Letter from the CEO

We are well into the start of our new fiscal year and as CEO of ScienceLogic, I wanted to share our business strategy as well as a few ScienceLogic highlights set for the coming months.

Across our business, ScienceLogic's senior management team is focused on three strategic priorities:

• Developing high quality, innovative technologies that continue to differentiate EM7 as best-in-class;
• Continuing the focus on customer experience through enhanced product features and support:
• Expanding and adding depth to our national presence

These strategic priorities are designed to best position a number of very exciting developments already planned and well underway. Our revenues grew 328% during 2005, thanks in part to the introduction of a new EM7 HA architecture that we delivered to the marketplace. See the press release on our year-end results.

Our 2006 EM7 product roadmap continues the terrific momentum we built during the past 18 months and will show solid growth in functionality and focus on user interface, making the product easier to navigate. Our new version 4.0 of EM7 will be available on May 16th. The impact of this version will be significant, as the new innovations create powerful functionality. We listened intently and over 80% of the new features related to the most frequently requested customer enhancements.

We are very mindful that ScienceLogic is not just another company, but an organization with a unique brand of solutions that are greatly valued by our customers and partners. Looking ahead, I am confident that we have everything it takes - the talent, expertise and sense of purpose - to continue ScienceLogic's success and customer-centric focus for many years to come.

Last, there are many marketing initiatives under way, including a new website we launched last month and new company and product logos that debuted in early March 2006. You will all love the new website, as it adds more intuitive navigation and creates a more mature reflection of our business.

With your continued support and superior efforts, we will achieve great success in 2006 and beyond!

Dave