Conexys Releases Chairman's Report

Three years ago, Conexys positioned itself as a leader in providing Unified Communications solutions to corporate and individual users through iComMandTM, its licensed communications management platform. iComMandTM is proprietary technology that combines fax, voice and email messages into a single inbox accessible through any web-enabled device or any telephone. The demand for Unified Communications services was and is still forecast to be a multi-billion dollar industry within the next three years.

Much of our focus over the past three years has been partnering with major corporations in the technology and telecommunications industries in Canada, Europe, and South Africa. Our business model allowed these partners to offer Conexys technology under their own brand to their existing customer base. However, one only has to look at the recent problems in the technology sector to realize that these partners have been forced to focus on their corporate existence rather than expansion into new product and partnership offerings.

During this past financial year, management has focused on adapting Conexys' business model to address and capitalize on the drastically changing technology marketplace. In this changing environment, Conexys has experienced difficulty in securing equity financing and consequently the Corporation has relied on its existing secured loan facility to fund operating losses. The financial year ending December 31, 2001 produced the Corporation's first iComMandTM licensing revenues, which contributed to modest revenues of USD$133,544. Our net loss was essentially the same as the previous year, just over USD$4.0 million.

While we have definitely experienced a challeng- ing year,I am pleased to say that our Corporation appears to have weathered the worst of the storm and with software development completed, 2002 should show a much lower net loss as the Corporation is in the process of being restructured to launch a new, more efficient business model to capitalize on your investment.

For the fiscal year 2003, the Corporation has set itself three main goals:

1. Revenues in excess of USD$2.5 million with a positive cash flow;

2. Secure channel partnerships in Canada; and

3. International expansion based on expertise in domestic markets.

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In order to achieve these objectives, the Corporation will focus on sales and marketing efforts with strategic partners that can promote iComMandÔ as a turn-key solution enabling companies to integrate messaging within their existing online product offering. We know that 80% of the time we are at our computers, we are sending and receiving messages. iComMandTM allows companies to integrate Unified Communications into their business, which results in constant traffic to their existing web site. This is good news for the majority of companies that have invested tens of thousands of dollars in their web sites, only to find that their customers visit occasionally at best.

Our efforts are now focused on companies that have the need to communicate with sales networks and agents, in the financial services, real estate, and SME sectors. iComMandTM enhances their value proposition.

I express my sincere gratitude to the employees who have worked so loyally and continue to work diligently in our offices in Bermuda, Canada, and South Africa.

Finally, I would like to thank all shareholders for their support, and assure you that the Board, senior management, and I remain focused on increasing the value of your investment.

Signed by:

Edward K Furtak

Executive Chairman

Conexys Corporation Limited