National JobNet

“We will change the way people perceive and

approach the way they work, and we'll help

them improve their lives and their workforce

performance with new technology, new tools

and new practices.” S.Valladares, CEO

Susan Valladares

MOVING FORWARD President and CEO

National JobNet

Acuity | Compassion | Excellence | Service

National JobNet

Corporate

Values

National JobNet is a dynamic national online employment network

that delivers game-changing talent to companies that need

extraordinary people.

Our corporate values - Execute with Acuity, Act with Compassion,

Perform with Excellence and Deliver uncompromised Service - are

emphasized in a coordinated approach that ensures each and every

facet of our culture nourishes, replenishes and completes those

values. We're expanding from our primal roots as a job “search”

engine to the premier global provider of job search, career

maintenance, candidate placement and talent acquisition products

and services.

How do we accomplish this goal?

One word: Innovation. We will change the way people perceive and approach the

way they work, and we'll help them improve

their lives and their workforce performance

with new technology, new tools and new

practices.

Acuity | Compassion | Excellence | Service

National JobNet

Warmest regards shareholders

customers,

clients

and friends:

A lot is going on in the world today. Corporations rise and fall. Economies

and currencies wax and wane. Unemployment ravages entire regions.

Yet, while the world spends much of its time watching and waiting for

relief and recovery, we spend our time staying focused on and executing

our contributions to the economic solution we established nearly a year

ago: take recovery into each and every home – one job at a time. We

decided then that we would reengineer the employment marketplace,

introduce game-shattering innovation, and scale our business through

the national landscape onward to global presence for job seekers and

employers alike. This uncommon acuity uniquely positions National

JobNet to capitalize on the growth and prosperity that the current

economic recovery offers us and to those we serve.

As the economy improves, accelerating the search for talent while

acquiring the best people will be more critical than ever for job growth.

Companies will need to be flexible and responsive to changing market

conditions and job seekers will want guidance and new tools when

searching through new career opportunities. So, that's what we’ve been

focused on - introducing innovative resources that help employers find

exceptional real candidates and job seekers find outstanding real jobs.

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Acuity | Compassion | Excellence | Service

National JobNet

Despite the global recession, we've been able to prepare broad and deep improvements to our business model in order to increase our profitability and

reward you, our shareholders, immediately and over time. But we're not done.

You can't stand still in today's business

environment; innovation at all levels is a

fundamental driver of long-term growth.

Here are some of the highlights of what

we've envisioned for this upcoming year

and why they are significant to National

JobNet's competitive positioning, growth

and future profitability.

TE TECHNOLOGICAL INNOVATIONS

Redefining How We Find and Connect People to Jobs

New technologies are transforming the way employers and job seekers search for and find each other. National JobNet is leading the revolution with

our new search & placement technology, DiscoverNet®. A huge leap beyond standard keyword based search, we are developing technology which

precisely identifies the right people for the right job so that employers and

job seekers can save time and money, and ultimately, find the right match. This is transforming National JobNet from a static job board to a job

matching machine! This truly game-changing technology will help businesses mitigate the burdensome costs and resources associated with recruiting and

hiring. We expect future products to become even more meaningful contributors of revenue.

People Real

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Acuity | Compassion | Excellence | Service

National JobNet

We'll also enhance our networking capability through our National JobNet CommunityNet® network. Even as you read this, we are integrating more than 300

career networks, known as National JobNet Communities®, serving geographic communities at the local metropolitan level, social communities at the group level like college/high school affiliations, faith-based/religious affiliations and Greek

based fraternity/sorority spaces and also specialized fields like nursing, engineering and information technology. These unique "niche" socially professional networks will

become go-to destinations that attract like-minded professionals seeking career advice and job opportunities. In addition to providing relevant content and

networking capabilities, these communities enable National JobNet to offer new socio-targeted opportunities for employers to target both active and passive qualified candidates.

In addition, we continue to scale our networks to help employers target the right candidates using behavioral targeting technology, and then guide those job seekers

back to employers' job postings on NationalJobNet.com. As we extend our reach through our substantial investment in this technology and innovation, we will orchestrate how job seekers and employers get connected with greater precision.

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Acuity | Compassion | Excellence | Service

National JobNet

MARKETING Using Innovation to Maximize Impact

2011 was a year in which we achieved stronger marketing results through innovative strategies and initiatives. Online promotion is the backbone of our

marketing approach, which we continuously optimize to achieve the performance our customers expect. Beyond our online efforts, we introduced several new

initiatives to demonstrate our global brand leadership.

In the 1st Quarter of 2012 , we will launch our National JobNet Townhall®. This forum launching in 50 cities across the U.S. Will bring real candidates face to face

with real employers. Not just the normal “job fair”, National JobNet Townhall® will offer forum based Q&A, career advice and place qualified candidates directly in

front of company recruiters, hiring managers and personnel who are authorized to make immediate hiring decisions.

In addition, in 2012, National JobNet will embark on a multi-year geographic expansion strategy designed to enable us to enter global developing markets efficiently and

effectively. We believe that there is huge opportunity to expand our brand to countries in Eastern Europe, Latin America, Africa and Asia, which have large employee populations, growing economies and extensive internet usage.

