Dear Friends:

The year 2006 marks our 34th anniversary. In an industry where longevity is often measured in months, we are well into our fourth decade of providing clients with incredible results in building their businesses. We are now Minnesota’s 7th oldest advertising agency out of over 600. The 2005 Book of Lists ranked us the 7th largest Minnesota advertising agency in December 2005. Our annual capitalized billings have exceeded $100 million for the last 6 years. We have created an insanely large body of great work for our clients, helping them create and build their brands. Our consistent success – particularly on the internet – is second to none in Minnesota.

Here are a few recent accomplishments:

1. Our leadership in the e-commerce area remains unchallenged. Other agencies are now trying to copy our vision and strategic partnerships. President Ted Risdall and Director of Interactive Planning Frank Grubbs lead this effort. Adweek Magazine IQ ranks us the #1 web developer in the state.
2. VP/Account Supervisors Kevin Deshler and Tim Dillon increased our leadership in the business-to-business and industrial categories.
3. Our role in the service/consumer and medical sectors also grew, thanks to VP/Account Supervisors Terri Lee and Heather Grudt. We now work with 10 of the top 50 Minnesota medical product manufactures, plus several others nationally – more than 40 clients total.
4. We have long served a substantial number of sporting goods clients. VP/Account Supervisor Michelle Nordberg and agency Chairman John Risdall are recognized as leaders coast-to-coast.
5. As Minnesota’s most wired agency, we’ve provided leadership to the high tech category. Ted Risdall, Tim Dillon, Jennifer Risdall and Josh Dahmes head our activities.
6. Our Arts & Entertainment Division led by Heather Grudt, Julie Knipp and Michelle Nordberg now has more than 40 clients like Theatre de la Jeune Leune, The Million Dollar Idea TV Show, the State Film Board and the now 33 restaurants of Twin Cities Originals.
7. We have added a fundraising and development division directed by its President Jerry Seppala and Natalie Schmit.
8. Kevin Deshler is also the President of Risdall Marketing Institute, interfacing with Minnesota academia.
9. The financial services sector is well served by VP/Account Supervisors Jennifer Risdall, Laura Martenson and Heather Grudt who lead the sector with more than 30 accounts, capped by recent national awards for Honeywell Federal Credit Union.
10. We grew to be ranked the 10th largest public relations agency in Minnesota in 2004, having recently expanded our PR capabilities by adding personnel and acquiring the firm of Nasseff Elwood & Day. Jenny Kephart is our Director of Public Relations.

Nationally, Advertising Age ranks us the 88th largest agency out of more than 27,000 and the 4th largest business-to-business agency. AdWeek Magazine ranks us the 41st largest interactive agency in the nation – the only Minnesota firm in the top 50. According to Twin Cities Business Monthly we are the largest web developer. The 2005 Business Information Guide ranks us the 10th largest public relations firm. In short, we are in an elite group of the top 1% of agencies in the world. While we are about a 70% business-to-business agency, we are also a $30+ million consumer agency. But most importantly, we are proud of the work we do and the positive impact it has on our clients’ sales and profits. They enjoy the unfair business advantage of focused, creative advertising. We would like to show you some profitable ideas we think might help your company in 2006 and beyond.