Letter From DRIFIRE'S CEO

Welcome, and thank you for your ongoing interest in DRIFIRE. In this summary report, I am delighted to update you on the remarkable progress the Company has achieved in the first quarter of 2008, and provide a brief look ahead at the balance of the year.  In short, we have met a variety of extremely important personnel, product, manufacturing, marketing, distribution, compliance, and strategic milestones, all of which combine to position us with confidence for accelerated growth, competitive strength, and sustained visibility as the industry-leading provider of our Performance FR garments.

Shortly after joining the Company late last year and repositioning DRIFIRE as a separate entity wholly focused on its product development and marketing mission, and with the continued support of our equity partner, Sterling Capital, our organization initiated and completed an aggressive plan to expand its senior management team with textile industry veterans of proven experience all distinguished by extensive records of high achievement in this business. In all, five new Vice Presidents have joined the team. This means that today we have an experienced, collaborative team dedicated to Supply Chain Systems, Finance, Strategy, Product and Corporate Development, and Government and Industrial Sales.

In parallel during this time, the first-generation silk-weight-only product offering we started with has been expanded to include midweight, heavyweight, sweatshirt-weight and fleece-weight garments, all designed to fulfill our vision of a garment layering system. Today, our users can combine our next-to-skin garments with heavier layers of outerwear DRIFIRE garments to achieve a multiplier of the standard protection provided by any one layer of our clothing. All this while also still enjoying the same performance benefits of wicking, drying, and overall thermal regulation achieved by the patented blend we use to formulate our solution.

While continuing to sustain a growing presence in the military/government markets where the Company gained its first visibility as an industry-first offering, we have built a balanced focus which now includes Commercial market opportunities with specific reference to Industrial, Law Enforcement and Fire categories where we are experiencing additional growth and acceptance already, including new initiatives to bring our product message to chemical, petrochemical, and utility organizations and personnel.

Much is in store for DRIFIRE in the coming months. There will be a further expansion of our target markets. Additional garment types, options and alternatives will be developed. We are currently performing manufacturing research and due diligence to examine how additional or alternative processes can enable new product types while achieving lower costs, higher efficiencies, and more affordable garment styles. And, we continue to press without pause our goal of attaining more and more safety certifications and compliance benchmarks that distinguish the best products.

Lastly, I wish to say we have been blessed to date, by the support of our users and their willing, volunteered advocacy of DRIFIRE. Your support of the Company, for the way we try to operate to the highest standards, and your support of DRIFIRE the product line for how it has delivered unexpected benefits of protection and comfort has done much to elevate our market presence and speed global interest in our solution. For your letters, your continued patronage, and for your word-of-mouth enthusiasm for DRIFIRE, I thank you on behalf of the entire management team here at the Company.