As is obvious in my outbrief, last year was unusual. With the transition in place to the new batch system, the last half of the year (from my desk, anyway) was devoted to getting the 1999 batch 1 games into the can. This ensured that 1998 would have to ride on the earnings of the old stock and only two new games. Even so, as you can see, things went quite well. The year's unit sales would have been reasonably even with 96 and 97, if one discounts the massive inventory reduction sales we ran in 1997.

Cash revenues were greater than 96 (and even the seven game release 95% but did not quite measure up to the stature of 1997's five releases (but then, if you remember my 1997 w/o DAK figures from last year, 1998 handily defeated the "other four" from 1997). Cash expenses were quite high, though (this was due in part to hiring Sandi full-time and some improvements in office and shipping equipment, including some pretty much mandated by PitneyBowes). Net cash flow for the year turned south by a small amount.

In short, 1998 was a very good year for the business in spite of only having two new releases. We got our new office software on-line and put in the new computer shipping system. The small bugs in the invoicing system are still being worked out and then it will be time to network the computers so that all three "S's" can work over the customer list and process orders at the same time. The small cash flow reverse meant that I could not hit my goal of eliminating the company debt built up from late 1994 to early 1996, but that task will take a slow climb for a number of years. Things are headed in the right direction.

DAK has now sold out (wow!) and THG is doing quite well. Several other games are getting close to extinction and I will keep you apprised as they dwindle. There places will be taken by the games now marching toward completion in the new batch system. All in all, nothing to complain about in the least!

All the best and now let's end this century in style!

Revenues and Releases:

Year	Revenues	Game Releases
1988	$21,838	2
1989	$32,044	1
1990	$53,962	3
1991	$104,614	3
1992	$171,442	5
1993	$262,373	5
1994	$323,262	4
1995	$366,509	7
1996	$288,799	4
1997	$434,375	5
1998	$387,624	2

Cost of Manufacturering Games:

(Cash put into Inventory)

Year	Cash	Per Release
1995	$186,571	$26,653
1996	$49,830	$12,457
1997	$77,651	$15,530
1998	$31,617	$15,808

Customer List

(Jan of each year):

Year	List
1995	4,250
1996	5,100
1997	6,250
1998	7,075
1999	7,587

Game Units Sold	Cash Flow	Cash Expenses
1995: n/a	1995: ($57,628)	1995: $ 424,137
1996: 8,996	1996: $33,163	1996: $ 255,636
1997: 9,158	1997: $36,680	1997: $ 396,664
1998: 7,798	1998: ($7,920	1998: $ 395,545

Game Unit Sales:

In their Quiet Fields 148
No Better Place to Die 112
April's Harvest 144
Champion Hill 270
Gaines Mill 268
Seven Pines 944
Matanikau 107
GD'40 121
Hunters from the Sky 139
Black Wednesday 166
Leros 155
GD'41 298
Semper Fi! 420
A Raging Storm 428
Enemy at the Gates 190
Tunisia 250
Hube's Pocket 322
DAK 596
Stalingrad Pocket 375
Ardennes 206
Yom Kippur 190
Crusader 377
Austerlitz 71
Marengo 186
This Hallowed Ground 1,215