To Investors

We would like to express our appreciation for your continuing interest in and understanding on our performance and share prices.

Since the initial public offering in November 2005, we have been evaluated as our stocks went up and down in the emerging market environment that changes so drastically, and such market valuations have always been a sobering experience.

This year we will work toward achieving the business performance plan and also plan to continuously develop new businesses for our mid to long-term growth. As for the biometrics field centering on fingerprint authentication, we aim to seize the opportunity to further expand the market as the Japanese version of SOX Act comes into effect this year. As for new businesses, one-seg tuners for automobile use will begin to be delivered within the year and we have also been planning other new products. Since our businesses make significant changes every year centering on new projects, we make sure to never forget that the progress of our projects in Japan and overseas must be released in a timely manner.

We look forward to your continued support.

Kenji Miyoshino, President and CEO of DDS, Inc.

March 2007
Kenji Miyoshino
President and CEO
DDS, Inc.