SupportSave Solutions, Inc.

Analyst: Lisa Springer, CFAInitial Report

November 20th, 2008

SupportSave Solutions, Inc. (OTCBB: SSVE) 1


November 20th, 2008

Company Introduction

SupportSave Solutions, Inc.1451 Danville BoulevardSuite 201Alamo, CA 94501United States

Phone: 925-304-4400Web Site: http://www.SupportSave.com

MARKET DATA

SymbolExchangesCurrent PricePrice TargetRatingOutstanding SharesMarket Cap.Average 3M Volume

Source: Yahoo Finance, Analyst Estimates

SSVEOTCBB

$0.43$2.09

Speculative Buy12.667 Million

$5.4 Million929

SupportSave Solutions Inc. (SSVE) provides both onshore and off-shore business process outsourcing (BPO) services to clients in the travel & hospitality, technology, financial services, retail and tele-communications 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 busi-nesses.

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 acqui-sitions, and recently relocated to a larger facility able to accommo-date 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 fur-

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November 20th, 2008


Analyst: Lisa Springer, CFA Initial Report

November 20th, 2008


ther 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.

$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 re-sources 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 out-sourcing revenues behind India and China. However, many an-alysts 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 estab-lished 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 in-crease 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 telecommuni-cation 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 rev-enues 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.

Investment Highlights


November 20th, 2008


Analyst: Lisa Springer, CFA Initial Report

November 20th, 2008


Dynamic business model enhances advantages and diversifies risks

SSVE offers a diverse range of BPO services including customer service, technical support, administrative sup-port, 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 Com-pany’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.


November 20th, 2008


Philippines BPO market forecast to reach $13 billion - $16 billion in 2010

The Philippines BPO market has been growing 40%-60% annually in recent years. Revenues generated from Philippine BPO services rose to approximately $5 billion in 2007 from less than $150 million six years earlier. According to the Business Process Outsourcing Association of the Philippines (BPAP), the country’s BPO market is expected to comprise 10% of the global BPO market by 2010, up from 5% market share currently. Philippine BPO industry revenues are projected to nearly triple, reaching between $13 billion and $16 billion by 2010. The number of BPO staffers in the Philippines is forecast to rise from 200,000 today to 500,000 by 2010. According to BPAP, the market’s robust growth is attributable to competitive pricing. Philippine BPO vendors can provide 30%-40% estimated savings for their foreign clients.

The Philippines ranks high on skilled manpower availability

The Philippine BPO market ranks third in revenues behind India and China. With literacy rates at about 93%, the Philippines has an educated labor pool competitive with that of many developed countries.

With 29 million skilled workers, the Philippines ranks fourth in the world in terms of the number of available knowledge workers. The Philippines also has the world’s third largest English-speaking population, making communication barriers with American customers virtually non-existent. Another advantage is the country’s well-developed telecommunication network and utility infrastructure, which is capable of supporting a fast-growing network of call centers.

The Philippines BPO Market

Exhibit 1: Comparative Literacy Rates in other off shoring locations

Source: FBR report


November 20th, 2008


Technical support services are the most promising growth area for Philippines BPO providers since these services often result in higher billings and margins compared to customer management services. Going forward, the Phil-ippine BPO market is likely to consolidate, creating acquisition opportunities for low-cost leaders such as SSVE.

Stable wage inflation compared to other offshore locations

Competition for workers in established BPO markets such as India has resulted in wage inflation and rising costs and pricing. The talent hunt for BPO workers has contributed to annual wage inflation averaging around 10% globally. The Philippines has experienced comparatively modest wage inflation at only about 5% and has entry-level labor costs much lower than other BPO markets. Although wage hikes for managerial positions have seen higher growth at 15%, manager costs account for a relatively small portion of BPO providers’ overall labor costs.

Most BPO operations concentrated in metro Manila

Approximately 90% of Philippine BPO call centers are located in the metro Manila area. Manila has 15 million of the Philippines’ 90 million residents. Metro Manila is nearing a saturation point in terms of available affordable facilities and labor, and many BPO providers are exploring new locations such as Luzon, Cebu and Mindanao as a way to reduce costs and traveling time for their employees. With established call centers away from Manila, SSVE was at the leading edge of this migration trend.

