Protocall Technologies Inc (PCLI)

[Value_Investor]

We executed our first TitleMatch DVD On-Demand retailer agreement in May 2007 with a national 6,000 store retailer that planned to initially use our service at approximately 200 of their stores in various US markets during 2008. We are however evaluating our ability to perform under this agreement based on the resignation of our Chief Technology Officer on May 5, 2008. As a result, we anticipate significant delays in the implementation of our service with this retailer or termination of the agreement in its entirety. As part of our initial focus on consumer software products, we signed a fulfillment services agreement in 2004 with TigerDirect.com, which continues to be an active customer for us. In 2007, we signed agreements with Overstock.com and RightStuf.com to provide fulfillment services for both software and eventually movie products. Our revenue in 2007 was principally derived from our outsourced fulfillment services. We are in discussions with other web retailers to use our outsourcing services and we anticipate revenue from these services to increase as additional software and movie titles are licensed by us from content owners.

To be continued...