenses for
the year ended December&nbsp;31, 2008, was primarily attributable to an increase in sales and marketing
expenditures for new personnel and tools as we increased our efforts to expand our sales and
marketing infrastructure as part of our strategy to further increase our presence into the federal
marketplace, which was partially offset by reductions in sales and
marketing personnel within our commercial marketplace. As we expand our sales and marketing
efforts these costs may increase.
</DIV>
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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>General and administrative</I>. General and administrative expenses for the year ended December&nbsp;31,
2008 were approximately $6.2&nbsp;million, or 18% of revenues, as compared to $3.5&nbsp;million, or 25% of
revenues, for the year ended December&nbsp;31, 2007. Substantially all of the increase was
attributable to the addition of general and administrative costs added from the acquisition of iSYS
in January&nbsp;2008 and the recognition of higher employee stock options expense of approximately $0.6
million for the year ended December&nbsp;31, 2008 as compared to approximately $0.2&nbsp;million for the year
ended December&nbsp;31, 2007.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Depreciation expense. </I>Depreciation expense for year ended December&nbsp;31, 2008, was approximately
$161,000, or less than 1% of revenues, an increase of approximately $78,000, as compared to
approximately $83,000 of such expenses, or less than 1% of revenues, recorded by the Company for
the year ended December&nbsp;31, 2007. The increase in depreciation expenses for the year ended December
31, 2008, was primarily attributable to the increased pool of depreciable assets.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Interest income (expense)</I>. Interest income for the year ended December&nbsp;31, 2008 was $135,000, an
increase of $31,000 as compared to $104,000 for the year ended December&nbsp;31, 2007. The increase in
interest income in 2008 was primarily attributable to greater amounts of available cash and other
securities in interest bearing accounts. Interest expense for the year ended December&nbsp;31, 2008 was
$337,000 an increase of $323,000 as compared to $14,000 of interest expense for the year ended
December&nbsp;31, 2007. The increase in interest expense in 2008 was primarily attributable to greater
expenses associated with the debt instruments issued by the Company in connection with the
acquisition of iSYS.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Income taxes. </I>Income taxes for the year ended December&nbsp;31, 2008 were approximately $157,000 as
compared to no income taxes for the year ended December&nbsp;31, 2007. The Company incurred a deferred
income tax expense of approximately $157,000 for the year ended December&nbsp;31, 2008, as a result of
the recognition of a deferred tax liability attributable to the differences in our treatment of the
amortization of goodwill for tax purposes versus book purposes as it relates to our acquisition of
iSYS in January&nbsp;2008. Because the goodwill is not amortized for book purposes but is for tax
purposes and goodwill is considered a permanent asset and not a temporary asset, the related
deferred tax liability cannot be reversed until some indeterminate future period when the goodwill
either becomes impaired, and/or is disposed of. The deferred tax liability can be offset by future
taxable earnings and the deferred tax expense is a non-cash expense. SFAS No.&nbsp;109 requires the
expected timing of future reversals of deferred tax liabilities to be taken into account when
evaluating the realizability of deferred tax assets. Therefore, the reversal of deferred tax
liabilities related to the goodwill is not to be considered a source of future taxable income when
assessing the realization of deferred tax assets. Because the Company has a valuation allowance
for the full amount of the deferred income tax asset, the deferred income liability associated with
the tax deductible goodwill has been recorded and not offset against existing deferred income tax
assets.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Net loss</I>. As a result of the above, the net loss for the year ended December&nbsp;31, 2008 was
approximately $1.1&nbsp;million, an increase of $0.6&nbsp;million, as compared to the net loss of
approximately $0.5&nbsp;million for the year ended December&nbsp;31, 2007.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->29<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The following table sets forth selected segment and consolidated operating results and other
operating data for the periods indicated. Segment operating income consists of the revenues
generated by a segment, less the direct costs of revenue and selling, general and administrative
costs that are incurred directly by the segment. Unallocated corporate costs include costs related
to administrative functions that are performed in a centralized manner that are not attributable to
a particular segment.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>
<tr>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</tr>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Mobile Telecom Managed Services</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenues, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,989,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,400,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,265,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Consulting services</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenues, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,714,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,566,366</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">269,016</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">527,861</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,293,511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,706,116</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>PKI Credentialing and Managed Services</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenues, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,755,122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,563,073</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">133,159</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,512,673</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,490,195</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Total Company</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">35,458,953</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,129,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loss from operations before
depreciation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(566,962</TD>
    <TD nowrap>) (1)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(524,430      </TD>
    <TD nowrap>)(2)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(160,565</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(83,458</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest (expense)&nbsp;income, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(202,107</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">90,709</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,927</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(156,891</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size:1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" style="border-top:1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" style="border-top:1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,090,452</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(517,179</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="font-size:1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" style="border-top:3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" style="border-top:3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Corporate assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,509,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">5,067,645</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size:1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" style="border-top:3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" style="border-top:3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,581,618</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,263,956</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="font-size:1px">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" style="border-top:3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" style="border-top:3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>
</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes $221,077 in amortization expense in cost of sales associated with the purchase
of ORC, $70,342 in amortization expense in cost of sales associated with internally developed
intangibles and $257,667 in amortization expense in cost of sales associated with the purchase
of iSYS, which is not allocated among the segments and includes
$1,854,745 in unallocated
corporate costs in sales, general and administrative and depreciation expense.</DIV></TD>
</TR>

</TABLE>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="1%" nowrap align="left">(2)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes $221,078 in amortization expense in cost of sales associated with the purchase
of ORC, which is not allocated among the segments and includes $964,372 in unallocated
corporate costs in sales, general and administrative expense.</DIV></TD>
</TR>

</TABLE>
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->30<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Liquidity and Capital Resources</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company has, since inception, financed its operations and capital expenditures through the sale
of preferred and common stock, seller notes, convertible notes, convertible exchangeable
debentures, senior secured loans and the proceeds from the exercise of the warrants related to a
convertible exchangeable debenture. During 2008 and 2007, operations were primarily financed with
working capital, senior debt, issuance of common stock, and stock option and warrant exercises.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Cash provided by operating activities for the year ended December&nbsp;31, 2008, was approximately
$2,679,000 as compared to cash used by operating activities of approximately $445,000 for the year
ended December&nbsp;31, 2007.&nbsp; The increase in cash balances available for operating activities for the
year ended December&nbsp;31, 2008, was primarily a result of higher collections of accounts receivable
that we acquired in our acquisition of iSYS as well as higher overall collections of accounts
receivable in general and increases in our deferred revenues also primarily attributable to our
acquisition of iSYS.&nbsp; From the date of the acquisition, iSYS has decreased its accounts receivable
and produced cash from operations of approximately $600,000. This was partially offset by a
decrease in vendor payables and accrued expenses of $300,000. Additionally, deferred revenue for
iSYS produced approximately $1.6&nbsp;million in additional cash from operations. Cash provided by
investing and financing activities also improved materially as a result from two capital raises in
April and May of 2008 that raised approximately $4.1&nbsp;million. Capital expenditures in property and
equipment were approximately $96,000, excluding any capital leases for the year ended December&nbsp;31,
2008, as compared to capital expenditures in property and equipment of approximately $132,000,
excluding capital leases for the year ended December&nbsp;31, 2007.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Substantially all of the increases in assets and liabilities in the Company&#146;s balance sheet were
due to our acquisition of iSYS and capital raises during 2008.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company requires substantial working capital to fund the future growth of its business,
particularly to finance accounts receivable, sales and marketing efforts, and capital expenditures.
There are currently no material commitments for capital expenditures but that could change with
the addition of material contract awards. Future capital requirements will depend on many factors,
including the rate of revenue growth, if any, the timing and extent of spending for new product and
service development, technological changes and market acceptance of the Company&#146;s services.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint believes that its current cash position is sufficient to meet capital expenditure and
working capital requirements through 2009. However, the growth and technological change of the
market make it difficult to predict future liquidity requirements with certainty. Over the longer
term, the Company must successfully execute its plans to increase revenue and income streams that
will generate significant positive cash flows if it is to sustain adequate liquidity without
impairing growth or requiring the infusion of additional funds from external sources.
Additionally, a major expansion might require external financing that could include additional
debt or equity capital. There can be no assurance that additional financing, if required, will be
available on acceptable terms, if at all, for future acquisitions and/or growth initiatives.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->31<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">As of December&nbsp;31, 2008, the Company had net working capital of approximately $2.7&nbsp;million.
WidePoint&#146;s primary source of liquidity consists of approximately $4.4&nbsp;million in cash and cash
equivalents and approximately $7.6&nbsp;million of accounts receivable and unbilled accounts receivable.
Current liabilities include approximately $5.0&nbsp;million in accounts payable and accrued expenses
and approximately $2.1&nbsp;million in a related party note payable.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company&#146;s business environment is characterized by rapid technological change, experiencing
times of high growth and contraction, and is influenced by material events such as mergers and
acquisitions that can substantially change the Company&#146;s performance and outlook.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On January&nbsp;2, 2008, the Company entered into a Commercial Loan Agreement with Cardinal Bank
relating to a $5,000,000 revolving credit facility and a $2,000,000 term loan. Advances under the
revolving credit facility were interest bearing at a variable rate equal to the prime rate plus
0.25% with an interest rate floor of 6.5% and the repayment date for such facility was April&nbsp;30,
2009. This revolving credit facility replaced the Company&#146;s prior $2,000,000 revolving credit
facility with Cardinal Bank. The term loan bears interest at 7.5% annually and the repayment date
of such term loan is January&nbsp;1, 2012. On March&nbsp;17, 2009, the Company entered into a Debt
Modification Agreement and Commercial Loan Agreement (&#147;2009 Commercial Loan Agreement&#148;) with
Cardinal Bank. This new revolving credit facility replaces the Company&#146;s prior $5&nbsp;million
revolving credit facility with Cardinal Bank. The 2009 Commercial Loan Agreement allows for the
Company to borrow up to $5&nbsp;million. The repayment date of the revolving credit facility was
extended to June&nbsp;1, 2010 and advances under the revolving credit facility will bear interest at a
variable rate equal to the prime rate plus 0.5% with an interest rate floor of 5%.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On January&nbsp;4, 2008, the Company completed the closing of the acquisition of all the issued and
outstanding membership interests of iSYS from Mr.&nbsp;Jin Kang, the sole owner-member of iSYS, pursuant
to the terms of a Membership Interest Purchase Agreement, dated as of January&nbsp;2, 2008, between the
Company, iSYS, and Jin Kang. Pursuant to the terms of the Membership Interest Purchase Agreement,
the Company paid Jin Kang the following consideration at the closing: (i) $5,000,000 in cash, (ii)
$2,000,000 principal amount in an Installment Cash Promissory Note, which bears simple annual
interest at the initial rate of 7% through December&nbsp;31, 2008, and thereafter the simple interest
rate will increase to 10% from January&nbsp;1, 2009 through the date of maturity, which will be on the
earlier of either April&nbsp;1, 2009 or the filing by the Company of its Annual Report on Form 10-K for
the year ending December&nbsp;31, 2008, and (iii)&nbsp;the issuance of 1,500,000 shares of Company common
stock. The Company also issued an additional 3,000,000 shares of Company common stock in the name
of Jin Kang, which shares were delivered into escrow to be held subject to the satisfaction of
certain earnout provisions under the Membership Interest Purchase Agreement, and which shares are
subject to return to the Company in the event such earnout provisions are not achieved under the
terms of the Membership Interest Purchase Agreement. Under the terms of the Membership Interest
Purchase Agreement, Jin Kang also entered into an Employment and Non-Compete Agreement, dated as of
January&nbsp;4, 2008.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Off-Balance Sheet Arrangements</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company has no existing off-balance sheet arrangements as defined under SEC regulations.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->32<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
 <DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Other</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Inflation has not had a significant effect on the Company&#146;s operations, as increased costs to the
Company have generally been offset by increased prices of products and services sold, although this
has been more recently compromised by some of the competitive pricing pressures referenced under
Competition in Item&nbsp;1 of this document.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The preparation of financial statements in conformity with accounting principles generally accepted
in the U.S. requires management to make estimates and assumptions that affect the reported amounts
of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could substantially differ from those estimates.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">This report contains forward-looking statements setting forth the Company&#146;s beliefs or expectations
relating to future revenues and profitability. Actual results may differ materially from projected
or expected results due to changes in the demand for the Company&#146;s products and services,
uncertainties relating to the results of operations, dependence on its major customers, risks
associated with rapid technological change and the emerging services market, potential fluctuations
in quarterly results, and its dependence on key employees and other risks and uncertainties
affecting the technology industry generally. The Company disclaims any intent or obligation to
update publicly these forward-looking statements, whether as a result of new information, future
events or otherwise.
</DIV>
<!-- link2 "ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA " -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ITEM 8. </B><U><B>FINANCIAL STATEMENTS AND SUPPLEMENTAL DATA. </B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The consolidated financial statements and schedules required hereunder and contained herein are
listed under Item&nbsp;15 below.
</DIV>
<!-- link2 "ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>



<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="1%"></TD>
    <TD width="100%"></TD>

</TR>
<TR valign="top">
    <TD nowrap align="left"><B>ITEM 9.</B>&nbsp;</TD>

    <TD><U><B>CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE.</B></U></TD>
</TR>
</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Not applicable.
</DIV>
<!-- link2 "ITEM 9A. CONTROLS AND PROCEDURES" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ITEM 9A. </B><U><B>CONTROLS AND PROCEDURES. </B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Disclosure Controls and Procedures</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We maintain disclosure controls and procedures designed to provide reasonable assurance that
material information required to be disclosed by us in the reports we file or submit under the
Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time
periods specified in the SEC&#146;s rules and forms, and that the information is accumulated and
communicated to our management, including our Chief Executive Officer and Chief Financial Officer,
as appropriate to allow timely decisions regarding required disclosure. We performed an evaluation,
under the supervision and with the participation of our management, including our
Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and
operation of our disclosure controls and procedures as of the end of the period covered by this
report. Based on the existence of the material weaknesses discussed below in &#147;Management&#146;s Report
on Internal Control Over Financial Reporting,&#148; our management, including our Chief Executive
Officer and Chief Financial Officer, concluded that our disclosure controls and procedures were not
effective at the reasonable assurance level as of the end of the period covered by this report.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We do not expect that our disclosure controls and procedures will prevent all errors and all
instances of fraud. Disclosure controls and procedures, no matter how well conceived and operated,
can provide only reasonable, not absolute, assurance that the objectives of the disclosure controls
and procedures are met. Further, the design of disclosure controls and procedures must reflect the
fact that there are resource constraints, and the benefits must be considered relative to their
costs. Because of the inherent limitations in all disclosure controls and procedures, no evaluation
of disclosure controls and procedures can provide absolute assurance that we have detected all our
control deficiencies and instances of fraud, if any. The design of disclosure controls and
procedures also is based partly on certain assumptions about the likelihood of future events, and
there can be no assurance that any design will succeed in achieving its stated goals under all
potential future conditions.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Management&#146;s Report on Internal Control Over Financial Reporting</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our management is responsible for establishing and maintaining adequate internal control over
financial reporting. Internal control over financial reporting is defined in Rule&nbsp;13a-15(f) and
15d-15(f) under the Securities Exchange Act of 1934, as amended, as a process designed by, or under
the supervision of, our principal executive and principal financial officers and effected by our
board of directors, management and other personnel to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with generally accepted accounting principles and includes those policies
and procedures that:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">pertain to the maintenance of records that in reasonable detail
accurately and fairly reflect the transactions and dispositions of our assets;</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">provide reasonable assurance that transactions are recorded as
necessary to permit preparation of financial statements in accordance with
generally accepted accounting principles, and that receipts and expenditures of the
company are being made only in accordance with authorizations of our management and
directors; and</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&#149;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">provide reasonable assurance regarding prevention or timely detection
of unauthorized acquisition, use or disposition of the company&#146;s assets that could
have a material effect on the financial statements.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Because of its inherent limitations, internal control over financial reporting may not prevent or
detect misstatements. Additionally, projections of any evaluation of effectiveness to future
periods are subject to the risks that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->34<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Management assessed the effectiveness of our internal control over financial reporting as of
December&nbsp;31, 2008. In making this assessment, management used the criteria set forth by the
Committee of Sponsoring Organizations of the Treadway Commission (COSO)&nbsp;in <I>Internal
Control-Integrated Framework</I>.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Based on this assessment, management concluded that our internal control over financial reporting
was not effective as of December&nbsp;31, 2008 due to the existence of the material weaknesses as of
December&nbsp;31, 2008, discussed below. A material weakness is a control deficiency, or a combination
of control deficiencies, that results in more than a remote likelihood that a material misstatement
of the annual or interim financial statements will not be prevented or detected.
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>Inadequate segregation of duties within a significant account or process. </I>We did not
have appropriate segregation of duties within our internal controls that would ensure the
consistent application of procedures in our financial reporting process by existing
personnel. This control deficiency could result in a misstatement to substantially all of
our financial statement accounts and disclosures that would result in a material
misstatement to the annual or interim financial statements that would not be prevented or
detected. Accordingly, management has concluded that this control deficiency constitutes a
material weakness.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>Inadequate documentation of the components of internal control. </I>We did not maintain
documented policies and evidence of compliance with our internal controls that would ensure
the consistent application of procedures in our financial reporting process by existing
personnel. This control deficiency could result in a misstatement to substantially all of
our financial statement accounts and disclosures that would result in a material
misstatement to the annual or interim financial statements that would not be prevented or
detected. Accordingly, management has concluded that this control deficiency constitutes a
material weakness.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>Income Tax Accounting. </I>We engage outside parties to assist us in accounting for income
taxes. We have not implemented an effective review process for accounting for income
taxes that could lead to errors occurring in the amounts and disclosures for income taxes.
Accordingly, management has concluded that this control deficiency constitutes a material
weakness.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">This annual report does not include an attestation report of the company&#146;s registered public
accounting firm regarding internal control over financial reporting. Management&#146;s report was not
subject to attestation by the company&#146;s registered public accounting firm pursuant to temporary
rules of the Securities and Exchange Commission that permit the company to provide only
management&#146;s report in this annual report.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Remediation Plan for Material Weaknesses</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The material weaknesses described above in &#147;Management&#146;s Report on Internal Control Over
Financial Reporting&#148; comprise control deficiencies that we discovered in the fourth quarter of
fiscal year 2007 and during the financial close process for fiscal year 2008. Upon the Company&#146;s
acquisition of iSYS in January&nbsp;2008, the Company further determined that the material weaknesses
described above were also present in iSYS&#146; internal controls. We specifically noted weaknesses
associated with the process of recognizing a certain segment of the iSYS revenue and associated
direct costs.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->35<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Beginning and during the fourth quarter of fiscal 2007, we formulated a remediation plan and
initiated remedial action to address those material weaknesses at WidePoint. During the first
quarter of 2008, we expanded the scope of our remediation plan to address the material weaknesses
related to the internal controls and procedures of iSYS. The elements of the remediation plan are
as follows:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>Inadequate segregation of duties within a significant account or process. </I>We commenced
a thorough review of our accounting staff&#146;s duties and where necessary we have begun
segregating such duties with other personnel.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left"><B>&#149;</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><I>Inadequate documentation of the components of internal control</I>. We commenced a thorough
review of our documentation and where necessary we are putting into place policies and
procedures to document such evidence to comply with our internal control requirements. We
are specifically addressing policies to properly review and recognize a certain segment of
the iSYS revenue and associated direct costs. We have also retained a financial consultant
to assist us in further reviewing and improving our internal control processes.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We believe that these measures, if effectively implemented and maintained, will remediate the
material weaknesses discussed above.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Changes in Internal Control Over Financial Reporting</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">During the fourth quarter of fiscal year 2008 and the first quarter of 2009, we undertook a number
of measures to remediate the material weaknesses discussed under &#147;Management&#146;s Report on Internal
Control Over Financial Reporting,&#148; above. Those measures, described under &#147;Remediation Plan for
Material Weaknesses,&#148; undertaken during the fourth quarter of fiscal year 2008, have materially
affected, or are reasonably likely to materially affect, our internal control over financial
reporting.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Other than as described above, there have been no changes in our internal control over financial
reporting during the fourth quarter of fiscal year 2008 that have materially affected, or are
reasonably likely to materially affect, our internal control over financial reporting.
</DIV>
<!-- link2 "ITEM 9B. OTHER INFORMATION" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ITEM 9B. </B><U><B>OTHER INFORMATION.</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">None.
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->36<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<!-- link1 "Part&nbsp;III" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Part III.</B>
</DIV>

<!-- link2 "ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ITEM 10. </B><U><B>DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.</B></U>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Except for the information regarding executive officers required by Item&nbsp;401 of Regulation&nbsp;S-K,
which is included in Part&nbsp;I of this Annual Report on Form&nbsp;10-K as Item&nbsp;4A, pursuant to General
Instruction G(3) of Form 10-K, the information called for by this item is hereby incorporated by
reference from our definitive proxy statement or amendment hereto to be filed pursuant to
Regulation&nbsp;14A not later than 120&nbsp;days after the end of the fiscal year covered by this report.
</DIV>
<!-- link2 "ITEM 11. EXECUTIVE COMPENSATION" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ITEM 11. </B><U><B>EXECUTIVE COMPENSATION.</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Pursuant to General Instruction G(3) of Form 10-K, the information called for by this item is
hereby incorporated by reference from our definitive proxy statement or amendment hereto to be
filed pursuant to Regulation&nbsp;14A not later than 120&nbsp;days after the end of the fiscal year covered
by this report.
</DIV>
<!-- link2 "ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>

<DIV align="left" style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>

</TR>
<TR valign="top">
    <TD nowrap align="left"><B>ITEM 12. </B>&nbsp;</TD>

    <TD><U><B>SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS.</B></U></TD>
</TR>
</TABLE>
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Pursuant to General Instruction G(3) of Form 10-K, the information called for by this item is
hereby incorporated by reference from our definitive proxy statement or amendment hereto to be
filed pursuant to Regulation&nbsp;14A not later than 120&nbsp;days after the end of the fiscal year covered
by this report.
</DIV>
<!-- link2 "ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ITEM 13. </B><U><B>CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Pursuant to General Instruction G(3) of Form 10-K, the information called for by this item is
hereby incorporated by reference from our definitive proxy statement or amendment hereto to be
filed pursuant to Regulation&nbsp;14A not later than 120&nbsp;days after the end of the fiscal year covered
by this report.
</DIV>
<!-- link2 "ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ITEM 14. </B><U><B>PRINCIPAL ACCOUNTING FEES AND SERVICES.</B></U>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Pursuant to General Instruction G(3) of Form 10-K, the information called for by this item is
hereby incorporated by reference from our definitive proxy statement or amendment hereto to be
filed pursuant to Regulation&nbsp;14A not later than 120&nbsp;days after the end of the fiscal year covered
by this report.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->37<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<!-- link1 "Part&nbsp;IV" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Part IV.</B>
</DIV>

<!-- link2 "ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>ITEM 15. </B><U><B>EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.</B></U>
</DIV>


<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><U>Financial Statements and Financial Statement Schedule</U></DIV></TD>
</TR>
</table>
</DIV>



<DIV style="margin-top: 8pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="8%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(1)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify"><U>Financial Statements:</U></DIV></TD>
</TR>
</table>
</DIV>




<DIV style="margin-top: 8pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Report of Moss Adams LLP, Independent Registered Public Accounting Firm</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR>



<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Consolidated Balance Sheets as of December&nbsp;31, 2008 and 2007</DIV></TD>
</TR>


