Wialan Technologies Inc (WLAN)

[atkinson01]

To all of our esteemed shareholders,

Like you, we are very disappointed in the price of the stock. We have not tried to develop any support from any outside group in months, and were quite pleased when we started to see some organic support that recently brought the stock up to around .0007. We were hoping that the tight grip in which the stock traded had been broken, but the downward pressure continues.

In our view, and in the opinion of others, the stock price is held in a close range by a couple of market makers that are willing to make small profits on a continual basis. We have tried reviewing the DTC sheets before, and it was amazing that we could not see any large position changes. We will again order DTC sheets and NOBO lists to try and get some resolution. We have several traders and attorneys that have offered their assistance in this matter. Obviously, these prices make acquisitions and funding any larger project difficult, because when the price is consistently going in the wrong direction, any financing that we do gets continually more expensive to accomplish.

We will continue to keep you informed and to implement the business plan as described.

- John Folger