The average Philippine call center has a seating capacity for 1,000 to 3,000 agents. However, this is changing; a new trend favors smaller facilities with no more than 1,000 seats as a way to reduce business risks associated with under utilization.

Exhibit 2: Job growth projections in the Philippines BPO/ITeS segments

Source- BPAP


November 20th, 2008


SSVE has created a business model that makes outsourcing affordable for both small and large businesses. The Company designed a “Flat-Rate-Per-Month” service plan that provides full-time dedicated workers at costs of only $897 per head per month, including telephone costs, hardware, software and taxes. Service rates are mod-erately higher for medical workers, legal professionals, engineers and other specialty professionals.

The Company provides services on a pre-paid basis, meaning payment is due immediately on the start date of the hired worker. In cases where services are terminated during the month, SSVE refunds a pro-rated amount to the client. Payment up-front reduces the Company’s business risk, creates a predictable cash flow stream and allows SSVE to earn interest on client payments.

SSVE’s workers are supervised by American managers, who work on-site at the Company’s facilities in the Phil-ippines. The combination of American managers and Philippine workers ensures service quality comparable to Western country standards at a much more affordable price.

SSVE provides an online time clock system at www.OnTheClock.com, which allows clients to verify whether their dedicated representatives have punched in on a particular day. Clients can also access the PCs of their offshore workers by visiting www.LogMeIn.com. Access to the Company’s eight camera full-color CCTV system for online viewing is available through www.supportsave.com/live.php.

The SupportSave Business Model

Full-time dedicated representative for $897 per month ($5.18/hr).

US-based and bilingual employees for $11 per hour (F/T)

Each dedicated employee has:

Local US number in ANY area code •Full PBX features including call transfer •LatestPCwithofficesoftware•High speed Internet connection •Support of American management on site•

Dedicatedemployeeinthefollowingfields:•

Customer Service, Technical Support, Administrative Support, Legal, Accounting, AutoCAD, Engineering, Virtual Assistant, Sales, Telemarketing, Programming, Call Center Agents CCTV Monitoring, Market Research, Surveys, Writers, Medical Billing.

Business Process Outsourcing

“Flat-Rate-Per-Month” service •modelOperates 24 hours per day, 7 •days per weekServices are pre-paid•In case of cancellation, refund of •pro-rated portion by check within 15 daysOnline time clock system for •tracking representative punch in timeFacility to view and take full •control of representatives ‘PC through www.LogMeIn.comCCTV system for online viewing•24/7 client helpdesk•SuppotSave Business Model

Exhibit 3: Business Model

Source: Company information


November 20th, 2008


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 ac-commodate 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 pre-pared 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., approxi-mately 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 con-sisting 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

Commerce Process orders •Handle Customer Service •Phone, Email, Live Chat. •Technical Support •Post ads and Blog •Perform Data Entry/Mining•

Medical/Health Care Schedule Patients •Make Reminder Calls •Answer/Screen Telephone Calls •Make Billing Calls •Make Payment Calls •Philippine Call Center•

Recruiting/HR Search Job seekers Websites •Send information packages •Schedule interviews •Conduct Preliminary interviews •Make Follow-up Calls •Send emails and post ads•

Agents/Brokers Handle Telephone Answering •Schedule Appointments/•

ConfirmationsAssist with Administrative Support •ProvideBack-Officesupport•Conduct MLS research •Perform Telemarketing/Sales•

Exhibit 4: Service offerings

Source: Company information

Growth Strategy


November 20th, 2008


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 facili-ties over time and transfer operations to SSVE facilities, creating effi-ciencies 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 con-tracts.

BPO providers compete mainly on cost and quality of services. These companies compete for a finite labor pool consisting of skilled workers with strong customer interaction and IT skills and fluency in English.