</TABLE>
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Consolidated Statements of Operations for the Years Ended December&nbsp;31, 2008 and 2007.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Consolidated Statements of Changes in Stockholders&#146; Equity for the Years Ended December&nbsp;2008
and 2007.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Consolidated Statements of Cash Flow for the Years Ended December&nbsp;31, 2008 and 2007.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Notes to Consolidated Financial Statements</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">All other schedules are omitted either because they are not applicable or not required, or because
the required information is included in the financial statements or notes thereto:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 4%">(b)&nbsp;<U>Exhibits</U>: The following exhibits are filed herewith or incorporated herein by
reference:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3">EXHIBIT</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">NO.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">DESCRIPTION</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">2.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Membership Interest Purchase Agreement, dated as of January&nbsp;2, 2008, between the Company, iSYS LLC, and Jin Kang.
(Incorporated herein by reference to Exhibit&nbsp;2.1 to the Registrant&#146;s Current Report on Form&nbsp;8-K filed on January&nbsp;8, 2008.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Amended and Restated Certificate of Incorporation of WidePoint Corporation. (Incorporated
herein by reference to Exhibit&nbsp;A to the Registrant&#146;s Definitive Proxy Statement, as filed on
December&nbsp;27, 2004.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">3.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Bylaws of ZMAX Corporation. (Incorporated herein by reference to Exhibit&nbsp;3.6 to the
Registrant&#146;s Registration Statement on Form&nbsp;S-4 (File No.&nbsp;333-29833))</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">4.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Certificate Of Designations, Rights And Preferences Of The Series&nbsp;A Convertible Preferred
Stock between WidePoint Corporation and Barron Partners LP (Incorporated herein by reference
to Exhibit&nbsp;10.4 to the Registrant&#146;s Current Report on Form&nbsp;8-K/A filed on November&nbsp;2, 2004.))</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Employment Agreement between WidePoint Corporation and Steve Komar, dated July&nbsp;1, 2002.*
(Incorporated herein by reference to Exhibit&nbsp;10.26 to Registrant&#146;s Report of Form&nbsp;10Q, as
filed on August&nbsp;15, 2002 (File No. 000-23967))</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">*</SUP></TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Management contract or compensatory plan.</DIV></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->38<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3">EXHIBIT</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">NO.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">DESCRIPTION</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Employment Agreement between WidePoint Corporation and James McCubbin, dated July&nbsp;1,
2002.* (Incorporated herein by reference to Exhibit&nbsp;10.26 to Registrant&#146;s Report of Form&nbsp;10Q,
as filed on August&nbsp;15, 2002 (File No. 000-23967)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.3</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Preferred Stock Purchase Agreement Between WidePoint Corporation and Barron Partners LP.
(Incorporated herein by reference to Exhibit&nbsp;10.1 to the Registrant&#146;s Current Report on Form
8-K/A filed on November&nbsp;2, 2004.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.4</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Stock Purchase Agreement between WidePoint Corporation, Operational Research Consultants,
Inc. (Incorporated herein by reference to Exhibit&nbsp;10.5 to the Registrant&#146;s Current Report on
Form&nbsp;8-K/A filed on November&nbsp;2, 2004.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.5</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Employment and Non-Compete Agreement between WidePoint Corporation, Operational Research
Consultants, Inc and Daniel Turissini.* (Incorporated herein by reference to Exhibit&nbsp;10.15 to
the Registrant&#146;s Annual Report on Form&nbsp;10-K for the year ended December&nbsp;31, 2006.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.6</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Addendum to Employment and Non-Compete Agreement between the Registrant and Daniel E.
Turissini, effective as of July&nbsp;25, 2007. *(Incorporated herein by reference to Exhibit&nbsp;10.1
to the Registrant&#146;s Current Report on Form&nbsp;8-K filed on July&nbsp;30, 2007.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.7</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Commercial Loan Agreement, dated August&nbsp;16, 2007, between the Company and Cardinal Bank.
(Incorporated herein by reference to Exhibit&nbsp;10.1 to the Registrant&#146;s Current Report on Form
8-K filed on August&nbsp;21, 2007.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.8</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Security Agreement, dated August&nbsp;16, 2007, between the Company and Cardinal Bank.
(Incorporated herein by reference to Exhibit&nbsp;10.2 to the Registrant&#146;s Current Report on Form
8-K filed on August&nbsp;21, 2007.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.9</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Promissory Note, dated August&nbsp;16, 2007, issued by the Company in favor of Cardinal Bank.
(Incorporated herein by reference to Exhibit&nbsp;10.3 to the Registrant&#146;s Current Report on Form
8-K filed on August&nbsp;21, 2007.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.10</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Promissory Note, dated November&nbsp;5, 2007, between Protexx, Inc. and its subsidiaries,
including but not limited to 22THEN LLC, as borrower, WidePoint Corporation, as lender, and
Peter Letizia, as guarantor. (Incorporated herein by reference to Exhibit&nbsp;10.1 to the
Registrant&#146;s Current Report on Form&nbsp;10-Q filed on November&nbsp;9, 2007.)</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">*</SUP></TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Management contract or compensatory plan.</DIV></TD>
</TR>

</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->39<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3">EXHIBIT</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">NO.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">DESCRIPTION</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.11</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Revolving Line of Credit Agreement, dated as of November&nbsp;5, 2007, by and among Protexx, Inc.
and its subsidiaries, including but not limited to 22THEN LLC, as borrower, Peter Letizia, as
guarantor, and WidePoint Corporation, as lender. (Incorporated herein by reference to Exhibit
10.2 to the Registrant&#146;s Current Report on Form&nbsp;10-Q filed on November&nbsp;9, 2007.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.12</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Security Agreement, dated as of November&nbsp;5, 2007, given by Protexx, Inc. and each of its
subsidiaries and 22THEN LLC, collectively, as debtors, to and in favor of WidePoint
Corporation, as secured party. (Incorporated herein by reference to Exhibit&nbsp;10.3 to the
Registrant&#146;s Current Report on Form&nbsp;10-Q filed on November&nbsp;9, 2007.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.13</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Software Escrow Agreement, dated as of November&nbsp;5, 2007, between 22THEN LLC and Protexx
Incorporated, collectively, as supplier, WidePoint Corporation, as user, and Foley &amp; Lardner
LLP, as escrow agent. (Incorporated herein by reference to Exhibit&nbsp;10.4 to the Registrant&#146;s
Current Report on Form&nbsp;10-Q filed on November&nbsp;9, 2007.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.14</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">$2,000,000 Installment Cash Promissory Note, dated January&nbsp;4, 2008, issued by the Company in
favor of Jin Kang. (Incorporated herein by reference to Exhibit&nbsp;10.1 to the Registrant&#146;s
Current Report on Form&nbsp;8-K filed on January&nbsp;8, 2008.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.15</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Employment and Non-Compete Agreement, dated as of January&nbsp;4, 2008, between the Company, iSYS
LLC and Jin Kang. * (Incorporated herein by reference to Exhibit&nbsp;10.2 to the Registrant&#146;s
Current Report on Form&nbsp;8-K filed on January&nbsp;8, 2008.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.16</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Commercial Loan Agreement, dated January&nbsp;2, 2008, between the Company and Cardinal Bank.
(Incorporated herein by reference to Exhibit&nbsp;10.3 to the Registrant&#146;s Current Report on Form
8-K filed on January&nbsp;8, 2008.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.17</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Security Agreement, dated January&nbsp;2, 2008, between the Company and Cardinal Bank.
(Incorporated herein by reference to Exhibit&nbsp;10.4 to the Registrant&#146;s Current Report on Form
8-K filed on January&nbsp;8, 2008.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.18</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">$5,000,000 Promissory Note, dated January&nbsp;2, 2008, issued by the Company in favor of
Cardinal Bank. (Incorporated herein by reference to Exhibit&nbsp;10.5 to the Registrant&#146;s Current
Report on Form&nbsp;8-K filed on January&nbsp;8, 2008.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.19</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Security Agreement, dated January&nbsp;2, 2008, between the Company and Cardinal Bank.
(Incorporated herein by reference to Exhibit&nbsp;10.6 to the Registrant&#146;s Current Report on Form
8-K filed on January&nbsp;8, 2008.)</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>


<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">*</SUP></TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Management contract or compensatory plan.</DIV></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->40<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3">EXHIBIT</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">NO.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">DESCRIPTION</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.20</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">$2,000,000 Promissory Note, dated January&nbsp;2, 2008, issued by the Company in favor of
Cardinal Bank. (Incorporated herein by reference to Exhibit&nbsp;10.7 to the Registrant&#146;s Current
Report on Form&nbsp;8-K filed on January&nbsp;8, 2008.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.21</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Debt Subordination Agreement, dated January&nbsp;2, 2008, between the Company and Cardinal Bank.
(Incorporated herein by reference to Exhibit&nbsp;10.8 to the Registrant&#146;s Current Report on Form
8-K filed on January&nbsp;8, 2008.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.22</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Common Stock Purchase Agreement, dated April&nbsp;29, 2008, between the Company and Deutsche Bank
AG, London Branch. (Incorporated herein by reference to Exhibit&nbsp;10.1 to the Registrant&#146;s
Current Report on Form&nbsp;8-K filed on May&nbsp;5, 2008.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.23</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Escrow Agreement, dated April&nbsp;29, 2008, between the Company, Deutsche Bank AG, London Branch
and Foley &amp; Lardner LLP as Escrow Agent. (Incorporated herein by reference to Exhibit&nbsp;10.2 to
the Registrant&#146;s Current Report on Form&nbsp;8-K filed on May&nbsp;5, 2008.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.24</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Common Stock Purchase Agreement, dated May&nbsp;16, 2008, between the Company and Endurance
Partners, L.P. (Incorporated herein by reference to Exhibit&nbsp;10.11 to the Registrant&#146;s
Quarterly Report on Form&nbsp;10-Q filed on May&nbsp;20, 2008.)</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.25</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Escrow Agreement, dated May&nbsp;16, 2008, between the Company, Endurance Partners, L.P. and
Foley &amp; Lardner LLP as Escrow Agent. (Incorporated herein by reference to Exhibit&nbsp;10.12 to
the Registrant&#146;s Quarterly Report on Form&nbsp;10-Q filed on May&nbsp;20, 2008).</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.26</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Common Stock Purchase Agreement, dated May&nbsp;16, 2008, between the Company and Endurance
Partners (Q.P.), L.P. (Incorporated herein by reference to Exhibit&nbsp;10.13 to the Registrant&#146;s
Quarterly Report on Form&nbsp;10-Q filed on May&nbsp;20, 2008).</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.27</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Escrow Agreement, dated May&nbsp;16, 2008, between the Company, Endurance Partners (Q.P.), L.P.
and Foley &amp; Lardner LLP as Escrow Agent. (Incorporated herein by reference to Exhibit&nbsp;10.14
to the Registrant&#146;s Quarterly Report on Form&nbsp;10-Q filed on May&nbsp;20, 2008).</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.28</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Amendment, dated as of July&nbsp;25, 2008, between the Registrant and Steven L. Komar.*
(Incorporated herein by reference to Exhibit&nbsp;10.1 to the Registrant&#146;s Current Report on Form
8-K filed on July&nbsp;31, 2008).</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.29</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Amendment, dated as of July&nbsp;25, 2008, between the Registrant and James T. McCubbin.*
(Incorporated herein by reference to Exhibit&nbsp;10.2 to the Registrant&#146;s Current Report on Form
8-K filed on July&nbsp;31, 2008).</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<DIV align="left"><DIV style="font-size: 10pt; margin-top: 10pt; width: 18%; border-bottom: 1px solid #000000">&nbsp;</DIV></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left"><SUP style="font-size: 85%; vertical-align: text-top">*</SUP></TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Management contract or compensatory plan.</DIV></TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->41<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="77%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3">EXHIBIT</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">NO.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">DESCRIPTION</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.30</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Asset Purchase Agreement, dated July&nbsp;31, 2008, by and among the Registrant, Protexx
Acquisition Corporation, Protexx Incorporated, Peter Letizia, Charles B. Manuel, Jr. and
William Tabor. (Incorporated herein by reference to Exhibit&nbsp;10.1 to the Registrant&#146;s Current
Report on Form&nbsp;8-K filed on August&nbsp;6, 2008).</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.31</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Debt Modification Agreement, dated as of March&nbsp;17, 2009, between the Registrant and its
subsidiaries and Cardinal Bank. (Incorporated herein by reference to Exhibit&nbsp;10.1 to the
Registrant&#146;s Current Report on Form&nbsp;8-K filed on
March&nbsp;23, 2009).</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">10.32</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Commercial Loan Agreement, dated as of March&nbsp;17, 2009, between the Registrant and its
subsidiaries and Cardinal Bank. (Incorporated herein by reference to Exhibit&nbsp;10.2 to the
Registrant&#146;s Current Report on Form&nbsp;8-K filed on
March&nbsp;23, 2009).</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">21</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Subsidiaries of WidePoint Corporation (Filed herewith).</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">23.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Consent of Moss Adams LLP (Filed herewith).</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31.1</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Certification of Chief Executive Officer Pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of
2002 (Filed herewith).</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">31.2</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Certification of Chief Financial Officer Pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of
2002 (Filed herewith).</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">32</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top"><DIV align="justify" style="margin-left:0px; text-indent:-0px">Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section
906 of the Sarbanes-Oxley Act of 2002 (Filed herewith).</DIV></TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->42<!-- /Folio -->
</DIV>



<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<!-- link1 "SIGNATURES" -->
<DIV align="left"></DIV>
<DIV align="left"></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>SIGNATURES</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 0%">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 thereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">WidePoint Corporation<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: March 31, 2009 &nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ STEVE L. KOMAR
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><I>Steve L. Komar</I>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date:      March 31, 2009&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ JAMES T. MCCUBBIN
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><I>James T. McCubbin</I>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Vice President &#151; Principal Financial and Accounting
Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; text-indent: 0%">Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been
signed below by the following persons, on behalf of the Registrant and in the capacities and on the
dates indicated.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD align="left"> Dated:          March 31, 2009&nbsp;</TD>

<TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ STEVE L. KOMAR
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><I>Steve L. Komar</I>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Director and Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left"> Dated:      March 31, 2009&nbsp;</TD>

<TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ JAMES T. MCCUBBIN
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><I>James T. McCubbin</I>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Director, Vice President and Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Dated:      March 31, 2009&nbsp;</TD>

<TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ JAMES M. RITTER
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><I>James M. Ritter</I>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Director&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Dated:      March 31, 2009&nbsp;</TD>

<TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ MORTON S. TAUBMAN
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><I>Morton S. Taubman</I>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Director&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Dated:      March 31, 2009&nbsp;</TD>

<TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ RON S. OXLEY
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><I>Ron Oxley</I>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Director&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Dated:      March 31, 2009&nbsp;</TD>

<TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ OTTO GUENTHER
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><I>Otto Guenther</I>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Director&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Dated:      March 31, 2009&nbsp;</TD>

<TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ GEORGE NORWOOD
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><I>George Norwood</I>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Director&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->43<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><U>INDEX TO FINANCIAL STATEMENTS </U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Page</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Report of Independent Registered Public Accounting Firm</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consolidated Balance Sheets as of December&nbsp;31, 2008 and 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-2</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consolidated Statements of Operations for the Years ended
December&nbsp;31, 2008 and 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Consolidated Statements of Stockholders&#146; Equity for the Years ended
December&nbsp;31, 2008 and 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">

<TD><DIV style="margin-left:15px; text-indent:-15px">>Consolidated
Statements of Cash Flows for the Years ended
December&nbsp;31, 2008 and 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Notes to Consolidated Financial Statements</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">F-7</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>





<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->44<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">


<DIV align="left">
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">To the Board of Directors and Shareholders of WidePoint Corporation:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We have audited the accompanying consolidated balance sheets of WidePoint Corporation and
subsidiaries as of December&nbsp;31, 2008 and 2007 and the related consolidated statements of
operations, stockholders&#146; equity and cash flows for the years then ended. These consolidated
financial statements are the responsibility of the Company&#146;s management. Our responsibility is to
express an opinion of these consolidated financial statements based on our audits.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">We conducted our audits in accordance with the standards of the Public Company Accounting Oversight
Board (United States). Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material misstatement. The
Company is not required to have, nor were we engaged to perform, an audit of its internal control
over financial reporting. Our audit included consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but
not for the purpose of expressing an opinion on the effectiveness of the Company&#146;s internal control
over financial reporting. Accordingly, we express no such opinion<B><I>. </I></B>An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In our opinion, the consolidated financial statements referred to above present fairly, in all
material respects, the financial position of WidePoint Corporation and subsidiaries as of December
31, 2008 and 2007 and the results of their operations and their cash flows for the years then
ended, in conformity with accounting principles generally accepted in the United States of America.
</DIV>

<DIV align="right" style="font-size: 10pt; margin-top: 10pt">/s/&nbsp;Moss Adams LLP<BR>
Scottsdale, Arizona<BR>
March&nbsp;31, 2009
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">The accompanying notes are an integral part of these consolidated financial statements
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 1 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U><B>WIDEPOINT CORPORATION AND SUBSIDIARIES</B></U>
</DIV>

<DIV align="left">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Consolidated Balance Sheets</B>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><B>Assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash and cash equivalents</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,375,426</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,831,991</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,282,192</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,437,397</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Unbilled accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,301,893</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">371,435</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Prepaid expenses and other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">267,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">328,539</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,227,177</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,969,362</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property and equipment, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">431,189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">435,859</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Goodwill</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,575,881</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,526,110</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Intangibles, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,236,563</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,165,461</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">110,808</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">167,164</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,581,618</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,263,956</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><B>Liabilities and stockholders&#146; equity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Related party note payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,140,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Short term note payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">97,158</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">63,520</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accounts payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,465,394</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,715,180</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accrued expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,548,106</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">644,366</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Deferred revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,667,969</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">96,674</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Short-term portion of long-term debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">486,707</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Short-term portion of capital lease obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">107,141</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,246</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total current liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">9,512,475</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,637,986</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred income tax liability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156,891</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term debt, net of current portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,117,230</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Capital lease obligation, net of current portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">95,248</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">162,976</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,881,844</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,800,962</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Stockholders&#146; equity:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD align="left" valign="top">&nbsp;</TD></TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Common stock, $0.001 par value; 110,000,000 shares
authorized; 58,275,514 and 52,558,697 shares issued and
outstanding, respectively</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,559</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stock warrants</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,666</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Additional paid-in capital</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">67,194,788</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">60,873,273</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Accumulated deficit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(54,591,956</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(53,501,504</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,699,774</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,462,994</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total liabilities and stockholders&#146; equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">23,581,618</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">11,263,956</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">The accompanying notes are an integral part of these consolidated financial statements
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 2 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U><B>WIDEPOINT CORPORATION AND SUBSIDIARIES</B></U>
</DIV>

<DIV align="left">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Consolidated statements of operations</B>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>For the Years Ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenues, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">35,458,953</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,129,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cost of revenues (including depreciation
and amortization of $846,340 and 446,387,
respectively)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">28,877,994</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,325,916</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Gross profit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,580,959</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,803,523</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Sales and marketing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">901,007</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">806,556</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">General and administrative (including
SFAS123 (R)&nbsp;stock compensation
expense of $563,108 and $174,716,
respectively)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,246,914</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,521,397</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Depreciation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">160,565</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,458</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loss from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(727,527</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(607,888</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other income (expenses):</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134,531</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104,248</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(336,638</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,539</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(3,927</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss before provision for income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(933,561</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(517,179</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156,891</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,090,452</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(517,179</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic and diluted net loss per share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.02</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(0.01</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Basic and diluted weighted-average shares
outstanding</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">56,673,952</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,401,705</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">The accompanying notes are an integral part of these consolidated financial statements
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 3 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U><B>WIDEPOINT CORPORATION AND SUBSIDIARIES </B></U>
</DIV>

<DIV align="left">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Consolidated Statements of Changes in Stockholders&#146; Equity</B>

</DIV>


<DIV align="center">
<TABLE style="font-size: 8pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="14" align="center" style="border-bottom: 1px solid #000000"><B>Permanent Equity</B>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Common</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Additional</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Permanent</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Preferred Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>Common Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Stock</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Paid-In</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Accumulated</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Equity</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Amount</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Issuable</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Warrants</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Capital</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Deficit</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Balance, December
31, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">195,214</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">195</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">50,494,757</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">50,495</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">38,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">60,667,229</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(52,984,325</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,772,260</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Issuance of common
stock &#151; options
exercises</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">111,800</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">112</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,598</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,710</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Conversion of
preferred stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(195,214</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(195</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,952,140</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,952</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,757</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Costs associated from
registration
statement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,513</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,513</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stock options expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,716</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,716</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD align="left" valign="top">&nbsp;</TD></TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(517,179</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(517,179</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Balance, December
31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,558,697</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">52,559</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">38,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">60,873,273</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(53,501,504</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,462,994</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Issuance of common
stock &#151; options
exercises</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">32</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,368</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,400</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Issuance of common
stock &#151;iSYS
earnout&#151;Jin Kang</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">184,817</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">185</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,627</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">38,812</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Issuance of common
stock&#151;iSYS
acquisition</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,500,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,798,500</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,800,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Issuance of common
stock&#151;Capital raise</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,076,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,080,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Costs related to
issuance of
stock&#151;Capital raise</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(169,088</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(169,088</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stock options expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">563,108</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">563,108</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD align="left" valign="top">&nbsp;</TD></TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,090,452</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,090,452</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Balance, December
31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">58,275,514</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">58,276</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">38,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">67,194,788</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(54,591,956</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,699,774</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">The accompanying notes are an integral part of these consolidated financial statements
</DIV>



<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 4 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U><B>WIDEPOINT CORPORATION AND SUBSIDIARIES</B></U>
</DIV>

<DIV align="left">
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Consolidated Statements of Cash Flows</B>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>For the Years Ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from operating activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(1,090,452</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(517,179</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Adjustments to reconcile net loss to net cash
provided by (used in) operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Deferred income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156,891</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Depreciation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">218,052</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">125,415</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Amortization expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">788,852</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">404,430</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Amortization of deferred financing costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,571</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Stock options expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">563,108</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">174,716</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Loss (Gain) on disposal of equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,927</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Changes in assets and liabilities, net of
business combination &#151;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Accounts receivable and unbilled
accounts receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,436,910</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,411,612</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Prepaid expenses and other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">145,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">134,583</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Accounts payable and accrued expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,123,802</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1,710,561</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Deferred revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,571,295</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(467,920</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net cash provided by (used
in) operating activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,678,763</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(444,904</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from investing activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchase of asset/subsidiary, net of cash
Acquired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,192,020</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Software development costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(123,490</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(211,679</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from sale of office equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">250</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Purchases of property and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(96,300</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(131,565</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:60px; text-indent:-15px">Net cash used in investing
activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(5,411,560</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(343,244</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 10pt">The accompanying notes are an integral part of these consolidated financial statements
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 5 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><U><B>WIDEPOINT CORPORATION AND SUBSIDIARIES</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><B>Consolidated Statements of Cash Flows</B>

