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Exhibit 99.1
 SELECT, INC.
  and
  June 29, 2007




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T
A B L E  O F  C O N T E N T S
 PageINDEPENDENT AUDITORS REPORT
    
    
    1FINANCIAL STATEMENTSBalance Sheet
    
    
    2Statement of Income
    
    
    3Statement of Changes in Stockholders Equity
    
    
    4Statement of Cash Flows
    
    
    5Notes to Financial Statements
    
    
    6-15




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INDEPENDENT AUDITORS REPORT
 
 Select, Inc.




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Select, Inc.
  June 29, 2007
 ASSETSCURRENT ASSETSCash and cash equivalents
    
    $
    2,767,525Accounts receivable (net of allowance of $20,000)
    
    
    5,305,076Inventory
    
    
    364,182Other current assets
    
    
    311,157Total current assets
    
    
    8,747,940EQUIPMENT AND IMPROVEMENTS, net
    
    
    367,277OTHER ASSETSDeposits
    
    
    10,353TOTAL ASSETS
    
    $
    9,125,570LIABILITIES AND STOCKHOLDERS EQUITYCURRENT LIABILITIESAccounts payable
    
    $
    5,716,860Accrued payroll and benefits
    
    
    797,200Accrued expenses  other
    
    
    338,342Accrued income taxes
    
    
    69,492Deferred tax liability
    
    
    24,000Deferred revenue
    
    
    218,713Total current liabilities
    
    
    7,164,607STOCKHOLDERS EQUITYCommon stock (150,000 shares authorized; 109,750
shares issued and outstanding)
    
    
    764,566Retained earnings
    
    
    1,196,397Total stockholders equity
    
    
    1,960,963TOTAL LIABILITIES and
STOCKHOLDERS EQUITY
    
    $
    9,125,570
 The accompanying notes are an integral part of the financial statements.
 - 2 -




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Select, Inc.
  For the fiscal year ended June 29, 2007
 NET REVENUE
    
    $
    46,441,968COST OF REVENUE
    
    
    40,862,664GROSS MARGIN
    
    
    5,579,304SELLING, GENERAL and
ADMINISTRATIVE EXPENSES
    
    
    5,148,219INCOME FROM OPERATIONS
    
    
    431,085OTHER INCOME (EXPENSE)Interest expense
    
    
    (5,711
    )Interest and other income
    
    
    133,590Total other income
    
    
    127,879NET INCOME BEFORE TAXES
    
    
    558,964INCOME TAX EXPENSECurrent tax:Federal income tax
    
    
    66,470State income tax
    
    
    7,495Deferred tax:Federal income tax
    
    
    18,000State income tax
    
    
    6,000Total income tax expense
    
    
    97,965NET INCOME
    
    $
    460,999
 The accompanying notes are an integral part of the financial statements.
 - 3 -




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Select, Inc.
  For the fiscal year ended June 29, 2007
 Common Stock
    
    
    RetainedShares
    
    
    Amount
    
    
    EarningsBalance, June 30, 2006
    
    
    109,750
    
    
    $
    764,566
    
    
    $
    735,398Net income
    
    
    
    
    
    
    
    
    
    
    460,999Balance, June 29, 2007
    
    
    109,750
    
    
    $
    764,566
    
    
    $
    1,196,397
 The accompanying notes are an integral part of the financial statements.
 - 4 -




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Select, Inc.
  For the fiscal year ended June 29, 2007
 CASH FLOWS FROM OPERATING ACTIVITIES:Net income
    
    $
    460,999Adjustments to reconcile net income to net
cash provided by operating activities:Depreciation and amortization
    
    
    155,066Net change in accounts receivable, prepaids and
current assets, payables, accruals and other current liabilities
    
    
    432,716NET CASH PROVIDED BY
OPERATING ACTIVITIES
    
    
    1,048,781CASH FLOWS FROM INVESTING ACTIVITIES:Purchase of equipment and improvements
    
