Happy Holidays,

As we cast our gaze back over 2007, we are truly blessed to have experienced such an exciting and productive year for our organization and our clients.

A 21st century education reform effort was launched by Lutheran High School of Orange County, University of Phoenix, the United States Congress and KCOMM with a focus on the innovative online high school program developed by Lutheran High. The program today has led to hundreds of new student enrollments and a pro-active solution for California's education problem. A memorable event brought together area leaders at the Portabello Estate for an exclusive Economic Update from Chapman University President James Doti and to meet the new executive directors of Girls and Boys Town of Southern California and the YMCA of Orange County. A hospitality suite by IBM and Key Information Systems at the PGA Nissan Open enabled information technology executives to meet experts in corporate infrastructure, business continuity, and storage technologies. And to finish the year, KCOMM developed the Hewlett-Packard and Arrow Electronics "Amazing Race" Event that spanned from Las Vegas to Palo Alto, finishing up with HP's CEO Mark Hurd.

Our Public Affairs and Government Relations team helped T-Mobile shape public policy for locating wireless facilities to meet the growing public demand for network coverage while ensuring safety and environmental issues are responsibly addressed. The Internet Marketing Association, reached a membership base of over 35,000 worldwide and provided insightful presentations for the Sacramento chapter of the American Marketing Association and the Orange County Executives Network on hot topics like Social Networking, Search Engine Optimization, Email Marketing, YouTube Marketing and Backend Reporting. Generation Next, the Political Action Committee founded by Paul Makarechian and myself has grown in membership to 80 thanks greatly to our PAC's leadership and successful events. To learn more information about Gen NeXt, contact our CEO, Michael Davidson, at: michael@gen-next.org.

As we set our sights on 2008 and beyond, we are well positioned for growth with new offices in world centers of New York, Dubai, Abu Dhabi and Buenos Aires. Our government relations practice continues to expand with new clients in transportation, telecommunications and real estate development. We are investing into scalable Internet marketing infrastructure. And we plan to expand our efforts in issues-based marketing, including strategies for solving major challenges in education, energy, environment, technology, healthcare, telecommunications and law enforcement as we help our clients create change.

As part of its 2008 kickoff, Orange County Executive Network (OCEN) will host a special event on Internet Marketing featuring KCOMM team members Hesam Rasoulzadeh, Director of Internet Marketing; Jeff Cole, Director of YouTube Marketing; and Bill Hunt, candidate for Orange County Sheriff, who will discuss law enforcement technology. The event is set for Tues., Jan. 15, 2008, at The Pacific Club. For more information, please click here: www.myocen.com

In conclusion, I would like to reflect on the enormous success we experienced this year and to shed light on the hard work and vision of our work force. The people who contributed to KCOMM's success this year include Dave Holscher, Jeff Montejano, Hesam Rasoulzadeh, Shannon Widor, George Cardenas, Bill Brough, Vince Walden, Jeff Cole, Clint Fraser, Dhruv Majumdar (India), Sarpay Oner (Turkey) and Fernanda Salerno (Argentina). I would also like to introduce and welcome our newest additions Ana Rotar and Ardem Antibian (Dubai) to the KCOMM family. The hard work and generous efforts of our team have made our purpose a defined one!

Separate from KCOMM's workforce were some distinguished people this year I would like to thank, including: John McMonigle, Carole Mazzei, Jeff Lampe, Angelique Stephens, Adam Roseman, Dr. Ken Ellwein, Brian Mueller, Betsy Kunau, Stephen Christensen, Pete Elliot, Sheriff Lee Baca, DJ Burke, Bill Hunt, David Allen, Adrienne Garland, Seth Farbman, Shai Stern, Antonio Cagnolo, David Maffei, Todd Rustman, Dr. Jim Doti, Bob Hartmann, Jon Voget, Keith Rhodes, Council Member Carlos Bustamante, Chris Winn, Dov Horowitz, Orange County Supervisor Janet Nguyen, Dominick Sirianni, Sam Ritter, Julie Vandermost, Congressman Ed Royce, Lou Penrose, Fr. Bernard McCoy, Jack Hu, Keven Griffin, Kevin Maloney, Manuel Ramirez, Patrick Deane, Mario Rodriguez, Yeni Hoo, Sandy Moul, Manny Medrano, Craig Foster, Jennifer Sparks, Tom Makmann, Ira Krawitz, Travis Trask, Wing Lam, Wendy Hales, my family and Kai my wife. You made 2007 as great as it was, and we thank you!

From the entire KCOMM team, here's to a bright and productive New Year in 2008 - a year of continued growth, global trade and giving back!

Sincerely,

Sinan Kanatsiz
Chairman / CEO
KCOMM, Inc.