Asking Price: $1,950,000

Gross Revenue: $3,600,000

Gross Revenue Comments: For Fiscal Year Ending 9/30/2006

Cash Flow: $635,000

Cash Flow Comments: For Fiscal Year Ending 9/30/2006

Inventory: $90,000 (Included in Asking Price)

FF&E: $12,000 (Included in Asking Price)

Seller Financing: Seller will finance a portion of the purchase price to a highly qualified buyer.

The Company was founded in 1983 by its current owner and moved to its current North Texas location in 2005. The company designs, installs, and services innovative and cost effective IP and legacy telephony systems to small to mid-size businesses (SMB). Since 2000, the Company has been positioning itself as the premiere supplier of VoIP products and services to take advantage of the rapid growth in IP telephony. In recent years the Company has experienced outstanding growth, as the SMB VoIP telephony market has begun to take off. The latest year over year growth rate for revenues and EBITDA were 42% and 166% respectively. Industry projections forecast continued conversion by SMB of legacy to VoIP telephone. And, the company is well positioned to take advantage of this continuing growth. The Company’s clientele are 60% Texas, 40% National.

VoIP service is on a fast track to becoming a major force in the business world, according to a recent report released by Yankee Group. The group predicts that the business VoIP market will leap to almost $3.3 billion by 2010, from $840 million by the end of 2005. By all accounts the SMB market for VoIP is also exploding. A recent study by Info Tech predicted that by 2008 SMB spending levels on VoIP will increase more than 120 times over the 2003 spending levels.

Year Established: 1983

Employees: 23 full time -

Facilities: The facility is 6,500 ft2 and rents for $3250/mon. The lease expires on 10/21/2010; however, the tenant has an option to cancel on 10/31//2008

Market Outlook and Competition: VoIP service is on a fast track to becoming a major force in the business world, according to a recent report released by Yankee Group. The group predicts that the business VoIP market will leap to almost $3.3 billion by 2010, from $840 million by the end of 2005. By all accounts the SMB market for VoIP is also exploding. A recent study by Info Tech predicted that by 2008 SMB spending levels on VoIP will increase more than 120 times over the 2003 spending levels.

Management Training and Support: Seller will train and is willing to remain as a salesperson.

Reason For Selling: Retirement. Management will remain and is capable of running the business. The company has a GM and the owner functions primarily as a salesperson.