Sleepers!

[sonnyman]

KITD Given the current price of KITD stock, compounded by the Company's strategic drift and worsening liquidity and capital structure issues, we have lowered our indicative offer to acquire the Company to a range of $1.35 -$1.70 per share—representing, at the midpoint of the range, a 112% premium to the $0.72 closing price of the Company's shares on Tuesday, December 4, 2012. Our offer is subject to due diligence, your release of certain parties from standstill agreements, and a mutually acceptable definitive agreement.



We believe that time is of the essence and are prepared to immediately engage with the Company and its legal and financial advisors regarding this transaction. In the absence of a response to this letter by 5pm ET on Wednesday, December 12, 2012 that generates demonstrable progress towards a transaction, we will evaluate other options available to us—including, but not limited, to an offer extended directly to shareholders and/or alternative entry points into the Company's capital structure.





We look forward to your timely response.

Respectfully,