PCI Geomatics on Target for the New Millennium

["Dr. Robert Moses" <list-admin@xxxxxxxxxxxxxxxx>]

Dear Customers and Partners,

Since my last address to you a few months ago, many significant and 
progressive events have occurred at PCI Geomatics resulting in improved 
compliance with our prime directive: offer the best software to the 
geomatics community.


With the help of external consultants and the important collaboration of 
our staff, I can now say that PCI Geomatics has completed an end of 
millenium realignment and is poised at the dawn of year 2000 to go 
forward, to ride the wave of the future.

I would now like to take this opportunity to share with you the exciting 
factors contributing to our profitability in 1999 and beyond, and to 
bring you up to date on the latest news and events occurring within our 
PCI Geomatics family.

In terms of profitability:

    - PCI began the year with a major re-organization, taking the four 
operational groups (PCI Enterprises Inc./PCI Inc., PCI Carto, TYDAC 
Research Inc., and PCI Pacific GeoSolutions Inc.) and consolidating them 
into one, PCI Geomatics. This has enabled the corporation to increase 
its efficiency through the elimination of redundant functions, and the 
re-assignment of personnel. This textbook exercise has had the desired 
effect and we are now on our way to a sizeable profit in 1999 (GO TEAM!)

    - As I mentioned in my February address, PCI Geomatics has 
invested in its future by becoming a principle member of the Open GIS 
Consortium. OGC is a not-for-profit NGO, which believes that geospatial 
data, and applications can only become mainstream business solutions 
through the establishment of, and adherence to, open standards for 
geospatial data and interfaces. This is a principle that PCI Geomatics 
wholeheartedly supports.

PCI Geomatics led the submission team in creating the specification for 
"Coverages" (Images). This has established PCI Geomatics as a "player" 
in the US and international geomatics community, with high visibility in 
such target customer groups as NIMA (National Imagery and Mapping 
Agency) and USGS (United States Geological Survey).

To ensure that the geomatics community is well served by PCI Geomatics 
in its role of providing state of the art technological advancements, I 
am pleased to announce that we have reached numerous agreements and have 
constituted mutually beneficial partnerships with leading edge software 
establishments.

CCRS Relationship:

    - PCI Geomatics has enjoyed a fruitful relationship with CCRS (The 
Canada Centre for Remote Sensing), mainly related to technology 
transfer, wherein PCI Geomatics commercializes certain CCRS technology. 
Indeed, in 1999, PCI Geomatics and CCRS received the 1999 Federal Award 
for Technology Transfer. PCI Geomatics is continuing with this 
successful relationship by commencing a project to commercialize CCRS' 
world-class Hyperspectral Analysis software. This will place PCI 
Geomatics in a good position so that it will grasp the growing market 
for Hyperspectral data analysis, which is expected to grow substantially 
in 2000 and beyond with the launch of numerous hyperspectral satellites.

CHEST University Agreement:

    - PCI Geomatics has reached an agreement with the Combined Higher 
Education Software Team (CHEST) to supply the UK Higher and Further 
Education community and Research Councils with its suite of remote 
sensing (EASI/PACE), digital photogrammetry (OrthoEngine), Spatial 
Analysis (SPANS) and Cartographic (ACE) editing programs. This agreement 
is an excellent opportunity for PCI Geomatics to work in partnership 
with the educational sector, which will allow the staff and students to 
have access to leading edge geomatics software tools.

Marconi Relationship:

    - In 1998, PCI Geomatics entered into a business relationship with 
MARCONI Integrated Systems (then GDE Systems) of California. This 
two-way relationship, wherein GDE Systems integrated PCI Geomatics 
technology into its SOCET Set product line, and PCI Geomatics obtained 
certain rights to sell a derivative of SOCET Set into the remote 
sensing/GIS marketplace. This has been a very successful relationship, 
which will continue for some time.
This kind of relationship is one, which PCI Geomatics intends to 
replicate.

Lockheed Martin Relationship:

    - Resulting from its strong showing in NIMA's Pathfinder 98 and 99 
technology assessment, the Lockheed Martin Corporation placed PCI Geomatics' 
products on its Bill of Materials, for acquisition and insertion for certain 
program. Since that time, PCI Geomatics has been working hard to maximize this
opportunity, such that significant purchases of its products are anticipated.

Oracle Relationship:

    - Partly as an outgrowth of its leadership in OGC, PCI Geomatics 
is collaborating with Oracle Corporation, the world's largest database 
software and consulting company. PCI Geomatics believes that, in order 
for geospatial data, and especially imagery, to become part of an 
enterprise-wide business solution, the data must be stored in a quality 
database. Oracle, a market leader, selected PCI Geomatics to beta test 
and initiate development work on it's new Oracle GeoImage Product, 
which will allow the enterprise to store and serve spatially referenced 
images to clients. PCI Geomatics has already developed links to Oracle 
GeoImage, and will be supplying its sales force with freeware viewers so 
that they can present their clients and prospects with GeoImage.

