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Stronghold Says New Customer Folsom Chevrolet Has Increase in Vehicles Sold Through Appointments

January 22, 2004

Stronghold Technologies, Inc., the developer of DealerAdvance(TM), an enterprise software system using wireless technologies for the automotive retail industry, on Jan. 22 announced the signing of Folsom Chevrolet of California as a new customer.

Located at the Folsom Auto Mall in a suburb of Sacramento, Folsom Chevrolet had been tracking its monthly sales volume, but had no way of accurately collecting prospect information and monitoring sales performance.

In recent months using Stronghold's DealerAdvance(TM), vehicles sold through appointments at Folsom Chevrolet represented approximately 20 percent of the total vehicles sold per month. The dealership's vehicles sold through appointments as a percentage of total vehicles sold has nearly doubled since the first month after Stronghold installed DealerAdvance(TM).

Today, Folsom Chevrolet continues to improve its appointment setting practices to create additional business opportunities. Through the ability to mine the dealership's owner base and integrate the service department's customer list, Stronghold said DealerAdvance(TM) enables Folsom Chevrolet's sales force to proactively engage prospects to purchase vehicles.

Information capture features and follow-up processes supported by DealerAdvance(TM) resulted in Folsom Chevrolet "creating" new deals that otherwise would not have been generated through traditional monthly sales activities, according to Stronghold. From traditional traffic and other lead sources, the dealership effectively created higher quality prospects to close more deals through the appointment process.

The average appointment close rate is 36% at Folsom Chevrolet, which gives the dealership confidence and visibility in its sales forecasts, according to Marshal Crossan, owner and general manager at Folsom.

"Stronghold implemented their system quickly and we were impressed with how soon we saw results," Crossan said. "They continue to work with us to help drive our success and create improvements. Their support is the best we have seen -- from installation to ongoing management consultation. This is the reputation Stronghold had prior to our implementation and they have proven it to us."

"Prior to using Stronghold, we were hesitant to move forward with any technology vendor," Crossan continued. "Many dealers have seen diminishing customer support from their vendors or found that usage by their sales staff deteriorated over time. Dealers get a complete solution with Stronghold -- powerful technology that is easy to use plus knowledgeable and dedicated customer support. Their next release for DealerAdvance, Version 3.4, brings new features such as phone prospecting, Internet lead management capabilities, and a comprehensive tool for the National Do Not Call Registry, among other new enhancements. Unequivocally, our selection of Stronghold was an excellent business decision."

The general manager of a neighboring dealership that had made significant operational improvements with Stronghold recommended that Folsom Chevrolet consider using DealerAdvance(TM). Folsom Chevrolet performed thorough due diligence before selecting Stronghold, including a site tour of other dealership customers, in-depth meetings with Stronghold personnel, and a comprehensive management review. Their team concluded that DealerAdvance(TM) was the best system in the marketplace and that they were committed to implementing the system and engaging Stronghold for a long-term relationship.

Folsom Chevrolet purchased the DealerAdvance(TM) system after the successful completion of an initial performance period. The dealership signed a multi-year contract with Stronghold. System installation included 18 handheld personal digital assistants (PDAs) and 4 desktops personal computers (PCs) equipped with DealerAdvance(TM) that are networked for wireless and wired configurations.

The dealership utilizes a driver's license scanning station for fast and effective capture of customer information. After the initial installation, the success of DealerAdvance(TM) and the resulting increase in business led to the dealership ordering an additional seven PDAs to accommodate an expanded sales force.

DealerAdvance(TM) is now used by 28 dealerships in the state of California, one of the largest automobile markets in the country. Eight Chevrolet dealerships throughout the United States use Stronghold, which puts the brand behind Ford, Toyota and Honda as the largest users of DealerAdvance(TM), not including 16 dealerships where multiple brands are sold from the same retail location.

About Stronghold Technologies, Inc.

Stronghold Technologies, Inc. (www.strongholdtech.com) specializes in applying wireless technology and process improvement methods to increase business efficiency and sales.

The company has developed an integrated wireless technology called DealerAdvance(TM) which, among many features, allows automobile dealers to capture a customer's purchasing requirements, search inventory at multiple locations, locate an appropriate vehicle in stock and print out the necessary forms.

Through an integrated CRM (customer relationship management) application, the systems sends detailed tasks for prospect and customer follow-up and produces management reports to measure compliance. According to Stronghold Technologies, DealerAdvance(TM) allows sales professionals to increase sales, improve customer follow-up, and reduce administrative costs.

An independent research report on the company is available for investors and the general public at www.stocksontheweb.com/sght.htm.

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