Company Overview

SupportSave Solutions Inc. (SSVE) provides both onshore and offshore business process outsourcing (BPO) services to clients in the travel & hospitality, technology, financial services, retail and telecommunications industries. The Company is headquartered in California and has a sales office in south Florida. It’s outsourcing center in the Philippines caters to the needs of small and mid-sized businesses. SSVE offers a more affordable solution, with services priced at a 65% to 75% discount, as compared to most Indian and other Filipino BPOs.

SSVE provides full-time dedicated representatives at $897 per head per month, or $5.18 per hour. The Company’s innovative "Flat-Rate-Per-Month" service model makes outsourcing affordable for small businesses. The Company eliminates default risk by requiring its clients to pre-pay for monthly service. SSVE facilities operate 24/7, providing the flexibility to support a wide variety of client businesses.

Currently, with 200 full-time salaried employees, the Company is well positioned to capitalize on emerging BPO market trends with a shift in call-center locations from India to the Philippines currently underway. SSVE plans to grow both organically and through acquisitions, and recently relocated to a larger facility able to accommodate as many as 400 workers per shift. Additionally, the Company is completing the build out of a sales and marketing office in the domestic U.S. that will also serve as a operations center for clients requiring both U.S.-based and offshore employees; either premises based or home-based, known in the industry as “Homeshoring”. The Company has also identified acquisition targets that would further expand its client base and be accretive to earnings. Strong underlying growth in the BPO market, SSVE’s competitive positioning as a low-cost leader, its range of services, and double-digit quarter-over-quarter revenue growth make SSVE an attractive investment.

Investment Highlights

$43 billion offshore BPO market

The offshore BPO market is forecast to grow from $6.4 billion in 2005 to $42.9 billion in 2009. According to Gartner Research, the customer contact services, finance, accounting and human resources segments will experience the most growth. The current global economic slowdown may provide an impetus to offshore BPO market growth as companies search for ways to increase efficiency. At present, the Philippines market ranks third in outsourcing revenues behind India and China. However, many analysts think the Philippines market is poised for several years of hyper-growth, and point to the migration of Indian call centers to the Philippines as evidence of this market’ strong competitive positioning.

The Philippines is emerging as the preferred BPO destination

SSVE has established BPO operations at Cebu, located outside the central areas of the Philippines. This location is a competitive advantage since most competitors have established call centers in Manila; because of the high volume of call centers in the area, the metro market is nearing a saturation point in terms of labor supply. The Philippines is emerging as a globally preferred destination for voice-based or front office, offshore services. The BPO market in the Philippines has been growing 40%-60% annually, fueled by the country’s large numbers of English-speaking, IT-trained workers available at low costs. This market has grown from less than $150 million in 2001 to more than $5 billion in 2007 and is projected to reach between $13 billion and $16 billion by 2010. In addition, the country’s BPO workforce is expected to increase from the current 200,000 workers to 500,000 workers by 2010. Analysts expect the Philippines to capture a 10% share of the global BPO market by 2010, up from 5% presently. The Philippines ranks fourth globally in terms of available knowledge workers, and has the third largest English-speaking population. Literacy rates at around 93% are similar to many developed countries. The Philippines also has a well-developed telecommunication network and utility infrastructure, essential for BPO market growth.

Robust growth momentum

Since its inception, SSVE has recorded consistent, impressive quarter-over-quarter growth. The Company’s revenues increased 286.9.6% year-over-year in the first quarter of FY 2008 and operating income improved 343.9%. SSVE believes the global business slowdown actually presents growth opportunities since small and medium-sized businesses will be looking for ways to reduce costs through business process outsourcing.

Dynamic business model enhances advantages and diversifies risks

SSVE offers a diverse range of BPO services including customer service, technical support, administrative support, legal, accounting, AutoCAD, engineering, virtual assistant, telemarketing, programming, call center agent, CCTV monitoring, market research, surveys, writers and medical billing. The Company attracts clients from a wide range of industries, including travel & hospitality, telecommunications, technology, financial services, retail and consumer products. The diversity of its service offerings mitigates SSVE’s exposure to downturns in any one market. The Company minimizes marketing costs and expands its reach by marketing through value-added resellers. Labor cost advantages are achieved by locating call centers outside the saturated Manila market, where 90% of competitor call centers are based. Because of low labor costs, SSVE is able to price its services at a 65%-75% discount to competitors.

Planned acquisition expands client base and profitability

SSVE is in discussions to acquire a competing Philippines BPO company with a call center. This competitor is branded as a high-end offshore call center facility, providing very defined products at a rate nearly double that of SSVE. Upon closing the proposed acquisition, SSVE anticipates combined sales of $5.6 million, operating income of $2.2 million, and net earnings of $1.6 million. The acquisition will increase SSVE’s client base and improve economies of scale. In addition, the two businesses are quite different; if combined, they will provide a unique mix of services for incrementally higher value contracts.

