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Dear Shareholders,
We are pleased to announce that 2005 was an exciting year at Invisa. It was our largest sales year to
date in the number of units. Sales and units sold for the year 2005 increased by 21% and 34%,
respectively, over 2004. Our sales from units for the year 2005 totaled $239,285 on 754 units. For the
year 2004 such sales totaled $197,484 on 561 units sold. We also achieved additional penetration into
the valued safety market for our products. This penetration reflects a growing number of parking gate
manufacturers promoting our SmartGate® brand safety products and integrating our products as original
equipment into their parking gates. We also continued to implement our plans to launch our first security
product in 2006.
Our successes in 2005 support our conviction that our InvisaShield™ technology is highly unique and
offers dynamic advantages to a broad range of potential product applications in a large number of diverse
markets. As our products penetrate the safety market, they demonstrate the commercial viability and
unique features of our InvisaShield technology. We are particularly excited about our technology's ability
to provide dependable and reliable sensing in virtually any environment and, when required, around and
preceding moving objects.
Organizational Changes
As most of you are aware, we experienced some major management changes including the departure of
our CEO in April 2005. While change is generally challenging at the time, it is also frequently necessary to
support sustainable growth and development. Our Company has never been better positioned to
continue the momentum generated by the exciting developments our current management team achieved
in the second half of 2005.
Our Business
Invisa's progress in 2005 included advancing the goal of making our safety products a necessary part of
the approximately 60,000 parking gates sold annually, and the estimated one million parking gates
currently in-service. Some of these developments are highlighted below. Additionally, we continued to
focus on our longer term goal of extending our success in the parking gate market into the broader
powered barrier market which includes commercial and residential garage doors, slide and swing gates,
automated doors and elevator doors. Our technology position in these markets was further strengthened
by the addition of a second issued patent which protects inventions critical to our unique approach to
safety.
As we entered 2005, the parking gate industry had not publicly acknowledged that unprotected parking
gates present a significant risk to pedestrians. Nor had the industry acknowledged that additional safety
equipment is necessary when pedestrians, children, bicyclists or motorcycles are present. In recent
months, two highly respected gate manufacturers, Operator Specialty Company, Inc (Osco), a subsidiary
of Linear, and Magnetic Automation Corp, (Magnetic) the U.S. unit of the Magnetic Auto Control Group,
one of the world's largest manufacturers of barrier gates, became our OEM customers and began
integrating our SmartGate Safety System into their parking gates. Both Osco and Magnetic acknowledge
the substantial risk that parking gates present to pedestrians and recommend their "pedestrian safe"
parking gates and our SmartGate products to their dealers and customers. Osco and Magnetic are
considered leaders in technology and safety and we believe that they are leading an emerging industrywide
safety trend.
In the fourth quarter of 2005, Underwriters Laboratory (UL) completed preliminary evaluation of our safety
products and offered to support Invisa's belief that the industry safety rules should address the significant
risk that parking gates present to pedestrians. UL is responsible for the technical aspects of the industry
safety standard known as UL Rule 325. While changing industry safety rules is challenging, we continue
to focus our energies in this area as we feel that rules mandating safety equipment for pedestrians would
have an enormous and immediate impact on our sales. We believe the increased involvement of powered gate and door manufacturers in the evaluation, promotion and sale of Invisa's safety technology
heralds the coming change in the safety standard.
During 2005, several domestic and international manufactures of commercial overhead doors evaluated
our safety technology for potential integration into their door systems. As we enter 2006, we are
committed to extending the reach of our safety products beyond parking gates into other powered closure
markets.
Preparation for introduction of Invisa's museum security product continued through-out 2005. Invisa's
development partners have provided performance and market input as they evaluate advanced prototypes
of our security product. We plan to introduce our security product to the museum market in the
second half of 2006. Additionally, we are committed to extending the reach of our planned security
products beyond the museum market into the general security market.
Financial Condition
During 2005, we completed a one million dollar financing provided by an existing institutional financial
partner and we finished the year with a strong cash position and virtually no debt or past due payables.
Looking Forward to 2006
We are pleased with the progress we made in the second half of 2005, and look forward to an exciting
2006. We have identified a number of growing safety and security markets and have already begun to
pursue a number of them.
Thank you for your support and for being one of our valued shareholders.
Together, we will make the world safer and more secure.
Sincerely,
Stephen A. Michael
Chairman
Forward-Looking Statements
Statements in this letter to Shareholders that are not strictly historical in nature constitute
"forward-looking statements." Such statement include, but are not limited to, statements about
market development, plans to change de facto and/or legal safety standards, product acceptance,
product development and any other statements relating to Invisa's products, product candidates,
and product development or sales programs. Such statement may include, without limitation,
statements with respect to the Company's plans, objectives, expectations and intentions and other
statements identified by words such as "may", "could", "would", "should", "believes", "expects",
"anticipates", "estimates", "intends", "plans" or similar expressions. Such forward-looking
statements involve known and unknown risks, uncertainties, and other factors that may cause
Invisa's actual results to be materially different from historical results or from any results
expressed or implied by such forward-looking statements. These factors include, but are not
limited to, risks and uncertainties related to the progress, timing, cost, and results of Invisa's
OEM Program, efforts with UL, sales programs and product development programs; difficulties
or delays in introducing product candidates; competition from others; and the additional risks
discussed in Invisa's filings with the Securities and Exchange Commission. All forward looking
statements are qualified in their entirety by this cautionary statement, and Accentia undertakes
no obligation to revise or update this news release to reflect events or circumstances after the
date hereof.
Linear / OSCO Joins Invisa OEM Parking Gate Safety Program
Magnetic Automation Joins Invisa OEM Parking Gate Safety Program
Invisa Signs OEM Agreements with Major Parking Gate Manufacturers Signaling a Trend for Safer Parking Gates
6935 15th Street East, Suite 120, Sarasota, Florida 34243 USA; Tel 941.355.9361; Fax 941.355.9373