Simon F NynensSimon F. Nynens

Chairman & CEO

SAFE HARBOR

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995: Any forward-looking statements contained in this release are based on the Company’s beliefs and expectations as of the date of this release and are subject to certain risks and

t i ti hi h h i ifi t i t th C ’uncertainties which may have a significant impact on the Company’s business, operating results or financial condition. Should any risk or uncertainty materialize, or should underlying assumptions prove incorrect actual results or outcomes may vary materially from thoseincorrect, actual results or outcomes may vary materially from those described in forward-looking statements. Factors affecting the Company’s business and prospects are discussed in the Company’s filings with the Securities and Exchange Commissionfilings with the Securities and Exchange Commission.

We assume no obligation to (and expressly disclaims any such obligation to) update or alter any forward looking statementsobligation to) update or alter any forward-looking statements whether as a result of new information, future events or otherwise.

OVERVIEW

Distributor, reseller andDistributor, reseller and service provider of software

Incorporated in 1982, offices p ,in U.S., Canada & Netherlands

Public Company since 1995 (NASDAQ-GM) (WSTG)

Structure

Distributor Reseller

Fulfillment House

Focus: Channel Focus: End Customers

INTERNATIONAL SOFTWARE PARTNERS

LIFEBOAT DISTRIBUTION

WHO DO WE REPRESENT?WHO DO WE REPRESENT?Lifeboat Distribution is a specialty distributor that

represents approximately 250 software vendors.p pp y

Acronis-DataCore Software-DatawatchFlexera Software-GFI software-Infragistics

Intel-Mindjet-Quest softwareSolarwinds-Sophos/Astaro-StorageCraft technology

SAP/Businessobjects-Techsmith-Veeam-Vision Solutions

LIFEBOAT DISTRIBUTION

WHO DO WE SERVE?Lifeboat Distribution services a global network of over 7,500

VARs, resellers, consultants, integrators

FUNDAMENTALS: WHY DOES THIS COMPANY EXIST?THIS COMPANY EXIST?

We believe in simplicity.We believe in simplicity. It is our mission to become the most trusted and

respected software supplier. p pp– We do not want or aim to become the largest software

supplier nor the cheapest. Customers want to work with knowledgeable

and dependable people. – They are frustrated with, and tired of, companies that

over-promise. – We specialize focus on customer service and ask aWe specialize, focus on customer service, and ask a

fair price for our services.

FUNDAMENTALS: HOW DO WE COMPETE?COMPETE?

We compete on service, ease of doing business,We compete on service, ease of doing business, price and availability.

We specialize and pride ourselves on our p psoftware knowledge. – We do not see software as an “add-on” to hardware.

We know what we sell.

NET SALES ($m)( )

$250M

$207M

250

$57

$250M

$180M

$138M

$182M$174M

$146M

150

200

$54 $45$57

$58

T hXt d/P ' P di

CAGR:CAGR:

$104M

100

$129 $135$149

$193

$53

$54$48

TechXtend/Programmer's Paradise

Lifeboat

CAGR:CAGR:12%12%

0

50

$51

$84

$129 $117$98

02004 2005 2006 2007 2008 2009 2010 2011

OPERATING INCOME

CAGR:CAGR:8.0

9.0

21%21%5.0

6.0

7.0

$ Operating Income

2.0

3.0

4.0

$4.80 $5.20$4.60 $4.30

$6.80

$8.60 Operating Income

-

1.0

2004 2005 2006 2007 2008 2009 2010 2011

$2.20$2.80

Year-to-Date (as of September 2011)

2011 YTD 2012 YTDSeptember September

Sales $176.0M $211.6M 20%20%

Gross Margin $16.2M $16.9M 4%4%

Net income $3.6M $3.7M 3.4%3.4%

FUNDAMENTALS: HOW DO WE PLAN TO GROW OUR BUSINESS?PLAN TO GROW OUR BUSINESS?

1 Invest in information technology and1. Invest in information technology and marketing to drive sales

2 More feet on the street / represent more2. More feet-on-the-street / represent more software vendors

3 E h ti t d d t i d3. Ensure we have motivated and trained co-workers; invest in human resources

4. Focus on the bottom line; expense control is a competitive advantage

INVESTOR INFORMATION

Market Cap $58 millionMarket Cap. $58 million

Current Yield 5.4%

Shares Outstanding 4,740,000g , ,

(As of January 15, 2013)

DIVIDEND PAYOUT

Started Mar 28, 2003 $.10 per share, last increase Nov 2010 from .15 to .16 cents per share.

We have paid out over $21 million in dividends and we still have aWe have paid out over $21 million in dividends and we still have a very conservative balance sheet

BALANCE SHEET

September 31,2012

Cash & Marketable Securities $15.3 million

49%Working Capital $20.5 million

Stockholder's equity $31 3 millionStockholder s equity $31.3 million