In 1999, BST operated in a difficult business environment.  Fierce competition from our competitors and lower technology demand caused by the economic downturn in Asia, made for a bumpy ride for BST in 1999. However, careful management of our asset portfolio and a vigorous drive to control costs permitted BST to issue its largest dividend ever in 1999 of over $.25 per share.

We also announced our new foreign policy of local control of out of country sales.  This policy greatly increases foreign good will of BST and will bolster demand for Quality BST products over seas.  Complete details about the new policy can be found in the prospectus and proxy statement mailed to shareholders with the annual report.

We are committed to managing Exxon to increase value to the shareholder.  To do so, we focus on basic fundamentals of the technology industry and use sound economic decisions to maximize values while keeping risks to a minimum.  We are a learning company, a company that studies and learns from its successes and failures and tries to learn from those of others.  BST is a company that has the self-confidence and the resources to take giant steps and pursue numerous opportunities based on winning ideas and insights.  The appetite for learning and the drive to act quickly on what is learned will provide BST with what is an unbeatable and sustainable competitive edge against our competitors.  We will continue to research and learn more and more about our industry until we are able to provide the best return for our shareholders.

One way we have tried to increase your value is to market our product over seas.  We are currently the only company in our industry to export to Brazil.  Brazil offers opportunities for vast expansion and growth for BST and we should be able to capitalize on that opportunity and increase our over all value.  But market success is only part of globalization.  We must globalize every activity in the company. We’ve made some progress in sourcing products and components so critical to survive and win in a competitive world, but our challenge is to go beyond that, to capitalize on the vast intellectual capital available around the globe.  In 2000 we will move aggressively to broaden our globalization by increasing the intensity of our effort to search out and attract the large pool of talent that is available in the countries where we will do business.  We are currently considering expanding operations to Mexico, India, Europe and China.

We continue to follow closely the issue of global climate change.  Our fundamental concern is the impact of premature policy decisions on the unarguable link between economic growth and technology.  Common sense calls for continued research into the uncertainties of technology change as well as voluntary market driven efforts by industry and the public to use technology efficiently.  In the long run, decisions must be guided by sound science and recognition that economic health contributes to both social and financial well being.

Product service is another main objective of BST.  We know that to ensure continued high sales we must offer technical support to our customers and be prepared to help them with any unforeseen problems that may arise.  As computers get more technologically advanced it is more and more likely that customers will run into trouble with them.  BST is dedicated to being the forerunner of all the firms in our industry.  We are determined to hire more quality technical support specialists and make them easily accessible to our customers.  We believe this strategy will greatly increase our market share.  Our employees have demonstrated time and time again their ability to produce superior results in all kinds of economic weather.  They did so once more in 1999, and for that they have my respect and appreciation.

Our customers, suppliers, contractors and business associates are essential to our success, and I thank them for helping us meet or shareholders’ expectations.  And to you, BST’s owners, I extend my thanks for your continued confidence in your company and its future.

Syed Sami
Chairman and Chief Executive Officer