</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6"><B>For the Years Ended</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash flows from financing activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Borrowings on notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3,800,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Principal payments on notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(2,315,060</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(103,537</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Principal payments under capital lease
obligation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(120,307</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(56,127</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Costs related to registration statement</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29,720</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Costs related to financing purchase of
subsidiary</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(13,713</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from issuance of stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4,080,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Costs related to issuance of stock</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(169,088</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Proceeds from exercise of stock options</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">14,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">34,710</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Net cash provided by
(used in) financing
activities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,276,232</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(154,674</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net increase(decrease) in cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,543,435</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(942,822</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, beginning of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,831,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,774,813</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash and cash equivalents, ending of period</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,375,426</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,831,991</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Supplementary cash flow information:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Cash paid for&#151;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">178,088</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,539</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Income taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Supplementary Disclosure of non-cash Investing
and Financing Activities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Promissory Note issued for iSYS
acquisition</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,000,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Value of 1.5&nbsp;million common shares
issued as consideration in the
acquisition of iSYS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,800,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Value of 184,817 earnout shares issued as
additional consideration in the
acquisition of iSYS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">38,812</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Insurance policies financed by short
term notes payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">142,657</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">110,725</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capital leases for acquisition of property
and equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">41,473</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">224,478</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt">The accompanying notes are an integral part of these consolidated financial statements
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 6 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="left">
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>Notes to Consolidated Financial Statements</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>1. Basis of Presentation, Organization, Nature of Operations:</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint Corporation (&#147;WidePoint&#148; or the &#147;Company&#148;) is a technology-based provider of product and
services to both the government sector and commercial markets. WidePoint was incorporated in
Delaware on May&nbsp;30, 1997. We have grown through the merger of highly specialized regional IT
consulting companies.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our expertise lies in three business segments. The three segments offer unique solutions in
identity management services utilizing certificate-based security solutions; wireless
telecommunication expense management systems; and other associated IT consulting services and
products in which we provide specific subject matter expertise in IT Architecture and Planning,
Software Implementation Services, IT Outsourcing, and Forensic Informatics. For additional
information related to our three business segments, see Note 9 to our financial statements in this
Form 10-K.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint has three material operational entities, Operational Research Consultants, Inc. (ORC),
iSYS, LLC (iSYS), and WidePoint IL, Inc., along with a development stage company, Protexx
Acquisition Corporation doing business as Protexx. In January&nbsp;2008, we completed the acquisition
of iSYS. iSYS specializes in mobile telecommunications expense management services and forensic
informatics, and information assurance services predominantly to the U.S. Government. In July
2008, we completed the purchase of the operating assets and proprietary intellectual property of
Protexx, Inc. Protexx specializes in identity assurance and mobile and wireless data protection
services. ORC specializes in IT integration and secure authentication processes and software, and
providing services to the U.S. Government. ORC has been at the forefront of implementing Public
Key Infrastructure (PKI)&nbsp;technologies. PKI technology uses a class of algorithms in which a user
can receive two electronic keys, consisting of a public key and a private key, to encrypt any
information and/or communication being transmitted to or from the user within a computer network
and between different computer networks. PKI technology is rapidly becoming the technology of
choice to enable security services within and between different computer systems utilized by
various agencies and departments of the U.S. Government.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Our staff consists of business process and computer specialists who help our government and
civilian customers augment and expand their resident technologic skills and competencies, drive
technical innovation, and help develop and maintain a competitive edge in today&#146;s rapidly changing
technological environment in business. Our organization emphasizes an intense commitment to our
people, our customers, and the quality of our solutions offerings. As a services organization, our
customers are our primary focus.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>2. Significant Accounting Policies:</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Principles of Consolidation</I>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The accompanying consolidated financial statements include the accounts of acquired entities
since their respective dates of acquisition. All significant intercompany amounts have been
eliminated.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 7 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Use of Estimates</I>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The preparation of consolidated financial statements in conformity with accounting principles
generally accepted in the U.S. requires management to make estimates and assumptions that affect
the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities
at the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. The more significant areas requiring use of estimates and judgment relate to
revenue recognition, accounts receivable valuation reserves, realizability of intangible assets,
realizability of deferred income tax assets and the evaluation of contingencies and litigation.
Management bases its estimates on historical experience and on various other assumptions that are
believed to be reasonable under the circumstances. Actual results could differ from those
estimates.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Reclassifications</I>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Certain
amounts in prior year financial statements have been reclassified to
conform with the current year presentation.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Concentrations of Credit Risk</I>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Financial instruments that potentially subject the Company to credit risk consist of cash and cash
equivalents and accounts receivable. As of December&nbsp;31, 2008, three clients, the DHS, the TSA, and
the WHS, represented 18%, 11%, and 11%, respectively, of accounts receivable. As of December&nbsp;31,
2007, two clients, Headquarters Cryptologic Systems Group (HQ CPSG) and United Space Alliance,
represented 26% and 13% of accounts receivable, respectively.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Significant Customers</I>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">During
2008, three customers, the Transportation Security Administration (&#147;TSA&#148;), the U.S. Department of Homeland Security (&#147;DHS&#148;), and the Washington Headquarters Services (&#147;WHS&#148;), an
agency of the U.S. Department of Defense (&#147;DoD&#148;) that provides services for many DoD agencies and
organizations, individually represented 26%, 20%, and 14% of revenues, respectively, and we
therefore are materially dependent upon such customers. During 2007, no customer individually
represented at least 10% of revenues. Due to the nature of our business and the relative size of
certain contracts which are entered into in the ordinary course of business, the loss of any single
significant customer, including the above customers, would have a material adverse effect on
results.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Fair value of financial instruments</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company&#146;s financial instruments include cash equivalents, deferred revenue, accounts
receivable, notes receivable, accounts payable, short-term debt and other financial instruments
associated with the issuance of the common stock warrants attributable to the preferred stock
capital investment in the Company in October of 2004. The carrying values of cash equivalents,
accounts receivable, notes receivable, and accounts payable approximate their fair value because of
the short maturity of these instruments. The carrying amounts of the Company&#146;s bank borrowings
under its credit facility approximate fair value because the interest rates are reset periodically
to reflect current market rates.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 8 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Cash and Cash Equivalents</I>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Investments purchased with original maturities of three months or less are considered cash
equivalents for purposes of these consolidated financial statements. The Company maintains cash and
cash equivalents with various major financial institutions. Included in the December&nbsp;31, 2008 cash
balances was approximately $6,048,000 in interest bearing balances in one bank, in excess of
federally insured amounts, as compared to approximately $1,730,000 for December&nbsp;31, 2007.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Accounts Receivable</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The majority of the Company&#146;s accounts receivable is due from the Federal Government and
established private sector companies in the following industries: manufacturing, consumer product
goods, direct marketing, healthcare and financial services. Credit is extended based on an
evaluation of a customers&#146; financial condition and, generally, collateral is not required.
Accounts receivable are due within 30 to 60&nbsp;days and are stated at amounts due from customers net
of an allowance for doubtful accounts. Accounts outstanding longer than the contractual payment
terms are reviewed for collectability and after 90&nbsp;days are considered past due.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company determines its allowance by considering a number of factors, including the length of
time trade accounts receivable are past due, the Company&#146;s previous loss history, the customer&#146;s
current ability to pay its obligation to the Company, and the condition of the general economy and
the industry as a whole. The Company writes-off accounts receivable when they become
uncollectible, and payments subsequently received on such receivables are credited to the allowance
for doubtful accounts.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="44%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Additions</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Balance at</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Charged to</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Balance</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Beginning</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Costs and</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>at End of</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>of Period</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Expenses</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Deductions</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Period</B></TD>
    <TD>&nbsp;</TD>
</TR>

 <TR><TD align="left" valign="top">&nbsp;</TD></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">For the year ended December
31, 2007,
Allowance for doubtful accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,150</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">For the year ended December
31, 2008,
Allowance for doubtful accounts</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">114</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Unbilled Accounts Receivable</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Unbilled accounts receivable on time-and-materials contracts represent costs incurred and gross
profit recognized near the period-end but not billed until the following period. Unbilled accounts
receivable on fixed-price contracts consist of amounts incurred that are not yet billable under
contract terms. At December&nbsp;31, 2008 and 2007, unbilled accounts receivable totaled $2,301,893,
and $371,435, respectively.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Revenue Recognition</I>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Revenue from our mobile telecom expense management services (&#147;MTEMS&#148;) is recognized
upon delivery of goods and services as they are rendered. Arrangements with customers on MTEMS
related contracts are recognized ratably over a period of performance.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 9 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Revenue from the sale of PKI credentials is recognized when delivery occurs. Arrangements with
customers on PKI related contracts may involve multiple deliverable elements. In these cases, the
Company applies the principles prescribed in Emerging Issues Task Force Abstract (&#147;EITF&#148;) 00-21
Revenue Arrangements with Multiple Deliverables. The Company analyzes various factors, including a
review of the nature of the contract or product sold, the terms of each specific transaction, the
relative fair values of the elements required by EITF 00-21, any contingencies that may be present,
its historical experience with like transactions or with like products, the creditworthiness of the
customer, and other current market and economic conditions.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Additionally, revenues are derived from the delivery of non-customized software. In such cases
revenue is recognized when there is persuasive evidence that an arrangement exists (generally a
purchase order has been received or contract signed), delivery has occurred, the charge for the
software is fixed or determinable, and collectability is probable.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Should the sale of product or software involve an arrangement with multiple elements (for example,
the sale of PKI Credential Seats along with the sale of maintenance, hosting and support to be
delivered over the contract period), the Company allocates revenue to each component of the
arrangement using the residual value method based on the fair value of the undelivered elements.
The Company defers revenue from the arrangement equivalent to the fair value of the undelivered
elements and recognizes the remaining amount at the time of the delivery of the product or when all
other revenue recognition criteria have been met.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">A portion of our revenues are derived from cost-plus, or time-and-materials contracts. Under
cost-plus contracts, revenues are recognized as costs are incurred and include an estimate of
applicable fees earned. For time-and-material contracts, revenues are computed by multiplying the
number of direct labor-hours expended in the performance of the contract by the contract billing
rates and adding other billable direct costs.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In the event of a termination of a contract, all billed and unbilled amounts associated with those
task orders where work has been performed would be billed and collected. The termination provisions
of the contract would be accounted for at the time of termination. Any deferred and/or amortization
cost would either be billed or expensed depending upon the termination provisions of the contract.
Further, the Company has had no material history of losses nor has it identified any material
specific risk of loss at December&nbsp;31, 2008 and 2007, respectively due to termination provisions
and thus has not recorded provisions for such events.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Income Taxes</I>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company accounts for income taxes in accordance with Statement of Financial Accounting
Standards (&#147;SFAS&#148;) No.&nbsp;109, &#147;Accounting for Income Taxes.&#148; Under SFAS No.109, deferred tax assets
and liabilities are computed based on the difference between the financial statement and income tax
bases of assets and liabilities using the enacted marginal tax rate. SFAS No.&nbsp;109
requires that the net deferred tax asset be reduced by a valuation allowance if, based on the
weight of available evidence, it is more likely than not that some portion or all of the net
deferred tax asset will not be realized.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 10 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Property and Equipment</I>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Property and equipment are stated at cost, net of accumulated depreciation and amortization.
Property and equipment consisted of the following:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Computers, equipment and software</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">867,013</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">657,883</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less&#151; Accumulated depreciation and amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(435,824</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(222,024</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">431,189</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">435,859</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Depreciation expense is computed using the straight-line method over the estimated useful lives of
three to five years.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In accordance with the American Institute of Certified Public Accountants Statement of Position
98-1 &#147;Accounting for the Costs of Computer Software Developed or Obtained for Internal Use,&#148; the
Company capitalizes costs related to software and implementation in connection with its internal
use software systems.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Software Development Costs</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">WidePoint accounts for software development costs (or &#147;internally developed intangible assets&#148;)
related to software products for sale, lease or otherwise marketed in accordance with Statement of
Financial Accounting Standards (SFAS)&nbsp;No.&nbsp;86, &#147;Accounting for the Costs of Computer Software to be
Sold, Leased, or Otherwise Marketed.&#148; For projects fully funded by the Company, significant
development costs are capitalized from the point of demonstrated technological feasibility until
the point in time that the product is available for general release to customers. Once the product
is available for general release, capitalized costs are amortized based on units sold, or on a
straight-line basis over a six-year period or other such shorter period as may be required.
WidePoint recorded approximately $240,000 of amortization expense for the year ended December&nbsp;31,
2008, as compared to $183,000 of amortization expense for the year ended December&nbsp;31, 2007. We
capitalized approximately $123,000 in new costs in 2008. Capitalized software costs, net, included
in Intangibles, net, at December&nbsp;31, 2008 were approximately $0.6&nbsp;million, as compared to
approximately $0.7&nbsp;million of capitalized software costs included in Intangibles, net, at December
31, 2007.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 11 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Goodwill, Intangible Assets, and Long-Lived Assets</I>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Goodwill represents costs in excess of fair values assigned to the underlying net assets acquired.
The Company has adopted the provisions of Statement of Financial Accounting Standards (&#147;SFAS&#148;) No.
141, &#147;<I>Business Combinations</I>,&#148; and SFAS No.&nbsp;142, <I>&#147;Goodwill and Other Intangible Assets.&#148; </I>These
standards require the use of the purchase method of accounting for
business combinations, set forth the accounting for the initial recognition of acquired intangible
assets and goodwill and describe the accounting for intangible assets and goodwill subsequent to
initial recognition. Under the provisions of these standards, goodwill is not subject to
amortization and annual review is required for impairment. The impairment test under SFAS No.&nbsp;142
is based on a two-step process involving (i)&nbsp;comparing the estimated fair value of the related
reporting unit to its net book value and (ii)&nbsp;comparing the estimated implied fair value of
goodwill to its carrying value. Impairment losses are recognized whenever the implied fair value
of goodwill is less than its carrying value. The Company&#146;s annual impairment testing date is
December&nbsp;31.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company recognizes an acquired intangible apart from goodwill whenever the intangible arises
from contractual or other legal rights, or when it can be separated or divided from the acquired
entity and sold, transferred, licensed, rented or exchanged, either individually or in combination
with a related contract, asset or liability. Such intangibles are amortized over their useful
lives. Impairment losses are recognized if the carrying amount of an intangible subject to
amortization is not recoverable from expected future cash flows and its carrying amount exceeds its
fair value.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company reviews its long-lived assets, including property and equipment, identifiable
intangibles, and goodwill annually or whenever events or changes in circumstances indicate that the
carrying amount of the assets may not be fully recoverable. To determine recoverability of its
long-lived assets, the Company evaluates the probability that future undiscounted net cash flows
will be less than the carrying amount of the assets.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Basic and Diluted Net Loss Per Share</I>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Basic income or loss per share includes no dilution and is computed by dividing net income or loss
by the weighted-average number of common shares outstanding for the period. Diluted income or loss
per share includes the potential dilution that could occur if securities or other contracts to
issue common stock were exercised or converted into common stock. The conversion of outstanding
options and warrants to purchase 8,614,457 and 7,176,257 shares, respectively, for the years ended
December&nbsp;31, 2008 and 2007 has not been included in the calculation of the net loss per share as
such effect would have been anti-dilutive. As a result of these items, the basic and diluted loss
per share for all periods presented are identical.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Stock-based compensation</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Employee stock-based compensation:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In December&nbsp;2004, the Financial Accounting Standards Board issued SFAS No.&nbsp;123 (revised 2004),
&#147;Share-Based Payment,&#148; (&#147;SFAS No.&nbsp;123R&#148;). This statement requires that the costs of employee
share-based payments be measured at fair value on the awards&#146; grant date and recognized in the
financial statements over the requisite service period.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 12 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Effective January&nbsp;1, 2006, the Company adopted the provisions of SFAS No.&nbsp;123R using the modified
prospective application transition method. Under this method, compensation cost for
the portion of awards for which the requisite service has not yet been rendered that are
outstanding as of the adoption date is recognized over the remaining service period. The
compensation cost for that portion of awards is based on the grant-date fair value of those awards
as calculated for pro forma disclosures under SFAS No.&nbsp;123, as originally issued. All new awards
that are modified, repurchased, or cancelled after the adoption date are accounted for under
provisions of SFAS No.&nbsp;123R. The Company recognizes share-based compensation ratably using the
straight-line attribution method over the requisite service period. In addition, pursuant to SFAS
No.&nbsp;123R, the Company is required to estimate the amount of expected forfeitures when calculating
share-based compensation, instead of accounting for forfeitures as they occur, which was the
Company&#146;s practice prior to the adoption of SFAS 123R.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">For purposes of determining the effect of these options, the fair value of each option is estimated
on the date of grant based on the Black-Scholes single-option pricing model assuming the following
for the years ended December&nbsp;31:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Dividend yield</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Risk-free interest rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="center">2.61&#150;4.13%</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="center">4.52%</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Volatility factor</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD nowrap align="center">66&#150;70%</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="center">85%</TD>
    <TD nowrap></TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expected life in years</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">5</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center">4</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The amount of compensation expense recognized under SFAS 123R during the years ended December&nbsp;31
under our plans was comprised of the following:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">General and administrative expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">563,108</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">174,716</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Share-based compensation before taxes</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">563,108</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">174,716</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Related income tax benefits</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Share-based compensation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">563,108</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">174,716</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net share-based compensation expenses per basic and
diluted common share</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.01</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The material increase in stock compensation expense in the year ended December&nbsp;31, 2008 was
primarily attributable to short term vesting associated with certain grants provided to select key
employees at our iSYS subsidiary.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Since we have cumulative operating losses as of December&nbsp;31, 2008 and December&nbsp;31, 2007 for which a
valuation allowance has been established, we recorded no income tax benefits for share-based
compensation arrangements. Additionally, no incremental tax benefits were recognized from stock
options exercised during the year ended December&nbsp;31, 2008 and December&nbsp;31, 2007, which would have
resulted in a reclassification to reduce net cash provided by operating activities with an
offsetting increase in net cash provided by financing activities.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 13 <!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">A summary of the option activity under our plans during the years ended December&nbsp;31, 2008, and
2007, respectively, is presented below:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="56%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="12%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted average</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Grant date fair value</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"># of Shares</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Per share</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">NON-VESTED</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-vested at December&nbsp;31, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">753,477</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.67</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.58</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vested</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(391,183</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.59</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(29,250</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-vested at December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">457,044</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.73</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,480,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.46</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Vested</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(623,044</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.72</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Forfeited</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-vested at December&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,314,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.43</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">OUTSTANDING AND EXERCISABLE</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total outstanding at December&nbsp;31, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,103,261</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Issued</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.93</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cancelled</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(30,250</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(111,800</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total outstanding at December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,085,211</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Issued</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,480,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cancelled</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,800</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(32,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total outstanding at December&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,523,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total exercisable at December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,628,167</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.32</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total exercisable at December&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,209,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The aggregate remaining contractual lives in years for the options outstanding and exercisable at
December&nbsp;31, 2008 and 2007 were 2.50&nbsp;years and 3.75&nbsp;years, respectively.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Aggregate intrinsic value represents total pretax intrinsic value (the difference between
WidePoint&#146;s closing stock price on December&nbsp;31, 2008 and the exercise price, multiplied by the
number of in-the-money options) that would have been received by the option holders had all option
holders exercised their options on December&nbsp;31, 2008. This amount changes based on the fair market
value of WidePoint&#146;s stock. The total intrinsic value of options outstanding as of December&nbsp;31,
2008 and 2007, respectively, were $112,650 and $5,200,151. The total intrinsic value of options
exercisable on December&nbsp;31, 2008 and 2007, respectively, were $112,650 and $5,151,104. The total
intrinsic value of options exercised during the year ended December&nbsp;31, 2008 and 2007,
respectively, were $29,120 and $161,412. The Company issues new shares of common stock upon the
exercise of stock options.
</DIV>
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<P align="center" style="font-size: 10pt"><!-- Folio -->F - 14 <!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">At December&nbsp;31, 2008, 4,535,438 shares were available for future grants under the Company&#146;s 2008
Stock Incentive Plan. This does not include warrants to purchase 3,999,999 shares granted and
vested to members of the senior management team that were not issued under the Company&#146;s 1997 Stock
Incentive Plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">At December&nbsp;31, 2008, the Company had approximately $375,871 of total unamortized compensation
expense, net of estimated forfeitures, related to stock option plans that will be recognized over
the weighted average period of 3.25&nbsp;years.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Non-employee stock-based compensation:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company accounts for stock-based non-employee compensation arrangements using the fair value
recognition provisions of FASB Statement 123, <I>Accounting for Stock-Based Compensation </I>and &#147;Emerging
Issues Task Force&#148; <I>EITF 96-18, Accounting for Equity Instruments That Are Issued to Other Than
Employees for Acquiring, or in Conjunction with Selling, Goods or Services.</I>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>New accounting pronouncements</I>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>EITF 07-01</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In December&nbsp;2007, the EITF reached a consensus on EITF No.&nbsp;07-01, Accounting for Collaborative
Arrangements Related to the Development and Commercialization of Intellectual Property, or EITF
07-01. EITF 07-01 discusses the appropriate income statement presentation and classification for
the activities and payments between the participants in arrangements related to the development and
commercialization of intellectual property. The sufficiency of disclosure related to these
arrangements is also specified. EITF 07-01 is effective for fiscal years beginning after December
15, 2008. As a result, EITF 07-01 is effective for the Company in the first quarter of fiscal 2009.
The Company does not believe EITF 07-01 will have a material impact on its condensed consolidated
financial statements.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SFAS 141(R) and SFAS 160</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In December&nbsp;2007, the Financial Accounting Standards Board (&#147;FASB&#148;) issued Statement No.
141(Revised 2007), <I>Business Combinations </I>(SFAS 141(R)) and Statement No.&nbsp;160, <I>Accounting and
Reporting of Non-controlling Interests in Consolidated Financial Statements </I>, an amendment of ARB
No.&nbsp;51 (SFAS 160). These statements will significantly change the financial accounting and
reporting of business combination transactions and non-controlling (or minority) interests in
consolidated financial statements. SFAS 141(R) requires companies to: (i)&nbsp;recognize, with certain
exceptions, 100% of the fair values of assets acquired, liabilities assumed, and non-controlling
interests in acquisitions of less than a 100% controlling interest when the acquisition constitutes
a change in control of the acquired entity; (ii)&nbsp;measure acquirer shares issued in consideration
for a business combination at fair value on the acquisition date; (iii)&nbsp;recognize contingent
consideration arrangements at their acquisition-date fair values, with subsequent changes in fair
value generally reflected in earnings; (iv)&nbsp;with certain exceptions, recognize pre-acquisition loss
and gain contingencies at their acquisition-date fair values; (v)&nbsp;capitalize in-process research and
</DIV>