    
    (315,306
    )Security deposits collected
    
    
    34,341NET CASH USED BY INVESTING ACTIVITIES
    
    
    (280,965
    )NET INCREASE IN CASH
    
    
    767,816CASH, beginning of year
    
    
    1,999,709CASH, end of year
    
    $
    2,767,525SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:Cash paid during the year for:State income tax
    
    $
    5,918Interest
    
    $
    5,556
 The accompanying notes are an integral part of the financial statements.
 - 5 -




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Select, Inc.
  For the fiscal year ended June 29, 2007
 NOTE A  NATURE OF BUSINESS
 Select, Inc.(the Company) is a value-added reseller of networking and computer products
and related services focusing on the sophisticated end-user. StrategIT, a division of the
Company, provides end-to-end infrastructure services including: assessment, planning,
design, testing, implementation, monitoring and maintenance.
 NOTE B  SIGNIFICANT ACCOUNTING POLICIES
 1.
    
    Basis of Accounting and PresentationThe accompanying financial statements have been prepared on the accrual basis of
accounting in accordance with accounting principles generally accepted in the United
States of America. As customary to many resellers of networking and computer
products businesses, the Company has elected to use a fifty-two, fifty-three week
accounting period for financial statements and income tax return purposes. The year
end adopted by the Company is the last Friday of June. Accordingly, fiscal year
ended June 29, 2007 consisted of fifty-two weeks.2.
    
    Revenue RecognitionRevenue from products are recognized upon shipment. Customer deposits represent
cash received in advance of product shipment.Revenue from service agreements are recognized ratably over the lives of such
service agreements. Cash received for service contracts in advance of the period
earned is recorded as deferred revenue in the accompanying balance sheets.Revenue from services performed under a time and materials arrangement is recognized
when the services are performed.3.
    
    Cash and Cash EquivalentsStatements of cash flows are designed to show the change in cash and cash
equivalents during the year. Cash equivalents are defined as short-term, highly
liquid investments that are both readily convertible to cash and are so near
maturity that fluctuations in interest rates lead to insignificant risk of changes
in investment value.




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NOTE B  SIGNIFICANT ACCOUNTING POLICIES  Continued
 4.
    
    Accounts ReceivableAn allowance for doubtful accounts is maintained based on managements assessment of
collectibility of accounts receivable. Bad debt expense was  $2,381 for the fiscal year
ended June 29, 2007.5.
    
    InventoriesInventories consist entirely of purchased goods for resale and are stated at the
lower of cost (first-in, first-out) or market.6.
    
    Long-Lived AssetsIn accordance with SFAS No. 144, Accounting for the Impairment or Disposal of
Long-Lived Assets, the Company reviews the carrying values of its long-lived assets
for possible impairment whenever events or changes in circumstances indicate that
the carrying amounts of the assets may not be recoverable. Any long-lived assets
held for disposal are reported at the lower of their carrying amounts or fair values
less costs to sell.7.
    
    Property and EquipmentProperty and equipment are stated at cost. Depreciation is provided using the
straight-line method over the related assets estimated useful lives. Normal repair
and maintenance costs are expensed as incurred.8.
    
    AdvertisingAdvertising costs are expensed as incurred. Advertising
expense was $15,606 for the
fiscal year ended June 29, 2007.9.
    
    Stock-Based CompensationIn December 2004, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 123(R) (FAS-123R), Share-Based Payment, which
is a revision of Financial Accounting Standards No. 123 (FAS-123), Accounting for
Stock-Based Compensation.FAS-123R eliminated accounting for share-based compensation transactions using the
intrinsic value method prescribed in Accounting Principles Board Opinion No.25
(APB-25), Accounting for Stock Issued to Employees and requires instead that such
transactions be accounted for using a fair-value-based method, beginning the first
annual reporting period after December 15, 2005.




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\

NOTE B  SIGNIFICANT ACCOUNTING POLICIES  Continued
 9.
    
