CEO Newsletter 2009 In Review Shirley Singleton Chairman, President, and CEO

We live in tumultuous times and last year was no exception. The year began with customers delaying and canceling business engagements, and ended on a new plateau with an acquisition finalized nearly at the stroke of the New Year. Perhaps the best way to characterize 2009 is as a year of transformation.

The first half of the year was one of hard work and harder decisions. Key customers fell on hard times and were lost; long-time employees left through attrition and layoff. We expected our custom software clients to decline over an extended period based on secular changes within information technology; we did not expect to lose the business in a matter of weeks.

The second half of the year was one of continued hard work and hope, almost of a new beginning. The business began to stabilize across the board, and customers felt they could safely start Enterprise Performance Management (EPM) projects with Ranzal. Edgewater’s new initiatives in Healthcare, Insurance, Enterprise Information Management (EIM), Microsoft CRM, and SharePoint, began to get traction, replacing our legacy offerings. We continued the transformational process with the planned acquisition of Fullscope. Our research pointed to a market looking for lower total-cost-to-own solutions. Leveraged with software packages, faster delivery, and new technology, these solutions can replace systems adopted ten years prior during the heyday of the millennial change and the Internet bubble. Fullscope, named the 2009 Microsoft Dynamics AX Manufacturing Partner of the Year, was the perfect way to accomplish our strategic shift. Unlike classic Enterprise Resource Planning (ERP) solutions, Dynamics AX does not take years and legions of resources to implement. The product goes in quickly and cleanly with a much lower cost to maintain, making it a great option for the upper mid-market and a point solution for the Global 2000 or private equity and venture capital. It is particularly relevant in a hub-and-spoke implementation where it can coexist with classic ERP and provide support for M&A activity and rapidly changing business environments.

While 2010 appears to be off to a great a start, we are mindful that the economy could continue to challenge us. However, I believe that we have established a solid baseline upon which to grow, and I am confident we will finish the year ready to take advantage of the opportunities that the new decade presents.

Shirley Singleton
Chairman of the Board,
President and Chief Executive Officer

April, 2010