Young, talented management team introduces innovative business ideas

COO and director Aina Dumlao and CEO Christopher Johns worked together to create an innovative business model which makes outsourcing affordable for smaller businesses. Mr. Johns has worked in many countries and founded numerous business ventures in Thailand, Malaysia and the Philippines. Ms. Dumlao, one of the Company’s founders, has a background in marketing and advertising. She directly oversees employee performance and communications between the Company and its clients. She is also involved in developing the Company’s marketing strategies.

Growth Strategy

The Company plans to grow its business through acquisitions and organic growth strategies.

Move to larger facility

In early 2008, SSVE moved its operations to a larger facility able to support more workers and services. This new 9,000-square-foot primary facility accommodates 326 workstations and, depending upon utilization needs, can accommodate 400-600 employees. The new facility has three times the capacity of the Company’s previous facility.

During 2008, SSVE secured another 4,000 square feet of leased space in its new facility. This space is being prepared for occupancy and SSVE expects to begin using the additional space in the third quarter of FY 2008. More workers will be hired as needed until optimum capacity is reached, at which point the Company plans to acquire additional space for further expansion.

Marketing initiatives with focus on wider markets

In early 2008, the Company hired two full-time sales executives to increase its visibility in the U.S. and other major BPO markets. Expansion opportunities in the U.S. abound; of the 25+ million businesses in the U.S., approximately 24 million have fewer than 500 employees and represent a multi-billion dollar underserved BPO market. Most BPO providers tend to focus on the top 1,000 businesses with more than 1,000 employees. SSVE is carving out a profitable niche serving smaller and mid-sized U.S. businesses.

In addition to hiring two dedicated sales professionals, SSVE is increasing its emphasis on indirect channels consisting of resellers, partners and affiliates. Indirect channels enable SSVE to expand its presence and client base while keeping sales and marketing expenses low. Under the current marketing model, resellers and partners mark up the price of the Company’s services and pocket the difference. As a result, business gained through reseller relationships increases SSVE’s volume without adversely affecting profit margins.

Expand in-house telecommunications network

SSVE is improving its in-house telecommunications network through upgrades to the phone system expected to roll out this year. In May 2008, the Company placed an order for equipment with 8x8 Inc., a provider of Packet8 broadband Voice over Internet Protocol (VoIP), videophone and mobile VoIP communication services. SSVE plans to increase its phone lines from 150 currently to more than 300 extensions over the next three months. The Company anticipates having 500 to 1,000 networked lines in service over the next 12 months.

Hedge against currency fluctuations

The Company has reduced currency risk and exposure to weakness in the U.S. dollar by entering into non-deliverable forward contracts and plans to re-evaluate this strategy as needed.

BPO acquisition

SSVE is negotiating the acquisition of a competing BPO with a call center in the Philippines. Assuming the acquisition is consummated, the combined entity would have $5.6 million in sales, $2.2 million in operating income, and $1.6 million in net income. This competitor is positioned at the higher end of the call center market and provides a much-defined product at rates twice those of SSVE. As a result, this acquisition would increase the Company’s market presence and profits, as well as provide economies of scale. After the acquisition, the Company plans to close the acquired entity’s two existing facilities over time and transfer operations to SSVE facilities, creating efficiencies and economies of scale. In addition, since the two businesses target different client bases and services, the potential exists to create a unique combination of services for incrementally higher value contracts.

Recent SSVE News:

November 19 - SupportSave Solutions Featured in Entrepreneur Magazine

SupportSave Solutions Inc. (www.supportsave.com) (OTCBB: SSVE), a provider of Business Processing Outsourcing ("BPO") services, is the subject of a feature story in an issue of the well-known monthly magazine, Entrepreneur.

The story, "From the Ground Up: Cebu-Based Company Attracts US Firms with Value-for-Money Proposition, Better Service," describes the tremendous efforts by the company's founders Christopher Johns and Aina Dumlao to start the company on a shoestring budget in 2004. The story goes on to note, "Today, their hard work has started to pay off nicely. SupportSave has now established itself as a rising BPO company with a 400-seat facility in Cebu City. The company has clients in Australia, the United States, Canada, Singapore, Taiwan, and Europe."

Christopher Johns remarked, "The SupportSave value proposition is truly remarkable. As noted in the story in Entrepreneur magazine, our rate of only $897.00 per month for a full-time, dedicated professional staff member or agent is 60 to 80 percent less than the industry average." Mr. Johns continued, "It is fitting that our entrepreneurial efforts would be recognized by Entrepreneur Magazine. We are particularly pleased that the article highlights the fact that our value proposition is especially attractive during this time of a slowing American economy."

SupportSave Solutions Inc.
http://www.supportsave.com/