SSVE competes with BPO providers located in India, the Philippines, South America, China, Latin America, the Caribbean, Africa and Eastern Europe. In customer management services, the Company competes with IBM Global Services, PeopleSupport Inc., Sykes Enterprises, Convergys Corporation, West Corp., WNS Global Services, Accenture, ExlService Holdings Inc. and TeleTech Holdings. Most of these competitors focus on large clients with more than 500 employees. SSVE is carving out a niche providing affordable BPO services to small and mid-sized clients. The Company also competes with private companies such as ClientLogic, Qualfone, In-nodata, and with Indian BPO companies such as Genpact, Infosys, FirstSource, HTMT and Transworks. These Indian companies are establishing call centers in the Philippines.

Competition


November 20th, 2008


Recent months have seen significant M&A activity, specifically in the Philippine BPO space. Indian firms are ac-tively scouting targets in this small pool of companies. Two of the firms listed below have been acquired recently at significant premiums to market price (65-75%)

PeopleSupport Inc. (PSPT)

PeopleSupport provides customer management, transcription and captioning, accounts receivable management, back-office management and consulting services. It has call centers in the Philippines, Costa Rica and the U.S, and offers outsourced services in the travel and consumer, financial services, technology, telecommunications, health-care, insurance and media industries. The company has more than 8,550 employees and generated revenues of $140.6 million last year. It operates through eight outsourcing facilities. Aegis BPO, part of the Indian conglom-erate Essar Group, recently acquired the company at a 70% premium and will pay PeopleSupport stockholders $12.25 per share in cash.

Sykes Enterprises (SYKE)

Sykes Enterprises provides outsourced customer contact management solutions and services. Its clients include Fortune 1000 companies, medium-sized businesses, and public institutions. It serves clients in the communica-tions, technology/consumer, financial services, healthcare, transportation and leisure industries. The company operates across 18 countries with 42 call centers and more than 29,560 employees. Sales were $710.1 million last year, with outsourced customer contact management services accounting for about 96% of sales.

WNS Global Services (WNS)

WNS Global Services serves BPO clients in Europe and North America through delivery centers located in India, Sri Lanka, the Philippines, Romania and the UK. In April 2008, it acquired Chang Limited, an auto insurance claims processing services provider in the UK. In June 2008, it acquired Business Applications Associates (Bi-zAps), a provider of SAP solutions for finance and accounting processes. In July 2008, it purchased all the shares of Aviva Global Services (AGS). The company has about 18,104 employees and produced revenues of $459.9 mil-lion last year.

ExlService Holdings Inc. (EXLS)

ExlService Holdings Inc. offers integrated front-, middle- and back-office process outsourcing services to clients in the U.S. and the UK. It caters to clients in the insurance, banking, financial services, utilities, healthcare, tele-communications and transportation sectors. The company has about 10,000 employees and generated revenues of $179.9 million last year.

eTelecare Global Solutions Inc. (ETEL)

eTelecare Global Solutions Inc. (eTelecare), is a global BPO services provider focusing on voice and non-voice based customer care services. It has 15 contact centers located across the U.S., the Philippines and Latin America, and has 13,100 employees. Clients include American Express Company, AOL, AT&T, Dell, Intuit, Sprint, U.S. Cel-lular and Vonage.

On September 28, 2007, eTelecare acquired all the outstanding stock of AOL Member Services-Philippines Inc. (AOL Philippines), a wholly owned Philippines subsidiary of AOL. AOL Philippines operates a non-voice cus-


November 20th, 2008


tomer care and technical support delivery center near Manila. Revenues rose to $259.9 million last year.

eTelecare Global Solutions Inc was recently acquired by Ayala Corporation and Providence Equity Partners at a 76% premium.

Robust revenue growth

Since its incorporation in May 2007, SSVE has demonstrated robust quarter-over-quarter revenue growth, with growth averaging around 10%-20% per quarter. In the first quarter ended August 31, 2008, SSVE reported 287% year-over-year growth in revenues to $437,898 from $113,914 one year earlier.

First quarter FY 2008 revenues of $454,460 were also 36% higher than prior quarter revenues of $333,002.