    Stock-Based Compensation  ContinuedThe Company has elected to adopt the provisions of FAS-123R effective July 1, 2006,
under the modified prospective transition method, in which compensation cost was
recognized beginning with the effective date; for all share-based payments granted
after the effective date, and for all awards granted to employees prior to the
effective date of FAS-123R that remain unvested on the effective date.With the adoption of FAS-123R, the Company elected to amortize stock-based
compensation for awards granted on or after the adoption of FAS-123R on July 1,
2006, on a straight-line basis over the requisite service period for the entire
award. For awards granted prior to July 1, 2006 compensation costs are amortized in
a manner consistent with Financial Accounting Standards Board Interpretation No. 28
(FIN-28), Accounting for Stock Appreciation Rights and Other Variable Stock Option
or Award Plans.The Company prior to FAS-123R accounted for stock-based awards to its employees
using the intrinsic value method as prescribed by APB-25 and related
interpretations. Accordingly, no compensation expense is recorded for options issued
to employees in fixed amounts and with exercise prices equal to the fair market
value of the Companys common stock at the date of grant. The Company has adopted
the provisions of SFAS No. 123, Accounting for Stock-Based Compensation, for
disclosure purposes only.Management believes the pro forma effects on the Companys net income would not be
materially different had compensation expense for the Companys stock option plan
been determined based on fair value at the grant date, consistent with the minimum
value method under SFAS No. 123, Accounting for Stock-Based Compensation.
Accordingly, no disclosure of the effect is presented.10.
    
    Income TaxesThe Company accounts for income taxes according to SFAS No. 109, Accounting for
Income Taxes, which requires an asset and liability approach to financial
accounting and reporting for income taxes. The difference between the financial
statement and tax bases of assets and liabilities is determined annually. Deferred
income tax assets and liabilities are computed for those differences that have
future tax consequences using the currently enacted tax laws and rates that apply to
the periods in which they are expected to affect taxable income.Valuation allowances are established, if necessary, to reduce the deferred tax asset
to the amount that will more likely than not be realized. Income tax expense is the
current tax payable or refundable for the period plus or minus the net change in the
deferred tax assets and liabilities.11.
    
    Shipping and Handling CostsThe Company includes shipping costs in cost of revenue. Shipping costs are defined
as the costs to get the finished product from the Company to the buyer. Included in
selling, general and administrative expenses in the accompanying statement of
operations for the fiscal year ended June 29, 2007 is handling costs of
approximately $110,361. Handling costs are defined as the costs to store, move, and
prepare finished goods for shipment. All amounts billed to a customer in a sale
transaction




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NOTE B  SIGNIFICANT ACCOUNTING POLICIES  Continued
 are classified as revenue.12.
    
    EstimatesThe preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and liabilities
at the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results may differ from those
estimates.Significant estimates included in the accompanying financial statements include
those used in estimating the deferred tax assets. Actual results may differ from
those estimates.




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NOTE C  EQUIPMENT AND IMPROVEMENTS
 Equipment and improvements are stated at cost and consist of the following at June 29, 2007.
 EstimatedUseful LifeComputer equipment
    
    3-5 years
    
    $
    1,235,992Computer software
    
    2-3 years
    
    
    707,893Office furniture and equipment
    
    3-7 years
    
    
    303,855Warehouse equipment
    
    5-7 years
    
    
    13,725Leasehold improvements
    
    Lease term
    
    
    117,3102,378,775Less: accumulated depreciation
and amortization
    
    
    
    
    
    
    2,011,498Equipment and improvements, net
    
    
    
    
    
    $
    367,277
 Depreciation and amortization expense for the fiscal year ended June 29, 2007 related to
equipment and improvements were $155,066.
 NOTE D  AVAILABLE CREDIT
 Line of Credit  bankThe Company has available borrowings under a commercial revolving line-of-credit agreement.
The agreement allows the Company to borrow the lesser of $5,000,000 or 50% of eligible
accounts receivable, as defined in the agreement. Borrowings under the agreement bear
interest, at the Companys discretion, at either the banks prime interest rate (8.25% at
June 29, 2007) or the LIBOR rate plus 1.75% (7.15% at June 29, 2007). Borrowings under this
agreement are collateralized by substantially all assets of the Company. Provisions of the
agreement require the Company to maintain certain financial ratios and to obtain bank
approval prior to payment of dividends. An unused fee of 0.125% basis points is charged by
the bank on a quarterly basis. No balance was outstanding at June 29, 2007.




