RetailObjects is a leading producer of software for today's retail management systems, and a pioneer in the implementation of web technology - the most straightforward and cost-effective way to meet the operational and flexibility needs of the retail industry. The Company was founded in the year 2000 by Nahum Lipunsky, Oren Etzyon and Ofer Davidovich, all of whom are experts with many years of hands-on experience in the retail-software industry. [See Management for more details.] From its inception until June of 2006, RetailObjects was engaged exclusively with XN Checkout, a UK company who is a leading supplier of IT (Information Technology) hardware, software and services to the hospitality industry. XN Ceckout was recently acquired by Torex Retail, a global software-solutions supplier. And we have just concluded an exclusive agreement to supply XN/Torex with the technology for its hospitality market segment. Among Torex/RetailObjects clients are leading firms, such as Paramount Hotels, Punch Taverns, Westbury Hotels, Angus Steak Houses, NUS Universities, Cardiff University, University of Manchester, Warwick University, FYEO, Gatecrasher, Noble Bars, QHotels and Grace Hotels. Our goal is to become the supplier-of-choice for the new generation of management systems in the retail industry by enlarging our range of business partners, by branding and by using our technological advantage to market our solutions. With the conclusion of our exclusive agreement with Torex, we are now well positioned to realize this goal. We have already begun to configure and develop a global business-partner net that is devoted to the creation of a proper integration and distribution solution.