Financial Analysis

Exhibit 5: Quarterly Revenue Growth

Source: Company 10-Qs

$129,046($6,132)

$113,914$84,820

0$21,819

FY 2007

Source: Company 10-Q: * All of the fourth quarter net loss is attributable to non-recurring operating expenses relating to issuing shares to employees, vendors and investors. The Company intends to curtail this practice in FY 2008 as it focuses on profitability and meeting NASDAQ listing requirements.

RevenueReturns and allowancesTotal revenueTotal operating expensesNet interest income/(expense)Net income/(loss)

$454,460($16,562)$437,898$308,740

$1,826$77,085

$333,002($1,360)

$331,642$917,301*

0($507,291)

Q1 FY 2008 Q1 FY 2007

Exhibit 6: Company Quarterly Results


November 20th, 2008


Operating expenses grew more slowly than revenues and contributed to improvement in operating margins. Op-erating expenses mainly reflect payroll expenses and facility costs.

Operating margins improved

During the first quarter, the Company’s operating income climbed 343.9% year-over-year to $129,158, reflecting increased efficiencies among its major cost centers. Operating margins improved to 29.5% from 25.5% one year earlier. Net income rose 253.3% year-over-year to $77,085 from $21,819. Net margins were down slightly in the FY 2008 first quarter because of higher interest costs.

Source: Company 10-Q

REVENUESalesLess: returns and allowances TOTAL REVENUE EXPENSESOperating expenses OPERATING LOSS* OTHER INCOME (EXPENSE)Interest incomeGain on sale of investments(Losses) from currency hedging transactionsFederal income tax TOTAL OTHER INCOME (EXPENSE) NET LOSS BEFORE PROVISION FOR FEDERAL INCOME TAX PROVISION FOR FEDERAL INCOME TAX NET LOSS NET LOSS per share: Basic and diluted Weighted average shares outstanding:Basic and diluted

$1,005,863 (16,093)

989,770

1,378,788

(389,018)

3,543 32,913 (5,825)

-0-

30,631

(358,387) 0

$(358,387)

(0.03)

11,880,772

-0--0-

-0-

21,585

(21,585)

-0--0--0--0-

-0-

(21,585) 0

(21,585)

(0.00)

10,233,306

2008 2007

SUPPORTSAVE SOLUTIONS, INC.CONSOLIDATED STATEMENTS OF OPERATIONSFOR THE YEARS ENDED MAY 31, 2008 and 2007

Source: 10-K. *Note that FY 2008 operating and net loss is attributable to non-recurring expenses relating to issuing shares to employees, vendors and investors.


November 20th, 2008


FY 2008 versus FY 2007

The Company generated revenues of $989,770 in FY 2008 versus no revenues in the prior fiscal year. Operat-ing and net losses were recorded in FY 2008 mainly due to non-recurring operating expenses relating to issuing stock to employees, vendors and investors. Excluding these expenses, SSVE would have been profitable in FY 2008. The Company plans to curtail this practice of issuing shares to employees and vendors in FY 2008 to focus on profitability and meeting NASDAQ listing requirements.

Liquidity and capital resources

The Company’s primary source of liquidity is cash flows provided by operations. During the first quarter of FY 2008, SSVE generated cash of $109,006 from operating activities, nearly triple the amount generated one year ago. That SSVE is already cash flow positive at this early stage of its development is an impressive accomplish-ment.

Cash and cash equivalents increased 20% in the first quarter of FY 2008 from FY 2007 year-end levels. Rising cash balances combined with an absence of long-term debt and modest current liabiltiies demonstrates the strength of the Company’s payment upfront business model and puts SSVE in the enviable position of being largely self-funding.

Revenue Outlook

SSVE continues to impress us with its strong sequential quarterly revenue growth. We anticipate that the Com-pany will produce 10%-20% quarter-over-quarter sales growth and triple-digit year-over-year growth for at least the next several quarters. Facilities expansion, accretive acquistions, and an expanded sales and marketing effort support our outlook for four-fold growth in revenues in FY 2008 to a $4.2 million range and revenues more than doubling the following year to a $9.0 million range. These estimates don’t include the impact of acquisitions which could push FY 2008 revenues well above $5.0 million. We also expect the Company to turn profitable in FY 2008, reporting earnings approaching $1.1 million this year and $2.3 million in FY 2009.

