SWIR is a high growth stock with no debt. It currently trades in the $15 range with a
2007 EPS expected of $1.13 and a 2008 EPS of $1.52. This with a cash balance of $184.5
million with no debt and 31.5 million shares outstanding.

As you all likely know, SWIR is on the prowl for acquisition opportunities. As mentioned
they currently have $184.5 million in cash of which only $60-70 million is needed to run
the business. Therefore, we can potentially see $124 million being used for acquisition
purposes. We can see even more if they decide to issue stock in conjunction with the cash
offering as we saw with the Airlink deal. So what can we expect?

In Dave McLennan's (CFO) presentation at the Lehman conference on Dec. 4th, he mentioned
that they are looking at the M2M sector for acquisitions. He said that they have several
targets in the pipeline; however, for competitive purposes he was very general in his
discussion. He did, however, mention that the acquisition could be game-changing or it
could be something on the level of the Airlink acquisition which only cost about $31
million.

CIBC in a Q3 report discussed the possibility of an acquisition of a company such as
Wavecom, a heavy player in the M2M business. This I would categorize as the game-changing
type. They also briefly discussed a potential SWIR/Option merger. This on the basis that
SWIR has a huge North American presence, while Option has a huge European presence. This
too would be a game changer. Whether we give these possibilities credence or not, let's
remember that CIBC did purchase 1,900,000 shares of SWIR at $22.40/shr. They did not do so
blindingly. I imagine that they have more insight than I do, and I hope they're right.
Also SWIR's management seems to have their act together when it comes to making
acquisitions. Airlink only cost $31 million; however, it currently produces over $20
million in gross profit. One hell of an acquisition if you ask me.

I have no idea what their M&A plans are, but I think that we will go up tremendously based
upon the existing business. If we add an accretive acquisiton such as discussed, we will
all quickly forget about these dire days. Again, I'm not sure why anyone would risk
shorting this powder keg, but their short squeeze will make me much more financially
stable. I guess we shall soon see who's right!!!

Take care,

Brandon