To: Crony who wrote (2464 ) 4/4/2007 7:57:44 PM From: NAG1 Read Replies (1) | Respond to of 2619 Crony, Not much going on right now. I think getting the annual report out and the previous cc gave us what was our usual mid quarterly update. There was the bit of news yesterday that had a new distributor in japan. Can't really tell how significant this is. I was skimming the annual report and pulled out this section because it is a good reason to be invested in Simtek right now. Other than that, we really need to just wait for more news about the company to come out to see what direction the share price breaks to. I just hope that present management can deliver on their promises. I think that they will. Neal Markets and Marketing Our memory products are targeted at fast nvRAM markets, static random access memory plus Electrically Erasable Programmable Read Only Memory markets and other nonvolatile memory products broadly used in commercial, industrial and military electronic systems. Our products are typically used to store critical data when power is removed from the system. Often this data must be captured very quickly and we believe that the fast write time of our nvSRAM products is a significant benefit over other nonvolatile memory alternatives. Our products are used in systems that are "write intensive" such as data collection, event recording and others where we believe that the unlimited write endurance of our nvSRAM is superior to alternative nonvolatile memory solutions. 12 We anticipate increasing revenue due to three major factors. First, the revenue contribution of 1-megabit nvSRAM products is increasing as Simtek enters 2007. Second, our overall corporate average selling prices are expected to increase, as customers migrate from lower density products to higher priced, higher density 1-megabit nvSRAMs and nvSRAMs that include RTC functions. Third, we are seeing increased volume of our legacy products, as targeted end applications continue to experience additional nvSRAM product adoption and end market growth. For our marketing activities, we evaluate external marketing surveys and forecasts and perform internal studies based, in part, on inputs from our independent sales representative agencies. Marketing decisions are also based on forecasts and inputs from our current and prospective customers. We prepare brochures, data sheets, application notes, product collateral and product advertising with our internal marketing resources and contracted outside services. Much of this information can be found on the Simtek website at www.simtek.com. Some Application Areas for Simtek Products Airborne Computers Mass Storage Systems Automated Parking Systems Medical Instruments Automated Test Equipment Motor Controllers Automated Teller Machines Multi- Function Printers Automotive Control & Monitoring Systems POS Terminals Broadcast Equipment Postal Systems Cable TV and Satellite Set Top Converter Boxes Power Grid Management Systems Copiers Printers Currency Changers Process Control Equipment Data Monitoring and Recording Equipment Radar and Sonar Systems Down Hole Drilling Systems RAID Controllers Facsimile Machines Robotics Factory Automation Systems Routers Fluid Flow Meters Security Systems Gaming Machines Servers GPS Navigational Systems Studio Recording Equipment Guidance and Targeting Systems Telecommunications Systems High Performance Workstations Train Control Systems Irrigation Systems Controllers Utility Meters Laser Printers Weapon Control Systems LCD Projectors Lighting Control Systems Our 1-megabit nvSRAM is opening new applications into which our products are being designed. These include designs into an entirely new generation of integrated Redundant Array of Independent Disks or "RAID" controllers, other large storage systems, power metering, tele-communications, and data-communications. For 2007 our marketing focus will be to better understand and penetrate current markets for Simtek including direct-attached-storage RAID systems and certain industrial application areas; to expand our presence into 13 markets that are relatively new to Simtek such as external RAID arrays and mass storage subsystems; and further penetrating emerging communications, automotive, and other industrial applications.