Source: Company 10-Q

Cash and cash equivalents Net working capital (excluding cash)Total assets Total long term liabilities Total current liabilitiesStockholders’ equity (deficit)

$523,167$(42,657)$661,558

NA$55,899

$605,659

$436,719$(20,364)$560,065

NA$28,447

$531,618

Q1 FY 2008(unaudited)

FY 2007(unaudited)

Exhibit 7: Balance sheet data


November 20th, 2008


Valuation Analysis

SSVE’s peers in the BPO space were recently trading at 0.8 time forward Price/Sales multiples and 14.6 times for-ward Price/Earnings multiples. We think SSVE warrants a valuation in line with industry peers. Although some of these peer companies are considerably larger and better established, SSVE differentiates itself as a low cost provider. We think this competitive advantage will support above average, long-term growth rates.

Source: Reuters

PeopleSupport Inc.Sykes EnterprisesWNS Global ServicesExlService Holdings InceTelecare Global Solutions Inc.

Average for the Peer groupSupportSave Solutions Inc.

PSPTSYKEWNSEXLSETEL

SSVE

.230798426209234

5.4

12.0119.45

10.0487.237.90

0.43

8.7714.6934.706.818.98

14.79

NA10.21

NA10.4423.84

14.83

27.939.54

NA8.51

12.31

14.57

1.640.840.741.040.87

1.02

1.520.72

NA0.930.73

0.97

1.360.66

NA0.860.64

0.88

Company nameTicker

symbol

Market cap.

$ Billion 2007 2008 2009

Price per

share ($)

Exhibit 8: Peer Group

2007 2008 2009

P/E P/S


November 20th, 2008


We multiple a 14.6 times forward Price/Earnings multiple by our $2.3 million earnings estimate to obtain a $33.5 million market capitalization target, then divide that amount by 16 million shares outstanding to obtain a $2.09 price target for SSVE shares. A modest increase in shares outstanding is assumed from future equity sales. We are initiating coverage of SupportSave Solutions with a Speculative Buy rating and a $2.09 price target. While we believe the Company is well positioned for exceptional revenue and earning growth, we advise inves-tors to consider the risk factors discussed below before investing in these shares.


November 20th, 2008


Limited operating history

The Company was formed in May 2007, and has a limited operating history. Limited financial data makes it dif-ficult to assess the success of its business plan. Although SSVE expects to generate substantial revenue growth from its BPO operations, there is no guarantee that such expectations will be realized or that the Company’s operations will be profitable.

Risks of new businesses

SSVE is subject to risks faced by many new businesses, which include limited capital resources and possible cost overruns. In addition, the Company’s revenues may fluctuate significantly from quarter-to-quarter and from year-to-year. The lack of an established track record makes revenue forecasting challenging. This may lead to situations where the Company’s actual revenues are below forecast levels, which may adversely impact market value.

Lack of exclusive arrangements with clients

The Company doesn’t have exclusive arrangements or minimum revenue commitments from its clients. Clients can terminate the Company’s services on very short notice. This could affect the Company’s revenue expecta-tions in the short run.

Technology and telecommunications risk

SSVE’s business is highly dependent on computer and telecommunications equipment and software systems. In its day-to-day business operations, the Company records and processes huge amount of data for its clients. Interruptions in the telecommunications network or technology failures could result in the loss of clients and revenues.

High attrition rate in BPO sector

The BPO sector is labor-intensive and SSVE must continue to attract, hire and retain qualified employees. Gener-ally, the BPO sector has a high attrition rate. If the Company can’t retain skilled workers, service quality could suffer and service problems could disrupt the client’s business. This may result in the loss of clients or damages claims against the Company.

Currency- related risks

The Company’s revenues are denominated in U.S. dollars, while a substantial portion of its costs are incurred in Philippine pesos. This exposes the Company to currency risks associated with a rising Philippine peso.