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<P align="center" style="font-size: 10pt"><!-- Folio -->F - 15 <!-- /Folio -->
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">development (IPR&amp;D) assets acquired; (vi)&nbsp;expense, as incurred,
acquisition-related transaction costs; (vii)&nbsp;capitalize acquisition-related restructuring costs
only if the criteria in SFAS 146, <I>Accounting for Costs Associated with Exit or Disposal Activities</I>, are met as of the acquisition date; and (viii)&nbsp;recognize changes that result from a business
combination transaction in an acquirer&#146;s existing income tax valuation allowances and tax
uncertainty accruals as adjustments to income tax expense. SFAS 141(R) is required to be adopted
concurrently with SFAS 160 and is effective for business combination transactions for which the
acquisition date is on or after the beginning of the first annual reporting period beginning on or
after December&nbsp;15, 2008 (the Company&#146;s fiscal 2009). Early adoption of these statements is
prohibited. The Company believes the adoption of these statements will have a material impact on
significant acquisitions completed after December&nbsp;31, 2008.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>SFAS 162</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In May&nbsp;2008, the Financial Accounting Standards Board (&#147;FASB&#148;) issued Statement of Financial
Accounting Standard (&#147;SFAS&#148;) No.&nbsp;162, &#147;The Hierarchy of Generally Accepted Accounting Principles&#148;.
This standard is intended to improve financial reporting by identifying a consistent framework, or
hierarchy, for selecting accounting principles to be used in preparing financial statements that
are presented in conformity with US GAAP for non-governmental entities. SFAS No.&nbsp;162 is effective
60&nbsp;days following the Securities and Exchange Commission&#146;s approval of the Public Company
Accounting Oversight Board amendments to AU Section&nbsp;411, the meaning of &#147;Present Fairly in
Conformity with GAAP&#148;. The Company is in the process of evaluating the impact, if any, of SFAS 162
on its consolidated financial statements.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>FSP 142-3</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In April&nbsp;2008, the FASB issued FSP 142-3, <I>Determination of the Useful Life of Intangible
Assets</I>, or FSP 142-3. FSP 142-3 amends the factors that should be considered in developing renewal
or extension assumptions used to determine the useful life of a recognized intangible asset under
SFAS No.&nbsp;142, <I>Goodwill and Other Intangible Assets</I>. FSP 142-3 is effective for fiscal years
beginning after December&nbsp;15, 2008. The Company is currently assessing the impact of FSP 142-3 on
its consolidated financial position and results of operations.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>EITF 03-6-1</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In June&nbsp;2008, the FASB issued FASB Staff Position Emerging Issues Task Force (EITF)&nbsp;No.&nbsp;03-6-1,
&#147;Determining whether Instruments granted in Share-Based Payment Transactions are Participating
Securities,&#148; or FSP EITF No.&nbsp;03-6-1. Under FSP EITF No.&nbsp;03-6-1, unvested share-based payment
awards that contain rights to receive non-forfeitable dividends (whether paid or unpaid) are
participating securities, and should be included in the two-class method of computing earnings per
share. FSP EITF No.&nbsp;03-6-1 is effective for fiscal years beginning after December&nbsp;15, 2008, and
interim periods within those years. It is not expected to have a significant impact on the
Company&#146;s financial statements.
</DIV>
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<P align="center" style="font-size: 10pt"><!-- Folio -->F - 16<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>3. Debt:</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company entered into a senior lending agreement with Cardinal Bank on August&nbsp;16, 2007. The
senior lending agreement had a maturity date of September&nbsp;1, 2008 and provided for a $2&nbsp;million
revolving credit facility. Borrowings under the Agreement were collateralized by the Company&#146;s
eligible contract receivables, inventory, all of its stock in certain of its subsidiaries and
certain property and equipment. The credit facility contained specific financial covenants related
to working capital levels and consolidated net worth. There was no borrowing under this credit
facility at December&nbsp;31, 2007.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In January of 2008, the Company modified this credit facility with Cardinal Bank to allow for up to
$7&nbsp;million, which included a four-year term note for $2&nbsp;million that we had entered into with
Cardinal Bank in January&nbsp;2008. We partially utilized this credit facility to acquire iSYS, LLC in
January of 2008 and borrowed under the line of credit approximately $1.8&nbsp;million that we repaid in
full in May&nbsp;2008 from the proceeds raised in a subsequent capital raise that occurred in April and
May of 2008. On December&nbsp;31, 2008 we had no borrowing under this credit facility. The line of
credit had a $5&nbsp;million borrowing cap at an interest rate of 6.5% as of December&nbsp;31, 2008.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On March&nbsp;17, 2009, the Company entered into a Debt Modification Agreement and Commercial Loan
Agreement (&#147;2009 Commercial Loan Agreement&#148;) with Cardinal Bank. This new revolving credit
facility replaced the Company&#146;s prior $5&nbsp;million revolving credit facility with Cardinal Bank. The
2009 Commercial Loan Agreement allows for the Company to borrow up to $5&nbsp;million. The repayment
date of the revolving credit facility was extended to June&nbsp;1, 2010 and advances under the revolving
credit facility will bear interest at a variable rate equal to the prime rate plus 0.5% with an
interest rate floor of 5%. As part of the credit facility the Company must comply with certain
financial covenants that include tangible net worth, interest coverage ratios and other measures
that the Company was either in full compliance with or had waived as of December&nbsp;31, 2008.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company also has a four-year term note with Cardinal Bank that we entered into January&nbsp;2008 in
the principal amount of $2&nbsp;million, which bears interest at the rate of 7.5% with 48 equal
principal and interest payments. At December&nbsp;31, 2008 we owed approximately $1.6&nbsp;million under the
note.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company also has a subordinated seller financed note for $2&nbsp;million in favor of Jin Kang, a
related party of the Company and the former owner and current officer of iSYS, LLC, which is due
the earlier of April&nbsp;1, 2009 or upon the filing of the Company&#146;s Form 10-K. The note bore interest
at the simple rate of 7% through December&nbsp;31, 2008, which rate increased to 10% on January 1 and
will remain at 10% through the payment of the note. On December&nbsp;31, 2008 the note and interest due
to Jin Kang was $2,140,000. On March&nbsp;17, 2009, the Company entered into a Debt Modification
Agreement and Commercial Loan Agreement with Cardinal Bank. The new agreement excluded the
subordination agreement of Jin Kang from our prior credit facility to allow for the payment of the
seller&#146;s note.
</DIV>
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<P align="center" style="font-size: 10pt"><!-- Folio -->F - 17<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>4.&nbsp;Goodwill and Intangible Assets:</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Effective January&nbsp;1, 2002, WidePoint adopted SFAS No.&nbsp;142, <I>Goodwill and Other Intangible Assets</I>.
SFAS 142 requires, among other things, the discontinuance of goodwill amortization. Under SFAS 142,
goodwill is to be reviewed at least annually for impairment; the Company has elected to perform
this review annually on December&nbsp;31<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> of each calendar year. These reviews have resulted
in no adjustments in goodwill.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The following summarizes the Company&#146;s acquisition activity for the year ended December&nbsp;31, 2008:
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>iSYS Acquisition</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On January&nbsp;8, 2008, the Company entered into a Membership Interest Purchase Agreement to acquire
100% of the voting interest of iSYS. The Company acquired the membership interest in iSYS, LLC as
part of a strategy to expand critical mass in key managed services sectors related to information
technology, identity management, and the control, management, and securitization of the devices
utilized in those efforts. Under the terms of the Agreement, the Company paid the following
consideration at the closing of the acquisition:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">$5,000,000 in cash,</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">$2,000,000 principal amount in an Installment Cash Promissory Note, which bore simple
annual interest at the initial rate of 7% through December&nbsp;31, 2008. Thereafter the simple
interest rate increased to 10% on January&nbsp;1, 2009 and will remain at 10% through the date
of maturity, which will be on the earlier of either April&nbsp;1, 2009 or the filing by the
Company of its Annual Report on Form 10-K for the year ending December&nbsp;31, 2008,</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">the issuance of 1,500,000 shares on January&nbsp;8, 2008 of Company common stock valued at
$1,800,000, based on the closing market price of the Company&#146;s common shares of $1.20 per
common share as a result of the acquisition of iSYS on January&nbsp;4, 2008; and</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">a four-year earnout provision which may require up to $6,000,000 in additional
consideration to be equally paid out in cash and common stock. The earnout amount for each
measurement year is equal to the excess of actual EBITDA over target EBITDA of $1,400,000.
In years 1-3 (beginning in 2008), the earnout amount will be equal to 67% of the excess and
in the final year 50% of the excess. The earnout is payable 50% in cash and 50% in common
stock. The Company placed 3,000,000 additional shares of Company common stock in the name
of the seller into escrow to be held subject to the satisfaction of the earnout provisions.
Amounts earned in connection with the earnout provision will be recorded as an adjustment
to the purchase price.</DIV></TD>
</TR>


</TABLE>
</DIV>
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<P align="center" style="font-size: 10pt"><!-- Folio -->F - 18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV style="margin-top: 10pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The following represent adjustments made to the purchase price under the terms of the Agreement:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Subsequent to the closing and as a requirement of the purchase agreement between
WidePoint and iSYS, an audit of the working capital of iSYS was performed by iSYS&#146;s auditor
to determine if the minimum requirement of $2,000,000 in working capital existed at the
time of the closing of the purchase. It was determined by both parties that an excess of
$143,410 existed. The excess working capital was therefore adjusted and paid to the former
sole member of iSYS and the purchase price has been subsequently adjusted.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">As a result of attaining certain performance targets under a contractual agreement for
the purchase of the iSYS mobile telecom software, iSYS was required to pay $225,000 in
additional payments that were earned in 2008. These payments represent the final
obligations by iSYS for the mobile telecom software and the $225,000 was therefore added to
goodwill.</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">As a result of attaining certain earnout provisions for year one of the earnout the
Company recognized additional purchase price consideration of $223,629, which consisted of
$184,817 payable in cash and accrued for as of December&nbsp;31, 2008 and 184,817 common shares
with a value of $38,812, which shares were released from escrow as of December&nbsp;31, 2008.</DIV></TD>
</TR>

</TABLE>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The aggregate purchase price including $102,722 of acquisition costs, purchase price adjustments
for net working capital and year one earnout amounts was $9,494,761. The allocation of the purchase
price was based upon management&#146;s estimates and assumptions. The following table summarizes the
estimated fair values of the assets acquired and liabilities assumed based on the latest available
information on iSYS, at January&nbsp;8, 2008:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Fair value of current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,670,801</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property, plant and equipment, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">59,463</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Intellectual property</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,230,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Goodwill</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,049,771</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other non current assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,117</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total fair value of assets acquired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">12,022,152</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Total fair value of current liabilities assumed</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2,527,391</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net consideration paid to acquire iSYS</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">9,494,761</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The operations of iSYS were included in the Company&#146;s results of operations beginning on January&nbsp;4,
2008, the acquisition date. The factors resulting in goodwill were iSYS&#146;s name, reputation, and
established key personnel. None of the goodwill will be deductible for tax purposes.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 19<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The accompanying consolidated pro forma information gives effect to the iSYS acquisition as if it
had occurred on January&nbsp;1, 2007 and its results of operations were included in the year ended
December&nbsp;31, 2007 for the full period. The pro forma information is included only for purposes of
illustration and does not necessarily indicate what the Company&#146;s operating results would have been
had the acquisition of iSYS been completed on January&nbsp;1, 2007. Stock compensation
expense of approximately $400,000 as the result of the issuance of stock option grants provided to
key employees of iSYS, LLC are not included in the proforma illustration.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Year Ended</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">December 31, 2007</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenue</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">34,044,865</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net income</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,094,971</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income per share, basic and diluted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">0.02</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Protexx, Inc. Asset Purchase</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On July&nbsp;31, 2008, the Company entered into an Asset Purchase Agreement (the &#147;Purchase Agreement&#148;),
by and among the Company, Protexx Acquisition Corporation, Protexx, Incorporated, Peter Letizia,
Charles B. Manuel, Jr. and William Tabor, pursuant to which Protexx Acquisition Corporation, a
wholly-owned subsidiary of the Company, purchased certain of the assets of Protexx, Inc., a
provider of software-based authentication and encryption solutions to government, military, first
responder and commercial enterprises. Under the terms of the Agreement, the Company paid the
following consideration at the closing of the acquisition:
</DIV>

<DIV style="margin-top: 10pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">$1.00 in cash,</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">the assumption of approximately $506,000, net, of assumed assets, liabilities and
direct costs associated with the asset purchase. At the time of the asset purchase Protexx
was a development stage company that did not have an established customer base and/or an
assembled workforce. Therefore the asset purchase price will be allocated to other
intangible assets, and</DIV></TD>
</TR>

<TR style="font-size: 8pt">
    <TD>&nbsp;</TD>
</TR> <TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">a two-year earnout provision which may entitle the former owners to receive earnout
payments under the Purchase Agreement in the event that the business conducted with the
assets purchased from Protexx, Inc. exceeds specified earnings targets in calendar years
2008 and 2009. Half of any such earnout payment earned shall be paid in cash, with the
remainder to be paid in Company common stock.</DIV></TD>
</TR>

</TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 20<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
 <DIV align="justify" style="font-size: 10pt; margin-top: 10pt">No earnout was attained in calendar year 2008. Protexx shall have the opportunity to earn for
calendar year 2009 a maximum earnout of $4,500,000. For calendar year 2009, Protexx must meet the
minimum EBITDA target in order to qualify for any earnout amount.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The changes in the carrying amount of goodwill for the year ended December&nbsp;31, 2008 and 2007 are as
follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Total</B></TD>
    <TD>&nbsp;</TD>
</TR>

 <TR><TD align="left" valign="top">&nbsp;</TD></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance as of January&nbsp;1, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,526,110</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Goodwill adjustments</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance as of December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,526,110</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">iSYS acquisition</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6,049,771</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Balance as of December&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,575,881</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">There were no goodwill adjustments made in 2007. In 2008, $6,049,771 in goodwill was acquired as a
result of the acquisition of iSYS, LLC. Management believes that as of December&nbsp;31, 2008 the
carrying value of our goodwill was not impaired.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 21<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>Purchased and Internally Developed Intangible Assets</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The following table summarizes purchased and internally developed intangible assets subject to
amortization:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="58%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="10" style="border-bottom: 1px solid #000000">As of December 31, 2008</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Weighted</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Average</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Gross</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Amortization</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Carrying</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Accumulated</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Period </TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Amount</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Amortization</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">(in years)</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Purchased Intangible Assets</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">ORC Intangible (Includes customer
relationships and PKI business
opportunity purchase accounting
preliminary valuations)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,145,523</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">($921,158</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">iSYS (includes customer
relationships, internal use
software and trade name)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,230,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">($257,667</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Protexx (Identity Security Software)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">506,463</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">($70,342</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,881,986</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">($1,249,167</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><I>Internally Developed Intangible Assets</I></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">ORC PKI-I Intangible (Related to
internally generated software)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">334,672</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">($242,516</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">ORC PKI-II Intangible (Related to
internally generated software)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">649,991</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">($417,159</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">6</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">ORC PKI-III Intangible (Related to
internally generated software)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">211,680</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">($47,040</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">ORC PKI-IV Intangible (Related to
internally generated software)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">42,182</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">($9,374</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">ORC PKI-V Intangible (Related to
internally generated software)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">81,308</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">3</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD align="left" valign="top">&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,319,833</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">($706,089</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">4,201,819</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">($1,965,256</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><B>Aggregate Amortization Expense</B>:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">For year ended 12/31/08</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">788,852</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><B>Estimated Amortization Expense</B>:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">For year ended 12/31/09</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">912,485</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">For year ended 12/31/10</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">643,291</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">For year ended 12/31/11</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">341,456</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">For year ended 12/31/12</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">187,666</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">For year ended 12/31/13</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">151,665</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,236,563</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The total weighted average remaining life of all of the intangibles is approximately 3&nbsp;years.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">There were no amounts of research and development assets acquired in 2008 or 2007, nor any written
off in the periods.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 22<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>5. Income Taxes:</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Income taxes for the years ended December&nbsp;31 are as follows:
</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
</TR>
 <TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current
provision/(benefit)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred
provision/(benefit)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">156,891</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">156,891</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">&#151;</TD>
    <TD nowrap>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>

<TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
<TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The provision (benefit)&nbsp;for income taxes results in effective rates, which differs from the
federal and state statutory rate as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Statutory federal income tax rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.0</TD>
    <TD nowrap>%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">34.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">State income taxes, net of federal benefit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">4.9</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Non-deductible expenses</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(1.0</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(0.5</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Decrease (increase)&nbsp;in valuation allowance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(72.7</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">151.1</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Permanent
difference related to tax deductible goodwill</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">16.8</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Expiration of state loss carryforwards and change in
state tax rate</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(189.5</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">
Other</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.3</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16.7</TD>
    <TD nowrap>)%</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">0.0</TD>
    <TD nowrap>%</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>

<TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">No tax benefit has been realized associated with the exercise of stock options in the years ended
December&nbsp;31, 2008 and 2007 because of the existence of net operating loss carryforwards. There will
be no credit to additional paid in capital for such until the associated benefit is realized
through a reduction of income taxes payable. During the years ended December&nbsp;31, 2008 and 2007,
respectively, the Company recognized $563,108 and $174,716 in expense for book purposes for
stock-based compensation. The deferred tax assets (liabilities)&nbsp;consisted of the following as of December&nbsp;31,
2008 and 2007:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="6" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred tax assets:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Net operating loss carryforwards</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">8,155,662</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,396,003</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">AMT credit</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,420</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,853</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Stock based compensation</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">443,400</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">224,539</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Other assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">81,296</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,488</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total deferred tax assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,693,778</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,669,883</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Deferred tax liabilities:</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Intangibles</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">716,570</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">348,266</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Goodwill amortization</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">156,756</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Capitalized software costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">251,375</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">276,077</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">Total deferred tax liabilities</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,124,701</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">624,343</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net deferred tax asset</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,569,077</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,045,540</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less &#151; Valuation allowance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,725,968</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(7,045,540</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net deferred income tax liability</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(156,891</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">- 0 -</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>

<TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>

<TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 23<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company has determined that its net deferred tax asset did not satisfy the recognition criteria
set forth in SFAS No.&nbsp;109 and, accordingly, established a valuation allowance for 100&nbsp;percent of
the net deferred tax asset.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company incurred a deferred income tax expense of approximately $157,000 for the year ended
December&nbsp;31, 2008, as a result of the recognition of a deferred tax liability attributable to the
differences in our treatment of the amortization of goodwill for tax purposes versus book purposes
as it relates to our acquisition of iSYS in January&nbsp;2008. Because the goodwill is not amortized for
book purposes but is for tax purposes, the related deferred tax liability cannot be reversed until some indeterminate
future period when the goodwill either becomes impaired, and/or is disposed of. The deferred tax
liability can be offset by future earnings and the deferred tax expense is a non-cash
expense. SFAS No.&nbsp;109 requires the expected timing of future reversals of deferred tax liabilities
to be taken into account when evaluating the realizability of deferred tax assets. Therefore, the
reversal of deferred tax liabilities related to the goodwill is not to be considered a source of
future taxable income when assessing the realization of deferred tax assets. Because the Company
has a valuation allowance for the full amount of the deferred income tax asset, the deferred income
liability associated with the tax deductible goodwill has been recorded and not offset against
existing deferred income tax assets.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">As of December&nbsp;31, 2008, the Company had net operating loss carry forwards of approximately
$21,000,000 to offset future taxable income. These carry forwards expire between 2010 and
2028. In assessing the realizability of deferred tax assets, management considers whether it is
more likely than not that some portion or all of the deferred tax assets will not be realized. The
ultimate realization of deferred tax assets is dependent upon generation of future taxable income
during the periods in which those temporary differences become deductible. Based upon the level of
historical losses that may limit utilization of NOL carry forwards in future periods, management is
unable to predict whether these net deferred tax assets will be utilized prior to expiration. Under
the provision of the Tax Reform Act of 1986, when there has been a change in an entity&#146;s ownership
of 50&nbsp;percent or greater, utilization of net operating loss carry forwards may be limited. As a
result of WidePoint&#146;s equity transactions, the Company&#146;s net operating losses will be subject to
such limitations and may not be available to offset future income for tax purposes. To date the
Company has not completed a &#147;Section&nbsp;382&#148; analysis.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 24<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Changes in the valuation allowance for the years ended December&nbsp;31, are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2008</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">2007</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Opening balance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(7,045,540</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(7,827,012</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Decrease (Increase)</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(680,428</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">781,472</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Ending balance</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(7,725,968</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(7,045,540</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In June&nbsp;2006, the FASB issued Interpretation 48, &#147;Accounting for Uncertainty in Income Taxes &#151; an
interpretation of FASB Statement No.&nbsp;109&#148; (FIN 48), which became effective for years beginning on
January&nbsp;1, 2007. FIN 48 addressed the determination of how tax benefits claimed or expected to be
claimed on a tax return should be recorded in the financial statements. Under FIN 48, the Company
must recognize the tax benefit from an uncertain tax position only if it is more likely than not
that the tax position will be sustained on examination by taxing authorities, based on the
technical merits of the position. The Company&#146;s assessments of its tax positions in accordance with
FIN 48 did not result in changes that had a material impact on results of operations, financial
condition or liquidity. As of December&nbsp;31, 2008 and at December&nbsp;31, 2007, the Company had no
unrecognized tax benefits. While the Company does not have any interest and penalties in the years
ended December&nbsp;31, 2008 and 2007, the Company&#146;s policy is to recognize such expenses as tax
expense.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company files U.S. federal income tax returns with the Internal Revenue Service (&#147;IRS&#148;) as well
as income tax returns in various states. The Company may be subject to examination by the IRS for
tax years 2001 through 2008. Additionally, the Company may be subject to examinations by various
state taxing jurisdictions for tax years 2001 through 2008. The Company is currently not under
examination by the IRS or any state tax jurisdiction.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>6. Stockholders Equity:</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company is authorized to issue 110,000,000 shares of common stock, $.001 par value per share.
During the twelve month period ended December&nbsp;31, 2008, in addition to the common stock
transactions discussed below, 32,000 shares of common stock were issued as the result of the
exercise of employee stock options. As of December&nbsp;31, 2008, there were 58,275,514 shares of common
stock outstanding. During the year ended December&nbsp;31, 2007, 111,800 shares of
common stock were issued as the result of the exercise of employee stock options to purchase
111,800 shares. As of December&nbsp;31, 2007 there were 52,558,697 shares of common stock outstanding.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 25<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Common Stock</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On January&nbsp;8, 2008, pursuant to the terms of a Membership Interest Purchase Agreement between the
Company, iSYS, LLC and Jin Kang, dated January&nbsp;4, 2008, the Company issued 1,500,000 shares of
Company common stock on January&nbsp;8,<SUP style="font-size: 85%; vertical-align: text-top"> </SUP>2008 at a stock price of $1.20 per common share
(based on the closing market price of the Company&#146;s common shares the issuance date) for a value of
$1,800,000. The Company also issued an additional 3,000,000 shares of Company common stock on
January&nbsp;8, 2008, which shares were delivered into escrow to be held subject to the satisfaction of
certain earnout provisions under the Membership Interest Purchase Agreement, and which shares are
subject to return to the Company in the event such earnout provisions are not achieved under the
terms of the Membership Interest Purchase Agreement. Under the Membership Interest Purchase
Agreement the initial $1.4&nbsp;million in earnings before interest, taxes, depreciation and
amortization (&#147;EBITDA&#148;) from iSYS is excluded from the earnout for the initial 3&nbsp;years, with 66% of
the value in excess of such initial $1.4&nbsp;million being paid to the former owner of iSYS, with 50%
of the amount being paid in cash and 50% being valued and released in escrow shares. In the fourth
year the value in excess of 50% is used instead of 66%, with the total earnout capped at $6
million, with $3&nbsp;million payable in cash and $3&nbsp;million payable in the release of earnout shares.
Performance of the earnout is measured annually and awarded within 30&nbsp;days following the end of the
Company&#146;s fiscal year and filing of the Company&#146;s Form 10-K for that year. As of December&nbsp;31, 2008
performance measures were attained allowing for the release of 184,817 common shares valued at
$1.00 per common share from the common shares placed into escrow at the time of the acquisition of
iSYS by the Company.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On April&nbsp;29, 2008, the Company entered into a Common Stock Purchase Agreement (&#147;Purchase
Agreement&#148;) with Deutsche Bank AG, London Branch (&#147;Deutsche Bank&#148;), and related agreements, as part
of a private equity financing to raise additional funds for working capital. Under the Purchase
Agreement, Deutsche Bank agreed to purchase 2,500,000 shares of WidePoint common stock for a total
purchase price of $2,550,000, or $1.02 per share. Pursuant to the Purchase Agreement, the Company
issued 2,500,000 shares of its common stock to Deutsche Bank on May&nbsp;2, 2008. The offer and sale of
the shares were not registered under the Securities Act of 1933, as amended, in reliance on the
&#147;private offering&#148; exemption provided under Section&nbsp;4(2) thereof.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On May&nbsp;16, 2008, the Company entered into two Common Stock Purchase Agreements (collectively, the
&#147;Endurance Purchase Agreements&#148;) with Endurance Partners, L.P. and Endurance Partners (Q.P), L.P.,
and related agreements, as part of a private equity financing to raise additional funds for working
capital. Under the Endurance Purchase Agreements, Endurance Partners, L.P. agreed to purchase
428,954 shares of WidePoint common stock for a total purchase price of $437,533, or $1.02 per
share, and Endurance Partners (Q.P.), L.P. agreed to purchase 1,071,046 shares of WidePoint common
stock for a total purchase price of $1,092,467, or $1.02 per share. Pursuant to the Endurance
Purchase Agreements, on May&nbsp;19,
2008, the Company issued 428,954 shares of its common stock to Endurance Partners, L.P. and
1,071,046 shares of its common stock to Endurance Partners (Q.P.), L.P. The offer and sale of the
shares were not registered under the Securities Act of 1933, as amended, in reliance on the
&#147;private offering&#148; exemption provided under Section&nbsp;4(2) thereof.
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 26<!-- /Folio -->
</DIV>




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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">As a result of the equity transactions to raise additional capital that we entered into during the
second quarter of 2008, the Company issued a combined cumulative total of 4,000,000 common shares
of the Company which provided gross proceeds of approximately $4.1&nbsp;million, and net proceeds after
various legal and other expenses of $3.9&nbsp;million.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On July&nbsp;31, 2008, pursuant to the terms of the Purchase Agreement between the Company, Protexx
Acquisition Corporation, a Delaware corporation, Protexx Incorporated, a Delaware corporation
(&#147;Protexx&#148;), and Peter Letizia, Charles B. Manuel, Jr. and William Tabor, the Company issued 2.5
million shares of its common stock in the name of Protexx and delivered such shares to the parties&#146;
escrow agent to be held in escrow pending the possible release of such shares as part of the
potential earnout to which Protexx may be entitled under the Purchase Agreement for calendar year
2008. The 2008 earnout was not attained. For calendar year 2009, Protexx shall have the
opportunity to earn an additional Two Million Two Hundred Fifty Thousand Dollars ($2,250,000) worth
of privately issued shares of WidePoint common stock as part of the earnout for that calendar year.
The maximum number of shares of WidePoint common stock that Protexx shall have the opportunity to
earn for calendar year 2009 shall be equal to the number of shares of WidePoint common stock that
results from Two Million Two Hundred Fifty Thousand Dollars ($2,250,000) divided by the greater of
(x)&nbsp;One Dollar and Twenty-Five Cents ($1.25) or (y)&nbsp;the average closing sale price of the WidePoint
common stock for the twenty (20)&nbsp;trading days immediately preceding December&nbsp;31, 2009.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Stock Warrants</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On November&nbsp;1, 2005, the Company issued a warrant to purchase 54,878 shares to Hawk Associates as
part of a consulting agreement in which Hawk Associates agreed to act as the Company&#146;s investor
relations representative. The warrant has a term of 5&nbsp;years. We are accounting for this award in
accordance with EITF 96-18.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On October&nbsp;27, 2004 and November&nbsp;22, 2004, the Company issued two warrants to purchase 30,612
shares and 5,556 shares, respectively, to Liberty Capitol as part of a consulting agreement in
which Liberty Capitol assisted the Company in arranging its senior debt financing with RBC-Centura
Bank. The warrants have a term of 5&nbsp;years. The Company used a fair-value option pricing model to
value these stock warrants at approximately $14,291. This value has been reflected as part of stock
warrants in the stockholders&#146; equity section of the consolidated balance sheet.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 27<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>7. Stock Options and Stock-Based Compensation:</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 10pt"><I>2008 Stock Incentive Plan</I>

