Nexicon June 2009 Letter to Shareholders

Tue. June 30, 2009; Posted: 01:38 PM

2009 continues to be an exciting and productive year for Nexicon (Pink Sheets: NXCO). During Q2 we followed through and made significant progress on several fronts at both the corporate and operational level. Our MARC(TM) technology platform continues to improve while innovative, brand new applications for our technology present themselves virtually every day. In addition, despite the global economic crisis, the entire market for our technology continues to expand with online piracy growing throughout the world, diverting millions of dollars from legitimate copyright holders. Significantly, recent academic research is also teaching us that online piracy is not only costing copyright holders millions in revenue, but is also facilitating and financing the growth of organized crime and terrorism. As the ties between piracy, crime and ultimately, public safety, continue to strengthen, we believe the value of our technology continues to increase. Overall, we remain confident that our products and solutions have the capability to become an important part of enforcement and protection efforts at both the private (commercial) and public (governmental) levels.

During Q2 2009 we moved forward on several new and exciting initiatives. Given the nature of our business, we're often asked to abide by confidentiality and other similar restrictions, and we vigilantly respect those requests. Nonetheless, I can share a few monthly highlights with you, below. In each case I've chosen an example that, I believe, demonstrates how we've deliberately acted on our plan to validate, monetize, and expand the reach of our platform.

    --  In April, we completed a successful pilot of our DataView(TM),
        DigitalRanger(TM), and Business Intelligence products with one of the
        'Big Six' motion picture studios. We tracked in real-time,
        digital piracy for this worldwide release, and provided the studio with
        weekly raw data (DataView(TM)) regarding the piracy of the film. The
        executives at the studio were very pleased with our performance, and we
        are in discussions as to how we can deploy our products to help this
        studio in the US as well as in Europe and Asia.

    --  In May, we announced our partnership with Univer-$ale, an international
        business advisory and consulting firm that is helping us deploy the MARC
        platform internationally and with law enforcement agencies. In our first
        pilot application with Univer-$ale, we provided the Gendarmerie
        Nationale (French law enforcement authorities) with key information
        necessary to apprehend pedophiles exchanging child pornography.    The
        information has already resulted in arrests, clearly demonstrating the
        direct application that our technology has to law enforcement.   We
        believe the implications of this successful deployment are vast and
        directly applicable to all kinds of similar investigative goals. We are
        working in earnest at this moment to move to a commercial arrangement.

    --  In June, we announced that Esmiplaneta, a premier portal for the global
        Latin community, selected us to track worldwide voting for the upcoming
        "Batalla de las Americas" reality television show.   The
        reality television show, similar in format to "American Idol",
        will result in the selection of the newest member of Latin
        America's newest music super group, XM2, which features three of
        the former members of Menudo.  Having premiered June 28, 2009 the series
        will be broadcast over 13 weeks in 23 countries throughout Latin
        America, including MEGA TV in the United States and Puerto Rico.
        Nexicon's technology will be used to geographically track each and
        every mobile and Internet vote that is cast.   The information will be
        displayed in a real-time graphic, onscreen, during the show's
        airing.   The relationship is truly ground-breaking for us on several
        fronts and demonstrates yet another viable commercial application of our
        technology.  I look forward to leveraging the relationship I've
        built with Roy Sciaccia, producer of Batalla de las Americas, to enhance
        our sales and marketing efforts in the entertainment space. Together, we
        have many exciting projects that we are already beginning to put in
        motion.

During the quarter we also added experienced talent to the Nexicon team. Tony Duckett joined our team in May as vice president of sales and business development. Tony brings to Nexicon more than 12 years of experience with IBM Global Services and Nortel in helping clients realize value through innovative technology solutions. Tony is a consummate professional and could not be a better representative for our company and to our clients. As an interesting side note to Tony, he played in the NBA in Europe for 7 years and counts many current and ex-players as his close friends. Tony will report to me and will be responsible for overseeing all sales efforts, including our growing set of strategic partners. Nexicon has also added Jay Wegert, a highly skilled database administrator, who comes to us from Micron Technology. Jay is an integral member of our team managing the vast amounts of data we collect, and is reporting to Tommy Stiansen, CTO. Mark Ford also joined Nexicon in May, responsible for recruiting and human resources. I've known Mark for more than 15 years and he has played an instrumental role in helping me build out Nexicon's human capital. Bridgette King is now heading up our public relations efforts. She has close to 20 years of experience in public relations and marketing, with a particular focus on the technology industry. She will be leading an aggressive PR campaign as we reach out to the media and our various target markets, showcasing our technology, its applications and implications, as well as our corporate developments. Public relations will become increasingly important to us as we continue to grow and as our company transitions toward reaching "fully reporting" status.

On the corporate level, we have engaged a PCABO registered independent auditor, representing another significant step forward in our plan to have our securities listed for trading on the OTCBB. The firm Kramer Weisman and Associates, LLP is based in Ft. Lauderdale, Florida, and will initially complete the audit of our financial statement for fiscal years 2006, 2007, 2008 and through Q2 2009. We believe that retaining the auditor will not only facilitate our efforts toward obtaining the listing, but will also provide us with an additional level of external credibility.

We anticipate the next several quarters to continue to be a flurry of additional activity as we continue to rapidly grow. For example, in Q3 we're gearing up to launch yet another new product to add to our increasing technology portfolio. The product, code-named "IPCheck", will (in part) allow organizations to quickly identify in real-time when a security breach is happening on their internal networks. The product has extraordinary potential and can be naturally extended to be deployed in the consumer-use context (i.e. box version available at retail). Beta sites for the organizational application have already been selected and testing is planned to start in July. If the testing proceeds smoothly, we intend to launch the product into market with an aggressive public relations push. With the launch of IPCheck and its related solutions, we will have 11 products in our portfolio.

We expect Q3 and Q4 to be filled with additional technological improvements, the development of more innovative strategic partnerships in the commercial and government space, and continued efforts to attract the best and the brightest talent to join our team as we emerge.

In closing, I want to ensure that every shareholder understands that my primary focus is on explosive yet sustainable earnings growth. Every decision and action that I take is driven by this simple objective. I look forward to sharing with you our progress towards this end in the second half of this year.

This has been, and will continue to be, a pivotal year for Nexicon, and as always we appreciate your attention and support.

Very truly yours,

Samuel M. Glines

President and COO

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SOURCE Nexicon

http://www.nexiconinc.com

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