Alphinat Inc. (NPA:TSX-V)
Current Price: $0.075 (July 28/10)

Coverage Initiated: $0.085 (February 8/10)

QUICK FACTS SHEET

HIGHLIGHTS:

• significant agreement in place with the Direction Générale de Modernisation de l'Etat (DGME) of the French Republic
• partnership with Bell Canada secured in October 2009
• building long-term shareholder value by expanding its client network internationally
• technology transposable/usable for other private sector industries

DISCUSSION:

Alphinat Inc. completed its initial public offering in July 2004 through the issuance of 9.25 million shares at $0.20 per share. The company is a developer, marketer and supporter of software to build online self-service tools that make it easier to deal with organizations or governments. Alphinat’s clients have included leading organizations such as Computer Associates, Cossette Communication Group, Molson Breweries, the Government of Quebec and the French Republic.

Alphinat’s primary product is a software suite called SmartGuideTM which simplifies and accelerates the building of on-line applications to improve interactions with business constituents resulting in greater cost-effectiveness, customer satisfaction and employee productivity. In effect, SmartGuideTM permits a Web environment to have the benefits and ease of use of an “in person” experience. Alphinat is also expanding its technology to include the healthcare, banking, insurance, telecommunications and other sectors, in modernizing, automating and reducing costs associated with conventional solutions.

After concluding the sale of the government license for SmartGuideTM to the Quebec government in 2007, Alphinat implemented an innovative online government solution that is entirely centered on the needs of citizens and entrepreneurs. This solution is a past winner of IBM’s “Top Star” award for online government solutions among applications from 189 different countries. Furthermore, the Organization for Economic Co-operation and Development recognized Alphinat’s e-government solution as a “best Internet practice”. The company's successful implementations with the Quebec government drew international recognition that led to commercial dialogue between Alphinat and the French government. In addition, in September 2008, Alphinat announced its first European contracts by way of partnerships with large French systems integrators and in June 2009, the company signed a limited production licence with a Swiss canton for Alphinat's SmartGuide suite to provide up to 10 initial on-line e-government services to its citizens and enterprises.

The number of Internet applications based on SmartGuideTM deployed within the Quebec government has grown to more than 30. In the first quarter ended November 30, 2009, Alphinat completed an agreement with Bell Canada for the commercialization of SmartGuideTM and the establishment of a SmartGuideTM center of expertise. Initial joint efforts will focus on the Quebec Government, an existing client that could benefit from the combination of Bell's professional services and SmartGuideTM. In addition, the two companies intend to pursue mutual opportunities for license sales of Alphinat's software and Bell's professional services in other regions and markets.

In October 2009, the DGME of the French Republic adopted the proposal of a consortium led by a major French systems integrator and partner of Alphinat. The DGME has launched a vast program in an attempt to simplify the administrative approaches for all public service users as part of its mission to modernize operating processes. The DGME defined an ambitious program of putting administrative procedures online with a new “on-line services factory” that guarantees agility for the French government. To address this task, Alphinat and its partners designed an application that allows the French government to optimize the secure implementation of e-services by leveraging existing applications and developing new, simplified e-services, which is exactly what SmartGuideTM was designed to accomplish. By mid-February 2010, the DGME had already launched certain online services with a goal of attaining 11 million users by the end of 2011.

In February 2010, Alphinat released version 4 of SmartGuideTM and also reported that the Québec government has renewed the annual maintenance contract for the SmartGuideTM license used to deploy e-government services to better serve constituents and enterprises.

Several factors are expected to contribute to the company’s ongoing success including a large number of retirements anticipated over the next decade, an ever-increasing number of complex online procedures that are required of citizens and customers, and the reduction of operating budgets. Each of these issues will play a key role in the need to improve productivity in both the public and private sectors.

Alphinat has undertaken several initiatives that are expected to lead to revenue and earnings growth in the coming quarters. The recent French Government announcement is a “company-builder” and Alphinat is building long-term shareholder value by expanding its client network internationally. Alphinat’s work with governments has the potential to represent a recurring revenue stream thus establishing a stable base of revenues and earnings from which to grow. The potential also exists for a takeover bid from one of the large system integrators Alphinat is currently partnered with. The company has undertaken steps to position itself in the American market through the commencement of a talent recruiting process as well as the initiation of partnership discussions with firms that have a strong US presence. A Vice President has recently been retained to negotiate partnerships in the US. While an investment in the company at this time remains speculative, all of these factors combined should lead to a substantial improvement in financial results and corresponding shareholder value, and a significant potential increase in investor interest.

MANAGEMENT TEAM:

Philippe Lecoq, President & CEO, Director
Curtis Page, Executive VP, CFO, COO, Director
Michel Lemoine, Chairman & Director
John McDonald Brown, Director
Benoit Ste-Marie, Director

CONTACT INFORMATION:
Address: Suite 950, 2015 Peel Street, Montreal, QC H3A 1T8
Phone: (514) 398-9799
Fax: (514) 398-9353
Website: www.alphinat.com
Email: info@alphinat.com
Contact Person: Philippe Lecoq or Curtis Page

The corporate information provided in this report is for informational purposes only. While every effort has been taken to provide accurate information, the completeness or accuracy of such information is not guaranteed. Certain statements in this report may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The company profiled assumes no liability for the information presented. The information contained in this report should not be construed as offering investment advice. Those seeking direct investment advice should consult a qualified, registered, investment professional. This is not a direct or implied solicitation to buy or sell securities. Readers are advised to conduct their own due diligence prior to considering buying or selling any stock. Trading accounts, including personal, family and corporate accounts, under the control of QIS Capital management and employees currently hold 252,500 shares in the company profiled. QIS Capital is engaged in an investor relations agreement with the company discussed and may trade in the stocks mentioned. No stock exchange has approved or disapproved of the information contained herein. Copyright ©2010, QIS Capital Corporation.