While Alpha Microsystems (NASDAQ NM: ALMI) has attained a number of important milestones in its 20-year history, the launch of the AlphaCONNECT^tm technology in 1996 was among the most significant to date. The debut of AlphaCONNECT attracted considerable media attention and created more market interest in the Company than any other event in recent years. Most importantly, the AlphaCONNECT technology positioned the company as an aggressive contender in one of the fastest growing global markets: Internet/intranet and IT solutions technologies.

Since the AlphaCONNECT launch, Alpha Microsystems has executed strategies to expand promotion and build the programs needed to achieve commercial success of the technology. As a result of these programs, the AlphaCONNECT division has succeeded in offering powerful foundation technologies for business intelligence software serving the Internet, intranet, corporate information technology and software development markets. Both the Company and its independent vendor partners use AlphaCONNECT to create award-winning business-to-business and consumer-based products. Looking forward, the Company is continuing its efforts to establish strategic partnerships and alliances; opportunities for the AlphaCONNECT technology include increased OEM partnerships, technology enhancements, licensing and companion products.

While AlphaCONNECT is a new division within the Company, Alpha Microsystems Services Operation (AM Services Operation) continues to provide a consistent level of high-quality computer services such as consulting, maintenance and networking for small, mid-sized and large corporations nationwide. With over 48 locations throughout North America, AM Services Operation remains a strong generator of revenue and profit as it continues to expand into the open market.

With the continued success of AM Services Operation and the many opportunities that exist within the AlphaCONNECT division, Alpha Microsystems will continue, as it has done for the last 20 years, to be a leading provider of information solutions to the IT and enterprise markets.