TECHNOLOGY SOLUTIONS FORYOUR DIVERSE NETWORKwww.ModernEnterprise.cominfo@ModernEnterprise.com866.305.8597

ANNUALREPORT2014

Fiscal 2013 was an exciting year of record performance, as well as innovation and productivity at Modern Enterprise Solutions. For the second year in a row Modern Enterprise Solutions achieved record revenue. In Fiscal 2013, revenue was at 15.3 million dollars, over an 18% growth rate increase from 2012. With our increase in revenue and growth, we have received awards from Inc Magazine,The Florida Fast 100, and the Tampa Fast 50.

These awards cover national, state and local recognition. Our success was driven by improved results in expanding our product portfolio and reflects the strength of our entire portfolio. It’s also the result of our long-term strategy and the significant investments we’ve made over the last several years to ensure that we continue to find new ways to provide technology solutions for our client’s diverse networks

Improvements in infrastructure during the past year include advancements in our testing facility to ensure quality control for all products sold. We also performed a major enhancement of our internal ERP system. We have made internal communication more efficient and reliable. We believe that a structured support team leads to ultimate customer satisfaction. Working with up-per management, the CO-Founders have increased overall company production and customer retention. We are currently ISO Certified and will be achieving our TL 9000 certification in 2014. To add to this accomplishment, we were also awarded as a Top place to work by the Tampa Bay Times, both 2012 and 2013. This was achieved by creating work environment that promotes health, wellness, and a willingness to be heard

As a company we have prided ourselves in providing our customers with an outlet for IT asset management, by giving our clients the ability to maintain existing network elements while receiv-ing a return on investment. This business principal has propelled the company, and will be the main foundation of growth for years to come. In 2013, we have also created direct relationships with a variety of manufacturers. This includes Adtran, Iphotonix and A10 Networks. We are ex-cited to offer not only equipment, but full solutions that can be customized utilizing these direct relationships. We see some big opportunities with A10 networks load balancing solutions. The company will be going public in 2014, and was named number on the Titans of Technology list.

Our Lifetime Cisco warranty will also be announced in the 1st quarter of 2014. We will be providing new surplus, refurbished, and used Cisco products with the same confidence as buying directly from distribution. In 2014, our new website and logo will be launched to the public. Some major enhancements include better usability, greater search engine optimization, and more product options for online purchases. The website upgrade will be a viable factor in increasing revenue

Globalization is another important factor for future growth, and in 2014 we will be bringing Busi-ness Development Managers for the regions of the Middle East, Africa, Asia, and Europe. The focus will be to work with Telecommunications, Enterprise, and Government entities in these regions. These regions have similar network infrastructures, and the expansion will allow MES to offerexisting product line, while working new lines that are utilized in these regions

Modern Enterprise Solutions is also expanding into Enterprise Level Solutions, providing full scale network management in the United States. With offices now in Chicago, Reno, and Buffa-lo, NY we have positioned ourselves to have a geographical advantage throughout the country. Within three years we expect Enterprise Level Solutions to provide 25% of total revenue for the company. We also take into account the loyalty of our customers and our dedicated employees. We thank our customers for all of their business and we look forward to another productive year.

ABOUT USModern Enterprise Solutions is a privately held technology solutions provider based in Tampa Florida. Founded in 2003, we are one of the largest resellers of new and used enterprise class network hardware. Catering to a broad global client portfolio gives Modern Enterprise Solutions the ability to buy and sell every aspect of an ever changing IT network infrastructure. Our unique business model addresses the need to extend the life cycle to existing network hardware while also providing a return on legacy end of life assets.

The company’s headquarters are in Tampa, Florida. They have additional offices in Buffalo, New York, Reno, Nevada, Chicago, Illinois, India and the United Kingdom. In 2012 and 2013, Inc. Magazine ranked Modern Enterprise Solutions as one of the fastest growing companies in the United States.

Carrying the industry’s leading manufacturers including Cisco, Juniper, Calix, Motorola, Alcatel-Lucent, Nortel, Adtran, AFC, Fujitsu and many more. Modern Enterprise Solutions offers new, new surplus, certified tested, used, refurbished and authorized refurbished equipment.

QUALITY CONTROLMES Quality Control: The Industry StandardModern Enterprise Solutions offers proven quality. From being ISO 9001:2008 certified to our company-wide Quality Management System, we ensure consistency from order accuracy to anti-static packing to secure logistics for on-time delivery around the world. In addition, to ensure better-than-new functionality and reliability, our certified specialists test and retest every piece of equipment we sell at our state-of-the-art, in-house testing facility.

Certified TestingOur testing goes beyond simple power-on and boot check testing to cover complete functionality, reliability and performance of the equipment.

Our certified MES Testing Team utilizes industry-best testing procedures and equipment to test every possible facet of equipment. Our testing team has designed a fully functional, diverse, and completely interchangeable lab environment that allows complete diagnostic testing of nearly every form of network and telecommunication equipment.

In addition to passing traffic over the equipment to validate performance capabilities and interface functionality, our testing team also runs a complete gauntlet of power, signaling, and electrical testing. To further ensure customer satisfaction, we include a minimum 1-year warranty along with a comprehensive, 48-Hour Advance Replacement Policy with every piece of equipment we sell.

When you buy from Modern Enterprise Solutions, you can be certain that our expert technical testing staff has thoroughly tested your equipment to ensure maximum functionality and performance.

Integrated Inventory TechnologyModern Enterprise Solutions as developed our own internal CRM/ERP software program to communicate internally, track inbound & outbound shipments, provide inventory management, and communicate with customers. Our system also monitors equipment by part numbers and serial number allowing for real time analysis on product availability and determination of market value.