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NOTE D  AVAILABLE CREDIT  Continued
 Vendor Financing AgreementThe Company maintains a $10,000,000 inventory finance facility agreement with an affiliate
of a vendor to purchase the vendors products. The agreement extends 60-day payment terms
to the Company for such purchases. Amounts outstanding under this agreement are
collateralized by inventory, receivables and cash of the Company. The balance outstanding
which was included in accounts payable at June 29, 2007 was $5,253,582.
 NOTE E  STOCK OPTION PLAN
 The Company maintains the Select, Inc. 2001 Stock Option/Stock Issuance Plan (the Plan)
which provides for the granting of incentive stock options, nonqualified stock options,
awards, and purchase authorizations, as defined in the agreement. The Plan provides for the
granting of up to 24,375 shares of common stock subject to adjustment as defined in the
agreement, with 12,250 of these shares issued and exercised in the form of non-qualified
stock options.
 1.
    
    Incentive Stock OptionsIncentive stock options may be granted to employees only at the discretion of the
Board of Directors at an exercise price equal to or greater than the fair market
value of the stock on the date of grant, as defined. These incentive stock options
are exercisable for a period up to ten years from the date of grant.Incentive stock options may be granted to employees owning more than 10% of the
total combined voting power of all classes of stock of the Company only at the
discretion of the Board of Directors at an exercise price equal to or greater than
110% of the fair market value on the date of grant, as defined. These incentive
stock options are exercisable for a period up to ten years from the date of grant.There were no options exercised during the fiscal year ended June 29, 2007. The
incentive stock options outstanding as of June 29, 2007 have a remaining contractual
life of approximately four years. The options vest 100% upon completion of three
years of service following the grant date.




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NOTE E  STOCK OPTION PLAN  Continued
 2.
    
    Nonqualified Stock OptionsNonqualified stock options may be granted to officers, employees and other key
persons at the discretion of and at an option price determined by the Board of
Directors. Options granted are exercisable for a period as defined in each option
agreement.On June 6, 2007, the Companys Board of Directors granted options to purchase 1,500
shares of common stock, respectively, at an exercise price of $2.00 per share. The
options expire ten years from the grant date and vest 100% when there is a
consolidation, sale of stock, share exchange, merger or sale of all or substantially
all of the assets of the Company in which outstanding shares of Common Stock are
exchanged for securities, cash or other property of any other corporation or
business entity. Management is not able to reasonably determine a vesting date for
this contingency; therefore, no compensation has been recognized in these financial
statements.The following table summarizes stock option activity under the Plan:
 WeightedaverageExercise
    
    
    exerciseprice
    
    
    priceShares
    
    
    per share
    
    
    per shareOutstanding, June 30, 2006
    
    
    1,740
    
    
    $
    18.00
    
    
    $
    18.00Granted
    
    
    1,500
    
    
    
    2.00
    
    
    
    2.00Cancelled or expired
    
    
    
    
    
    
    
    
    
    
    Outstanding, June 29, 2007
    
    
    3,240
    
    
    $
    10.00
    
    
    $
    10.00
 3.
    
    Stock AwardsStock awards may be granted at the discretion of the Board of Directors at a price
as determined by the Board of Directors. The recipient of a stock award shall
execute a stock restriction agreement approved by the Board of Directors. Stock
restriction agreements may differ among recipients. There were no stock awards
granted for the fiscal year ended June 29, 2007.




