I apologize for not providing more frequent updates. We have been very busy especially in our home state of Texas - still dealing with the aftermath of Hurricane Ike. There was such a huge demand for mobile communication equipment along the Texas Coast that we released all of our demo equipment for rentals. We had demo equipment in the Beaumont and Houston areas the day after Ike blew through providing life saving communication services to our customers. Most of our equipment was used by the railroad companies as they worked to clean up and repair the railroads from all of the downed trees and damaged tracks. These mobile command centers that coordinated all of these resources for the clean up were using our MERC trailers to provide voice, data, wireless, cellular, sat tv, and radio coverage to over 200 users. Despite all normal local communications being down, these first responders were able to communicate without any problems.

In addition to the increased business as a result of Ike, CCS has also recently won some nice projects with the Texas Department of Transportation, the New York National Guard, and Houston ISD. CCS was pulled into the New York National Guard Project as a subcontractor for Avaya's Federal Team and with Houston ISD's Transportation Department by North American Communication Resources. We will provide more detail on these sales next month as well as some white papers on what the specific applications were for our solutions.

I have been invited to speak at the Avaya South Texas User Group Meeting and Technology Summit on October 21st in Houston, Texas. The focus of my presentation will be on Mobile Call Centers and how we can work with customers to ensure they can keep these revenue generating operations functional even after a disaster such as Ike. When the financial losses associated with a Hurricane are calculated, the amount of lost revenue by businesses with large call centers is often overlooked. For larger companies with big call centers, a call center being down just for a few hours can sometimes cost millions of dollars in lost revenue. A call center being down for one or two weeks could put a business under! By having a plan in place to provide a mobile command center or by utilizing a hosted call center, these problems can be avoided.

I am also proud to announce that CCS has formed a new partnership with Government Capital Corporation. This company is a financial lending company that specializes in Public Sector accounts. We have a great deal of our customers that are in a budget crunch and/or may be waiting for some form of Grant funding to pay for some much needed emergency response communication equipment. With GovCap we can now offer these customers a very competitive interest rate typically between 4% and 5% and the ability to defer payments for up to a year to push the first payment into the next fiscal year. I have been working with D.C. Greer their Executive Vice President and we are in the process of developing some joint marketing collateral around this new offer. To learn more about Government Capital please visit their website at http://www.govcap.com/.

Please feel free to contact me with any questions.

Gary Collins
CEO
877-772-2721
gwcollins@ccscontact.net