CAPSTONE Corporation is an established service provider successfully supplying mission and technical support to Government, technical and business sectors for over 20 years. Our purpose is to produce and manage a qualified, motivated workforce that significantly increases each client's opportunity to succeed. 'Working for Your Success' is more than our motto; it is our commitment to our clients and our employees. We will always do our best to produce a workforce closely matched and responsive to the customer's needs, providing superior performance at affordable prices.

In today's market, with demanding and constantly evolving requirements, where there is increased priority on getting a positive return on contract labor dollars, CAPSTONE's experienced and innovative support can make the difference between merely meeting requirements and achieving true mission success.

Our current goal is to move our Company to the next level of capability and financial strength through growth, merger/acquisition and teaming. We will grow a minimum of 15% in our current Functional Areas of capability (Military/Civil Operations, Enterprise Technical Solutions and Mission Systems Support Solutions) and with new clients. We will identify positive conditions for our expansion and utilize influential contacts that can assist us in our efforts. We will also identify opportunities to offer more specialized solution support in the future.

To accomplish our goal we have set the Company on a path to achieve our organic growth goals and acquire other companies or business units over the course of the upcoming year. We have also defined five specific strategic areas for improvement in 2007 including:

• Conducting a broad, corporate-wide cost analysis to improve our bidding competitiveness;
• Assessing our ability to obtain certifications (such as ISO, CMMI, etc.); Selecting an appropriate choice and implementing our choice;
• Improve our Proposal templates to further enhance our ability to produce effective proposals;
• Introducing more consistent processes and automation into our workflows; and
• Reviewing available HRIS systems for potential implementation in our Company.