</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Effective December&nbsp;18, 2007, the Board of Directors of the Company adopted the 2008 Stock Incentive
Plan (the &#147;2008 Plan&#148;), which was adopted by the Company&#146;s shareholders on December&nbsp;18, 2008. The
2008 Plan is intended to replace the 1997 Stock Incentive Plan and the 1997 Directors Formula Stock
Option Plan, discussed below. The 2008 Plan is administered by the Compensation Committee and
authorizes the grant or award of incentive stock options, non-qualified stock options, stock
appreciation rights, dividend equivalent rights, performance unit awards and phantom shares. The
2008 Plan is intended to (a)&nbsp;provide incentive to officers and key employees of the Company and its
affiliates to stimulate their efforts toward the continued success of the Company and to operate
and manage the business in a manner that will provide for the long-term growth and profitability of
the Company; (b)&nbsp;encourage stock ownership by directors, officers and key employees by providing
them with a means to acquire a proprietary interest in the Company, acquire shares of the Company&#146;s
common stock, or to receive compensation which is based upon appreciation in the value of the
Company&#146;s common tock; and (c)&nbsp;provide a means of obtaining, rewarding and retaining key personnel
and consultants. The 2008 Plan will terminate on December&nbsp;17, 2017.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">A total of 6,015,438 shares of common stock are authorized for possible issuance under the 2008
Plan. There were 4,535,438 shares available for issuance under the 2008 Plan at December&nbsp;31, 2008.
Of such shares, 4,535,438 shares can be issued for future grants. At December&nbsp;31, 2008, options to
purchase a total of 1,480,000 shares of common stock, at prices ranging from $0.81 to $1.22 per
share, were outstanding.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>1997 Stock Incentive Plan</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In May&nbsp;1997, the Company adopted the 1997 Stock Incentive Plan (the &#147;1997 Plan&#148;). The purpose of
the 1997 Plan was to provide additional compensation to employees, officers, and consultants of the
Company or its affiliates. Under the terms of the 1997 Plan, as amended, 10,000,000 shares of
common stock were reserved for issuance as incentive awards under the 1997 Plan. The number of
shares of Company common stock associated with any forfeited stock incentive were added back to the
number of shares that could be issued under the 1997 Plan. Awards under the 1997 Plan and their
terms were determined by a committee (the &#147;Committee&#148;) that was selected by the Board of Directors.
The 1997 Plan permitted the Committee to make awards of a variety of equity-based incentives
(collectively, &#147;Stock Incentives&#148;).
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The 1997 Plan allowed for the grant of incentive stock options and nonqualified stock options. The
exercise price of the options was established by the Committee. The term of an option will be
specified in the applicable agreement, provided, however, that no option could be exercised ten
years after the date of grant. In addition to stock options, the 1997 Plan also allowed for the
grant of other Stock Incentives, including stock appreciation rights, stock awards, phantom shares,
performance unit appreciation rights and dividend equivalent rights. Stock Incentives granted
under the 1997 Plan are subject to the terms prescribed by the Committee in accordance with the
provisions of the 1997 Plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">No further awards will be made under the 1997 Plan.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 28<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>1997 Directors Formula Stock Option Plan</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">In May&nbsp;1997, the Company adopted the 1997 Directors Formula Stock Option Plan (the &#147;Director
Plan&#148;). The Company reserved 120,000 shares of common stock to underlie stock options granted
under the Director Plan. Any shares associated with forfeited options were added back to the
number of shares that underlie stock options to be granted under the Director Plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Awards of stock options under the Director Plan were determined by the express terms of the
Director Plan. Generally, only non-employee directors of the Company who did not perform services
for the Company were eligible to participate in the Director Plan. The Director Plan provided for
option grants to purchase 12,000 shares of common stock upon a non-employee director&#146;s initial
appointment to the Board of Directors. Options granted under the Director Plan vest immediately to
8,000 shares of common stock underlying such options, vest to an additional 2,000 shares after the
director&#146;s completion of the first year of continued service to the Company, and vest to the
remaining 2,000 shares after the completion of the second year of continued service to the Company.
Each option granted pursuant to the Director Plan was evidenced by an agreement and is subject to
additional terms as set forth in the agreement. Options become exercisable when vested and expire
ten years after the date of grant, subject to any shorter period that may be provided in the
agreement.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">No further awards will be made under the Director Plan.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The following is a summary of the WidePoint options and management warrant activity:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="58%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Weighted-</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Number of</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Option Price</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Average</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Shares</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Range</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Exercise Price</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding, December&nbsp;31, 2006</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,103,261</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">0.07 &#150; 2.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.36</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD align="left" valign="top">&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">124,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">0.93 &#150; 0.93</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.93</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(111,800</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">0.07 &#150; 0.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.31</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Canceled or expired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(30,250</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">0.45 &#150; 1.35</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.48</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding, December&nbsp;31, 2007</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">7,085,211</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">0.07 &#150; 2.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.37</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR><TD align="left" valign="top">&nbsp;</TD></TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Granted</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,480,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">0.81 &#150; 1.22</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.87</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Exercised</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(32,000</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">0.45 &#150; 0.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:30px; text-indent:-15px">Canceled or expired</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(9,800</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">0.45 &#150; 0.45</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Outstanding, December&nbsp;31, 2008</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">8,523,411</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right">0.07 &#150; 2.80</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0.45</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 29<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>8.&nbsp;Commitments and Contingencies:</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The company has entered into a number of leases for its office locations as described above in Note
1. The Company&#146;s commitments and contingencies are as follows for its operating leases,
which include those leases, and other operating leases. The terms of the operating leases run
through 2014 and the total commitments per year are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left"><B>Year Ended</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2"><B>Operating</B></TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>December 31,</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>Leases</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:45px; text-indent:-15px">2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">417,605</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">339,208</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">412,753</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:45px; text-indent:-15px">2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">426,004</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Beyond 2012</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">434,750</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px"><B>Total</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2,030,320</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Capital Leases
</DIV>



<DIV align="justify" style="font-size: 10pt; margin-top: 10pt; margin-left: 0%">The Company has leased certain equipment under capital lease arrangements.
Future minimum payments required under the leases are as follows:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="77%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Year</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2009</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">118,819</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2010</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">87,004</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">2011</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">12,949</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:30px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">218,772</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Less portion representing interest</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(16,383</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net minimum lease payments
Under capital leases</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">202,389</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Current portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">&nbsp;</TD>
    <TD align="right">(107,141</TD>
    <TD nowrap>)</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long-term portion</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">95,248</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Body --></TABLE>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The capital lease entered into in the year ended December&nbsp;31, 2008 is for a period of three years.
Total carrying value of assets under capital leases at December&nbsp;31, 2008 was $169,305.
Depreciation for the year ended December&nbsp;31, 2008 was $110,181, and accumulated depreciation at
December&nbsp;31, 2008 was $192,899.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Employment Agreements</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company has employment agreements with certain executives that set forth compensation levels
and provide for severance payments in certain instances.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><I>Litigation</I>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The Company is not involved in any material legal proceedings.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 30<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>9.&nbsp;Segment reporting:</B>
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Segments are defined by SFAS No.&nbsp;131, &#147;Disclosures about Segments of an Enterprise and Related
Information,&#148; as components of a company in which separate financial information is available and
is evaluated by the chief operating decision maker, or a decision making group, in deciding how to
allocate resources and in assessing performance.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">During 1998, the Company adopted SFAS No.&nbsp;131 and until December&nbsp;31, 2005 the Company was comprised
of a single segment, which was comprised of our consulting services segment within our Commercial
and Federal Government Marketplaces. As of January&nbsp;1, 2006, the Company added a second segment,
which consists of PKI credentialing and managed services. The PKI credentialing and managed
services segment provides PKI credentialing and managed services to U.S. federal agencies and
federal contractors as a result of regulatory compliance requirements.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">Segment operating income consists of the revenues generated by a segment, less the direct costs of
revenue and selling, general and administrative costs that are incurred directly by the segment.
Unallocated corporate costs include costs related to administrative functions that are performed in
a centralized manner that are not attributable to a particular segment. These administrative
function costs include costs for corporate office support, all office facility costs, costs
relating to accounting and finance, human resources, legal, marketing, information technology and
company-wide business development functions, as well as costs related to overall corporate
management.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The following table sets forth selected segment and consolidated operating results and other
operating data for years ended December&nbsp;31:.
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="5" align="left"><B>Mobile Telecom Managed Services</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenues, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">20,989,371</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 0px solid #000000">$</TD>
    <TD align="right" style="border-bottom: 0px solid #000000">1,400,183</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-bottom: 0px solid #000000">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 0px solid #000000">$</TD>
    <TD align="right" style="border-bottom: 0px solid #000000">4,265,700</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 0px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-bottom: 0px solid #000000">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px"><B>Consulting services</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenues, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,714,460</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">10,566,366</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 0px solid #000000">$</TD>
    <TD align="right" style="border-bottom: 0px solid #000000">269,016</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 0px solid #000000">$</TD>
    <TD align="right" style="border-bottom: 0px solid #000000">527,861</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 0px solid #000000">$</TD>
    <TD align="right" style="border-bottom: 0px solid #000000">7,293,511</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 0px solid #000000">$</TD>
    <TD align="right" style="border-bottom: 0px solid #000000">4,706,116</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD colspan="5" align="left"><B>PKI Credentialing and Managed Services</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenues, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,755,122</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">3,563,073</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income from operations</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 0px solid #000000">$</TD>
    <TD align="right" style="border-bottom: 0px solid #000000">7,105</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 0px solid #000000">$</TD>
    <TD align="right" style="border-bottom: 0px solid #000000">133,159</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 0px solid #000000">$</TD>
    <TD align="right" style="border-bottom: 0px solid #000000">1,512,673</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 0px solid #000000">$</TD>
    <TD align="right" style="border-bottom: 0px solid #000000">1,490,195</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD colspan="5" align="left"><B>Total Company</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Revenues</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">35,458,953</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">14,129,439</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Loss from operations before
depreciation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(566,962</TD>
    <TD nowrap>)(1)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(524,430</TD>
    <TD nowrap>)(2)</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Depreciation expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(160,565</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(83,458</TD>
    <TD nowrap>)</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 31<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="66%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="9%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2008</B></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000"><B>2007</B></TD>
    <TD>&nbsp;</TD>
</TR>


<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Interest (expense)&nbsp;income, net</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(202,107</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">90,709</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">$</TD>
    <TD align="right">(3,927</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Income tax expense</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">$</TD>
    <TD align="right" style="border-bottom: 1px solid #000000">(156,891</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000">&nbsp;</TD>
    <TD align="right" style="border-bottom: 1px solid #000000">&#151;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Net loss</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">$</TD>
    <TD align="right" style="border-bottom: 3px double #000000">(1,090,452</TD>
    <TD nowrap>)</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 3px double #000000">$</TD>
    <TD align="right" style="border-bottom: 3px double #000000">(517,179</TD>
    <TD nowrap>)</TD>
</TR>
<TR valign="bottom" style="background: #cceeff; padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Corporate assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 3px double #000000">$</TD>
    <TD align="right" style="border-bottom: 3px double #000000">10,509,734</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 3px double #000000">$</TD>
    <TD align="right" style="border-bottom: 3px double #000000">5,067,645</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 3px double #000000">$</TD>
    <TD align="right" style="border-bottom: 3px double #000000">23,581,618</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" style="border-bottom: 3px double #000000">$</TD>
    <TD align="right" style="border-bottom: 3px double #000000">11,263,956</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>




<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR style="font-size: 6pt">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="96">&nbsp;</TD>
</TR>
<TR valign="top">
    <TD nowrap align="left">(1)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes $221,077 in amortization expense in cost of sales associated with the purchase
of ORC, $70,342 in amortization expense in cost of sales associated with internally developed
intangibles and $257,667 in amortization expense in cost of sales associated with the purchase
of ISYS, which is not allocated among the segments and includes
$1,854,745 in unallocated
corporate costs in sales, general and administrative and depreciation expense.</DIV></TD>
</TR>

<TR style="font-size: 3pt"><TD>&nbsp;</TD></TR>

<TR valign="top">
    <TD nowrap align="left">(2)</TD>
    <TD>&nbsp;</TD>
    <TD><DIV style="text-align: justify">Includes $221,078 in amortization expense in cost of sales associated with the purchase
of ORC, which is not allocated among the segments and includes $964,372 in unallocated
corporate costs in sales, general and administrative expense.</DIV></TD>
</TR>

</TABLE>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">The accounting policies of the segments are the same as those described in the Summary of
Significant Accounting Policies (Note 2). The Company does not allocate selling, general and
administrative expenses, income taxes, interest or other income and expense to segments.
</DIV>

<DIV align="justify" style="font-size: 10pt; margin-top: 10pt"><B>10. Subsequent Events.</B>
</DIV>


<DIV align="justify" style="font-size: 10pt; margin-top: 10pt">On March&nbsp;17, 2009, the Company entered into a Debt Modification Agreement and Commercial Loan
Agreement (&#147;2009 Commercial Loan Agreement&#148;) with Cardinal Bank. This new revolving credit
facility replaces the Company&#146;s prior $5&nbsp;million revolving credit facility with Cardinal Bank. The
2009 Commercial Loan Agreement allows for the Company to borrow up to $5&nbsp;million. The repayment
date of the revolving credit facility was extended to June&nbsp;1, 2010 and advances under the revolving
credit facility will bear interest at a variable rate equal to the prime rate plus 0.5%.
</DIV>
<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->F - 32<!-- /Folio -->
</DIV>
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif; margin-left: .25in; width: 7.20in">

<!-- link1 "EXHIBIT INDEX" -->
<DIV align="left"></DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 10pt"><B>EXHIBIT INDEX</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head --><TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:20px; text-indent:-0px">21
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify" valign="top">Subsidiaries of WidePoint Corporation (Filed herewith).</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:12px; text-indent:-0px">23.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify" valign="top">Consent of Moss Adams LLP (Filed herewith).</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:12px; text-indent:-0px">31.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify" valign="top">Certification of Chief Executive Officer Pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of
2002 (Filed herewith).</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:12px; text-indent:-0px">31.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify" valign="top">Certification of Chief Financial Officer Pursuant to Section&nbsp;302 of the Sarbanes-Oxley Act of
2002 (Filed herewith).</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="padding-top: 1px">
    <TD valign="top"><DIV style="margin-left:20px; text-indent:-0px">32
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="justify" valign="top">Certification of Chief Executive Officer and Chief Financial Officer Pursuant to
Section&nbsp;906 of the Sarbanes-Oxley Act of 2002 (Filed herewith).</TD>
</TR>
<!-- End Table Body --></TABLE>
</DIV>

<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>




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<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Project" -->
<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 1-TNR" FSL="Project" -->
<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>FORM 10-K/A No. 1 </FONT></H1>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Pursuant to Section 13
or 15(d) of the Securities Exchange Act of 1934  </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<P ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amendment No. 1 to
Annual Report on Form 10-K for the year ended December 31, 2008  </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>WIDEPOINT CORPORATION</FONT><HR WIDTH=50% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>(Exact name of registrant as specified in its charter.)</FONT></TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=33% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>Delaware</FONT><HR WIDTH=50% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD WIDTH=34% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>001-33035</FONT><HR WIDTH=50% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD WIDTH=33% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>52-2040275</FONT><HR WIDTH=50% SIZE=1 COLOR=BLACK NOSHADE></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</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 or organization)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>File Number)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>Identification No.)</FONT></TD></TR>
</TABLE>
<BR>

<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=67% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>One Lincoln Centre, Oakbrook Terrace, IL</FONT><HR WIDTH=50% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD WIDTH=33% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>60181</FONT><HR WIDTH=50% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>(Address of principal executive offices)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>(Zip Code)</FONT></TD></TR>
</TABLE>
<BR>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Registrant&#146;s phone number, including area code:</FONT></TD>
     <TD WIDTH=50% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>(630) 629-0003</FONT><HR WIDTH=50% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
</TABLE>





<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
undersigned registrant hereby amends the following items, financial statements, exhibits
or other portions of its Annual Report on Form 10-K for the year ended December 31, 2008,
as set forth in the pages attached hereto: </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=5% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
     <TD WIDTH=10% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Part III</FONT></TD>
     <TD WIDTH=10% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Item 10</FONT></TD>
     <TD WIDTH=75% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Directors, Executive Officers and Corporate Governance</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></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Item 11</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Executive Compensation</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></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Item 12</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Security Ownership of Certain Beneficial Owners and</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></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Management and Related Stockholder Matters</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></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Item 13</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Certain Relationships and Related Transactions, and</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></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director Independence</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></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Item 14</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Principal Accountant Fees and Services</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>Part IV</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Item 15(b)</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Exhibits</FONT></TD></TR>
</TABLE>




<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<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 amendment to be signed on its behalf by the undersigned, thereunto duly authorized. </FONT></P>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <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>Date: April 30, 2009</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>By:&nbsp;&nbsp;<U>/s/ James T. McCubbin</U></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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Executive Vice President and</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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer</FONT></TD></TR>
</TABLE>




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

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>This Form 10-K/A is being filed as
Amendment No.&nbsp;1 to our Annual Report on Form 10-K for the fiscal year ended
December&nbsp;31, 2008 and originally filed on March 31, 2009, for purposes of (i) adding
information under Items 10, 11, 12, 13 and 14 of Part III, and (ii) amending Item 15(b) to
include a material contract and certifications of the Company&#146;s Chief Executive
Officer and Chief Financial Officer as exhibits 31.1A, 31.2A, and 32A attached hereto. </FONT></P>

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

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-TNR" FSL="Project" -->
<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ITEM 10. </B> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>DIRECTORS,
EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.</U></B> </FONT></TD>
</TR>
</TABLE>
<BR>



<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following sets forth information regarding the directors, executive officers and certain
significant employees of the Company as of March 31, 2009: </FONT></P>




