SVSY has recently received inquiries from Asia for the introduction of its products. If this important new market can be opened up, SVSY is in a position to increase its sales by more than 100%. Asia is one of the world's largest markets and has the ability to position SVSY as a leader in the UV water treatment market. The UV water purification process would be ideal for introduction in a developing country such as India and on the Asian sub-continent. SVSY partners with many of the major players in waste water treatment market, www.servicesystems.com/company/partners_alliances.htm ..... www.pennnet.com .

Financial Implications of Bio-terrorism

Due to the increased risk of bio-terrorism and the threat from chemical additives into the drinking water systems of major U.S cities, municipalities will now have to undertake a more comprehensive approach to securing the drinking water supply of their communities. Obviously, the bio-terrorism threat is not just domestic, but global in reach. Safe drinking water is a concern of populations circumnavigating the planet. The worldwide market for water purification systems that are efficient and cost effective, are in great demand. If SVSY were able to penetrate the global market and obtain a market share of 10% for water purification processes, SVSY's financial performance would place it near the top of small cap companies' growth rates. With the increased exposure and financial resources at its disposal, SVSY would be positioned to begin a major acquisition program thereby increasing its market position further.

The UV Water Treatment Market

Company President Ken Fielding states, "UV is a safe and effective means of increasing security immediately, and at an affordable price. The Global Water Industry reports the market value for Point of Use and Point of Entry equipment currently exceeds US$3.0 billion annually. Prior to the events of September 11th, Innovative Research Associates estimated that the UV market would surge from US$210 million in 2000 to US$900 million in 2005. Public water utilities supply the US population with over 40 billion gallons of water per day; all this water must receive some form of disinfection."

In order to capture a share of this spending, Service Systems is preparing to launch manufacturing and marketing of the following products:

This financial report may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by those sections. Such forward-looking statements, particularly as related to the business plans of the Company, expectations of strategic relationships, business opportunities related to electronic document delivery and related applications and voice, data and internet access telecommunications services, and the Company's ability to gain market share, the size of the market, the ability of the Company to develop new technologies, the ability of the Company to compete effectively in the marketplace, and the future product opportunities of the Company are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the Company's expectations and estimates.

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