Update to shareholders

Dear WrapMail shareholder,

It is pretty exciting in our world these days and some of this excitement comes from:
• We recently went public (in our 6th year in business)
• We are seeing tremendous growth of signups after we became free about 6 months ago
• We have and continue to put in place upgrades to both the hardware and software platform to increase performance and functionality.
• We are looking for more programmers (on Monster.com) to speed up the delivery of new features focusing on ease of use and dynamic content (without revealing too much :- ))
• We are talking to some very interesting companies about our services from several angles
• We are working on raising capital to tackle added expenses such as development and marketing
• We have hired a few different IR firms to help us market the company and create more awareness over the next 12-24 months.
• We are getting 10-20 new clients every day, still offering all new clients one free custom wrap
• We have just fired up Re/Max in Cayman Island on the Enterprise version, the most successful Re/Max agency in the world (so hopefully it spreads).
Since we decided to make WrapMail free from Q4 last year we have had nothing but positive experiences and where it took us about 5 years to get the first 1,000 corporate accounts it took us about 8 weeks to get the next 1,000 after we became free!
Now, everyone is asking how we make money and the short answer is; we don’t (yet).
Here’s my thinking:
Look at Linked-In, Skype and Twitter for example (all free services) and see what “Market Cap” they demand, it is huge considering none of these companies made much money last time I checked. Actually Linked-In was at the time of the IPO priced at about 1,000 times earnings, Twitter turned down a few billion dollars with little to no revenue and Skype (losing $7M in 2010) was just sold for 8 billion dollars to Microsoft.
Where’s the value? THE AUDIENCE!
So, what do we do? We give away our solution to grow the audience and then look at revenue opportunities when the volume hits certain milestones over the next 1-2 years (hopefully).
Hypothetical: Let’s say WrapMail gets to 250,000 users in the next 1-2 years. That would represent 2.5 million emails sent through us every day (the average user sends about 10 external emails per day). That is equal to the circulation of the largest newspaper in the US; USA Today. I bet a lot of companies would like to advertise to that receiving audience. I further believe we would be able to generate about 5 cents per email sent in 3rd party ad revenue or license fee so now it is fairly easy to calculate potential revenues:
100,000 users: $50,000 daily revenue – $15,000,000 annual revenue
200,000 users: $100,000 daily revenue – $30,000,000 annual revenue
400,000 users: $200,000 daily revenue – $60,000,000 annual revenue
500,000 users: $250,000 daily revenue – $75,000,000 annual revenue
The higher the percentage that opt for 3rd party advertising as opposed to paying a license fee to stay ad free the higher the revenue to WrapMail.
The above is not guaranteed to happen by any means but in my mind it is very feasible if we do things right.
We are looking at models where we let the email senders share in the ad revenue to further grow the volume and revenue.
WrapMail solutions and who can use it:
– any business in any location with a website and employees that send emails can use wrapmail. Most businesses do not have a store so their website is their only store where they feature products and services. Take a real estate agent for example, the only place you can view all the properties in one location is on their website – with wrapmail they can show the properties with every email sent and have these images link back to the website that contains more information about that specific MLS listing. Just to give an idea of what kind of clients we get on a daily basis here’s a list of some of the clients that signed up in the past few days:

Red Sail Sports – Diving and Water sport rentals – Cayman Islands
Wisconsin Center for the missing –locating missing Children and Adults – United States
Worldwide Solutions & Technologies, Inc. – Virtual Agent Network – United States
Lava Leads – Lead Generation Solutions Provider – United States
K9 Mold Pro – Mold assessments and consulting – United States
Union Transport – International and domestic road transportation – Poland
Diego Porcel – Photographer – France
Alfa Corner – Clothing and accessories – Finland
Civitas – Consulting – India
Coldwell Banker Agent – Real Estate – United States
MM Homex – Real Estate – Turkey
Trade Development Authority of Pakistan – Government – Pakistan
Berwick Offray, LLC – Ribbons and Bows – United States

College – Google currently offers to host student emails for free on their educational platform and WrapMail offers colleges to wrap the student emails for free and even donate 25% of ad revenue from these emails back to the college.

Personal – Today over 500 million people are on Facebook and if you add in other social networks we get above a billion people with various profiles on the internet. WrapMail can give each one of these a personal and interactive letterhead for their emails. These premade or 100% customizable wraps can contain any image and any link (actually up to 40 links per wrap) so of course people could use wrapmail to make thank you cards, party invitations or just stationary comprised of images/links of their favorites hobbies, sports team, college, political affiliation etc etc. The individual imagination is the only limitation.

Marketing of WrapMail is a must and the fact that you’re reading this is a sign that we have started to reach out to clients, prospects and investors alike to get our message across about our service and the great potential that we see in the not too distant future.
I will aim to keep sending updates so that our entire audience is aware of what we are accomplishing along the way.
Feel free to help us by becoming or referring a business or personal WRAPPER, it’s free: http://pro.wrapmail.com/signup/
If you use WrapMail please consider adding the RSS feed available in your dashboard that lets every email you send look for missing children in the US.
Actually we will focus on getting the story out on how wrapmail can help search for missing kids. If we could only get that story onto the national scene we not only would be doing something good but also get tremendous exposure!

WRAP it Up!

Rolv E. Heggenhougen
Chairman & Head Wrapper, WrapMail, Inc.
June 15, 2011
Safe Harbor Statement
Matters discussed in this press release contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “anticipate,” “believe,” “estimate,” “may,” “intend,” “expect,” and similar expressions identify such forward-looking statements. Although expected, actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of WrapMail, Inc. and are subject to a number of risks and uncertainties, including but not limited to, risks and uncertainties associated with: the impact of economic, competitive, and other factors affecting WrapMail, Inc. and its operations; its markets, products, and performance, and other factors detailed in reports filed by WrapMail, Inc. with OTC Markets.
WrapMail Investor Relations: ir@wrapmailinc.com


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Website: http://www.wrapmail.com
Location: Fort Lauderdale, Florida, United States
Founded: October 15, 2005

WrapMail helps companies “wrap” already existing email traffic that leaves from employees every day. All of these emails go to a captive audience (Vendors, Customers, Prospects and Friends/Family) but they do not promote the senders business…. Learn More

Why WrapMail?

• Make every employee a marketer

• Professional appearance

• Brand with every email

• Profiling & tracking

• Introduce new products and services

• Cross promote and up-sell

• Increase traffic to your website

• Instant surveys

• Ability to include 3rd party advertising

June 2011
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