<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH align=left><FONT FACE="Times New Roman" SIZE=2>Name</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2>Age</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2>Position</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=20% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Steve Komar</FONT></TD>
     <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>67</FONT></TD>
     <TD WIDTH=70% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Chief Executive Officer, Director, and Chairman of the Board</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>James McCubbin</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>45</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Executive Vice President, Chief Financial Officer, Secretary and Director</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Ron Oxley</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>62</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Executive Vice President Sales and Marketing, and Director</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>James Ritter</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>64</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director, Chairman of the Compensation and Nominating Committees</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Morton Taubman</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>65</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director, Chairman of the Audit Committee</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Otto Guenther</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>67</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>George Norwood</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>66</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director</FONT></TD></TR>
<TR VALIGN=top>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Daniel Turissini</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>49</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Vice President, Chief Technology Officer and Chief Executive Officer and President-Operational Research Consultants, Inc.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Jin Kang</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>44</FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>President of iSYS LLC</FONT></TD></TR>
</TABLE>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Steve Komar</I></B><I></I> has
served as a director since December 1997 and became Chairman of the Board of Directors in
October 2001. Mr. Komar has also served as Chief Executive Officer since December 2001.
From June 2000 until December 2001, Mr. Komar served as a founding partner in C-III
Holdings, a development stage financial services company. From 1991 to June 2000, Mr.
Komar served as Group Executive Vice President of Fiserv, Inc., a company that provides
advanced data processing services and related products to the financial industry. From
1980 to 1991, Mr. Komar served in a number of financial management positions with
CitiGroup, including the role of Chief Financial Officer of Diners Club International and
Citicorp Information Resources, respectively. Mr. Komar is a graduate of the City
University of New York with a Bachelor of Science Degree in Accounting and holds a Masters
Degree in Finance from Pace University. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>James McCubbin</I></B><I></I>
has served as a director and as our Secretary since November 1998. Mr. McCubbin was
promoted to Executive Vice President and Chief Financial Officer of WidePoint in May 2008.
&nbsp;Prior to that time, from August 1998 till May 2008, Mr. McCubbin served as
WidePoint&#146;s Vice President and Chief Financial Officer. &nbsp;Prior to that time,
from December 1997 to August 1998, Mr. McCubbin served as WidePoint&#146;s Vice President,
Controller, Assistant Secretary and Treasurer. &nbsp;Prior to the commencement of his
employment with WidePoint in November 1997, Mr. McCubbin held various financial
consulting, management, and/or staff positions with several companies in the financial and
government sectors including but not limited to Memtec America Corporation,<B>&nbsp;</B>a
continuous microfiltration water technology company<B>,</B>&nbsp;McBee Consulting, a
healthcare consulting firm, Martin Marietta presently known as Lockheed Martin, a
multinational aerospace manufacturer and advanced technology company formed in 1995 by the
merger of Lockheed Corporation with Martin Marietta Corporation, and Ernst and Young, an
international auditing and accounting firm. &nbsp;Mr. McCubbin presently serves on the
Board of Directors of Tianjin Pharmaceutical Company. &nbsp;Tianjin engages in the
development, manufacture, marketing, and sale of traditional Chinese medicines and other
pharmaceuticals in the Peoples Republic of China. &nbsp;Mr. McCubbin presently serves as
Tianjin&#146;s Chairman of its Audit Committee, Nominating Committee, and Compensation
Committee. &nbsp;Mr. McCubbin was on the Board of Directors of Redmile Entertainment, a
worldwide developer and publisher of interactive entertainment software, and served as its
Audit Committee Chairman until his resignation on March 1, 2008. &nbsp;Mr.
McCubbin&nbsp;provides financial consulting services to small cap companies and has either
served on or assisted various Boards of Directors over the past seven years. &nbsp;Mr.
McCubbin is a graduate of the University of Maryland with a Bachelor of Science Degree in
Finance and a Masters Degree in International Management. </FONT></P>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Lieutenant (Ret.) General Otto
Guenther</I></B><I></I>, has served as a director since his appointment on August 15,
2007. General Guenther serves as a member of the Corporate Governance and Nominating
Committee. He joins the board after a distinguished 34-year military career, including
serving as the Army&#146;s first chief information officer, followed by nearly a decade of
leadership within the federal information technology industry. His key assignments
included the following: commanding general for Fort Monmouth, NJ, and the Communications
Electronics Command; program executive officer for the Army&#146;s tactical communications
equipment; project manager for the Tactical Automated Data Distribution System; and
commander for the Defense Federal Acquisition Regulatory Council. General Guenther
recently retired from Northrop Grumman Mission Systems, where he served as the Sector Vice
President and General Manager of Tactical Systems Division. While there, he oversaw
battlefield digitization, command and control, and system engineering activities for the
U.S. Army. Under his leadership, the division grew to approximately 1,650 employees across
several locations and completed over $700 million in acquisitions. Previously General
Guenther was general manager of Computer Associates International&#146;s Federal Systems
Group, a $300 million operation providing IT products and services to the federal market
area. General Guenther was awarded several honors by the Army, including the Distinguished
Service Medal, Legion of Merit (Oak Leaf Cluster), Defense Superior Service Medal (Oak
Leaf Cluster), Joint Service Medal, and Army Commendation Medal. Recognized for his work
within the industry, he also received several Armed Forces Communications and Electronics
Association awards and was inducted into Government Computer News Hall of Fame. General
Guenther received a bachelor&#146;s degree in economics from Western Maryland College, now
called McDaniel College, and a master&#146;s degree in procurement and contracting from
the Florida Institute of Technology. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Major (Ret.) General George
Norwood</I></B><I></I> has served as a director since his appointment on August 15, 2007.
General Norwood serves as a member of the Audit Committee and the Compensation Committee.
General Norwood is currently President and Chief Executive Officer of Norwood &amp;
Associates, Inc. of Tampa, Fla., which maintains extensive international and U.S. networks
of government, military and private sector contacts while providing technical and
strategic planning expertise to corporations pursuing defense-related opportunities.
General Norwood previously served as Deputy Chief of Staff for the United Nations Command
and United States Forces in Korea from 1995 to 1997. He also served as the U.S. member of
the United Nations Command&#146;s Military Armistice Commission responsible for general
officer level negotiations with North Korea. General Norwood served as Commander of the
35th Fighter Wing at Misawa Air Base in Japan in the early/mid-1990&#145;s, and earlier as
Deputy Inspector General and Director of Inspections for the U.S. Air Force in Washington,
D. C. Other key assignments included the following: senior leadership positions in F-16
fighter wings in Europe; War Reserve Material and Munitions Planning, Programming, and
Budgeting expert at the Pentagon; and F-16 fighter squadron Commander and Operations
Officer at Nellis Air Force Base in Nevada. He also served two combat tours in Southeast
Asia in A-1 and F-4 aircraft. General Norwood currently serves on the boards of directors
of Airborne Tactical Advantage Company and Scalable Network Technologies. He is on the
board of strategic advisors of AtHoc, Inc. General Norwood received a bachelor&#146;s
degree in mathematics from San Diego State University and a master&#146;s degree in
business administration from Golden Gate University. He is a graduate of the National War
College and Defense Language Institute. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>James Ritter</I></B><I></I> has
served as a director since December 1999 and as Assistant Secretary since December 2002,
resigning from the position of Assistant Secretary in 2008. Mr. Ritter is the Chairman of
the Corporate Governance and Nominating Committee and the Compensation Committee and is
also a member of the Audit Committee. Mr. Ritter is the retired Corporate Headquarters
Chief Information Officer of Lockheed Martin Corporation. Prior to his retirement in
February 2001, Mr. Ritter was employed at Lockheed Martin Corporation for over 32 years in
various positions involving high level IT strategic planning and implementation,
e-commerce development, integrated financial systems, and large-scale distributed systems. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Morton Taubman</I></B><I></I>
has served as a director since his appointment on March 10, 2006. Mr. Taubman is also the
Chairman of the Audit Committee and is a member of the Compensation Committee and the
Corporate Governance and Nominating Committee. Mr. Taubman is an attorney and certified
public accountant with an expertise in corporate law, government contracting and
international relations. Prior to forming the law firm Leser, Hunter, Taubman &amp;
Taubman, Mr. Taubman was the senior vice president and general counsel to DIGICON
Corporation, an IT and telecommunications company. Before joining DIGICON, he was a senior
and executive partner at Ginsburg, Feldman and Bress, LLP, an established Washington, D.C.
firm that provided expertise in tax, telecommunications, litigation, federal regulatory
issues, capital reformation, government contracting and international issues. Before that,
he was a founding partner at a number of law firms, was the partner-in-charge of the
Washington D.C. office of Laventhol &amp; Harworth, a partner at Coopers &amp; Lybrand and
a special agent with the U.S. Treasury Department. Mr. Taubman has been an adjunct law
professor for more than 15 years at Georgetown University and George Washington
University. He presently also serves as special corporate counsel to Global Options Group,
Inc. and Global Options, Inc., a company focusing on risk management and special
government projects and as general counsel to Interior Systems, Inc. d/b/a ISI
Professional Services, a United States federal contractor. He holds a bachelor&#146;s
degree in accounting from the University of Baltimore, a Juris Doctor degree from the
University of Baltimore Law School and a Master of Law degree from Georgetown University. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Ronald Oxley</I></B><I></I> has
served as a director since his appointment on August 15, 2006. Mr. Oxley became the
Executive Vice President &#150; Sales and Marketing for the Company in May 2008 and as a
result, resigned from his position as Chairman of the Corporate Governance and Nominating
Committee, and member of the Audit Committee and Compensation Committee. Mr. Oxley has had
a distinguished career within the U.S. Federal Government and industry. His U.S. federal
government career spanned almost 28 years with the Office of the Secretary of Defense and
with the Departments of the Navy, Army and Air Force where he held various senior level
executive positions. The last nine years of his federal career was at the Office of the
Secretary of Defense where he monitored the development of the office&#146;s defense-wide
strategic vision and implementation plan for command, control, communications,
intelligence, surveillance and reconnaissance. Subsequent to his U.S. federal government
career he also served as a senior level executive with several prominent U.S. federal
government contractors that included Litton/PRC, Emergent Information Technologies and L-3
Communications. Mr. Oxley currently serves as an executive vice president of ARC
International Corporation. ARC specializes in providing domestic and international
middle-market and emerging growth companies with a broad range of strategic advisory
services. Prior to joining ARC in 2004, Mr. Oxley was president and general manager of L-3
Communications Analytics Corporation based in Vienna, Virginia. L-3 Communications is a
provider of information technology solutions to both industry and government, primarily in
the aerospace and defense arena. Mr. Oxley served in the same capacity at Emergent
Information Technologies, Inc. prior to being acquired by L-3 Communications in November
2001. He came to Emergent in April 2000, from Litton/PRC Inc, where he was senior vice
president of business development and marketing. Before joining Litton/PRC in 1996, Mr.
Oxley spent more than 28 years in the U.S. federal government, during which he was awarded
a series of Meritorious Service Awards and was nominated for a Presidential Executive
Career Award in 1996. Mr. Oxley holds a top secret SCI clearance with life style
polygraph. He holds a Master of Science degree in systems management from the University
of Southern California and a Bachelor of Science degree in business administration from
California State University. He served in the U.S. Army from 1966 to 1968, including a
tour of duty in Vietnam. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Daniel Turissini</I></B><I></I>
has served as the Vice President and Chief Technology Officer of WidePoint since December
2005. Mr. Turissini has also served as the Chief Executive Officer of Operational Research
Consultants, Inc. (&#147;ORC&#148;), a wholly-owned subsidiary, since our acquisition of
ORC on October 25, 2004. Mr. Turissini was a founding partner of ORC in 1991 and served as
ORC&#146;s principal operating officer since its inception. An innovator in systems
engineering and integration, Mr. Turissini has focused in the field of Information
Assurance and Information Security while at ORC. While under his leadership, ORC has
played a key systems integrator role for the DoD Public Key Infrastructure (PKI), the
standard information assurance program being implemented across all branches of the DoD (a
user community of approximately 36 million personnel, devices, and applications) and has
been certified as the first of three certificate authorities for the Department of
Defense&#146;s External Certificate Authority (ECA) program and by the General Services
Administration to provide Access Certificates for Electronic Services (ACES). From 1982
until 1991, Mr. Turissini held various systems engineering and acquisition management
positions in support of the U.S. Federal Government with a variety of companies including
Tracor Applied Sciences, Inc., National Technologies Associates, Inc., and Gibbs and Cox,
Inc. From 1981 to 1982, Mr. Turissini served in the Merchant Marine on various vessels as
Engineer and Mate. Mr. Turissini is a graduate of the United States Merchant Marine
Academy with a Bachelor of Science Degree in Engineering and holds a Masters of
Engineering Administration from The George Washington University. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I>Mr.           Kang</I></B><I></I> has
served as the President of WidePoint subsidiary iSYS LLC           since its acquisition
in January 2008. He founded the company in 1999 and has           successfully managed
the company as its President from its inception. Mr. Kang           has over 20 years of
professional experience in the Federal Government           Information Technology
Services field. Prior to starting iSYS, Mr. Kang was a           Division Manager for
Science Applications International Corporation (SAIC). His           responsibilities
included the Combined DNA Index System (CODIS), a marquee           program for the FBI
Laboratory Division. As the Engineering Manager for Northrop           Grumman
Corporation, Mr. Kang played a critical role in the management of the           Defense
Medical Information Systems/Systems Integration, Design Development,           Operations
and Maintenance Services (D/SIDDOMS) contract from its inception with           zero
revenues to a program of $190M in sales. He had management responsibility           for
all personnel and contract performance for the D/SIDDOMS contract for U.S.
          Health Affairs. Mr. Kang received a Bachelor and a Masters Degrees in Computer
          Science and Computer Systems Management from the University of Maryland.  </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
executive officers are elected by and serve at the discretion of the board of directors. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
are no family relationships among any of our executive officers or directors. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Code of Ethics </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company&#146;s Board of Directors has a code of ethics for the chief executive and
principal financial and accounting officers. The Company has posted a copy of the code on
its website located at <U>www.widepoint.com</U>. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Audit Committee </FONT></H1>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Default" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company has an Audit Committee. The members of the Audit Committee are: </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>&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>Morton
S. Taubman (Chair)</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>James
Ritter </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>George
Norwood </FONT></TD>
</TR>
</TABLE>
<BR>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Audit
Committee met four times in 2008. The primary functions of this Committee are to: appoint
(subject to shareholder approval), and be directly responsible for the compensation,
retention and oversight of, the firm that will serve as independent accountants to audit
our financial statements and to perform services related to the audit (including the
resolution of disagreements between management and the independent accountants regarding
financial reporting); review the scope and results of the audit with the independent
accountants; review with management and the independent accountants, prior to the filing
thereof, the annual and interim financial results (including Management&#146;s Discussion
and Analysis) to be included in Forms 10-K and 10-Q, respectively; consider the adequacy
and effectiveness of our internal accounting controls and auditing procedures; review,
approve and thereby establish procedures for the receipt, retention and treatment of
complaints received by WidePoint regarding accounting, internal accounting controls or
auditing matters and for the confidential, anonymous submission by employees of concerns
regarding questionable accounting or auditing matters; review and approve related person
transactions in accordance with the policies and procedures of the Company; and consider
the accountants&#146; independence and establish policies and procedures for pre-approval
of all audit and non-audit services provided to WidePoint by the independent accountants
who audit its financial statements. At each meeting, Committee members meet privately with
representatives of Moss Adams LLP, our independent accountants, and with WidePoint&#146;s
Executive Vice President and Chief Financial Officer. The Board has determined that Mr.
Taubman, an independent director, satisfies the &#147;accounting or related financial
management expertise&#148; requirements set forth in the NYSE AMEX Corporate Governance
Rules, and has designated Mr. Taubman as the &#147;audit committee financial expert&#148;,
as such term is defined by the SEC. </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>SECTION 16(a) BENEFICIAL
OWNERSHIP REPORTING COMPLIANCE </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Section
16(a) of the Securities Exchange Act of 1934, as amended, requires the Company&#146;s
officers and directors, and persons who own more than 10% of a registered class of the
Company&#146;s equity securities, to file reports of securities ownership and changes in
such ownership with the Securities and Exchange Commission. Statements of Changes in
Beneficial Ownership of Securities on Form 4 are generally required to be filed before the
end of the second business day following the day on which the change in beneficial
ownership occurred. Based on a review of Forms 3 and 4 filed during 2008, Mr. James Ritter
failed to timely file one Form 4 reporting one transaction. </FONT></P>




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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ITEM 11. </B> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>EXECUTIVE
COMPENSATION</U>.</B> </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table contains information about the Chief Executive Officer and the four other
most highly paid executive officers whose total compensation earned during 2008 exceeded
$100,000. </FONT></P>









<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1>Name and<BR>
Principal Position</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Year</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Salary<BR>
($)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Bonus<BR>
($)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Stock<BR>
Awards<BR>
($)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Option<BR>
Awards<BR>
($)(1)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Non-Equity<BR>
Incentive Plan<BR>
Compensation<BR>
($)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Nonqualified<BR>Deferred<BR>
Compensation<BR>
Earnings<BR>
($)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>All Other<BR>
Compensation<BR>
($)(2)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Total<BR>
($)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=18% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Steve Komar</FONT></TD>
     <TD WIDTH=6% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>2008</FONT></TD>
     <TD WIDTH=6% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>94,167</FONT></TD>
     <TD WIDTH=6% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD WIDTH=12% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD WIDTH=12% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>7,200</FONT></TD>
     <TD WIDTH=10% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>101,367</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Chief Executive</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>2007</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>40,0 00</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>7,200</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>47,200</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Officer</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>James McCubbin</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>2008</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>141,875</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>40,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>6,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>187,875</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Executive Vice</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>2007</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>119,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>6,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>125,000</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>President, Chief</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Financial Officer,</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Secretary and Treasurer</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>Ron Oxley (3)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>2008</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>112,500</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>202,500</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>7,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>322,000</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Executive</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>2007</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>12,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>12,000</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Vice President</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Sales &amp; Marketing</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>Dan Turissini</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>2008</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>225,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>225,000</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Chief Technology</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>2007</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>225,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>50,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>275,000</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Officer and Chief</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Executive Officer</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>of ORC (4)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>Jin Kang (5)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>2008</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>225,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>267,750</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>492,750</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>President, iSYS</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>2007</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD></TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
(1)
               Reference is made to Note 2 to the consolidated financial statements
contained                in our Annual Report on Form 10-K, as filed on March 31, 2009,
with respect to                the calculation of such amounts.  </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
(2)
               For Mr. Komar, represents a monthly home office and cell phone allowance
of                $600. For Mr. McCubbin, represents a monthly home office allowance of
$500.  </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
(3)
               For Mr. Oxley, Directors fees were paid of $7,000 prior to his employment
with                the Company commencing in May of 2008 and 250,000 in options were
granted to Mr.                Oxley as a result of his employment with the Company in May
of 2008, with such                options being granted on July 25, 2008 at a price per
common share of $0.81 with                an intrinsic value of $202,500. Such options
become fully exercisable on July                25, 2015, subject to acceleration upon
the achievement of certain performance                measures. In 2007, Mr. Oxley
received a Directors fee of $12,000.  </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
(4)
               A bonus was paid to Mr. Turissini in 2007 in connection with the extension
of                his employment agreement for two additional years.  </FONT></TD>
</TR>
</TABLE>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
(5)
               For Mr. Kang, options were granted to Mr. Kang as a result of his
employment                with the Company commencing in January 2008, as part of our
acquisition of iSYS,                LLC. Options representing 315,000 common shares were
issued on January 4, 2008                at a price per common share of $0.85 per common
share with an intrinsic value of                $267,750. Such options became fully
exercisable on April 5, 2008. Mr. Kang was                not employed by the Company
during 2007.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Outstanding Equity
Awards at Fiscal Year-End </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following table sets forth
information on outstanding warrants, options and stock awards held by the named executive
officers at December 31, 2008, including the number of shares underlying both exercisable
and unexercisable portions of each stock option and warrant, as well as the exercise price
and expiration date of each outstanding option and warrant. </FONT></P>




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<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TD ALIGN=CENTER COLSPAN=5><FONT FACE="Times New Roman" SIZE=1>Option Awards</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN=Bottom>
     <TD><FONT FACE="Times New Roman" SIZE=1>Name</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>Number of<BR>
Securities<BR>
Underlying<BR>
Unexercised<BR>
Options (#)<BR>
Exercisable</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>Number of<BR>
Securities<BR>
Underlying<BR>
Unexercised<BR>
Options (#)<BR>
Unexercisable</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>Equity<BR>
Incentive Plan<BR>
Awards: Number<BR>
of Securities<BR>
Underlying<BR>
Unexercised<BR>
Unearned<BR>
Options (#)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>Option<BR>
Exercise<BR>
Price<BR>
($)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>Option Expiration
Date</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TD></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=25% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Steve L. Komar,</FONT></TD>
     <TD WIDTH=15% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>425,000</FONT></TD>
     <TD WIDTH=15% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD WIDTH=15% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD WIDTH=15% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>$ 0.07</FONT></TD>
     <TD WIDTH=12% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>7/7/2012</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Chairman,</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>President &amp; Chief</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>50,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>$ 0.09</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>4/24/2013</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Executive Officer</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>50,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>$ 0.13</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>12/31/2013</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>&nbsp;</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>1,333,333</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>$0.235</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>7/14/2009</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>James T. McCubbin,</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>1,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>$ 1.35</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>7/3/2010</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Executive Vice</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>President, Chief</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>450,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>$ 0.17</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>1/2/2010</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Financial Officer,</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Secretary and Treasurer</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>1,333,333</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>$0.235</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>7/14/2009</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Ronald Oxley</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>12,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>$ 2.80</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>8/15/2016</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Executive Vice</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>President,</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>50,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>$ 2.80</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>8/15/2016</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Sales &amp; Marketing</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>250,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>$ 0.81</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>7/25/2018</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Daniel Turissini,</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>470,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>$ 0.76</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>9/14/2015</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Chief Technology</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Officer and Chief</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Executive Officer of</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>ORC</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>Jin Kang</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>315,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>$ 0.85</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>1/4/2013</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1>President iSYS, LLC</FONT></TD></TR>
<TR>
     <TD COLSPAN=6><HR NOSHADE COLOR=#000000 SIZE=1></TD></TR>
</TABLE>



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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The Company granted 565,000 options
to the named executive officers in 2008 and no options were exercised by the named
executive officers in 2008.  </FONT></P>

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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Employment Agreements
and Compensation Arrangements; Termination and Change in Control Provisions </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following describes the terms of employment agreements between the Company and the named
executive officers and sets forth information regarding potential payments upon
termination of employment or a change in control of the Company. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><I><U>Mr.           Komar.</U></I></B><U><I></I></U> On
July 1, 2002, we entered into an employment           agreement with Steve Komar, our
Chief Executive Officer and President. The           employment agreement had an initial
term expiring on July 1, 2003 with five           renewable one-year options remaining.
On July 25, 2008, the Company entered into           an addendum to the employment
agreement that provided that Mr. Komar&#146;s           employment agreement shall be
extended by one year and provided for an           additional one year extension. The
agreement provides for (1) a base salary of           $40,000 per year, which was
increased to $180,000 per year in 2008, (2) a home           office/automobile expense
allowance of $500 per month to cover such expenses           incurred in the pursuit of
our business; (3) a phone allowance of $100 per month           to cover such expenses
incurred in the pursuit of our business; (4)           reimbursement for additional
actual business expenses consistent with our           existing policies that have been
incurred for our benefit; (5) paid medical and           other benefits consistent with
our existing policies with respect to our key           executives, as such policies may
be amended from time to time in the future; and           (6) performance incentive
bonuses as may be granted annually at the discretion           of the Compensation
Committee of the Board of Directors.  </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
employment agreement also contains termination and change of control provisions as a
result of (a) Mr. Komar&#146;s death or permanent disability which renders him unable to
perform his duties hereunder (as determined by the Company in its good faith judgment),
(b) by Mr. Komar&#146;s resignation upon the expiration of the Employment Period, provided
that Mr. Komar gives at least 90 days prior written notice to the Company, (c) the
termination of his employment at the convenience of the Board of Directors of the Company
by unanimous consent (excluding the consent of Mr. Komar if Mr. Komar is also a director
of the Company at that time) with at least 90 days notice to be provided by the Company to
Mr. Komar prior to the expiration of the Employment Period, (d) a change in control of
more than 50% of the outstanding shares of the Company, (e) a sale or other disposition of
a majority of the Company&#146;s base IT Staff Augmentation business, (f) the insolvency
of the Company, or (g) a termination by the Company for Cause. In the event Mr. Komar is
not in breach of the employment agreement and the Employment Period is terminated prior to
the expiration of the then current term, then in certain events, termination payments may
become payable by the Company as set forth in more detail below. In the event of the death
or permanent disability of Mr. Komar, $50,000 shall be paid to Mr. Komar or his estate and
all granted but unvested stock options shall be immediately vested and the period of
exercise extended for an additional 2 years. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the event of Mr. Komar&#146;s resignation, no termination payments or accelerated vesting
of stock options shall occur. In the event of termination at the election of the Company,
then $250,000 will be due and payable by the Company to Mr. Komar as a severance payment,
which payment will be paid in 12 equal installment payments of $20,833.33 each over the
immediately subsequent 12 months following such date of termination and all awarded but
unvested stock options shall be immediately vested and the period of exercise extended for
the then remaining term of the option as provided under the option agreement. In the event
of a termination occurring as a result of a change in control of more than 50% of the
outstanding shares of the Company, then $250,000 will be payable by the Company to Mr.
Komar as a severance payment, which payment will be paid in one lump-sum payment within 30
days of the date of such termination and all awarded but unvested stock options shall be
immediately vested and the period of exercise extended for the then remaining term of the
option as provided under the option agreement. In the event of termination as a result of
a sale or other disposition of a majority of the Company&#146;s base IT Staff Augmentation
business, then $250,000 will be payable by the Company to Mr. Komar as a severance
payment, which payment will be paid in one lump-sum payment within 30 days of the date of
such termination and all awarded but unvested stock options shall be immediately vested
and the period of exercise extended for the then remaining term of the option as provided
under the option agreement. In the event of a change of control of more than 50% of the
outstanding shares of the Company that allows for the continuance of employment under his
agreement, then a $100,000 lump sum payment is immediately due to Mr. Komar, and any
future payments under this agreement for termination as a result of a change of control
greater than 50% of the outstanding shares of the Company or in the event of termination
as a result of a sale or other disposition of a majority of the Company&#146;s base IT
Staff Augmentation business shall result in a $150,000 payment to Mr. Komar. In the event
of the insolvency of the Company while Mr. Komar is employed by the Company as Chief
Executive Officer or similar position of control, then all obligations under this
Agreement will immediately terminate except that the Company shall pay to Mr. Komar a
termination payment of $50,000.00 on such date of termination of employment and no further
compensation or other payments beyond the insolvency date will be due or payable to Mr.
Komar by the Company. In the event of a termination for Cause, no payments will be due or
payable by the Company to Mr. Komar. Cause shall mean (i) the repeated failure or refusal
of Mr. Komar to follow the lawful directives of the Company or its designee (except due to
sickness, injury or disabilities), (ii) gross inattention to duty or any other willful,
reckless or grossly negligent act (or omission to act) by Mr. Komar, which, in the good
faith judgment of the Company, materially injures the Company, including the repeated
failure to follow the policies and procedures of the Company, (iii) a material breach of
this Agreement by Mr. Komar which is not cured within a 60 day period following formal
notification by the Company, or (iv) the commission by Mr. Komar of an act of financial
dishonesty against the Company that results in the conviction of a felony. </FONT></P>




