Dear Tropos Friends,

I took the reigns at Tropos as its new president and CEO in January, and am very excited about having joined a high-growth company such as Tropos -- a company that pioneered the outdoor wireless broadband market and has clearly demonstrated its market and technology leadership. Dell ‘Oro Group recently again named Tropos the market leader in 2007 for outdoor wireless mesh networks.

Municipal outdoor wireless broadband networks are alive and well. I am pleased to share with you that Tropos experienced 40% year-over-year growth in the municipal market alone in 2007. We see this demand momentum continuing from domestic and international customers. Almost daily I hear about exciting new ways in which our customers use Tropos networks to cost effectively improve the ways in which they work, live and play. Some of the more common customer applications are:

• Automated metering infrastructures – reducing utility operating costs, improving billing accuracy and conservation efforts.
• Mobile public safety – improving efficiencies of police, fire, EMS while reducing emergency response times.
• Fixed and mobile video surveillance – expanded monitoring coverage without adding people, temporary tactical deployments to monitor specific areas or events. We’re also seeing increased use video analytics for intelligent detection and alerting on specific types of activities.
• Intelligent transportation systems – improving traffic flow, reducing vehicle emissions and on-time pubic transportation.
• Industrial – improving business process and efficiencies plus video security in venues where ruggedized, reliable communications is crucial such as manufacturing plants, factories, warehouses, shipping ports and construction sites.
• Commercial – public access, public safety and video security in downtown areas, shopping malls, and parking lots.

Some other news I wanted to share that many of you may have already heard -- both Corpus Christi, TX, and Milpitas, CA, are taking back ownership and operations of their wireless broadband network from EarthLink. This is truly a strong statement on the value each of these cities derives from the network. In Corpus Christi, the primary application is Automated Meter Reading (AMR). AMR has enabled the city to centralize gas and water utility meter reading, improving billing accuracy and conservation efforts as well as customer satisfaction. In Milpitas where the network is used by mobile police and fire units, response time for emergencies has decreased by an impressive 30%. I am pleased with the decision these cities have made and look forward to continuing to work closely with them.

Going forward this year we will continue to focus on features and programs that further reinforce why our customers and partners buy Tropos solutions - because "it just works." We will also further enhance our ability to run and manage the key applications I described above, for networks that start out small as well as ones that start out big. For more information about customers and the various applications they are running on their wireless broadband infrastructure, please check out our website.

As we continue to grow and improve our operations, it’s important to me that you feel free to contact me personally if you have any questions or suggestions about Tropos or would like to discuss any aspect of our business. You can reach me at tom.ayers@tropos.com.

Sincerely,

Tom Ayers
President and CEO
Tropos Networks