Manufacturer of Rugged Portable Computers

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Financials

Business Summary

Established for over ten years, the subject company is a manufacturer of Rugged Portable Computers. Their products have patented features (disclosed in the deal book) which have enabled them to carve out a unique niche in the market place. Their products are full featured Windows or Linux workstations providing complete PC compatibility. This Company has redefined a new class of super computer workstation which commercial users and the military can use virtually anywhere they go. Price points are $5,000 to $35,000 per machine.

Revenue is derived 60% from commercial customers and 40% from the military. In general these customers pair the Company's custom computer hardware and packaging with their own high value custom software to address a particular emerging market.

Revenue growth has been 45% per year over the last two years, and management expects the trend to continue through 2006 with projected revenue of $9.7 million and EBITDA of $2.5 million.

The Company's workstations meet such needs as portable video systems used for portable video editing systems, web streaming, and presentation recording systems. They also provide custom solutions which are primarily being driven by the specific needs of demanding applications such as "uncompressed High Definition Video."

The Company delivers product to a range of military customers such as the U.S. Marines, Army, National Geospatial Intelligence Agency and many defense contractors. The Company's hardware is frequently combined with OEM software to meet such military needs as image processing, field data acquisition, C4ISR (command, control, computers, communications, intelligence, surveillance and reconnaissance) and imagery storage.

The Company does not accept commodity business. They abandon all business that can be purchased from the big hardware manufacturers.