2009 was an extremely busy year for Finatech, at all levels: business, process, systems, human capital, marketing, and finance.

Business I - The first quarter of 2009 started slowly, namely because of the 2008 4th quarter international economic crisis. A number of engagements we won and were supposed to start in January 2009 were pushed back by our customers. However, suddenly, in the 2nd quarter, all our customers got a sense of urgency and decided that they wanted all their projects completed before year's end. Good news. We wind up with decent revenues for 2009, and an excellent bottom line - exceeding by far our business plan. More importantly, we are starting 2010 with a backlog of signed contracts representing close to 50% of our 2009 revenues! We are hence expecting an outstanding 2010.

Business II - In 2009, we completed the remaining stock acquisitions within our entities where we were not already at 100% ownership, namely Cerdis, Sysnek Morocco, Sysnek France, Sofratev, Telecom Partners, Jet Payment Systems, Profilium. Intense negotiations, laborious closings, and earnout engagements by the selling shareholders. Hence, the entire unified integration process was launched with any of the constraints from minority shareholders. It paved the way for the implementation described in Process I & II below.

Business III - Now that we are 100% owners of Jet Payment Systems - renamed Finacard, we were able to launch the construction of the largest card processing center in Africa. Located on the Bouskoura Industrial Park (Outside of Casablanca, Morocco), this multi-million dollar investment can produce up to 3 million cards per year, whether chip or strip cards for the largest banking customers in Morocco, Europe and Africa, in compliance with its Visa and Mastercard certification. Equipped with the state-of-the-art technology for payment security and encryption, the center was conceived for "Short Turnaround - Small Batch" (STSB); this means we can process small volumes in short turnaround time. Our customers can process quasi-instantaneous personalized cards, whether they are high end prestige cards, or short lead time high volume cards for marketing promotions. Our next phase will see the center equipped with biometric capabilities in order to process passports, National ID cards, universal health cards, election cards, and drivers licenses.

Business IV - We acquired in the U.S., Data Analytics, a Registrar and Web engine, and Predictive Algorithms, a traffic optimization predictive algorithm software. Both companies contribute significantly to our 2009 bottom line. We also launched two new subsidiaries, Finatech USA in Los Angeles and Finatech Gulf in Dubai Internet City. The third subsidiary, Finatech Libya, will be launched in the first half of 2010. Our US subsidiary is rolling out our IT offshoring services for the Microsoft NAV ERP integrators; our Dubai subsidiary is deploying our Data Analytics and Predictive Algorithms web services in the large markets of China and India in light of ICANN's liberalization of non-Latin domain name characters. Other acquisitions are slated in the coming years at a pace of 2-3 annually.

Process I - We completed a large "operational merger" of the teams in our former subsidiaries. This means that all our practice groups and our associates are united on our 38.000 sq ft platform at the Casanearshore Technology Park. Configured in an open space layout, from our associates' desks to our group directors to the desk of the CEO, our teams are organized by Business Units and are supported by central services such as the Finance Dept., the Legal Dept., and our "Cost Killer" Group Resources Dept. This allowed us to intensify collaboration, make significant savings, and cut overlaps.

Process II - Today, our solutions' sales are done by a single salesforce we call the CST - Client Solutions Team. Our CST is organized along sector lines: Finance & Telecom, Gov & Energy, Services & Industry. Therefore each of our customers has a single Relationship Manager from his sector who understands his requirements. In 2010, we'll put in place the PMO - the Project Management Organization - a unit organized much like the CST, by sector, which will be responsible of Project Delivery and will coordinate all our BU project managers at the customer level. Each one of our major customers will then have two Finatech interfaces: 1 CST (Relationship) and 1 PMO (Delivery). Our customers will have, at any time, a comprehensive view of their relationship with Finatech and the deployment of solutions in their organization.

Systems - In order to better manage our BUs, control our costs, fine-tune our performance at the most granular level, we deployed an ERP solution - Microsoft NAV (formerly Navision). This is the one we master the most, the one we recommend to our customers, and is the one we deployed for ourselves. Therefore our group management can be done remotely from anywhere in the World. Our web conferences with our associates allow us to better synchronize our actions and intensify our focus. The same goes for our lead management - we manage it through our CRM. The use of this tool is followed through a sales conf call every two Fridays with the CST in order to monitor the progression of our leads and the buildup of our revenue line.

