Client Announcement

November 3, 2006

Dear Valued Client,

In August, 2005, Verifications, Inc. (V.I.) acquired Drugtec Systems Inc. Since its inception in 1988, Drugtec has built its business on substance abuse services and occupational medical assessments focused primarily in the transportation, energy and social services sectors of western Canada. We continue to grow, experiencing consecutive years of substantial growth in both revenues and client base.

In order to maintain this rapid growth, Drugtec reviewed current business and work flow processes and identified areas for re-engineering and development. The business review led to the development of a detailed project plan that will see the phased implementation of a number of changes aimed at improving the experience of our client-partners.

Phase I of this project plan saw Drugtec transition to the TPA BOSS system that has been in use across V.I. for a number of years. TPA BOSS has helped Drugtec streamline the work order process by adding time-saving automation. The implementation was lead by a project team from V.I. over a number of months in Calgary and has proven to be an extremely successful project.

In Phase II we reviewed our booking procedures whereby a client calls a dedicated client services representative. It was determined that the process should be reworked to provide our clients with a more consistent service level. With the successful launch of TPA BOSS in Phase I, it was possible to cross train CSR’s to handle all client accounts within the system. Drugtec then implemented a new call answer model that allowed client calls to be routed to the next available CSR in the group. Moving to this call model provides faster call answer times by a live person, reducing the instance of clients having to leave voicemails when booking their appointments with us. We continue to tweak the new process in order to provide our clients with a superior, scalable level of service that can accommodate our aggressive growth targets and initiatives.

Phase III is currently underway and involves the much anticipated launch of SafeScreen to our Canadian clients. The first few clients are now live on the Substance Abuse Services Dashboard of SafeScreen. The Dashboard provides clients with 24/7 real-time visibility into their drug testing program online and so far has generated extremely positive client feedback.

In Phase IV Drugtec will renovate the current premises in Calgary. At approximately 5,600 square feet, the existing offices contain both administrative space as well as a clinic where both drug and alcohol and medical assessments take place. The renovation will allow us to efficiently design the office space, presenting an updated image to our clients while providing an improved working environment for our staff members. Target date for completion of this large renovation project is mid-December 2006.

Phase V involves the upgrading of financial management tools that will prove to substantially streamline Drugtec's administrative processes throughout all accounting cycles. In concert with this implementation, Drugtec will integrate Electronic Work Orders with upgraded financial management tools to reduce the re-keying of data and reduce the opportunity for error.

This detailed project plan will allow Drugtec to provide even better service levels to our clients while continuing to pursue aggressive growth targets.

Yours truly,

D. Craig Harding B.Sc.
Vice President
Business Development
Canada