Wrapup Q4 2006 - A letter from the CEO

To all our valued clients:

Alacra had a terrific year in 2006 and we expect to have an even better year in 2007. We made progress developing and selling each of our 4C products – Concordance, Compliance, Connections and Current Awareness. We also made a number of database additions to Alacra Premium and are about to release a number of enhancements to Alacra Book. Customer requests continued to drive Alacra’s development efforts across all our products.

There were a number of personnel changes during the year and I believe we have the strongest line-up of employees we’ve ever had. As described below, significant additions have been made to our London office and the US sales team. We’re currently looking for an eCommerce VP to manage Alacra Premium and the Alacra Store.

What’s on tap for 2007? We have detailed enhancement plans for each of our products based on feedback we’ve received from both customers and prospects. We’ll be focusing some resources towards information retrieval on mobile devices. We’ll be adding new content to bolster our Concordance and Compliance offerings and we expect to have some stronger, more strategic relationships with a handful of content partners. Mainly, though, we plan to continue providing our customers with the highest level of service possible.

It’s our sincere wish that all our customers have a happy, healthy and prosperous 2007.

Sincerely,

Steve Goldstein, CEO