To be a profitable and growing company, to provide excellent service to our customers, have a motivated and safety conscious work force within each client division, have those workers increase the profitability within that division, and have FlagStaff stand out as the leader in PEO industry throughout the Midwest.

Now, FlagStaff is at a point where potential client companies will need to start taking advantage of opportunities that our company can provide them. We can professionally manage their human resource needs at a cost savings for them, which in turn helps our client's profitability and increases investment and creates new employment opportunities.

FlagStaff has increased its client base each and every quarter it has operated. Thus, effecting our financial condition positively ever since its inception. Revenue projected for fiscal year 2002 without external funding is expected to be up by 15%, and our annual growth is projected to be 20% per year through 2003.

Our strategy for beating the competition is competative pricing through improved productivity, better service to our clients, and improving the benefit choices for each client division employee. By better choices in benefits, we believe it increases moral and thus improves their productivity within their client division.

FlagStaff's target market includes manufacturers of most any product, transport & delivery companies, and most companies who find our pricing and services to their benefit.

FlagStaff is rapidly expanding into the Payroll Service Bureau and HR Services Consulting business. This area is rapidly growing as companies down size and continue to outsource certain workers. When a permanent staff outsourcing and Human Resource department is desired along with basic payroll services, Flagstaff Services will be the choice most companies will make. We believe that this will be a major expansion opportunity of FlagStaff by 2003.