Serenic Corporation — Corporate Update

Considering the severity of the economic downturn, management is relatively pleased with Fiscal 2009 results. Revenue for Fiscal 2009 decreased only marginally from the previous year by approximately 6%. The Company continues to release new versions of its products, and to win new customers. With approximately $2.9 million of cash on hand at Fiscal 2009 year end, no long term debt, and cash positive financial projections for Fiscal 2010, management considers the Corporation to be adequately financed to sustain operations as anticipated, and deliver moderate revenue growth. Expectations are to retain comfortable cash balances throughout Fiscal 2010 without any requirement for incurrence of long term debt or additional equity financings.