VirTra Inc (VTSI)

[The Rainmaker]

CEO doing great work here and was on the money with this Shareholder letter from the end of last year. This years improving financial numbers one of the carry forward benefits of last years hard work imho.

Dear Friends and Shareholders,

I am very pleased to inform you that VirTra Systems, Inc. has released its quarterly financial performance and has achieved two record profitable quarters, back-to-back. I think this quarterly result establishes that VirTra’s organizational changes in 2008 are not just a one-time spike, but are resulting in sustained improved overall performance.

For the nine months ending September 30, 2008, gross revenue grew from $1,827,523 in 2007 to $2,194,747 in 2008; moreover, our revenue is more diversified than ever before. VirTra’s revenue is now shared between domestic and international sales as well as between law enforcement and military, with considerable growth in law enforcement revenue. This diversified revenue base could be very beneficial to VirTra as the new US President takes office and his impact on military spending for the next 4 years is unknown.

General and administration costs are drastically lower from $1,280,723 for the same quarter in 2007 down to $120,859 for 3rd quarter 2008. While overall operations are far more efficient than the same period last year, the 2007 costs were far higher than normal.

Net profit from operations increased from a loss of $260,827 for 3rd quarter 2007 to a profit of $307,716 for 3rd quarter 2008, this is an increase in operating profit of $568,543 as compared to last year. The record-setting total net profit equaled $850,641 for the 3rd quarter 2008 with $581,337 attributed to the settlement agreement with Dutchess.

Net profit per share for the quarter was $.007. Net profit for the nine months ending September 30, 2008 totals $.011 per share.

Overall, VirTra has made significant improvements in financial performance in 2008. For nine months ending September 30, 2008, net profit is $1,396,053 compared with a loss of $680,875 during 2007. VirTra is one of the only companies in the world to make such a drastic improvement in net profit, even in the midst of economically challenging times. The full quarterly report can be found at: http://www.pinkotc.com/otciq/ajax/showFinancialReportById.pdf?id=18466.

As I write this letter, we are packing for our exhibit at the largest US military simulation tradeshow – IITSEC. I am also happy to report that our equipment performed flawlessly at the IACP law enforcement tradeshow we just attended a few weeks ago. I was told by many that our simulator continues to set the bar of excellence in our market and highly impressed the attendees.

We also continue to push international sales. While we attend tradeshows in the US, we already shipped a demonstration IVR-300 system to a distributor in Italy. The equipment should be through customs soon and then demonstrations to law enforcement and military decision makers will begin. VirTra has so many opportunities, both in the US and throughout the world, that it is difficult to not be grateful.

As we approach Thanksgiving in the US, I would like to express to the shareholders, employees, vendors, customers, and distributors how deeply I appreciate all the support through the tough years, which makes the many blessings we are now experiencing even more cherished. I am very thankful to you all.

Thank you and God Bless,

Bob Ferris

CEO/President

VirTra Systems, Inc.