Risk Factors


November 20th, 2008


Michael Palasick has been CFO of the Company since May 2008. He has extensive experience in banking and capital markets and is the Principal of U.S. Refund Consulting LLC, a mortgage consulting firm based in Denver, Colorado. Mr. Palasick holds an MBA in Finance from the University of Tampa.

Michael PalasickCFO, Chief Accounting Officer, Treasurer

Aina Mae Dumlao-Johns has been the COO, corporate secretary and a member of the board of directors since May 2007. Ms. Dumlao-Johns has owned Support Save Management Solutions, a Philippines-based BPO service provider, since November 2004. She has a background in marketing and advertising. From June 2001 to May 2005, Ms. Dumlao-Johns was a student at the University of the Philippines, Diliman.

Aina Mae Dumlao-JohnsCOO, Secretary andDirector

Richard Halprin joined SupportSave Solutions in September 2001. He is the Company’s general counsel and a member of the board of directors overseeing all non-securities related corporate legal matters. He has been in private practice in Troy, Michigan, for approximately 17 years and is a magistrate of the 45B District Court (Oak Park, Michigan). Mr. Halprin obtained an undergraduate degree from Michigan State University and graduated Cum Laude from the University Of Detroit School Of Law in 1989.

Richard M. HalprinGeneral Counsel, Director

Christopher Johns has been the president and CEO of the Company since May 2007. Prior to assuming the CEO role, he worked in sales and management positions. From January 2003 to November 2004, Mr. Johns managed the operations of CallOnThe.Net, a subsidiary of World Access International Inc., which pro-vided calling solutions to the global community and CheapTalk Phone cards from Malaysia and Thailand. This business provided telecommunications services in developing markets in Asia, Africa and the Middle East. From early 2001 to January 2003, Mr. Johns managed an E-Commerce Website in Venezuela, which focused on sales of “As Seen on TV” fitness products to the worldwide market.

Christopher JohnsDirector, President and CEO

Management


November 20th, 2008


Disclaimer

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Our newsletter and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any of the companies profiled based solely on information contained in our report. Individuals should assume that all information contained in the report about profiled companies is not trustworthy unless verified by their own independent research.

Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment advisor or licensed stock broker before investing.

The report is a service of BlueWave Advisors, LLC, a financial public relations firm that has been compensated by the companies profiled. All direct and third party compensation received has been disclosed within each individual profile in accordance with section 17(b) of the Securities Act of 1933. This compensa-tion constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled companies. BlueWave Advisors, LLC, and/or its affiliated will hold, buy, and sell securities in the companies profiled. When compensated in shares, all readers should be aware that is our policy to liquidate all shares immediately. We reserve the right to buy or sell the shares of any the companies mentioned in any materials we produce at any time. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled companies. BeaconEquity.com is a Web site wholly-owned by BlueWave Advisors, LLC. BlueWave Advisors, LLC has been compensated thirty five thousand dollars from Whitney Funding, a shareholder of SSVE, as a marketing budget to manage a comprehensive investor awareness program including the creation and distribution of this report as well as other investor relations efforts.

Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking state-ments are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ ma-terially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or com-pleteness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www.finra.org.

All decisions are made solely by the analyst and independent of outside parties or influence.

I, Lisa Springer, CFA, the author of this report, certify that the material and views presented herein represent my personal opinion regarding the content and securities included in this report. In no way has my opinion been influenced by outside parties, nor has my compensation been either directly or indirectly tied to the performance of any security listed. I certify that I do not currently own, nor will own and shares or securities in any of the companies featured in this report.

Lisa Springer, MBA, CFA - Senior Analyst Lisa serves Beacon Research Partners as a research analyst. She brings to the company over 15 years experience in equity research and investment marketing. Prior to joining Beacon, Lisa worked as an equity analyst for an independent research provider. She has also held positions as investor relations officer for a NYSE-listed company and director of financial analysis for a large consulting firm. Lisa earned an MBA from the University of Chicago and is a Chartered Financial Analyst (CFA).

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