Up front, let me state first and foremost, there will be no discussion of stock price and I'm not responding to any pressure from folks on a message board or our ClancyChat.

I'll explain why there will be no stock price discussion. My responsibility to the employees and shareholders at Clancy is to manage the business to the best of my ability. The day to day operation of Clancy is where we will spend our time, effort and resources.

I certainly understand that the latest investors are only interested in the appreciation of their investment. For the people here at Clancy, this business is much more than that, it is our life. We are putting much more than our time into the company.

The decision whether to hold or sell your stock and at what price is yours. We can't give you financial or stock advice.

Clancy Systems International, Inc. was founded by myself and Robert Brodbeck in the late 1980s. We merged our expertise. Bob brought his background in public companies, electronic engineering, manufacturing, capital, sales and business background. I brought my data consulting, programming, and business background.

Bob funded the initial venture completely. He paid all startup costs and all other expenses.

We formed the venture and Bob found a "blind pool" ripe for merger. This "blind pool", named Oxford Financial, was a spotless public company with a stock structure, including warrants and some cash. We merged with Oxford in 1986, came away with a little cash, shareholders, and warrants. Later, a good percentage of the warrants were exercised and a little more money was brought in.

The purpose of beginning as a public company was, among other things, to give Bob and myself the benefit of an exit position via the possible future sale of the company or the ability to sell a little stock in the future. These benefits would only be possible if the company was successful.

We both worked hard and as the business grew. We surrounded ourselves with the best people. Bob and I took no wages for several years in order to conserve our working capital and insure the success of Clancy.

Our business philosophy is to provide products and services to our customers on a transactional basis. That is, we like the ongoing relationship with our clients. Through support and upgrades we have a constant cash flow from ongoing contracts.

During the 1990s, the penny stock market tanked. There was a general flush out of fraudulent penny stock brokers and companies. Unfortunately, for ourselves and our shareholders the market for our stock dried up completely.

While we weren't required to remain fully reporting with the SEC we did. We believe as a public company the shareholders deserve to be informed.

Fast forward to 1999. With the advent of Internet trading, Clancy and many other penny stock companies have emerged from the darkness of no broker or market support and Clancy became visible.

Now there is market for CLSI stock.

Clancy must expand and grow in order to provide additional services to our customers, revenue for the company, income for the employees, and appreciation for the shareholders.

At the same time, Bob has reached the point in his life where he can finally, after 15 years of sacrifice and effort, begin to slowly reap some benefit by selling a small portion of his stock every quarter. The SEC 144 stock rules allow for a 10% or greater owner to sell only 1% of the outstanding stock each quarter.

Our parking ticket issuance and management system is mature. Clancy has retained its leadership role in the industry. The competition is keen and is always nipping at our heals. We are constantly developing new hardware, software, and Internet solutions to push our parking operations forward.

Over the past 3 years, we have operated several municipal parking authorities. This is a wonderful business for Clancy. It gives experience in the day to day operations that our other clients face every day and provides another revenue stream.

New products are developed for our own use that now become available to all of our parking clients. For instance, we began taking digital pictures of some violations (handicap, fire hydrant, parked wrong direction, and others) in one of our operations. These digital pictures are now a standard in our system and not available from our competitors.

Today, all Denver Boot new sales are coming from the Internet. Boot sales are increasing and are currently at the highest level since the original Denver Boot Company was formed in 1953. New applications for the Denver Boot are being developed by business and government at an increasing rate. It's almost like a brand new product.

We have needed upgraded equipment for some time and now with a change at our shop, we are finalizing several new products. Research and development money, as other business financing has come from profits and not from additional capitalization from the outside.

We have integrated the Internet into our business to an unprecedented and unbelievable degree. New products and offerings are being developed and enhanced daily.

What's Important Now

www.whatsimportantnow.com. This is a new program which we believe has very wide application. Every computer user could make use of this program. It's brand new and fully operational NOW. We are working on the final documentation and an opening marketing strategy.

Please take the time to download a copy, install it and let me know what you think. If you need to discuss your application or would like some help, please call the office at 303-759-4276. We need your input.

Photo ID Badge Maker

www.photoidmaker.com. We have developed a new way of producing photo IDs using existing digital cameras, computers, printers, laminating equipment, and off the shelf supplies. This software is already in wide acceptance in the rental car industry and soon will be offered to other industries, clubs, schools, and individuals on the internet and through retail office supply stores.

