You may have heard the Chinese saying, “The journey of a thousand miles must begin with a single step.”

In the past year, we have taken the first steps toward a strategic transformation of The Banker’s Store. Our long-term goal is to become a much larger, more comprehensive provider of financial equipment and services, primarily by acquiring companies similar to ours in the Midwest and Southeast. With this additional product and service muscle, the Banker’s Store will be in a better position to serve regional and super-regional financial institutions, in addition to our traditional customers.

Thus far, we have identified a number of companies as potential acquisition candidates, and have prioritized a handful of these entities for serious purchase consideration. We would have preferred to have had one or more acquisitions already completed by now. But it’s critically important for the future of our company to get it right.

Our difficulty has been in securing appropriate financing that meets our long-term goals and fits our capital structure. We have been patiently evaluating a variety of funding alternatives over the last few months, and we will move forward with potential financing, when available on acceptable terms.

Focusing on continuing business

It is just as critical to stay focused on the business, ensuring that we continually meet the needs of our customers who buy our products and services. We have done that.

Total revenues in fiscal 2007 grew 6.8 percent over 2006 to $2.62 million. In the last quarter of the fiscal year, sales expanded by more than 30 percent to $832,000, our second-best quarter ever as a public company. That sales performance was followed by another 30-plus percent sales growth and record first quarter 2008 sales of $830,000.

Our banking equipment division has grown by offering new and refurbished equipment to banks, and increasingly, to related businesses. Our work with Nation’s Medicines, an independent Kentucky pharmacy, showcased our skills in helping integrate remote delivery systems, two-way audio video, on-screen ordering systems and payment transaction technology.

We also benefitted immensely by seeking, and becoming, an authorized Kimball Office dealer for this region. Kimball Office provides us a high quality office furniture alternative for our banking as well as other business customers. This relationship has given us the opportunity to vie for office projects that we might not have pursued in the past.

And, of course, we continue to look at providing the latest technologies to our traditional financial customers, offering digital video security and other ways to make our customers better protected and their transactions more efficient.

The Banker’s Store is making progress on the top line. On the bottom line, we knew that our acquisition strategy and strengthening of our management team would bring additional expenses. Until we are able to ramp up our planned acquisition program, we will be monitoring the expense side of the equation very carefully.

Our FY 2007 focus on business, and the resulting stronger performance, helped lower the size of the net losses to levels that are better than we initially expected. The fiscal 2007 net loss was $217,523, compared with full-year 2006 net income of $58,563.

As CEO, and as a fellow share owner, I am acutely aware of the need for long-term profitability and its effect on the stock’s attractiveness in the market. We will continue to pursue our growth program and focus on internal operations as we strive to enhance the long-term value of our company. I’m encouraged by the progress we have made in FY 2007.

Becoming a larger, regional company

I said last year that it was an exciting time to be at The Banker’s Store. It still is exciting! The future offers all sorts of potential opportunities – not only for our company as a whole, but for our employees and our shareholders. I’m pumped to be leading our expansion efforts.

I do want thank our employees for their service and their continuing contributions to our company. For our shareholders, I also want to thank you for your investment. The Banker’s Store truly is a ground floor opportunity.

I will close this letter with another Chinese saying: “To get through the hardest journey we need take only one step at a time. But we must keep on stepping.” That we shall do, vigorously. I appreciate your support as we continue to move ahead, and I welcome your comments and suggestions.

Sincerely,

Vincent C. Buckman

President and Chief Executive Officer