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Structural Changes Required for Sustainable Habañero Future
May 20, 2009

Habañero has implemented sweeping organizational changes in response to the current economic climate. The changes include a reduction in operating expenses and our consulting team, and a reorganization of some practice areas and service offerings. Together these changes are designed to ensure long-term sustainability by optimizing the company for current and anticipated market demand.

We believe that when the economy rebounds, solid companies will be in a strong position to grow and take advantage of market opportunities. These cost reductions are necessary to ensure our viability and prosperity in the future.

After a review of all areas of expense and a concerted effort to save as many jobs as possible, we unfortunately had to eliminate 12 positions in the company. We truly recognize the valuable contributions that affected individuals have made to our company, and are saddened that economic realities have led to the loss of great people.

Another change involves our decision to reduce our number of practice areas and incorporate business intelligence into our Dynamics ERP and collaboration practices. We will still continue to create and deliver business intelligence solutions; however, they will be offered in combination with our other solutions.

The decision to merge BI with ERP and collaboration was closely tied to recent changes at Microsoft, including the availability of BI tools within the SharePoint platform, and our desire to maintain close alignment with Microsoft's direction. It was also a response to changes in market demand.

In light of the above mentioned changes at Habañero, we would like to sincerely reiterate our commitment to fostering long-term, mutually beneficial relationships with both clients and employees. At the same time, our most immediate priority is to operate in a sustainable and fiscally responsible manner to ensure that we will be around and vibrant for years to come.

Sincerely,

Steven Fitzgerald
President

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