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#1 - Five consecutive profitable quarters, and counting. Next quarterly release scheduled for November, 2009.

#2 - Lockheed Martin (LMT). Four separate press releases (11 June, 25 August, 27 August, 01 September) indicate Lockheed Martin's interest evaluating VTSI's technology. I-Hub board members have thrown around estimates / revenue projections and speculation could amount to millions of USD, but nothing has been formerly announced by VTSI at this time. LMT is no stranger to buying out small companies with advanced technology, to fit the niches within its virtual reality spectrum. UPDATE: 10/6/09 VTSI Receives Largest Order to Date from LMT. Terms and details of the transaction are not being disclosed publicly, at the request of LMT.

#3 Foreign Orders. We've seen a sizable order amounting to half a million dollars with Saudi Aramco, one of the largest oil manufacturers
in the world. VTSI had its 11th simulator sale through its partnership in Mexico. Earlier this year, the company made strides selling its technology down under, to a police department in Australia. VTSI has alliances all over the globe, which includes a strategic one with Agora in Brazil. Update a/o 9/30/09 - Three more of VTSI's best simulators have been sold through Agora, raising the total number of simulators sold in that market to five since January.

#4 - Threat Dynamics Partnership. VTSI is in plans with Threat Dynamics to build 11 facilities across the US as part of a plan to open fire arm training centers. This project has tremendous domestic appeal, and could generate a secure source of revenue for the company.

#5 -Orders from domestic police departments are continuing. An order took place on 29 June, when the Bellevue Police Department in Washington state purchased VTSI's simulators. On 22 September, the company issued a publication that they sold five simulators to various domestic law enforcement agencies.

#6 - Military Orders. 26 October PR on an announced order of five screen 300 degree IVR-300 simulators to the 819th Global Support Squadron. Training system includes tetherless recoil kits for M-4 and M-16 rifles, shotgun insert, M-9 tetherless recoil kits, Threat-Fire belts, & heavy weapons kits for the M-240 and M-249 firearms.

#7 - Leadership. Bob Ferris is only 38 years old, but is considered the grandfather of virtual reality and simulation by journalists that cover the industry. He is the driver behind this company, striking deals to reduce debt with Dutchess Capital Management and the IRS since his arrival as CEO a year ago. His stance on keeping expenses in check (maximizing salary to executives to no more than 100K) and paying incentives for company performance are well received by the shareholders. Bob is aware of maximizing shareholder value, and took admirable action in taking five million shares of common stock off the books, formerly owned by the prior CEO, General Dalby. Bob also conserved the companies bottom line by getting the company off the OTCBB last year, a move that raised concerns but in hindsight, helped build the company to its current profitable status.

#8 - Research and Development. The company continues to be the industry leader and has shown continuous efforts to upgrade its current technology. The best example of this was the introduction of the new generation of Threat Fire Belt (Threat Fire II) in August, 2009.

#9 - Good looking technical chart analysis and an undervalued stock price. Very cheap at current levels when one considers all the positives described above. The company also doesn't have an excessive amount of shares in the float (under 100 million a/o 30 June but likely to exceed that with dilution of shares to Dutchess, which was about 25% paid off as of the last quarter).

#10 - VTSI has only captured 1% to 3% of the overall market, in relation to te potential of its current products.