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<HR SIZE=5 COLOR=GRAY NOSHADE>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><U>Mr.
          McCubbin.</U></I></B><U><I></I></U> On July 1, 2002, we entered into an
          employment agreement with James McCubbin, our Chief Financial Officer. The
          employment agreement had an initial term expiring on July 1, 2003 with five
          renewable one-year options remaining. On July 25, 2008 the Company entered into
          an addendum to the employment agreement that provided that Mr. McCubbin&#146;s
          employment agreement shall be extended by one year and provided for an
          additional one year extension. The agreement provides for (1) a base salary of
          $119,000 per year, which was increased to $180,000 in 2008, (2) a home
          office/automobile expense allowance of $500 per month to cover such expenses
          incurred in the pursuit of our business; (3) reimbursement for additional
actual           business expenses consistent with our existing policies that have been
incurred           for our benefit; (4) paid medical and other benefits consistent with
our           existing policies with respect to our key executives, as such policies may
be           amended from time to time in the future; and (5) performance incentive
bonuses           as may be granted annually at the discretion of the Compensation
Committee of           the Board of Directors.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
employment agreement also contained termination and change of control provisions as a
result of (a) Mr. McCubbin&#146;s death or permanent disability which renders Mr.
McCubbin unable to perform his duties hereunder (as determined by the Company in its good
faith judgment), (b) Mr. McCubbin&#146;s resignation upon the expiration of the
Employment Period, provided that Mr. McCubbin gives at least 90 days prior written notice
to the Company, (c) the termination of his employment at the convenience of the Board of
Directors of the Company by unanimous consent (excluding the consent of Mr. McCubbin if
he is also a director of the Company at that time) with at least 90 days notice to be
provided by the Company to Mr. McCubbin prior to the expiration of the Employment Period,
(d) a change in control of more than 50% of the outstanding shares of the Company, (e) a
sale or other disposition of a majority of the Company&#146;s base IT Staff Augmentation
business, (f) the insolvency of the Company, or (g) a termination by the Company for
Cause.  </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 event Mr. McCubbin is not in breach of this Agreement and the Employment Period is
terminated prior to the expiration of the then current term, then in certain events as
described below, termination payments may become payable by the Company. In the event of
the death or permanent disability of Mr. McCubbin, $50,000 shall be paid to Mr. McCubbin
or his estate and all granted but unvested stock options shall be immediately vested and
the period of exercise extended for an additional 2 years. In the event of Mr. McCubbin&#146;s
resignation, no termination payments or accelerated vesting of stock options shall occur.
In the event of termination at the election of the Company, then $125,000 will be due and
payable by the Company to Mr. McCubbin as a severance payment, which payment will be paid
in 12 equal installment payments of $10,416.66 each over the immediately subsequent 12
months following such date of termination and all awarded but unvested stock options
shall be immediately vested and the period of exercise extended for the then remaining
term of the option as provided under the option agreement. In the event of a termination
occurring as a result of a change in control of more than 50% of the outstanding shares
of the Company, then $250,000 will be payable by the Company to Mr. McCubbin as a
severance payment, which payment will be paid in one lump-sum payment within 30 days of
the date of such termination and all awarded but unvested stock options shall be
immediately vested and the period of exercise extended for the then remaining term of the
option as provided under the option agreement. In the event of termination as a result of
a sale or other disposition of a majority of the Company&#146;s base IT Staff
Augmentation business, then $250,000 will be payable by the Company to Mr. McCubbin as a
severance payment, which payment will be paid in one lump-sum payment within 30 days of
the date of such termination and all awarded but unvested stock options shall be
immediately vested and the period of exercise extended for the then remaining term of the
option as provided under the option agreement. In the event of a change of control of
more than 50% of the outstanding shares of the Company that allows for the continuance of
employment under this agreement, then a $100,000 lump sum payment is immediately due to
Mr. McCubbin, and any future payments under this agreement for termination as a result of
a change of control greater than 50% of the outstanding shares of the Company or in the
event of termination as a result of a sale or other disposition of a majority of the
Company&#146;s base IT Staff Augmentation business shall result in a $150,000 payment to
Mr. McCubbin. In the event of the insolvency of the Company while Mr. McCubbin is
employed by the Company as Chief Financial Officer or similar position of control, then
all obligations under this Agreement will immediately terminate except that the Company
shall pay to Mr. McCubbin a termination payment of $50,000 on such date of termination of
employment and no further compensation or other payments beyond the insolvency date will
be due or payable to Mr. McCubbin by the Company. In the event of a termination for
Cause, no payments will be due or payable by the Company to Mr. McCubbin. Cause shall
mean (i) the repeated failure or refusal of Mr. McCubbin to follow the lawful directives
of the Company or its designee (except due to sickness, injury or disabilities), (ii)
gross inattention to duty or any other willful, reckless or grossly negligent act (or
omission to act) of Mr. McCubbin, which, in the good faith judgment of the Company,
materially injures the Company, including the repeated failure to follow the policies and
procedures of the Company, (iii) a material breach of this Agreement by Mr. McCubbin
which is not cured by Employee within a 60 day period following formal notification by
the Company, or (iv) the commission by Mr. McCubbin of an act of financial dishonesty
against the Company that results in the conviction of a felony.  </FONT></P>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><U>Mr.
          Oxley.</U></I></B><U><I></I></U> In May 2008, the Company entered into an
          employment agreement with Ronald Oxley, our Executive Vice President of Sales,
          Marketing and Business Strategy. The agreement provides for (1) a base salary
of           $180,000 per year, (2) reimbursement for pre-approved business expenses
          consistent with our existing policies that have been incurred for our benefit;
          (3) paid medical and other benefits consistent with our existing policies with
          respect to our key executives, as such policies may be amended from time to
time           in the future; and (4) performance incentive bonuses as may be granted at
the           discretion of the Compensation Committee of the Board of Directors.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
agreement also contains a termination provision. His employment period will continue from
the date of his agreement unless terminated earlier by (a) Mr. Oxley&#146;s death or
permanent disability which renders him unable to perform his duties hereunder (as
determined by WidePoint in its good faith judgment), (b) Mr. Oxley&#146;s resignation,
commencing from and after the second anniversary date of his agreement, upon prior
written notice to WidePoint of 90 days before the annual anniversary date of this
Agreement, or (c) WidePoint for Cause. Cause shall mean (i) the repeated failure or
refusal of Mr. Oxley to follow the lawful directives of WidePoint or its designee (except
due to sickness, injury or disabilities), after prior notice to Mr. Oxley and a
reasonable opportunity to cure by Mr. Oxley of up to 30 days, (ii) gross inattention to
duty or any other willful, reckless or grossly negligent act (or omission to act) by Mr.
Oxley, which, in the good faith judgment of WidePoint, materially injures WidePoint,
including the repeated failure to follow the policies and procedures of WidePoint, after
prior notice to Mr. Oxley and a reasonable opportunity to cure by Mr. Oxley of up to 30
days, (iii) a material breach of the employment agreement by Mr. Oxley, after prior
notice to Mr. Oxley and a reasonable opportunity to cure by Mr. Oxley of up to 30 days,
(iv) the commission by Mr. Oxley of a felony or other crime involving moral turpitude or
the commission by Mr. Oxley of an act of financial dishonesty against WidePoint or (v) a
proper business purpose of WidePoint, which shall be limited only to a decrease in the
staffing of the corporate headquarters staff or the elimination of the position filled by
Mr. Oxley as a result of a material decrease in revenues and/or profits of WidePoint, but
with other cost cutting measures and the termination of other employees at such office
being first considered and instituted as determined in the sole judgment of WidePoint
prior to the termination of Mr. Oxley; provided, however, that in the event WidePoint
terminates Mr. Oxley for a &#147;proper business purpose,&#148; then (I) the scope of the
non-compete set forth in the employment agreement shall be limited to the products and
services offered by WidePoint as of the termination of Mr. Oxley and (II) WidePoint shall
pay to Mr. Oxley the lesser of (A) Mr. Oxley&#146;s salary and benefits each month for
the 6 month period immediately following such termination or (B) in the event less than 6
months remains in the then current term of Mr. Oxley&#146;s employment with WidePoint,
then Mr. Oxley shall receive his salary and benefits each month for such lesser remaining
period of time.  </FONT></P>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.
          Oxley&#146;s employment agreement further provides that during the employment
          period and for one year following the termination of Mr. Oxley&#146;s agreement
          as a result of his resignation or a termination by WidePoint for cause, Mr.
          Oxley will not own, manage, control, participate in, consult with, advertise on
          behalf of, render services for or in any manner engage in any competitive
          business of soliciting or providing any computer, technology, information
          technology, consulting or any other services and/or products of any type
          whatsoever to any federal, state and/or local governments and/or to any
existing           or targeted customers or clients of WidePoint; nor shall Mr. Oxley
attempt to           influence any then existing or targeted customers, clients or
suppliers of           WidePoint to curtail any business they are currently, or in the
last 24 months           have been, transacting with WidePoint. Furthermore, during such
period, Mr.           Oxley shall not, without WidePoint&#146;s prior written consent,
knowingly           solicit or encourage any existing employee or recruit to leave or
discourage           their employment with 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;<B><I><U>Mr.
          Turissini.</U></I></B><U><I></I></U> On October 24, 2004, the Company entered
          into an employment agreement with Daniel Turissini, our Chief Technology
Officer           and the Chief Executive Officer of our wholly owned subsidiary,
Operational           Research Consultants, Inc. (&#147;ORC&#148;). The employment
agreement had an           initial term expiring on October 25, 2006. On July 25, 2007
the Company entered           into an addendum to the employment agreement that provided
that Mr.           Turissini&#146;s employment agreement shall be annually renewable
through           October 24, 2009. The agreement provides for (1) a base salary of
$225,000 per           year, (2) reimbursement for additional actual business expenses
consistent with           our existing policies that have been incurred for our benefit;
(3) paid medical           and other benefits consistent with our existing policies with
respect to our key           executives, as such policies may be amended from time to
time in the future; and           (4) performance incentive bonuses as may be granted
annually at the discretion           of the Compensation Committee of the Board of
Directors.  </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;The
agreement also contains a termination provision. His employment period will continue from
the date of his agreement on October 24, 2004 unless terminated earlier by (a) Mr.
Turissini&#146;s death or permanent disability which renders him unable to perform his
duties hereunder (as determined by ORC and WidePoint in their good faith judgment), (b)
Mr. Turissini&#146;s resignation, commencing from and after the third anniversary date of
his agreement, upon prior written notice to ORC and WidePoint of 90 days before the
annual anniversary date of this Agreement, or (c) ORC and/or WidePoint for Cause. Cause
shall mean (i) the repeated failure or refusal of Mr. Turissini to follow the lawful
directives of ORC, WidePoint or their designee (except due to sickness, injury or
disabilities), after prior notice to Mr. Turissini and a reasonable opportunity to cure
by Mr. Turissini of up to 30 days, (ii) gross inattention to duty or any other willful,
reckless or grossly negligent act (or omission to act) by Mr. Turissini, which, in the
good faith judgment of ORC and WidePoint, materially injures ORC or WidePoint, including
the repeated failure to follow the policies and procedures of ORC or WidePoint, after
prior notice to Mr. Turissini and a reasonable opportunity to cure by Mr. Turissini of up
to 30 days, (iii) a material breach of this Agreement by Mr. Turissini, after prior
notice to Mr. Turissini and a reasonable opportunity to cure by Mr. Turissini of up to 30
days, (iv) the commission by Mr. Turissini of a felony or other crime involving moral
turpitude or the commission by Mr. Turissini of an act of financial dishonesty against
ORC or WidePoint or (v) a proper business purpose of ORC or WidePoint, which shall be
limited only to a decrease in the staffing of the office in which Mr. Turissini is
working or the elimination of the position filled by Mr. Turissini as a result of a
material decrease in revenues and/or profits at the office in which Mr. Turissini is
working, but with other cost cutting measures and the termination of other employees at
such office being first considered and instituted as determined in the sole judgment of
ORC and WidePoint prior to the termination of Mr. Turissini; provided, however, that in
the event ORC terminates Mr. Turissini for a &#147;proper business purpose,&#148; then
(I) the scope of the non-compete set forth in the employment agreement shall be limited
to the products and services offered by ORC as of the termination of Mr. Turissini and
(II) ORC shall pay to Mr. Turissini the lesser of (A) Mr. Turissini&#146;s salary and
benefits each month for the 6 month period immediately following such termination or (B)
in the event less than 6 months remains in the then current term of Mr. Turissini&#146;s
employment with ORC, then Mr. Turissini shall receive his salary and benefits each month
for such lesser remaining period of time.  </FONT></P>





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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Mr.
          Turissini&#146;s employment agreement further provides that for one year
          following the termination of Mr. Turissini&#146;s agreement as a result of his
          resignation or a termination by ORC or WidePoint for cause, Mr. Turissini will
          not own, manage, control, participate in, consult with, advertise on behalf of,
          render services for or in any manner engage in any competitive business of
          soliciting or providing any computer, technology, information technology,
          consulting or any other services and/or products of any type whatsoever to any
          federal, state and/or local governments and/or to any existing or targeted
          customers or clients of ORC and/or WidePoint; nor shall Mr. Turissini attempt
to           influence any then existing or targeted customers, clients or suppliers of
ORC           or WidePoint to curtail any business they are currently, or in the last 36
          months have been, transacting with ORC or WidePoint. Furthermore, during such
          period, Mr. Turissini shall not, without ORC&#146;s or WidePoint&#146;s prior
          written consent, knowingly solicit or encourage any existing employee or
recruit           to leave or discourage their employment with ORC or WidePoint.  </FONT></P>


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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><I><U>Mr.
          Kang</U>.</I></B>In January 2008, Jin Kang entered into an Employment and
          Non-Compete Agreement with iSYS, LLC and WidePoint, pursuant to which Mr. Kang
          will serve as the President of iSYS. The agreement provides for (1) a base
          salary of $225,000 per year, (2) reimbursement for business expenses consistent
          with our existing policies that have been incurred for our benefit, (3) paid
          medical and other benefits consistent with our existing policies with respect
to           our key executives, as such policies may be amended from time to time in the
          future, and (4) performance incentive bonuses as may be granted at the
          discretion of the Compensation Committee of the Board of Directors.  </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;The
agreement also contains a termination provision. His employment period will continue from
the date of his agreement unless terminated earlier by (a) Mr. Kang&#146;s death or
permanent disability, (b) Mr. Kang&#146;s resignation (other than for Good Reason), upon
prior written notice to WidePoint and iSYS of 90 days, or (c) iSYS or WidePoint for
Cause. Cause shall mean (i) the repeated failure or refusal of Mr. Kang to follow the
lawful directives of iSYS, WidePoint or their designee (except due to sickness, injury or
disabilities), after prior notice to Mr. Kang and a reasonable opportunity to cure by Mr.
Kang of up to 30 days, (ii) gross inattention to duty or any other willful, reckless or
grossly negligent act (or omission to act) by Mr. Kang, which, in the good faith judgment
of WidePoint or iSYS, materially injures WidePoint or iSYS, including the repeated
failure to follow the policies and procedures of WidePoint or iSYS, after prior notice to
Mr. Kang and a reasonable opportunity to cure by Mr. Kang of up to 30 days, (iii) a
material breach of his employment agreement by Mr. Kang, after prior notice to Mr. Kang
and a reasonable opportunity to cure by Mr. Kang of up to 30 days or (iv) the conviction
by Mr. Kang of a felony or other crime involving moral turpitude or the commission by Mr.
Kang of an act of financial dishonesty against WidePoint or iSYS. Good Reason shall mean
(i) a material breach of the employment agreement by WidePoint or iSYS, subject to
written notice and an opportunity to cure of up to 30 days, (ii) any material adverse
alteration or diminution of Mr. Kang&#146;s duties, subject to written notice and an
opportunity to cure of up to 30 days, and (iii) the relocation of iSYS&#146; principal
executive offices to a location more than 50 miles from its present location.  </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
termination of Mr. Kang&#146;s employment without Cause or by Mr. Kang for Good Reason,
iSYS shall pay to Mr. Kang (i) any unpaid base salary as of the date of termination, (ii)
in the event that the termination occurs prior to the third anniversary of
WidePoint&#146;s acquisition of iSYS, base salary from the date of termination until the
third anniversary of WidePoint&#146;s acquisition of iSYS, (iii) a pro rata portion of any
bonus payable to Mr. Kang in respect of the year in which the termination occurs and (iv)
reimbursement of outstanding business expenses. </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;Mr.
          Kang&#146;s employment agreement further provides that during the employment
          period and for two years following the termination of Mr. Kang&#146;s
employment           as a result of his resignation other than for Good Reason or a
termination by           WidePoint or iSYS for Cause, Mr. Kang will not own, manage,
control, participate           in, consult with, advertise on behalf of, render services
for or in any manner           engage in any competitive business of soliciting or
providing any computer,           technology, information technology, consulting or any
other services and/or           products of any type whatsoever to any federal, state
and/or local governments           and/or to any existing or targeted customers or
clients of WidePoint and iSYS;           nor shall Mr. Kang attempt to influence any then
existing or targeted customers,           clients, consultants or suppliers of WidePoint
or iSYS to curtail any business           they are currently, or in the last 36 months
have been, transacting with           WidePoint or iSYS. Furthermore, during such period,
Mr. Kang shall not, without           the prior written consent of WidePoint and iSYS,
knowingly solicit or encourage           any existing employee, consultant or recruit to
leave or discourage their           employment with WidePoint or iSYS.  </FONT></P>


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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Directors
who are not also officers or employees receive an annual fee of $12,000. The following
table sets forth director compensation for fees paid and stock option compensation expense
recognized by the Company in 2008: </FONT></P>






<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=90% ALIGN=CENTER>
<TR VALIGN=Bottom>
     <TH ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Director Name</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2>Fees Earned<BR>
or Paid in Cash<BR>
($)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2>Option<BR>
Awards<BR>
($)(1)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2>All Other<BR>
Compensation<BR>
($)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2>Total<BR>
($)</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=20% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>James Ritter</FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>12,000</FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>--</FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>--</FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>12,000</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Morton Taubman</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>12,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>12,000</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>George Norwood</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>12,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>12,000</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Otto Guenther</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>12,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>--</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>12,000</FONT></TD></TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=1>
(1)
               The aggregate number of shares subject to outstanding options held by each
               director as of December 31, 2008 is as follows: Mr. Ritter 50,000; and Mr.
               Taubman 62,000, General Norwood 62,000, and General Guenther 62,000.  </FONT></TD>
</TR>
</TABLE>
<BR>




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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ITEM 12.</B>  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS</U>.</B> </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth information as to those holders (other than officers and
directors) known to WidePoint to be the beneficial owners of more than 5% of the
outstanding shares of Common Stock as of April 25, 2009. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Security Ownership of
Certain Beneficial Owners (Greater than 5% Holders) </FONT></H1>







<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=80%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=2>Names and Complete Mailing Address</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2>Number<BR>
of Shares</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2>Percent of<BR>
Common Stock<BR>
Outstanding</FONT><HR WIDTH=100% SIZE=1 COLOR=BLACK NOSHADE></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=50% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Citigroup Inc., Citigroup Global Markets, Inc.,</FONT></TD>
     <TD WIDTH=25% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>4,997,500</FONT></TD>
     <TD WIDTH=25% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>8.6%(1)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Citigroup Financial Products Inc</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>and Citigroup Global Markets Holdings Inc.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>388 Greenwich Street</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>New York, NY 10013</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Samuel Andrew Donaldson</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>3,035,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>5.2%(2)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>1717 Desales St., N.W.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Washington, D.C., 20036</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Ewing &amp; Partners, Timothy G. Ewing, Ewing</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>3,280,500</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>5.6%(3)</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Asset Management, LLC and Endurance</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>General Partners, L.P.</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>4515 Cole Avenue</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Suite 808</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>Dallas, TX 75205</FONT></TD></TR>
</TABLE>
<BR>


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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(1)
               Citigroup Inc, Citigroup Global Markets, Citigroup Financial Products
Inc., and                Citigroup Global Markets Holdings Inc. share voting and
dispositive power                 in respect to all shares listed above.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(2)
               Samuel Andrew Donaldson has sole voting and dispositive power in respect
to the                shares listed above.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(3)
               Ewing &amp; Partners has sole voting and dispositive power over 3,280,500
               shares. Each of Timothy G. Ewing, Ewing Asset Management, LLC and
Endurance                General Partners, L.P. has sole voting and dispositive power
over 3,240,500                shares.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth the number of shares of our Common Stock beneficially owned as
of April 25, 2009 with respect to the beneficial ownership of Common Stock by each
director, director nominee, and each executive officer named in the Summary Compensation
Table herein. In general, &#147;beneficial ownership&#148; includes those shares a
director or executive officer has the power to vote or transfer, except as otherwise
noted, and shares underlying warrants and stock options that are exercisable currently or
within 60 days. </FONT></P>




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<H1 ALIGN=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Security Ownership of
Directors and Executive Officers </FONT></H1>





<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=90% align=center>
<TR VALIGN=Bottom>
     <TH align=left><FONT FACE="Times New Roman" SIZE=2>Directors, Nominees<BR>
<U>and Executive Officers</U></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2>Number of<BR>Shares of<BR>
<U>Common Stock (1)</U></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=2> Percent of<BR>
Outstanding<BR>
<U>Common Stock (1)</U></FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Steve Komar (2)</FONT></TD>
     <TD WIDTH=30% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>2,658,333</FONT></TD>
     <TD WIDTH=30% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>4.6%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Morton Taubman (3)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;62,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>0.1%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>James McCubbin (4)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>2,641,433</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>4.5%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>James Ritter (5)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;90,500</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>0.1%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Daniel Turissini (6)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>1,299,611</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>2.2%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Ronald Oxley (7)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;133,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>0.1%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Jin Kang (8)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>1,919,817</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>3.3%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>Otto Guenther (9)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>0.1%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>George Norwood (10)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;60,000</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>0.1%</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2><BR>All directors and</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>officers as a group</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>(9 persons) (11)</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>8,924,694</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=2>15.3%</FONT></TD></TR>
</TABLE>
<BR>



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<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
 </FONT><HR SIZE=1 NOSHADE WIDTH=15% color=black ALIGN=LEFT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(1)
               Assumes in the case of each shareholder listed in the above list that all
               warrants or options held by such shareholder that are exercisable
currently or                within 60 days were fully exercised by such shareholder,
without the exercise of                any warrants or options held by any other
shareholders.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(2)
               Includes (i) 800,000 shares of Common Stock owned directly by Mr. Komar,
(ii)                425,000 shares of Common Stock that may be purchased by Mr. Komar at
a price of                $0.07 per share until July 7, 2012, pursuant to a stock option
grant to him on                January 7, 2002, (iii) 50,000 shares of Common Stock at an
exercise price of                $0.09 per share through April 24, 2013 pursuant to a
stock option granted to him                on April 24, 2003, (iv) 50,000 shares of
Common Stock at an exercise price of                $0.13 per share through December 31,
2013 pursuant to a stock option granted to                him on December 31, 2003, and
(v) 1,333,333 shares of Common Stock at an                exercise price of $0.235 per
share through July 14, 2009 pursuant to a warrant                granted to him on July
14, 2004.  </FONT></TD>
</TR>
</TABLE>
<BR>




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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(3)
               Includes (i) 12,000 shares of Common Stock that may be purchased by Mr.
Taubman                at a price of $2.70 per share until March 10, 2016, pursuant to a
stock option                granted to him on March 10, 2006, and (ii) 50,000 shares of
Common Stock that                may be purchased by him at a price of $2.70 per share
through March 10, 2016,                under an option granted on March 10, 2006.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(4)
               Includes (i) 857,100 shares of Common Stock owned directly by Mr.
McCubbin,                (iii) 450,000 shares of Common Stock that may be purchased by
Mr. McCubbin at a                price of $0.17 per share until January 2, 2011, pursuant
to a stock option grant                to him on January 2, 2001, (iii) 1,000 shares of
Common stock that may be                purchased by Mr. McCubbin, at a price of $1.35
per share until July 3, 2010,                pursuant to a stock option granted to him on
July 3, 2000, and (iv) 1,333,333                shares of Common Stock at an exercise
price of $0.235 per share through July 14,                2009 pursuant to a warrant
granted to him on July 14, 2004.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(5)
               Includes (i) 65,500 shares of Common Stock owned directly by Mr. Ritter,
and                (ii) 50,000 shares of Common Stock that may be purchased by him at a
price of                $0.13 per share through December 31, 2013, under an option
granted on December                31, 2003.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(6)
               Includes (i) 825,000 shares of Common Stock issued to Mr. Turissini in
               connection with the Company&#146;s acquisition in October 2004 of
Operational                Research Consultants, Inc., (ii) 470,000 shares of Common
Stock that may be                purchased by Mr. Turissini at a price of $0.76 per share
until September 14,                2015, pursuant to a stock option grant to him on
September 14, 2005, and (iii)                4,611 shares of restricted Common Stock
privately issued to Mr. Turissini by the                Company as a result of a stock
award earned in 2005 and paid to him in 2006.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(7)
               Includes (i) 12,000 shares of Common Stock that may be purchased by Mr.
Oxley at                a price of $2.80 per share until August 16, 2016, pursuant to a
stock option                granted to him on August 16, 2006 under the Directors Plan,
(ii) 50,000 shares                of Common Stock that may be purchased by him at a price
of $2.80 per share                through August 16, 2016, under an option granted on
August 16, 2006, and (iii)                71,000 shares owned directly by Mr. Oxley. Does
not include 250,000 shares that                may be purchased by Mr. Oxley at a price
of $0.81 per share until July 25, 2018,                pursuant to a stock option granted
to him on July 25, 2008. Such options become                fully exercisable on July 25,
2015, subject to acceleration upon the achievement                of certain performance
measures.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(8)
               Includes (i) 1,350,000 shares of Common Stock issued to Mr. Kang in
January 2008                in connection with our acquisition of iSYS, (ii) 184,817
shares of Common Stock                released to Mr. Kang as a result of the release of
certain earnout shares                awarded to Mr. Kang in connection with our
acquisition of iSYS, (iii) 70,000                shares of Common Stock owned directly by
Mr. Kang, and (iv) 315,000 shares of                Common Stock that may be purchased by
him at a price of $0.85 per share through                January 14, 2013, under an
option granted on January 4, 2008.  </FONT></TD>
</TR>
</TABLE>
<BR>