Both acquisitions listed under Letters of Intent will also have a dramatic impact on both the capitalization and the future business of Clancy. I can't go into the details because the Letters of Intent haven't been exercised yet, but we wouldn't accept this kind of investment without a huge benefit to Clancy.

Terms (from the 10Q)

"In November 1999, the Company entered into a letter of intent with Jubilee Community LLC (an unrelated Company) to sell 158,000,000 shares of its common stock in exchange for $570,000 in cash. This transaction is exempt from registration under Section 4(2) of the Securities Act of 1933."

What does this mean to the company?

$570,000 in additional capital will give Clancy the ability to speed up development of new printing equipment, hand held terminals, software, Internet applications, and marketing.

We have always operated under the conservative business practice of spending. We just don't spend money we don't have.

As soon as this transaction takes place, additional resources can be utilized in the form of new business, products, and services.

Jubilee is not investing their $570,000 just to purchase restricted stock at a reduced price. They are investing in the future of Clancy.

Normally, a company like Clancy would have to acquire a share in a business opportunity like Jubilee. This investment by Jubilee is the best way for Clancy to get additional funding and additional business.

This is a closely held LLC (partnership) which has many business interests.

Investing in a 27.5% share in Clancy gives Jubilee a vehicle to take some of their businesses into the public arena.

Once the Letter of Intent is exercised we will start looking at these additional business opportunities.

Terms (also from the 10Q)

"Also in November 1999, the Company entered into a letter of intent to acquire two web site related businesses owned and developed by Stanley J. Wolfson, the Company's president and major shareholder for 80,703,013 shares of the Company's common stock.

The businesses will be recorded by the Company at the president's historical cost basis in those assets. This transaction is exempt from registration under Section 4(2) of the Securities Act of 1933."

In the recent past, as part of my ongoing interest and education regarding the Internet, I started several Internet related businesses. I consider myself a student of the future of the Internet, I've imagined and developed the idea for several Business to Business, e-commerce, search technology, communication, and other Internet related applications.

I developed these businesses separately from Clancy, at my own expense and on my own time.

Several applications attempted did not really work or have any real application. However, with every attempt I learn more and more about the Internet. Even if an idea didn't work, I gained knowledge which I use at Clancy every day.

Case in point - while developing expo1000.com, I needed a bulk e-mail program. I really could have purchased this kind of program, maybe even found a free one on the Internet, but designing a bulk emailer gave me the experience that led directly to What's Important Now.

remit-online

www.remit-online.com, our entry into the e-commerce arena, is a method to accept payment over the Internet. I have received no revenue from this other than the $10.00 license for use by Clancy.

However, Clancy has made money and client points with remit-online.

At Clancy we have offered this service to our clients and receive hundreds of payments per week using this service. Clancy clients using this service today include:

Cities

Private Parking Operators

• Rochester, NY
• Buffalo, NY
• Kansas City, MO
• and others

Products sales

www.expo1000.com is a Business to Business Industry Guide which was developed to give business visitors a place to search for industry specific companies.

This site has tremendous potential. Revenues without a lot of expense are just around the corner.

Proof of concept has been completed after hundreds of hours of work and big revenue is about to begin.

Today, the parking site is complete and several other sites are under development. These new sites include:

• Home Improvement
• Mobile Computing
• Baby Products
• Laundry
• Dry Cleaning
• Car Wash
• Telecommunication Resellers
• And others

What's The Outcome

By bringing in $570,000 of additional capital, the additional Internet businesses, and the additional Jubilee business, the Board of Directors, Attorneys, and Accountants agreed that these investments and acquisitions would greatly enhance the future of the Clancy.

Visit other areas of our web site including our this Investors Relations page.

I will chat on line whenever I can and will answer your e-mail sent to swolfson@clancysystems.com.

I would like to thank all shareholders for their support and apologize to everyone who was under the misunderstanding that I was ignoring your questions and concerns. Because of the open Letters of Intent and the nature of the SEC watching all public companys' every move, I wanted to make sure that all the "T"s were crossed and the "I"s dotted before I made too much public.

As soon as the Jubilee deal is done, I'll announce the other businesses which will be brought into Clancy.

Thanks again for your support,

Stan Wolfson (303)759-4276
CEO