Human Capital I - We recruited a number of senior executives from global technology leaders such as Dell, ST Microelectronics, Microsoft, Alcatel, Qwest Telecommunications, and Intuit Software. The melting-pot of these corporate managers and our founding entrepreneurs constitutes our group's dynamic culture. Other executives that have not being able to keep up with our development pace and our constant change opted to pursue career opportunities elsewhere.

Human Capital II - In July 2009, we gathered our 700 associates at the Paradise hall for a unique moment of motivation and value communication (see video on our blog). At a time when our customers were asking us to surpass ourselves, we wanted to tighten our ranks and wholly connect with 3 key messages: Yes to our Customers, Yes to Teamwork, Yes to the Bottom Line. In a darkened hall, with a background of techno music, 700 associates wearing black Finatech caps and laser-lit white T-shirts were turned into a trance-motivated team. Hence giving us the needed energy to surpass ourselves in the 2nd half of 2009. That night our group values were born: Agility, Innovation, Commitment.

Human Capital III - PMO, key. Delivery, essential. But will only be successful with intensive training at 3 levels: Sales, Project Management, and Technical Certifications. We are therefore rolling out three programs: for our BU managers and our CST members to improve sales skills; project management skills and Cisco, MS and other certifications for our engineers and project managers. The Group designated the former site of Profilium, our former subsidiary to be its continuous training center. Beyond these classroom training sessions, we continue our training through our e-Learning Saba/Skillsoft online tool.

Human Capital IV - After our December 2007 serial 18 acquisitions, we set up our org chart v1.0; during 2009, we improved it to better reflect our market approach to version 1.5; in January 2010, we will announce our v 2.0 organization chart. It will reflect our customer-centric focus, our solutions sales approach, our strength in solutions' packaging (integration of our group's different solutions), and our core skill - Project Delivery through our PMO - Project Management Organization.

Marketing I - In 2008 and 2009, we privileged efficiency, operations, the restructuring of our activities and the integration of our practice groups. Within this effort, we focused on brand transitioning. We renamed all our entities with the "Fina" prefix, followed by a description of their business. Jet Docunet/Technibank/Docubox became Finapayssystems, Cerdis/Sysnek/Saisie became Finashore, Sicodex became Finasoft, and Jet Payment Systems became Finacard. This brand transition marks the intermediate step before our landing in 2010 on one brand: Finatech. It is through these intermediate hyphenated brands that we referenced all our entities with our customers.

Marketing II - In 2008 and 2009, we deliberately did not make any announcements to the outside World or invest heavily in marketing. At the end of 2009, seizing the opportunity of being the Gold Sponsor of the Med-IT Conference and Expo, we launched our marketing and PR program: An intensive campaign followed by a number of events, among them a reception at the Four Seasons Georges V Palace in Paris to present our IT offshoring services to our European customers and prospects, another at the Hyatt Regency Hotel in Casablanca to present our newly redesigned Artemis portal, a dinner reception at Le Sens restaurant at the Kenzi Twin Tower center to present our strengthened IT services practice group, and finally, a dinner reception at Villa Mandarine in Rabat to present our IT services for Gov.

Marketing III - Keeping pace with our 4th quarter 2009 campaign, we are launching in 2010 an ambitious marketing and PR program. We forged partnerships with Essor Magazine to moderate a monthly IT breakfast forum for IT Directors, with the APD (Mid-market CEOs association) to moderate quarterly conferences on IT issues facing mid-market companies, and with a long list of conference organizers in Europe and Africa to sponsor workshops on card processing, e-banking, IT outsourcing and offshoring, and web marketing. A comprehensive advertising campaign will be rolled out in Morocco on the Finatech brand, and in Europe on "Finatech Offshoring". This might be a saturation play. But now that we are ready, organized, that our customers' budgets are back after the global recession, a healthy marketing program will yield an excellent R.O.I.

Finance - Our financial reporting system implemented in 2008 gave us the capability to close our accounts monthly at d+7. This system will be even more performing starting in January 2010 with the migration and consolidation of the accounting books of our subsidiaries into our ERP platform. Therefore our financial reporting will be even more detailed, we will be able to singly manage each of our P&L lines. And within the constant strategy of elevating our Group to international benchmarks, we decided to start running our accounting on IFRS, the international accounting standards. Our 2008 and 2009 audited financial statements will be issued on IFRS and will be published as soon as we get them from our auditors.

Best Wishes for a Wonderful 2010.

Rachid Sefrioui

12/27/09