The purpose of this letter is to provide you with a brief but important update on our continued progress at TopForm Software, Inc. Although it has been some time since my last letter, I believe you will be satisfied with the progress we are making towards our strategic objectives as outlined in earlier communications. In fact, there may be one or two surprises in this letter for you that will significantly help you in your challenge to acquire and retain customers while optimizing internal efficiency.

It's my goal to provide unfiltered access to information about our operations as your business partner. If you have questions or comments regarding any of the topics included or omitted in the list below, I would ask that you give me a call directly. I appreciate your business and support, and look forward to the opportunity to learn about the specific challenges you face and the ways we can work together to help build your business.

E-Commerce

First and foremost, I'd like to share with you some extremely exciting news related to TopForm E-Commerce. We are now prepared to announce a brand new E-Commerce platform for TopForm customers. This solution is the exact same solution that Webb/Mason has been using to set the pace for E-Commerce for years. Available to TopForm customers as a "Software as a Service (SAAS)" solution, you will have the capability to offer your customers the most advanced system on the market today.

This solution will be offered as an add-on, or as an alternative to our current Web.ec product. A short list of features includes: Web-to-Print through form-based design, and "In-Place" editing capability, Requisitioning, Static and Highly Customizable Print on Demand, Direct Mail with integrated database and list management, Multi-media marketing campaigns, Data Mining, ASI/Promotional Product Storefronts, Digital Asset Management, On-line Surveys and Response Analysis, Collaborative Proofing, and fully customizable Reporting through embedded Business Objects/Crystal Enterprise solutions. Imagine these features plus many others, fully integrated into the TopForm solution you already have.

The technology development and support team from Webb/Mason has officially joined TopForm Software as we work to roll out this solution to a pilot group of TopForm customers this summer, and prepare for general availability soon thereafter. Webb/Mason annually leverages this solution to support over 425 live accounts, over 300,000 registered users, and over 50% of their annual revenues.

Please stay tuned for updates on this very important upgrade to your e-commerce capabilities.

TopForm Release 7.0

We have completed the feature list for our next major release of TopForm Software. We expect to have this release completed and ready for general availability prior to the Users Conference. Please note that the first of the primary features listed below was originally requested as a work order by our customers, and while it would have exceeded $25,000 in billable work, it also represents the opportunity for TopForm to make good on our promise to aggressively react to our customers' feedback by providing timely and relevant software releases. Therefore, through the regular release process supported by your maintenance commitments, you will receive these major improvements from your business partner, as well as many other smaller improvements to be outlined on the release bulletin:

TopForm plans to streamline the order entry process to provide for the entry of multiple line items on a single Graphical panel. For those customers using the Graphical User Interface of TopForm, this will work similarly to the Stock Purchase Order Entry program. Additional changes will be made to completely overhaul the Purchase Order Printing formats and output, particularly with regard to how specifications and special shipping instructions are provided.

The Kit Management Module will be enhanced to allow the entry of non-inventoried items as Kit Components. Items to be purchased, print-on-demand items or special charge lines will be provided for in setting up a Kit. Also, at the time of Kit Production, if there are any print-on-demand or out-of-stock Kit components, TopForm will commit all available items required and generate purchase orders to the vendors assigned in the custom item masters for these needed items. At the time of Purchase Order Receiving, the additional Kit components will be committed and the operator will be notified that the production posting may be completed.

By the time of the Users Conference (November), we fully expect to be discussing the candidate features for the release following the one discussed above, so please come ready to offer suggestions for how we can continue to improve our products and services.

TopForm is adding an exciting new module, the Sage Connection. Work has already been completed to accept a real-time XML data stream with product details, images and pricing information from Sage. This will enable you to display, in Web.ec up to 800,000 categorized promotional products that are part of the Sage Catalogs. Additional development is underway to filter the catalog to show only the products offered by your approved vendors and to provide for orders and purchase orders to be automatically created in TopForm for these products. Additional functionality will allow customers to search the full data base for product ideas, from which emails will be generated to your CSR's.

TopForm Now Supports SP Richards Through TOPS

Now available for TOPS users as an alternative to United Stationers, we support the product catalogs, images, and pricing structures for SP Richards. While we don't seek to promote a preference of one provider over another, we recognize that our customers need the flexibility to choose between these leading providers.

For further information about how you can now use TOPS to offer products from SP Richards, please contact the TopForm Sales Team at sales@topform.com, or by calling us at 1-800-448-1484.

Native Oracle Support

The TopForm Quality Assurance team has been working to complete the certification of the Oracle edition of TopForm Software. This solution will go into production operation at our pilot customer by July.

We expect to announce general availability for the Oracle edition of TopForm software by September of 2007. This edition of our software will allow full and open access to the TopForm data repository, and will include a guide to help you understand how to use this data for improved reporting, application integration, and other uses strategic to your business operations.

Updates to Documentation

As many of you may already know, we have been working on revising our product documentation at a blistering pace. Available for general release now is a completely revised and current version of our user documentation and online help for Order Processing.

In just a few weeks you can also expect to see an announcement about the availability of new documentation and help for Inventory Control, and further information for future documentation updates.

Principals Meeting - TopForm Users Conference

At this year's TopForm Users Conference, we will be holding a new kind of meeting reserved exclusively for the principals, owners, and CEO's of our customers. This meeting will follow the same schedule as in previous years with dinner the evening before the conference and a more focused meeting the following morning. However, this meeting will address issues strategic to the core business problems faced by our customers. Personal invitations will be sent soon, and we hope the right individuals from your organization will join us as we talk through business challenges and emerging solutions.

We also recognize that there is a need for the CIO's, CTO's and System Administrators of your organizations to meet to discuss technical issues at a level that, quite frankly, only they understand. This year's Conference will host our first Technology Managers Dinner and Meeting to run parrallel with the Principal's only session. Key TopForm Technical Management and Developers will be present for the duration.

Hopefully this new format will more precisely direct TopForm resources to your business and technical needs.