Systematically Designed WarehouseAll equipment we ship is packaged and tested using certified ESD procedures to ensure that equipment is shipped to our customers in working condition. Our 50,000 square foot, state-of-the-art warehouse features precisely labeled shelves to give our employees the ability to locate items immediately using our CRM/ERP Inventory system. The bays are labeled with an advanced system that gives our warehouse team the most efficient way to locate and ship equipment.

Modern Enterprise Solution WarrantyAs part of our service, all products come with a minimum one year advanced replacement warranty. Our warranty also includes pre and post technical support to assist with deployment questions. All Cisco data networking products are covered by our Lifetime Warranty. We designed this warranty to be the most comprehensive hardware care solution in the industry.

PRODUCTS

SERVERS, STORAGE & LAPTOPS

WE BUY & SELL THE FOLLOWING BRANDS:

Need a quote? Contact us at

1-866-305-8597You can also visit us online at

www.modernenterprise.com to browse our online product catalog

and request a quote.

Memory • Hard Drives • Power Supplies • RAID Controllers • Laptops

Backplanes • Network Adapters • Rail Kits • SCSI Controllers • Risers

Routers • Cable Modems • Access Gateways • Mobile

Convergence • Set-top Boxes • Network Adapters

CUSTOMER PREMISE

TELEPHONYBusiness Phones • VOIP Telephones • Conference Phones • Headsets

DATA NETWORKING Modems • Network Adapters • Network Antennas • Routers • Switches • Wireless

Access Points • Cabling • Line Cards • SFPs

WIRELESS

CLASS 5 SWITCHES SOFTSWITCHES

CABLE HEADEND / OSPSatellite Receivers • Encoders & Decoders • Modulators & Demodulators • Line Gear

Cables • Connectors • Gain Makers • Equilizers • Splitters • Fiber Nodes

Transceiver • Gear Box• Multiplexer • CDR • OTN / FEC Products • Optical Amplifier

OPTICAL TRANSPORT CONSUMER ELECTRONICS

TVs • Tablets • Peripherals • Cameras • Components & Accessories • Power Devices

SHOP ONLINE at www.ModernEnterprise.com

Fiber Optic Cabling • ONT's • Cabinets • Splitters • Taps

OUTSIDE PLANT

IT ASSET MANAGEMENTINDUSTRIES WE SERVEModern Enterprise Solutions works with clients all over the globe, purchasing IT surplus, and working with clients to properly dispose these assets. Buy Back Program:The process is easy and quickest for selling your equipment at the highest market value. Simply send over a complete inventory list and you will receive an offer within 24 hours. Working with Modern Enterprise Solutions is effective and can make your job less complex. What makes this a great method for selling your equipment is our extensive product lines and Global customer base. Our existing relationships with freight and air carriers also make picking up your IT assets stress-free. Consignment:Consignment works well when customers have high quantities or need us to inventory products due to space limitations. Our custom ERP / Inventory program allows Modern Enterprise Solutions to receive products by part number and serial number. Through a secure login you will have access to view your inventory in real time and sales history. We arrange all of the logistics to pick up your IT assets, and you receive a percentage of the sales. All equipment is owned by the customer throughout the entire process. Consignment is a longer-term sales process and can help bring you a larger return on investment over a period of time. Let us maximize your ROI on all of your idle assets, that may not have an immediate buy-back offer.

Life Cycle Extension Program:This solution is a complete Repair, RMA and inventory management system. Modern Enterprise Solutions will inventory all of your equipment into our ERP system, giving you remote real time access to the whole process. Send equipment to MES that need to be repaired including cosmetic refurbishment, internal circuit boards, and even memory upgrades. Modern Enterprise Solutions as the ability to monitor burn rates of critical spares, and fully test functionality of each individual item. Once equipment is fully repaired we will box items to the customer specification and items will be prepared for redeployment. This includes bar coding the items box with bar code labels that specify any needed information. Modern Enterprise Solutions will warehouse these items, and ship them back to the customer (multiple locations included) when equipment is needed. Repairable items include are full product line, please contact us to discuss your individual needs. Our program will give you a cost-effective way to maintain your network, and extend the life of your existing network infrastructure.

Equipment Removal/Logistics:Let Modern Enterprise Solutions do the work removing any decommissioned idle IT network assets. Give us a call to discuss how we can help. We can offer everything from white glove removal service to providing a cost effective freight solutions through network of logistics partners.

2014Projected

$20,000,000.00

1

6

52

3

4

OUR LOCATIONS

1

2

3

4

5

6

Tampa, FL - Headquarters

Buffalo, NY

Reno, NV

Chicago, IL

India

United Kingdom

MES has been recognized year over year as a leader in the IT hardware market and in 2014 put into place an expansion strategy for a international physical presence in Europe. We have always viewed our client base as a global marketplace. Although there are cultural differences, we’re confident that our business model and dedication to customer service will break through any barriers.

In establishing an office overseas MES is focusing on working with system integrators, service providers and cellular companies, providing asset recovery, legacy equipment maintenance and load balancing solutions. With the ever changing demands in technology, network hardware is continually refreshed which allows MES to provide cost effective telecom solutions for any system.

2013Revenue

$15,338,172.36

2012Revenue

2011Revenue

2009 Revenue

2010 Revenue

$5,044,325.57

$5,968,260.20

$9,270,842.12

$12,709,195.12

MODERN ENTERPRISE SOLUTIONS6026 Jet Port Industrial Blvd. Tampa, FL 33634

www.ModernEnterprise.com

866.305.8597