A Letter to Our Customers

 — December 5, 2005 — 

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Dear Customer,

2005 has been a monumental year for Xactware, as a record-setting number of you in the property insurance, remodeling, and restoration industries have placed a great deal of trust in our employees, products, and services. We sincerely thank you for your continued business and want you to know that our commitment to you as a customer and business partner is as strong as ever.

As the United States experienced an unprecedented hurricane season yet again this year, our thoughts are with the victims and families of Hurricanes Katrina, Ophelia, Rita, and Wilma. Xactware heightened its efforts to assist adjusters and contractors charged with helping these victims return to their homes and their lives as quickly as possible. Numerous Xactware personnel conducted onsite trainings, visited customer offices, distributed support documents, and worked directly with staging headquarters to assist our customers operating in the affected areas.

Earlier this year we finalized the much anticipated releases of Xactimate 24 for the insurance restoration industry and XactRemodel for the remodeling industry. With dozens of features that are not only new to our products, but also new to the industry, our customers continue to play a significant role in the release of our products. We thank you for your feedback on all of our products that help make them the leader in the industry.

Since true underwriting accuracy depends on a close connection to the actual indemnity costs of claims, we are excited to see an increasing demand and usage of XactValue. We have also seen an increased demand for homeowner collaboration products resulting in the release of our new collaboration tool allowing XactValue customers to automatically link into XactInfo for homeowner review and approval.

Xactware has also released an online version of our award-winning Interactive Learning Xperience (ILX) Construction Training product. Feedback so far has shown that customers appreciate the flexibility of the online version to design their own curriculum or choose from a variety of packaged courses.

We are also extremely pleased with the continued wide scale adoption in the industry of our patented, full-cycle, electronic claims-assignment process through XactNet and real-time management of those claims through XactAnalysis. By the end of 2005, our projections show that XactNet will have processed approximately two million full cycle staff, direct repair, and catastrophe claims through our network.

This year also marked the passing of my father and Xactware's founder, James B. Loveland. I have been overwhelmed with the tremendous amount of cards, phone calls, and thoughts that all of you have expressed to me and my family. For that, my family and I sincerely thank you. Although James will be truly missed, please know that the standards and integrity that he put in place within Xactware will continue to be at the center of our company as we continue to innovate and enhance our services and products for the industry.

As we move forward, Xactware's future has never looked better thanks to you, our customers. Again, we thank you sincerely for your business and wish you happy holidays and a prosperous new year.

Jim Loveland
Xactware's President & Chief Executive Officer

About Xactware Inc.

Founded in 1986, Xactware, Inc., is a privately held technology services company (www.xactware.com), specializing in the property insurance, remodeling, and restoration industries. Xactware's technology tools include software estimating programs for PCs and tablet PCs as well as powerful online systems for replacement cost calculations, estimate tracking, and data trending in real time.

For more information about Xactware's products and services, contact Xactware at 1-800-424-9228 or contact us online.