Systems America, Inc. Issues Chairman's Letter to Shareholders to Our Shareholders:

CAMPBELL, Calif., Jan. 21, 2011 /PRNewswire/ --

To Our Shareholders:

Our semi annual shareholders' letter provides a timely opportunity to communicate the ideas and actions that we are pursuing at Systems America, Inc. (Pink Sheets: SYAI), and the logic behind them.

Since going public in June of 2010, this has been a defining year for Systems America on two dimensions.  First, it was about building momentum around our growth agenda. Second, it was about initiatives and investments we have made that position Systems America for future success. On building momentum, we returned to a solid growth trajectory and we delivered strong results. Despite the uncertainty in the marketplace, we were able to meet or beat all the elements of our original annual financial projections for fiscal 2010:

• Revenues and earnings per share were both within our expected ranges.
• Bookings were in the upper end of our guided range, demonstrating growing demand for our services.
• We expanded operating margin, slightly exceeding our expectations.
• And we generated free cash flow, exceeding our expectations.

Of course, our clients are the heart of Systems America, and helping them achieve high performance is what we're all about. We're fortunate to count high growth companies as our clients. Perhaps even more important than the number and size of our clients is the depth and longevity of those relationships.  In fiscal year 2010 we attracted new clients and expanded our relationships with existing clients, demonstrating our ability to adapt to and serve the full spectrum of an organization's needs. For instance, we facilitated:

• India-West Newspaper to initiate a new project for launching its new website in the U.S. market
• Citrix Systems to source Systems America resources that were difficult to find

Driving growth across our business….

In fiscal 2010 we continued to implement our growth strategy, which is about driving growth on three dimensions:

First, our core business, of which the vast majority includes consulting, technology and outsourcing services we've traditionally provided.

Second, new businesses and initiatives that surround our core—including cloud computing, analytics, mobility, digital marketing, sustainability, smart grid and cyber security, among others.  

And third, geographic expansion—in our strategic growth markets of India, China, and Mexico, in several developed yet underpenetrated markets and in other fast-growing emerging markets.

We made good progress on all three dimensions in fiscal 2010.

Cloud computing is a key element of our focus on new business areas that drive high performance for our clients. This past year we strengthened our relationship with Salesforce.com, the leader in Cloud computing software, CRM and related services, through the formation of the Systems America Cloud Computing Group to jointly develop, sell and deliver Cloud computing solutions and services. We have nearly 10 prospective client engagements helping companies harness the power of cloud computing to drive better insights, better decisions and ultimately better business outcomes. This is just one example of how our growth strategy is yielding dividends and giving us significant momentum in our business.

In addition to helping clients achieve and sustain high performance, we are also committed to running Systems America as a high-performance business. As part of our ongoing focus on performance excellence, in fiscal 2010 we created the role of Chief Technology Officer, and one of our key areas of focus in fiscal 2011 will be to ensure that we continue to operate Systems America as effectively and efficiently as possible to ensure superior execution every day.

Investing in our people and our communities…

This past year we strengthened our corporate citizenship efforts. Most notably, we expanded globally our "Skills to Succeed" initiative, through which we team with strategic partners to help people build the skills that enable them to participate in and contribute to the economy and society. We recently announced that by 2015 Systems America would equip 3,000 people around the world with the skills to get a job or build a business. I believe that Systems America knows how to train and deploy talent better than any other company and the fact that we can turn what we do for ourselves into meaningful contributions to communities around the world is a wonderful thing.

Moving forward…

Systems America is on a solid growth trajectory and extremely well positioned for the future. This is the right time to further strengthen Systems America's global leadership, and I am very excited that, as recently announced, Raj Tyagi  has joined Systems America as Chief Technology Officer.  This is a great example of one of Systems America's core values—stewardship—which is an indelible part of our corporate culture and includes an obligation to build a better, stronger and more durable company for future generations.

Raj is an outstanding choice to lead Systems America technology innovations, accelerate the execution of our technology business strategy and guide us through our next phase of growth. I look forward to continuing to work closely with Raj. This will be a powerful leadership construct for Systems America.

In closing, I am incredibly proud of our performance in fiscal 2010, and I want to thank the men and women of Systems America around the world for their hard work, discipline and dedication. While this past year was challenging, Systems America emerged an even stronger company.  And, most important, I believe we are better positioned for growth and continued market leadership than at any time in our history.

Respectfully,

Adesh Tyagi

Chairman & CEO

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this letter contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Those statements include, but are not limited to, statements about our ability to increase earnings, operate through a difficult economy, and increase our relevance to customers, as well as the future impact of our investments in technology. Forward-looking statements are subject to risks and uncertainties that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: our ability to offer merchandise and services that our customers want, including our proprietary brand products; our ability to successfully implement initiatives to improve inventory management and other capabilities; competitive conditions in the retail and related services industries; the impact of seasonal buying patterns, including seasonal fluctuations due to weather conditions, which are difficult to forecast with certainty; general economic conditions and normal business uncertainty, changes in consumer confidence, tastes, preferences and spending, the availability and level of consumer debt, and unanticipated increases in our costs; our dependence on sources outside the United States for significant amounts of our merchandise; our extensive reliance on computer systems to process transactions, summarize results and manage our business; our reliance on third parties to provide us with services in connection with the administration of certain aspects of our business; our ability to properly implement and realize the expected benefits from our new organizational structure and operating model; our ability to attract, motivate and retain key executives and other associates; the outcome of pending and/or future legal proceedings, including product liability claims and bankruptcy claims, including proceedings with respect to which the parties have reached a preliminary settlement; and our ability to successfully invest available capital. We intend the forward-looking statements to speak only as of the time made and do not undertake to update or revise them as more information becomes available.

About Systems America

Systems America is a premier provider of diversified cloud computing and information technology solutions to commercial and government clients worldwide. We are ranked one of the fastest growing companies with multiple locations around the world. It began when a group of extraordinary operations and information technology professionals formed a company dedicated to fulfilling client needs. From a single financial industry client, Systems America expanded into the energy, financial, government, healthcare, retail, and travel industries. Today, Systems America delivers superior cloud computing, information technology consulting services, and systems and integration services to hundreds of clients worldwide. Building on a core competency of efficient technology infrastructure outsourcing, the company, headquartered in Campbell, California, United States now supports operations in nearly 20 countries. For additional information about Systems America, please visit www.systemsamerica.com.

SOURCE Systems America, Inc.