PCI-ILWIS Partnership:

    - On June 30, 1999, PCI Geomatics announced that her Royal 
Highness Princess Margriet, officially opened PCI-ILWIS Netherlands B.V. 
in the presence of Mr. J.A.M. Hendrikx, The Queen's Commissioner, and 
Her Excellency Madame Marie Bernard-Meunier, Ambassador of Canada. The 
opening was a great success! We are deeply honoured to have had Her 
Royal Highness Princess Margriet officiate in the opening ceremonies of 
PCI-ILWIS Netherlands B.V. Have a peek at: 
http://www.pcigeomatics.com/images/announce/Greeting.jpg to view some 
pictures of the occasion!

In terms of service and support:

    - PCI Geomatics has recently undertaken a new approach to serving 
you better. In the interest of improving our Customer Service process we 
have taken a regional approach whereby service representatives are now 
responsible for a given territory. By assigning specific Customer 
Service staff members to particular regions we can quickly and 
efficiently resolve customers concerns. Providing a single front-line 
point of contact will ensure that all customer service issues are dealt 
with on a more proactive and personalized basis. When contacting Customer
Service our valued customers under maintenance will automatically be
directed to the appropriate service representative.
   
As of November 8th 1999, the following regions have been established. 
Additional regions will be phased in over the coming months.

    Eastern North America
    Includes Atlantic, Eastern and Central time zones in North America

    Europe and Africa/Middle East
    Includes Europe, the UK and Africa Middle/East

    Western North America
    Includes Pacific, Mountain, Hawaiian and Alaskan time zones

    Latin America/Caribbean
    Includes Central and South America as well as the 
    Caribbean

    Asia
    Includes central, south and south east Asia

More information on this new service approach will be provided to our
maintenance customers in the near term.

In terms of new product development:

ACE version 3.1 updates are on their way! A highlight of the new release 
includes the ability to enter text and annotation in Arabic, Farsi and 
Hebrew. Additional native languages now supported include Thai, and the 
double-byte languages of Chinese, Japanese and Korean. This is PCI 
Geomatics' first step towards supporting different languages with unique 
syntax requirements. The update also includes numerous improvements such 
as, increased speed, new display option for surround elements and 
improved printing and font support for Windows platforms.

CZ-IMS/IMEWS:

PCI Geomatics is nearing completion of its CZ-IMS (Coastal Zone 
Information Management System) project, which will result in a vertical 
product for taking near-real time remote sensing products (such as 
Radarsat) and turning them into simplified decision information for 
users.

As well, PCI Geomatics is making great progress towards IMEWS (Image 
Exploitation Workstation), a product aimed at integrating Radarsat data 
and other image and non-image data on the desktop for interpretation by 
military analysts.

CZ-IMS and IMEWS are embodiments of PCI Geomatics' commitment to 
creating vertical solutions and custom integrated geomatics-based 
business solutions for the world marketplace.

Project One:

The bold development effort continues... Project One, a major R&D effort 
directed at realizing economies of scale in product development, 
training, sales, marketing, and support by merging four separate but 
related products (EASI/PACE, SPANS, PAMAP, and ACE) into one common user 
interface and working environment. In addition to the cost savings 
realized by maintaining, selling, and supporting one product line 
instead of four, Project One will result in the creation of a truly 
unique product line for the geomatics marketplace. Wherein the separate 
technologies for remote sensing image processing, GIS, and digital 
cartography will be offered in a single modular environment.

The successful conclusion of Project One in 2000 will result in the 
ability for the customer to access remote sensing, spatial analysis, and 
cartography functions from a single environment. It will also allow PCI 
Geomatics and its business partners the ability to create custom end 
user applications and business solutions for vertical markets.

In addition to the various new business ventures and new developments in 
both the customer service department and product lines, in June 1999, 
PCI Geomatics unveiled its updated web site www.pcigeomatics.com! We 
have designed it for ease of use and to minimize download time for our 
international visitors. Our new brochures have also been added to our 
product pages for quick and easy downloading. We hope you enjoy the 
changes and look forward to your comments.

To conclude, as of November 1st, 1999, it is with great pleasure that I 
announce the opening of our new National Capital Region office located 
in Hull, Quebec. This new office will merge our Nepean and Gatineau 
facilities together encouraging synergy between individuals and 
increased operational efficiency.

We at PCI Geomatics thank you for your support in the past decade and 
look forward to your continued support of our products in the next 
decade. We also wish you a happy, healthy and prosperous New Year.

Sincerely,



Dr. Robert Moses
President and CEO

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