Over the last three years, Linn Software has experienced steady growth as our products have gained wider acceptance in the marketplace. Our relationship with MarketDelta, LLC has extended the reach of Linn Software's underlying platform to new markets. Central to our growth has been an increased focus on meeting the needs of Market Profile® traders. In 2006, we became the first independent software company (non-data-vendor) to license the Market Profile trade name and copyright of the Market Profile Graphic Format from the CBOT, now CME. A large and growing percentage of our clients are now using Market Profile charts as their focal trading tool. In contrast, our Investor/RT product lineup has to date been organized around levels of functionality relating to trading system development features. Today we are announcing changes to our product offerings, including some pricing changes, to create a product lineup that is more in tune with how Investor/RT is being used presently.

We have recognized for some time that our product licensing method, requiring monthly emailing of registration codes, is error prone and inconvenient for many customers. Our licensing has been restrictive, permitting use of the software on a particular platform, with a specific data source and/or a particular login id or account number. We are pleased to announce we are adopting an improved software license activation system that will be more convenient for our customers while providing greater flexibility to those who wish to run the software with various data sources, or multiple accounts, on one or more computers, or on multiple operating systems.

Effective July 1, 2008, Linn Software will begin offering a product line consisting of two major products: Investor/RT and Investor/RT Market Profile. Both products will be available in a standard and professional edition. The Investor/RT product will be available in an intra-day or an end-of-day version; Investor/RT Market Profile is strictly an intra-day product. There will be two optional features (1) Trading System Tools and (2) DTN Market Access Historical Services. The Trading System Tools add-on includes trading system development and back testing, trading system optimization, and methods of deploying a trading system for clients with real-time data sources. DTN Market Access Historical Services will be offered as an add-on to any product configuration. The product line-up and pricing are shown here:

http://www.linnsoft.com/pricing.htm

For existing customers, the new pricing and product line-up will go into effect August 1, 2008. The pricing/product line-up changes go into effect July 1, 2008 for new client subscriptions.

The packaging of software features into standard and professional editions enables us to offer Investor/RT and Investor/RT Market Profile products at a lower price point for clients whose requirements do not include the more advanced software features of the product line. The professional editions will include the RTL language for creating trading signals and alerts, scanning, and custom formulas for display in charts or in quotepages as custom columns. Professional editions of Investor/RT and Investor/RT Market Profile will include the Volume Breakdown Indicator. Market Profile-specific indicators are included in standard and professional editions of Investor/RT Market Profile. All standard editions will include our comprehensive library of built-in technical indicators with these exceptions:

• TPO and Profile indicators are present only in the Market Profile product, standard and professional editions.
• Volume Breakdown Indicator is present in professional editions.
• RTL-based indicators (Signal Markers, Signal Statistics, Color Markers, System Simulator, and Paint Bars) are present in professional editions.
• Trading System Indicator is an optional component included in the Trading System Tools add-on.

Product licenses for the new product line-up will be more flexible, permitting access to the licensed product on any one machine (Windows or Macintosh) with any supported data service and any login/username. The license code will automatically revalidate each month with no user action required. You will be able to update your license from our web site or from within the software itself. A license may be moved from one computer to another at any time. Clients who wish to run the software on two or more computers can order additional licenses for an $20 incremental monthly fee. Additional licenses will activate another computer with the same product features as the primary license; the additional license can be used on any platform and any data source/account number. Additional licenses are strictly for use by the same customer to extend the primary license to additional machines used by that user, not any 3rd party. The new license activation system will be deployed incrementally in ensuing weeks with the goal of completing the transition by September 1, 2008. In the meantime, "Classic" registration codes will be emailed to customers in July and August as we phase in the new license system. Investor/RT version 9.1 or higher will support online license activation.

The new product line-up will result in a price decrease for some and an increase for others. For example, Market Profile users who have already upgraded to the professional version will see a price decrease. Users of the "Pro Backtester" product will gain new features but at an increased monthly fee. If you wish to lock in current pricing for one year, you may purchase a pre-paid annual license prior to August 1 and receive an additional 12% discount.

The introduction of the new product line-up is a good time for Investor/RT or Investor/RT Market Profile users currently on the standard edition to evaluate whether an upgrade to the professional edition is warranted. To facilitate this evaluation, existing users can sign-up for the professional edition free-of-charge for the first month or portion thereof. This is a one-time per customer trial offer valid anytime this year.

If you have any questions or concerns about this new product line-up, pricing schedule or license activation plans, please feel free to contact me. Listed below are a number of questions and answers that may be useful; we will post these and answers to other questions we receive on our web site in the FAQ section.

Regards,

William E. Linn
President, Linn Software, Inc.
wlinn@linnsoft.com