SheerVision (SVSO)

[DFLY]

Second quarter of fiscal year 2010 revenues continued a trend that we expect to see for the foreseeable future, trending up 30% from the first quarter, which we believe was the low point for the Company’s sales caused primarily by the economic slowdown. Light sales continue to improve over all prior performances and have become our leading revenue producer. After adding a new manufacturer capable of producing the quantity of LED lighting systems currently demanded by our customers, we have been able to reduce the time it takes to fulfill orders for the LED light systems. However, second quarter revenues were adversely affected by the normal seasonal slump in December and early January.



Management believes that we have positioned ourselves for steady sales growth during our fiscal year 2010 and through the cost cutting measures already established, we expect to be in a stronger financial position by the end of the fiscal year.