ONWARD AND UPWARD

Creating value for shareholders

According to Zaio’s CEO Thomas Inserra, “Zaio’s strategy for creating and growing shareholder value begins with a focus on customer needs and serving those needs better than any other company.”

He further explained: “Right now the real estate valuation needs of customers are not being fully met. Customers in many different segments of the market need and want higher quality, more accurate valuations delivered in seconds, yet the market as a whole takes weeks to serve these needs. Zaio’s innovative solutions help appraisers better meet the needs of lenders, investors and a long list of customers.

“Also by bringing together a world-class group of managers and leaders in the valuation industry, then partnering with an incredible group of local appraiser experts nationally and using technology to better serve the needs of customers, Zaio has successfully deployed a solid foundation for building shareholder value.

“Investors rate the performance of Zaio’s management team and business every day by voting with the purchase or sale of our stock. So far, the investment community seems to be saying they are pleased with the Company’s plans and how we are performing in our key metrics. However, we recognize that we need to perform and execute every day. Some fluctuation in our share price on a daily, weekly or monthly basis is to be expected. Management remains focused on building shareholder value for the long-term.

“We believe two key metrics to watch over the next 24 months are the rate of Zaio zone sales and the rate of photography. Both are solid indicators of our progress in building the national site-verified database. Through May 2007, Zaio sold nearly 1,000 zones, which is ahead of our earlier projections. During the same time period, we have been taking photos at a rate of 250,000 per week, which represents a 17 fold increase in just five months.”

According to Zaio Chief Financial Officer Rod Mitton, “Our plans have been consistently communicated to investors, and more importantly, we have been delivering on those plans. We are a high-growth company with significant market potential. And as a result of our successful implementation we are now starting to attract the interest of a wide range of sophisticated institutional investors, who have now invested in Zaio.”

Steven Gold, Analyst with Clarus Securities Inc. recently became the first professional analyst to cover Zaio, and has placed a “Speculative Buy” rating on the Company’s stock. Gold says it’s his job to seek out undiscovered smaller market cap companies that fly under the radar screen. He looks for companies with a market opportunity, quality management, and a product that can address an issue in the market. Gold identified Zaio’s business opportunity, and recognized that Zaio was undiscovered and lacked widespread investor interest. This spurred his first report, issued on April 12.

Of course, the Company is not without its challenges. As Gold points out, the question remains whether or not Zaio can sell enough zones to translate into revenues. Zaio management is undaunted. “Corporately, we recognize that this is an execution play,” says Mitton. “In addition to our ongoing operations, we will continue to watch for acquisition opportunities that will assist us in growing the business quickly and profitably.”

There are still plenty of opportunities to participate in Zaio’s unique business opportunity. For starters, Zaio is always looking for motivated and committed photographers to provide input for its photo database, GeoPic™. “We’ve had some great success with appraisal trainees in the Phoenix area,“ says Mitton. “Their interest in the appraisal business has translated into high-quality photographs, facilitating a quick completion of the database in that area.” Experience, though an asset, is not required as Zaio provides comprehensive training and support to every photographer.

Zaio continues to seek exceptional, self-motivated appraisers. Each Zaio zone appraiser retains the rights to his/her zone and benefits from appreciation in zone value. Zones currently sell for $9,600 U.S. per zone, which represents a significant premium over the early zones, which sold for $7,500 U.S. little more than a year ago.

Inserra remarked, “despite the recent interest among large institutional investors, Zaio continues to be an undiscovered story. We are focused on educating the investment community about our company, its past performance and its future potential.” In March, the Company announced that it is investigating the opportunities for a U.S. stock exchange listing. Mitton commented: “We intend to retain our Canadian listing while exploring opportunities for a U.S. listing. It is our view that a U.S. listing, if obtained, will help improve our liquidity and expand reach to a larger shareholder base.” Both Inserra and Mitton added that at this point, no application has been made and there can be no assurance that a U.S. listing will be obtained.

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