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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(9)
               Includes (i) 10,000 shares of Common Stock that may be purchased by Mr.
Guenther                at a price of $0.93 per share until August 14, 2017, pursuant to
a stock option                granted to him on August 15, 2007, and (ii) 50,000 shares
of Common Stock that                may be purchased by him at a price of $0.93 per share
through August 14, 2017,                under an option granted on August 15, 2007. Does
not include 2,000 shares that                may be purchased by Mr. Guenther at a price
of $0.93 per share until August 15,                2017, pursuant to a stock option
granted to him on August 15, 2007 that vests on                August 15, 2009.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(10)
               Includes (i) 10,000 shares of Common Stock that may be purchased by Mr.
Norwood                at a price of $0.93 per share until August 14, 2017, pursuant to a
stock option                granted to him on August 15, 2007, and (ii) 50,000 shares of
Common Stock that                may be purchased by him at a price of $0.93 per share
through August 14, 2017,                under an option granted on August 15, 2007. Does
not include 2,000 shares that                may be purchased by Mr. Norwood at a price
of $0.93 per share until August 15,                2017, pursuant to a stock option
granted to him on August 15, 2007 that vests on                August 15, 2009.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
(11)
               Includes the shares referred to as included in notes (2), (3), (4), (5),
(6),                (7), (8), (9), and (10), above.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Equity Compensation Plan
Information:</U> </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>The following table sets forth
information as of December 31, 2008, with respect to the Company&#146;s compensation plans
under which its Common Stock is authorized for issuance: </FONT></P>












<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>(a)</FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>(b)</FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>(c)</FONT></TH></TR>
<TR VALIGN=Bottom>
     <TH><FONT FACE="Times New Roman" SIZE=1></FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Number of<BR>
securities<BR>
to be issued upon<BR>
exercise of<BR>
outstanding<BR>
options,<BR>
warrants, and<BR>
rights</FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Weighted average<BR>
exercise price of<BR>
outstanding<BR>
options,<BR>
warrants, and<BR>
rights</FONT></TH>
     <TH><FONT FACE="Times New Roman" SIZE=1>Number of<BR>
securities<BR>
remaining available<BR>
for future issuance<BR>
(excluding<BR>
securities<BR>
reflected in<BR>
column (a))</FONT></TH></TR>
<TR VALIGN=Bottom>
     <TD WIDTH=40% ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>Equity Compensation Plans:</FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD>
     <TD WIDTH=20% ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>&nbsp;</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>&nbsp;&nbsp;Approved by security holders</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>4,523,412</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>$0.65</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>4,535,438</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR>&nbsp;&nbsp;Not approved by security holders</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>4,091,045</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>$0.25</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>-0-</FONT></TD></TR>
<TR VALIGN=Bottom>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=1><BR><B>Total</B></FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>8,614,457</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>$0.46</FONT></TD>
     <TD ALIGN=CENTER><FONT FACE="Times New Roman" SIZE=1>4,535,438</FONT></TD></TR>
</TABLE>








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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ITEM 13. </B> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>CERTAIN
RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE</U>.</B> </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
related person transaction is a consummated or currently proposed transaction in which we
were or are to be a participant and the amount involved exceeds $120,000, and in which a
related person (i.e., any director or executive officer or nominee for director, or any
member of the immediate family of such person) has or will have a direct or indirect
material interest. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Company was not a participant in any related person transactions since the beginning of
the Company&#146;s last fiscal year and no such transactions are currently proposed with
the exception that the Company in January 2008 completed the closing of the acquisition of
all the issued and outstanding membership interests of iSYS, LLC from Mr. Jin Kang, the
sole owner-member of iSYS, pursuant to the terms of a Membership Interest Purchase
Agreement, dated as of January 2, 2008, between the Company, iSYS, and Jin Kang. Mr. Kang
presently serves at the President of iSYS, LLC. Pursuant to the terms of the Membership
Interest Purchase Agreement, the Company paid Jin Kang the following consideration at the
closing: (i) $5,000,000 in cash, (ii) $2,000,000 principal amount in an Installment Cash
Promissory Note, which bore simple annual interest at the initial rate of 7% through
December 31, 2008, and thereafter the simple interest rate was increased to 10% from
January 1, 2009 through the date of maturity, which occurred on the filing by the Company
of its Annual Report on Form 10-K for the year ending December 31, 2008 on March 31, 2009,
and (iii) the issuance of 1,500,000 shares of Company common stock. The Company also
issued an additional 3,000,000 shares of Company common stock in the name of Jin Kang,
which shares were delivered into escrow to be held subject to the satisfaction of certain
earnout provisions under the Membership Interest Purchase Agreement, and which shares are
subject to return to the Company in the event such earnout provisions are not achieved
under the terms of the Membership Interest Purchase Agreement. In July of 2008, upon the
completion of an audit of the working capital of iSYS at December 31, 2007, the Company
paid to Mr. Kang approximately $143,000 to reconcile an overage of working capital
delivered to the Company at December 31, 2007. The Company also paid to Mr. Kang in March
2009 $2,186,000 in satisfaction of the above-referenced Installment Cash Promissory Note
between the Company and Mr. Kang, which included $2,000,000 for the principal balance of
the note and approximately $186,000 in interest. The Company also paid to Mr. Kang in
April 2009 approximately $185,000 as a result of meeting certain earnout provisions
between the Company and Mr. Kang as well as released approximately 185,000 common shares
from the 3,000,000 common shares presently held in escrow. Under the terms of the
Membership Interest Purchase Agreement, Jin Kang also entered into an Employment and
Non-Compete Agreement, dated as of January 4, 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;The
Company&#146;s Corporate Governance Guidelines state that the &#147;Board intends that, at
all times, a substantial majority of its directors will be considered independent under
relevant NYSE AMEX and SEC guidelines.&#148; The Corporate Governance and Nominating
Committee conducts an annual review of the independence of the members of the Board and
its Committees and reports its findings to the full Board. Based on the report and
recommendation of the Corporate Governance Committee, the Board has determined that each
of the non-employee directors &#151; Messrs. Taubman, Ritter, Norwood, and
Guenther&#151;satisfies the independence criteria set forth in the applicable NYSE AMEX
listing standards and SEC rules. Each Board Committee consists entirely of independent,
non-employee directors. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
a director to be considered independent, the Board must determine that the director does
not have any direct or indirect material relationships (including vendor, supplier,
consulting, legal, banking, accounting, charitable and family relationships) with
WidePoint, other than as a director and shareholder. NYSE AMEX listing standards also
impose certain per se bars to independence, which are based upon a director&#146;s
relationships with WidePoint currently and during the three years preceding the
Board&#146;s determination of independence. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board considered all relevant facts and circumstances in making its determinations,
including the following: </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>&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>No
non-employee director receives any direct compensation from WidePoint other than under
WidePoint&#146;s director compensation program. </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>No
immediate family member (within the meaning of the NYSE AMEX listing standards) of any
non-employee director is an employee of WidePoint or otherwise receives direct
compensation from WidePoint. </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>No
non-employee director (or any of their respective immediate family members) is affiliated
with or employed in a professional capacity by WidePoint&#146;s independent accountants. </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>No
non-employee director is a member, partner, or principal of any law firm, accounting firm
or investment banking firm that receives any consulting, advisory or other fees from
WidePoint. </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>No
WidePoint executive officer is on the compensation committee of the board of directors of
a company that employs any of our non-employee directors (or any of their respective
immediate family members) as an executive officer. </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>No
non-employee director (or any of their respective immediate family members) is indebted
to WidePoint, nor is WidePoint indebted to any non-employee director (or any of their
respective immediate family members). </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>No
non-employee director serves as an executive officer of a charitable or other tax-exempt
organization that received contributions from WidePoint. </FONT></TD>
</TR>
</TABLE>
<BR>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Non-management
members of the Board of Directors conduct at least two regularly-scheduled meetings per
year without members of management being present. Mr. Ritter serves as the presiding
director of such meetings. Following an executive session of non-employee directors, the
presiding director may act as a liaison between the non-employee directors and the
Chairman, provide the Chairman with input regarding agenda items for Board and Committee
meetings, and coordinate with the Chairman regarding information to be provided to the
non-employee directors in performing their duties. </FONT></P>




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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ITEM 14.</B>  </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>PRINCIPAL
ACCOUNTING FEES AND SERVICES</U>.</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%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Audit
Fees</U> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Company paid Moss Adams approximately $143,000 and $94,000 in audit and review fees
related to the audits for fiscal year 2008 and 2007, respectively. The Company will pay
Moss Adams in 2009 approximately $80,000 in audit fees for work associated with the
Company&#146;s fiscal 2008 audit.  </FONT></TD>
</TR>
</TABLE>
<BR>



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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Audit-Related
Fees</U> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Company did not pay Moss Adams LLP any audit-related fees for fiscal year 2008 or 2007.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>Tax
Fees</U> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Company did not pay Moss Adams LLP any tax fees for fiscal year 2008 or 2007.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=5%>&nbsp;</TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
<U>All
Other Fees</U> </FONT></TD>
</TR>
</TABLE>
<BR>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%>&nbsp;</TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>
The
Company did not pay Moss Adams LLP any nonaudit fees for fiscal year 2008 or 2007.  </FONT></TD>
</TR>
</TABLE>
<BR>

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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><I>Audit Committee Policies
and Procedures For Pre-Approval of Independent Auditor Services </I></FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following describes the Audit Committee&#146;s policies and procedures regarding
pre-approval of the engagement of the Company&#146;s independent auditor to perform audit
as well as permissible non-audit services for the 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;For
audit services, the independent auditor will provide the Committee with an engagement
letter during the March-May quarter of each year outlining the scope of the audit services
proposed to be performed in connection with the audit of the current fiscal year. If
agreed to by the Committee, the engagement letter will be formally accepted by the
Committee at an Audit Committee meeting held as practicably as possible following receipt
of the engagement letter. The independent auditor will submit to the Committee for
approval an audit services fee proposal after acceptance of the engagement letter. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
non-audit services, Company management may submit to the Committee for approval (during
May through September of each fiscal year) the list of non-audit services that it
recommends the committee engage the independent auditor to provide for the fiscal year.
The list of services must be detailed as to the particular service and may not call for
broad categorical approvals. Company management and the independent auditor will each
confirm to the Audit Committee that each non-audit service on the list is permissible
under all applicable legal requirements. In addition to the list of planned non-audit
services, a budget estimating non-audit service spending for the fiscal year may be
provided. The Committee will consider for approval both the list of permissible non-audit
services and the budget for such services. The Committee will be informed routinely as to
the non-audit services actually provided by the independent auditor pursuant to this
pre-approval process. </FONT></P>




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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
ensure prompt handling of unexpected matters, the Audit Committee delegates to its
Chairperson the authority to amend or modify the list of approved permissible non-audit
services and fees. The Chairperson will report any action taken pursuant to this
delegation to the Committee at its next meeting. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All
audit and non-audit services provided to the Company are required to be pre-approved by
the Committee. The Chief Financial Officer of the Company will be responsible for tracking
all independent auditor fees against the budget for such services and report at least
annually to the Audit Committee. </FONT></P>




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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Part IV. </FONT></H1>

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<TABLE WIDTH=100% CELLPADDING=0 CELLSPACING=0 BORDER=0>
<TR VALIGN=TOP>
<TD WIDTH=10%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>ITEM 15. </B> </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B><U>EXHIBITS
AND FINANCIAL STATEMENT SCHEDULES</U>.</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>&nbsp;</FONT></TD>
<TD WIDTH=5%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>(b) </FONT></TD>
<TD WIDTH=90%><FONT FACE="Times New Roman, Times, Serif" SIZE=2><U>Exhibits</U>:
The following exhibits are filed herewith or incorporated           herein by reference: </FONT></TD>
</TR>
</TABLE>
<BR>


<TABLE CELLPADDING=0 CELLSPACING=0 BORDER=0 WIDTH=100%>
<TR VALIGN=Bottom>
     <TD WIDTH=10% ALIGN=left><FONT FACE="Times New Roman" SIZE=2>EXHIBIT</FONT></TD>
     <TD WIDTH=90% 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><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NO.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
     <TD ALIGN=LEFT><FONT FACE="Times New Roman" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>DESCRIPTION</U></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>2.1  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Membership
Interest Purchase Agreement, dated as of January 2, 2008, between the Company, iSYS LLC,
and Jin Kang. (Incorporated herein by reference to Exhibit 2.1 to the Registrant&#146;s
Current Report on Form 8-K filed on January&nbsp;8, 2008.) </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>3.1  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amended
and Restated Certificate of Incorporation of WidePoint Corporation. (Incorporated herein
by reference to Exhibit A to the Registrant&#146;s Definitive Proxy Statement, as filed
on December 27, 2004.) </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>3.2  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Bylaws
of ZMAX Corporation.  (Incorporated  herein by reference to Exhibit 3.6 to the Registrant&#146;s
 Registration  Statement on          Form S-4 (File No. 333-29833))</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>4.1  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Certificate
Of Designations, Rights And Preferences Of The Series A Convertible Preferred Stock
between WidePoint Corporation and Barron Partners LP (Incorporated herein by reference to
Exhibit 10.4 to the Registrant&#146;s Current Report on Form 8-K/A filed on November&nbsp;2,
2004.)) </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>10.1  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Employment
Agreement between WidePoint Corporation and Steve Komar, dated July 1, 2002.*
(Incorporated herein by reference to Exhibit 10.26 to Registrant&#146;s Report of Form
10Q, as filed on August 15, 2002 (File No. 000-23967)) </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>10.2  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Employment
Agreement between WidePoint Corporation and James McCubbin, dated July 1, 2002.*
(Incorporated herein by reference to Exhibit 10.26 to Registrant&#146;s Report of Form
10Q, as filed on August 15, 2002 (File No. 000-23967) </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>10.3  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Preferred
Stock Purchase Agreement Between WidePoint Corporation and Barron Partners LP.
(Incorporated herein by reference to Exhibit 10.1 to the Registrant&#146;s Current Report
on Form 8-K/A filed on November&nbsp;2, 2004.) </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>10.4  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Stock
Purchase Agreement between WidePoint Corporation, Operational Research Consultants, Inc.
(Incorporated herein by reference to Exhibit 10.5 to the Registrant&#146;s Current Report
on Form 8-K/A filed on November&nbsp;2, 2004.) </FONT></TD>
</TR>
</TABLE>
<BR>

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

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>*</SUP> Management contract or
compensatory plan. </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>10.5  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Employment
and Non-Compete Agreement between WidePoint Corporation, Operational Research
Consultants, Inc and Daniel Turissini.* (Incorporated herein by reference to Exhibit
10.15 to the Registrant&#146;s Annual Report on Form 10-K for the year ended December 31,
2006.) </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>10.6  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Addendum
to Employment and Non-Compete Agreement between the Registrant and Daniel E. Turssini,
effective as of July 25, 2007. *(Incorporated herein by reference to Exhibit 10.1 to the
Registrant&#146;s Current Report on Form 8-K filed on July&nbsp;30, 2007.) </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>10.7  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commercial
Loan Agreement, dated August 16, 2007, between the Company and Cardinal Bank.
(Incorporated herein by reference to Exhibit 10.1 to the Registrant&#146;s Current Report
on Form 8-K filed on August&nbsp;21, 2007.) </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>10.8  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Security
Agreement, dated August 16, 2007, between the Company and Cardinal Bank. (Incorporated
herein by reference to Exhibit 10.2 to the Registrant&#146;s Current Report on Form 8-K
filed on August&nbsp;21, 2007.) </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>10.9  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Promissory
Note, dated August 16, 2007, issued by the Company in favor of Cardinal Bank.
(Incorporated herein by reference to Exhibit 10.3 to the Registrant&#146;s Current Report
on Form 8-K filed on August&nbsp;21, 2007.) </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>10.10  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Promissory
Note, dated November 5, 2007, between Protexx, Inc. and its subsidiaries, including but
not limited to 22THEN LLC, as borrower, WidePoint Corporation, as lender, and Peter
Letizia, as guarantor. (Incorporated herein by reference to Exhibit 10.1 to the Registrant&#146;s
Current Report on Form 10-Q filed on November&nbsp;9, 2007.) </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>10.11  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Revolving
Line of Credit Agreement, dated as of November 5, 2007, by and among Protexx, Inc. and
its subsidiaries, including but not limited to 22THEN LLC, as borrower, Peter Letizia, as
guarantor, and WidePoint Corporation, as lender. (Incorporated herein by reference to
Exhibit 10.2 to the Registrant&#146;s Current Report on Form 10-Q filed on November&nbsp;9,
2007.) </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>10.12  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Security
Agreement, dated as of November 5, 2007, given by Protexx, Inc. and each of its
subsidiaries and 22THEN LLC, collectively, as debtors, to and in favor of WidePoint
Corporation, as secured party. (Incorporated herein by reference to Exhibit 10.3 to the
Registrant&#146;s Current Report on Form 10-Q filed on November&nbsp;9, 2007.) </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>10.13  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Software
Escrow Agreement, dated as of November 5, 2007, between 22THEN LLC and Protexx
Incorporated, collectively, as supplier, WidePoint Corporation, as user, and Foley &amp;Lardner
LLP, as escrow agent. (Incorporated herein by reference to Exhibit 10.4 to the Registrant&#146;s
Current Report on Form 10-Q filed on November&nbsp;9, 2007.) </FONT></TD>
</TR>
</TABLE>
<BR>

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

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>*</SUP> Management contract or
compensatory plan. </FONT></P>




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<HR SIZE=5 COLOR=GRAY NOSHADE>


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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>10.14  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$2,000,000
Installment Cash Promissory Note, dated January 4, 2008, issued by the Company in favor
of Jin Kang. (Incorporated herein by reference to Exhibit 10.1 to the Registrant&#146;s
Current Report on Form 8-K filed on January&nbsp;8, 2008.) </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>10.15  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Employment
and Non-Compete Agreement, dated as of January 4, 2008, between the Company, iSYS LLC and
Jin Kang. * (Incorporated herein by reference to Exhibit 10.2 to the Registrant&#146;s
Current Report on Form 8-K filed on January&nbsp;8, 2008.) </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>10.16  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commercial
Loan Agreement, dated January 2, 2008, between the Company and Cardinal Bank.
(Incorporated herein by reference to Exhibit 10.3 to the Registrant&#146;s Current Report
on Form 8-K filed on January&nbsp;8, 2008.) </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>10.17  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Security
Agreement, dated January 2, 2008, between the Company and Cardinal Bank. (Incorporated
herein by reference to Exhibit 10.4 to the Registrant&#146;s Current Report on Form 8-K
filed on January&nbsp;8, 2008.) </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>10.18  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$5,000,000
Promissory Note, dated January 2, 2008, issued by the Company in favor of Cardinal Bank.
(Incorporated herein by reference to Exhibit 10.5 to the Registrant&#146;s Current Report
on Form 8-K filed on January&nbsp;8, 2008.) </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>10.19  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Security
Agreement, dated January 2, 2008, between the Company and Cardinal Bank. (Incorporated
herein by reference to Exhibit 10.6 to the Registrant&#146;s Current Report on Form 8-K
filed on January&nbsp;8, 2008.) </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>10.20  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>$2,000,000
Promissory Note, dated January 2, 2008, issued by the Company in favor of Cardinal Bank.
(Incorporated herein by reference to Exhibit 10.7 to the Registrant&#146;s Current Report
on Form 8-K filed on January&nbsp;8, 2008.) </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>10.21  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Debt
Subordination Agreement, dated January 2, 2008, between the Company and Cardinal Bank.
(Incorporated herein by reference to Exhibit 10.8 to the Registrant&#146;s Current Report
on Form 8-K filed on January&nbsp;8, 2008.) </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>10.22  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Common
Stock Purchase Agreement, dated April 29, 2008, between the Company and Deutsche Bank AG,
London Branch. (Incorporated herein by reference to Exhibit 10.1 to the Registrant&#146;s
Current Report on Form 8-K filed on May 5, 2008.) </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>10.23  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Escrow
Agreement, dated April 29, 2008, between the Company, Deutsche Bank AG, London Branch and
Foley &amp; Lardner LLP as Escrow Agent. (Incorporated herein by reference to Exhibit
10.2 to the Registrant&#146;s Current Report on Form 8-K filed on May 5, 2008.) </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>10.24  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Common
Stock Purchase Agreement, dated May 16, 2008, between the Company and Endurance Partners,
L.P. (Incorporated herein by reference to Exhibit 10.11 to the Registrant&#146;s
Quarterly Report on Form 10-Q filed on May 20, 2008.) </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Footnote Rule-TNR" FSL="Project" -->
<HR SIZE=1 NOSHADE WIDTH=15% color=black ALIGN=LEFT>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>*</SUP> Management contract or
compensatory plan. </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>10.25  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Escrow
Agreement, dated May 16, 2008, between the Company, Endurance Partners, L.P. and Foley
&amp; Lardner LLP as Escrow Agent. (Incorporated herein by reference to Exhibit 10.12 to
the Registrant&#146;s Quarterly Report on Form 10-Q filed on May 20, 2008). </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-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>10.26  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Common
Stock Purchase Agreement, dated May 16, 2008, between the Company and Endurance Partners
(Q.P.), L.P. (Incorporated herein by reference to Exhibit 10.13 to the Registrant&#146;s
Quarterly Report on Form 10-Q filed on May 20, 2008). </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-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>10.27  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Escrow
Agreement, dated May 16, 2008, between the Company, Endurance Partners (Q.P.), L.P. and
Foley &amp; Lardner LLP as Escrow Agent. (Incorporated herein by reference to Exhibit
10.14 to the Registrant&#146;s Quarterly Report on Form 10-Q filed on May 20, 2008). </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-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>10.28  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amendment,
dated as of July 25, 2008, between the Registrant and Steven L. Komar.* (Incorporated
herein by reference to Exhibit 10.1 to the Registrant&#146;s Current Report on Form 8-K
filed on July 31, 2008). </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>10.29  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amendment,
dated as of July 25, 2008, between the Registrant and James T. McCubbin.* (Incorporated
herein by reference to Exhibit 10.2 to the Registrant&#146;s Current Report on Form 8-K
filed on July 31, 2008). </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-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>10.30  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Asset
Purchase Agreement, dated July 31, 2008, by and among the Registrant, Protexx Acquisition
Corporation, Protexx Incorporated, Peter Letizia, Charles B. Manuel, Jr. and William
Tabor. (Incorporated herein by reference to Exhibit 10.1 to the Registrant&#146;s Current
Report on Form 8-K filed on August 6, 2008). </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-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>10.31  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Debt
Modification Agreement, dated as of March 17, 2009, between the Registrant and its
subsidiaries and Cardinal Bank. (Incorporated herein by reference to Exhibit 10.1 to the
Registrant&#146;s Current Report on Form 8-K filed on March 23, 2009) </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-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>10.32  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Commercial
Loan Agreement, dated as of March 17, 2009, between the Registrant and its subsidiaries
and Cardinal Bank. (Incorporated herein by reference to Exhibit 10.2 to the Registrant&#146;s
Current Report on Form 8-K filed on March 23, 2009) </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-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>10.33  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Employment
and Non-Compete Agreement, dated May 2008, between the Registrant and Ronald Oxley* (Filed
herewith). </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>21  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Subsidiaries
of WidePoint Corporation. (Incorporated herein by reference to Exhibit 21 to the
Registrant&#146;s Annual Report on Form 10-K filed on March 31, 2009). </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Footnote Rule-TNR" FSL="Project" -->
<HR SIZE=1 NOSHADE WIDTH=15% color=black ALIGN=LEFT>

<!-- MARKER FORMAT-SHEET="Para Flush Lv 0-TNR" FSL="Project" -->
<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2><SUP>*</SUP> Management contract or
compensatory plan. </FONT></P>




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<HR SIZE=5 COLOR=GRAY NOSHADE>


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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>23.1  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Consent
of Moss Adams LLP (Incorporated herein by reference to Exhibit 23.1 to the Registrant&#146;s
Annual Report on Form 10-K filed on March 31, 2009). </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-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>31.1A  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amended
Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002 (Filed herewith). </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-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>31.2A  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amended
Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002 (Filed herewith). </FONT></TD>
</TR>
</TABLE>
<BR>

<!-- MARKER FORMAT-SHEET="Para Hang Lv 0-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>32A  </FONT></TD>
<TD WIDTH=95%><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Amended
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section
906 of the Sarbanes-Oxley Act of 2002 (Filed herewith). </FONT></TD>
</TR>
</TABLE>
<BR>



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`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