Planning & Development

Acuity | Compassion | Excellence | Service

National JobNet

According to the Labor Department, there are 3.4 million job openings right now in

the United States. Yet, many employers are finding that workers do not have the skills or training they need to qualify for them.

There are nearly 900,000 unemployed veterans in the United States – a staggering figure. The latest Department of Labor unemployment report shows that in October 2011, the average unemployment rate among all veterans was 7.7% and 12.1% for

veterans returning from Iraq and Afghanistan. Equally troubling, veterans between the ages of 35 and 64, the group with the highest financial obligations and the

fewest available VA education and training options, continue to make up nearly two-thirds of all unemployed veterans. Overall, nearly one in twelve of our nation’s heroes can’t find a job to support their family, don’t have an income that provides

stability and don’t have work that provides them with the confidence and pride that is so critical to their transition home. It's beyond time that we join hands to repay

the debt we owe to our brave Servicemen and women. National JobNet for Veterans® aka. VeteransNet® was established and is committed to stand at the forefront, extending our resources to fight this pandemic amongst our heroes.

We've set a lofty goal to connect 20,000 veterans with employment opportunities through National JobNet for Veterans in 2012. A goal that at all cost we must meet

and exceed.

After a two-year hiatus, major corporations are starting to hit college career-fair

tables once again. Yet although this may seem promising, the vast majority of

corporations have not returned to the college pool and those that have are still

hiring at or below 2008 levels. National InternshipNet® is being developed as one of

our featured online properties to connect employers with emerging candidates. We

project this property will carve out a significant presence in the marketplace as

millions of rising juniors and seniors are engaged and thousands are placed

through our social and offline intern networks.

Making a difference at our core: The United States Veteran

Making a difference in our future: National InternNet®

Acuity | Compassion | Excellence | Service

National JobNet

Our engagement with this energetic group will only fuel our technological edge as

we develop the latest innovative tools to match the technologically explosive growth

uniquely presented by these techno-savvy candidates. We'll have a defined

advantage as these generation-Y candidates become available and migrate to other

National JobNet properties and our InternshipNet® exposure, engagement and

experience all provide a definitive leg up for these candidates as they enter the

employment marketplace post-graduation. Our innovative mobile applications will

connect employers to and engage employers with this core group of potential

candidates right where they are: smart and mobile devices as well as social media

platforms and solidify our presence in the mobile space.

COMPASSION: Making a difference for those who need us the most

We founded this company and defined its mission on certain realizations. One of the

primary realizations was the stark reality of the challenges that our families, our

neighbors, our community and our countrymen faced each and every day.

Underemployment, unemployment, foreclosure, repossession – these things were

and remain running rampant in our lives. No one has been untouched by this global

economic meltdown. The average American worker received no bailout.

In each phase of our growth as individuals and as a corporation, we have set goals,

developed strategies and assigned resources, just as we do on all of our clients.

And that’s the same approach we are now taking as we focus on establishing and

reinforcing a common culture that permeates every corner of our organization -

Compassion. JobNet@Work was unveiled last month to bring that core passion to

life. Our mission: develop, maintain, coordinate and support a national network of

providers that make resources available for those displaced by this economy. Job

training, retooling, relocation, assistance, healthcare services or just someone to

talk to – basic necessities to keep America moving forward.

Our number one priority is to give job seeking, career minded candidates as well as

employers the "National JobNet" advantage in finding the best job match and to

give National JobNet every advantage over traditional and emerging competitors

through innovative products, deeper engagement and global expansion strategies.

These sleeping giants may have deeper pockets and more resources at their

disposal, however we have the acuity, agility and ammunition to not only carve out

our place, but to dominate the marketplace in the decades to come.

Acuity | Compassion | Excellence | Service

National JobNet

Can you remember when IBM was the 800 pound gorilla in the room and Steve Jobs

and Bill Gates were the upstarts, grinding away in their dorms and parents’ basements.

Did you know there was a time when Sears & Roebuck was the largest retailer in the

world and a guy named Sam Walton worked for the J.C. Penney Company? So should

we still be afraid of Monsters?

We’ve laid a solid foundation to augment our long-term profitability. Through major

investment in infrastructure and innovation, we will evolve beyond our heritage as an

online job board and we believe we are rapidly becoming the most sophisticated talent

recruitment and career management service network in the world. Most of the credit for

our accomplishments belongs to our team of extraordinary people, all of whom have to

do more with less. Their commitment to our company, our customers and our

community is unwavering. Innovative ideas are nothing without solid execution and I

am proud to be leading a company with such tremendous pride in ownership.

Ultimately, every one of us at National JobNet is a leader, because we all control the

attitudes and behaviors of at least one person - our self - and we, individually and

corporately, set the tone for our colleagues and our industry. National JobNet is striving

to establish the tools and reinforce the values that provide everyone with a rewarding

work environment and remember, it’s up to each one of us as individuals to embrace

this culture we’re creating for our future.

I'm particularly grateful to our shareholders for their belief in our strategy, favoring

long-term growth while still enjoying short-term financial returns. With the close of

2011 and the beginning of 2012, I am optimistic that with a little help from the global

economy, and the fruits of our commitment to never stand still, we are well-positioned

to deliver tremendous value to you, our shareholders and to each and every one of the

members of the National JobNet family.

With sincere thanks to our customers, employees and shareholders,

Susan Valladares

President and Chief Executive Officer