March 12, 2007

To Our Customers and Our Family of Employees:

International Outsourcing Services has established itself over the past 40 years as a reliable and trusted partner, serving more than 40,000 retailers big and small across the nation.

Allegations have been made regarding business practices solely in our funded coupon division. Our company's leaders have worked tirelessly over the decades to establish the highest ethical standards in our company and instill these standards among the thousands of members of our employee family in all of our operating divisions. In fact, thanks to independent audits including audits by manufacturers and our own high standards, IOS has never been sued by a manufacturer regarding coupon invoicing or billing practices, even though we handle hundreds of millions of coupons each year.

In our business, a reputation for integrity is a precious commodity and one we have fought to earn. We are proud of our record and of our people. More than anyone, the leadership of our company wants to address these allegations and restore the confidence we have worked hard to gain in the marketplace.

We strongly believe that the facts will show our company has complied with the law and dealt fairly with all parties. These allegations stem from a long-standing industry dispute regarding coupon processing between IOS and a very small number of manufacturers.

We have always sought to treat every type of retailer the same, regardless of size and influence. In fact, IOS has tried to stand up for the rights of small grocers to ensure they are not shortchanged in this process. As a result, our integrity has been challenged and our reputation assailed.

Our company is eager to refute these allegations. In the meantime, our work on behalf of our valued customers continues. IOS and its thousands of dedicated employees continue to focus on our top priority: delivering on our commitment to our customers. We look forward to affirming our position as an industry and market leader.



Respectfully,

International Outsourcing Services