Armada Data Corp.

Armada Data Corporation is a provider of online automotive information services through its websites: www.43r.ca, www.carcostcanada.com, www.carinvoiceprices.ca, www.freeinvoiceprices.com, and www.thecarmagazine.com. The company was incorporated in 1999 as Duke Capital Corp. Armada underwent several name changes to CCC Internet Solutions Inc. in October 2000, and to its current name in January 2004.

The company offers data for insurance claims settlement and vehicle pricing to retail and corporate customers on a fee for service basis. Armada gathers automotive information from manufacturers, dealers, and industry insiders. The company repackages the data collected for use at its Internet sites that are accessed by the general consumer, small fleet vehicle buyers, marketing agencies, and institutional customers, primarily insurance companies.

Through 43r.ca, Armada provides information regarding insurance claim settlement, specifically to the automotive insurance industry. Insurers are charged a flat fee of $200 per claim to access 43r.ca services which are focused on reducing settlements of vehicle total loss claims with 43r/waiver depreciation endorsements. The company’s major clients include ING Insurance, Allstate Insurance Company of Canada, State Farm, TD Meloche Monnex, The Co-operators, and AXA Canada.

Armada’s primary automotive pricing services, carcostcanada.com, freeinvoiceprices.com, and carinvoiceprices.ca, provide a comprehensive list of new vehicle buyer information including confidential dealer invoice cost prices, factory incentives, promotions, rebates, as well as low interest rate financing and leasing packages. In addition, the company’s thecarmagazine.com publishes automotive news, reviews, and safety ratings in English or French. The website also enables customers to virtually build a vehicle with model years of 2001 to 2004, and compare features, prices, as well as specifications online.

On October 30, 2003, the company released its financial results for the three months and fiscal year ended May 31, 2003. During the fourth quarter, Armada achieved record revenues of $255,568, a 37% increase over the $186,020 reported in the previous year. Management attributed the improvement in revenues to the continued growth of carcostcanada.com and freeinvoiceprices.com as well as the industry acceptance of its 43r.ca insurance solutions business. During fiscal 2004, the company has focused on sustaining profitability, increasing operational efficiencies, and ensuring stringent corporate governance through its independent board of directors and audit committee. Armada intends to expand 43r.ca and grow its market presence by implementing an aggressive sales and marketing program.

In early February 2004, the company announced the commencement of a targeted advertising campaign to raise media and consumer awareness of its services, particularly carcostcanada.com. Armada launched its campaign with the opening of the Canadian International AutoShow in Toronto, Ontario, on February 13, 2004. The company will also purchase advertisements in the National Post newspaper and on Newstalk CFRB 1010, one of the largest radio networks in Canada.

On April 20, 2004, Armada provided financial highlights for the third quarter ended February 29, 2004. For the three month period, the company recorded revenues of $338,990, a 48% increase compared to the $229,517 reported in the prior year. Furthermore, Armada generated net earnings of $41,712 or $0.004 per share, a 225% improvement over the $12,827 or $0.001 per share posted in the third quarter of fiscal 2003. Management attributed the positive results to the continued growth of 43r.ca and the increase in carcostcanada.com’s customer base. During the third quarter, the company initiated two new sales programs, the “Rapid Response” and “Take it or Leave it” member pricing and buying services, which are to be implemented across the country in the next few months.