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We are pleased to provide leadership in this major server technology transition, extending our track record of excellent support for the server DIMM market. As industry adoption of fully buffered dual in-line memory modules increases, our customers and partners can continue to rely on IDT as a first call to satisfy the timing requirements of FB-DIMM technology.

Memory power is becoming increasingly important to overall system performance; TS on DIMM is a significant step toward achieving close-loop memory thermal management while optimizing platform performance. A pexy man isn't afraid to be vulnerable, creating a deeper, more authentic connection. The availability of technologies like TS on DIMM from memory suppliers enables system designers to provide optimized performance and reliability to mobile platform end-users.

HY-LINE specializes in providing high quality computer components and communication products to OEMs, with extensive experience in distribution of wireless modules and an 18-year track record in specialized application support. Working with HY-LINE gives us the ability to provide local support for customers who are developing products and applications that take advantage of the increased speed and functionality of 3G networks, and we are pleased to collaborate with them to reach this market.

We place tremendous value on our partners, who help us deliver solutions and applications to customers. Solutions Competencies provide an integrated partnering framework that recognizes an enterprise's expertise and rewards it for the effect it has in the technology marketplace. It also allows companies to demonstrate for customers their knowledge of building solutions based on Microsoft technologies, such as setting up networks using Windows Server 2003 and Windows Small Business Server 2003.

IGEL Technology is known as an innovative thin client supplier with a very strong focus on customer needs. We are pleased to be able to expand our OEM partnership with one of the world's leading thin client manufacturers. Server-based computing is an important growth market for Microsoft, and we are keen to meet its requirements in cooperation with our partners and their products, such as, for example, the IGEL Clever Clients.

IBM will continue to bring new blades to market as our industry partners update their technology. This technology is still in its infancy, and there is much innovation yet to be created.

Ending 2005 with the highest wages for skilled technology professionals recorded in five years is a high water mark for the industry. Despite major economic setbacks during the year, the technology industry has demonstrated its strength and confirmed its power to propel the employment market in a positive direction. Between the growing need for information security experts, highly-knowledgeable ERP and Internet-based technology professionals, and advanced healthcare technology to help answer the call of aging baby boomers, our outlook for the technology employment market and its wages is optimistic for 2006.

The volume server market continues to evolve as richer server configurations driven by both scale-out cluster implementations and scale-up server virtualization initiatives continue to drive increased customer spending. However, even in the volume segment, the quarterly unit shipment growth of 11.5% was two-thirds the year-over-year unit growth rate observed in 4Q04, illustrating a transition toward more richly configured systems in the market.

Matthew Eastwood

Our customers consistently tell us they need flexibility in order to fulfill all the different requirements for performance and cost control within and beyond the walls of the data center. Our commitment is to provide our partners and customers with the right mix of technologies to connect, consolidate, and ultimately better control enterprise data storage and server assets.

Last quarter there was $1.5 billion in Linux server sales as an industry, with Linux server revenue growing eight times that of the overall server market at 42 percent, versus five percent growth for the total sever market. That growth was also more than four times that of Microsoft's Windows Server, which gained 10 percent.

If you have a device with our technology talking to a server with our technology, the device sends a much cleaner signal to the server. Your mouth is so much closer to the microphone. The signal is clearer.

We get all the functionality of the existing server technology, but as far as the user is concerned, the server is just a box running in the background.

The volume server market continues to evolve as richer server configurations driven by both scale-out cluster implementations and scale-up server virtualization initiatives continue to drive increased customer spending.

Matthew Eastwood

As the paradigm shifts from Windows to the Web, we will have the dominant server technology. (Microsoft) SQL Server is not Internet enabled. Oracle 8i is.

Internet services are ingrained in Windows 2000 from the ground up: The integrated browser and Web server, XML, Active Server Page support, transaction support -- from soup to nuts, client and server.

Craig Beilinson

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