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NOTE F  RETIREMENT PLANS
 The Company has a defined contribution plan covering substantially all of its permanent
employees. Contributions may be made annually to the plan at the discretion of the Board of
Directors. There were no discretionary contributions for the fiscal year ended June 29,
2007.The Company also has a salary reduction plan under the provisions of Section 401(k) of the
Internal Revenue Code. The plan covers substantially all employees. Under the plan,
employees may contribute up to 12% of their compensation per year as a contribution to the
plan, subject to limitations imposed by the Internal Revenue Service. The Company matches a
percentage of employee contributions and may make additional contributions to the plan
annually at the discretion of the Board of Directors. The Companys matching contributions
to the plan for the fiscal year ended June 29, 2007 was $91,449. No discretionary
contributions were made during the fiscal year ended June 29, 2007.
 NOTE G  INCOME TAXES
 The deferred tax assets (liabilities) in the accompanying balance sheets include the
following:
 Federal
    
    
    State
    
    
    TotalTotal deferred tax asset
    
    $
    26,500
    
    
    $
    164,000
    
    
    $
    190,500Less valuation allowance
    
    
    (26,500
    )
    
    
    (164,000
    )
    
    
    (190,500
    )Net deferred tax asset
    
    
    
    
    
    
    
    
    
    
    Total deferred tax (liability)
    
    
    (18,000
    )
    
    
    (6,000
    )
    
    
    (24,000
    )Net deferred tax asset (liability)
    
    $
    (18,000
    )
    
    $
    (6,000
    )
    
    $
    (24,000
    )
 The valuation allowance was established to reduce the deferred tax asset to the amount that
will more likely than not be realized. This allowance is provided due to uncertainty as to
the Companys ability to utilize all of their net operating loss carry forwards before they
expire. The decrease in the valuation allowance for the fiscal year ended June 29, 2007 was
$144,000.




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NOTE G  INCOME TAXES  Continued
 The provision for federal and state income taxes included in the accompanying statements of
income consists of the following components for the year ended June 29, 2007:
 Federal:Current
    
    $
    66,470Deferred
    
    
    State:Current
    
    
    7,495Deferred
    
    
    6,00013,495$
    97,965
 As of June 29, 2007, the Company has available net operating loss carry forwards for state
income tax purposes of approximately $1,600,000. The net operating loss carry forward may
be used to reduce future taxable income that would be subject to state income tax. The
state net operating loss carry forward expire at various dates through 2009. The current
provision includes tangible, intangible and minimum taxes for the various states.
 NOTE H  COMMITMENTS
 In August 2006, the Companys lease with their Westwood location expired and the Company
moved its base of operations to Canton, Massachusetts. Under the terms of the Canton lease,
the Company occupies 9,660 rentable square feet. The term of the lease is five years
expiring on August 25, 2011. The Company has the option to extend the term of the lease for
an additional successive period of three years. The lease will require the Company to pay
an annual base rent plus a share of real estate taxes and operating costs, as defined in the
agreement. Rent expense related to the lease for the fiscal year ended June 29, 2007 was
$123,384.




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NOTE H
 COMMITMENTS  Continued
 Future minimum payments under these agreements, without regard to real estate taxes and
operating costs are as follows:
 2008
    
    $
    101,4302009
    
    
    115,9202010
    
    
    130,4102011
    
    
    130,4102012
    
    
    130,410$
    608,580
 NOTE I 
    
    CONCENTRATIONS OF CREDIT RISK, SIGNIFICANT CUSTOMERS
AND VENDORS
 The Company extends credit, primarily on an unsecured basis, to companies in the financial
services market and to other industries primarily in New England, with a concentration in
Massachusetts. Total accounts receivable outstanding as of June 29, 2007 from financial
service customers was $1,219,268.The Company has cash on deposit with a bank in excess of federally insured limits in the
amount of $2,667,540 at June 29, 2007. The Company has not experienced any losses in such
cash accounts and believes it is not exposed to any significant credit risk on cash.During the fiscal year ended June 29, 2007, four customers accounted for approximately 49%
of net revenue. Accounts receivable as of June 29, 2007 related to these significant
customers was approximately $2,404,352.A majority of the networking and computer products sold by the Company are supplied by two
vendors. These vendors supplied approximately 82% of the products sold by the Company
during the year ended June 29, 2007. One of the vendors has a UCC filing on certain
inventory owned by the Company.