Wrapup Q3 2006 - A letter from the CEO

To all our valued clients:

We had an extremely busy summer here at Alacra. Following our 10th anniversary party in late July, we focused our development and product management teams on two new services: Alacra Compliance and Alacra Current Awareness. These services are in use at a handful of firms and we have a robust pipeline for both of them.

For Alacra Current Awareness, our consolidated alerting service, we have made available a handful of new databases including Mergermarkets, Factiva and Moodys. In about a week we will be setting up trials for Blackberry delivery.

On the Compliance front we have integrated several new content sets into our application, including Accurint, Experian and a wide range of files from LexisNexis. In addition, we moved the Alacra Compliance Web™, our vertical search engine for client due diligence, from our home-grown platform to a set of Google Search Appliances. Finally, our Site Interrogation Engine™ now queries over 100 compliance-specific web sites.

I am also pleased to announce that Alacra Compliance was recently selected as a winner of InfoCommerce Group’s prestigious Model of Excellence Award. This honor recognizes innovative companies which effectively combine world-class software with high quality data.

Coupled with our product enhancements, we added an array of content over the summer, including information from ISI Emerging Markets and Australian company data from Aspect Huntley. Between now and the end of the year we plan to add several new databases to Alacra and/or the Alacra Store, including Revere Data, Institutional Shareholder Services (ISS), 10K Wizard and Current Analysis.

As we enter into the final quarter of 2006, it is exciting to see how our solutions and range of content have evolved over the past nine months.

Regards,
Steve Goldstein, CEO