In a relatively short period of time in the telecom industry, we have achieved a strong reputation for high quality/high performance products and outstanding customer and engineering support during the design-in cycle. This has allowed us to solidify our position as a "trusted partner", which gives us access to key decision makers. We have built an enviable reputation with companies in this market such as Alcatel-Lucent, Nortel Networks, Samsung, Sun, Teleste, AT&T, Ericsson, Continuous Computing Corporation and Emerson Embedded Power (formerly Motorola ECCG) to name a few. In the coming years, we will expand our footprint into additional markets and attempt to build similar types of relationships. Our approach is to diversify the risk of participating in only one market, and what has turned out to be only a handful of potential Tier 1 customers. We will do this by expanding our penetration of Tier 2 and Tier 3 accounts in the communications industry, and look for new investment opportunities in other high growth market opportunity areas.

With warmest regards,

Gregory B. Kalush
Chairman, President and CEO

Interphase Announces Second Quarter 2010 Financial Results
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