XeDAR Corporation Wins Second Contract for GSA SmartBUY Electronic Records Management Project

Business Wire, Oct 29, 2008

DENVER -- XeDAR Corporation, (OTCBB:XDRC), provides homeland security and defense consulting and IT management-and-security services to the Departments of Homeland Security, Defense and others; national intelligence agencies; and the U.S. Military. It announced today the receipt of its 2nd GSA Electronic Data and Records Management (EDRM) SmartBUY contract. National security concerns require that the details of the contract and the agency involved remain confidential; however, it is safe to say that the contract involves the government's continuing efforts to secure its complex systems of cyber-communication and data exchange. EDRM capability is fundamentally critical to a secure cyber-space, and its implementation signals the seriousness with which the government approaches national security. So serious is the threat, so necessary a secure EDRM system that XeDAR believes many more government agencies will install the software in the 2009 fiscal year.

The installation, training, and service required to install the EDRM software will be performed by XeDAR's Point One subsidiary in Arlington, Virginia. That work is expected to be completed within six months.

Dale Smith, Director of Point One, says that "this GSA SmartBUY contract is an explicit recognition of two national priorities: one, that homeland security depends more than ever on sharing critical information between agencies in a manner as secure and threat-proof as possible; and two, that accessible electronic data makes government more efficient and knowledgeable in its communications, decision-making and security responsibilities--all while saving taxpayer dollars."

Point One's EDRM software is proven to significantly reduce paperwork and decrease storage and retrieval costs. At the same time, the software provides new real-time search capability for archived data and information, which further reduces costs because it will eliminate thousands of hours of manual search time. Efficiency like this, and the new capabilities for employees using this software is unprecedented in American government. The bottom line change: the total savings to any major government agency will be in the tens of millions, if not hundreds of millions, of dollars over a five year period.

The benefits of this EDRM software accrue to XeDAR as well. Using the SmartBUY program benefits XeDAR, Smith says, because "of the significance of purchasing the EDRM software under the SmartBUY program. This means that XeDAR stands as the sole source provider of electronic document and records management software for the U.S. government for a five year period, a clear recognition of its superior functionality, capability, and reliability."

Smith added that the contract to implement secure records automation "will facilitate better inter-agency communication and more productive, secure collaboration" and confirms the initiation of the federal mandate that all federal agencies install EDRM software--absolutely essential to our homeland cyber security and potentially a tremendous opportunity for XeDAR in the near future. We enjoy an obvious competitive advantage, and the potential revenue opportunity is huge."

About XeDAR Corporation

XeDAR Corporation provides strategic consulting, systems analysis, predictive modeling, digital imaging, and geospatial data analysis tools and services to the Department of Homeland Security, the Department of Defense and other national intelligence agencies, as well as commercial clients.

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