A Note From The CEO

Regarding the Acquisition of ING's Health and Welfare Outsourcing Business

Empyrean spent three months evaluating and proposing on an acquisition of ING's health and welfare outsourcing business. At the end of this process, we did not reach a mutually advantageous agreement with ING.

Our management team and current investors were disappointed that we were unable to reach agreement and consummate a deal. Our existing primary investors (along with me) are Claritas Capital and Collateral Guaranty. Both firms are institutional investors, with access to additional capital, and are excited about the prospects for our organic business. Our investors and management team will continue on an organic road to success with our laser focus upon health and welfare outsourcing.

Our business is growing quickly and we now have over 20 clients representing over 200,000 participants. We ended 2007 (our first year in the market) with 5 clients and 20,000 participants. Empyrean's success in a marketplace with much larger competitors is based on providing what we believe to be the most flexible and cost effective technology platform in the market along with very experienced teams providing the highest level of service in the market.