Dear Members:
 
 By the time this Annual Report reaches you, we would have already
 announced some very exciting news. We have merged our indirect
 subsidiary HOV Services LLC (HOV Services) with SOURCECORP, Inc.
 (SOURCECORP), a portfolio company of Apollo Management V, L.P.
 
 SOURCECORP is a Texas, US based BPO services and specialty consulting
 services company. Shareholders of HOV Services and SOURCECORP will each
 control 50% of the combined entity now called SOURCEHOV, Inc., a
 Delaware corporation. This merger brings together two highly recognized
 companies and creates one of the largest global business process
 outsourcing and professional consulting services entities in the world.
 The management team of SOURCEHOV has over 25 years of expertise in the
 Industry, with a proven track record of seamlessly integrating core M&A
 components and continuously innovating new technologies, expanding
 end-to-end service offerings and always creating additional value for
 its customers.
 
 With the combination of these two great companies, we now have strength
 and resources of 14,000+ associates and the potential to achieve a
 truly great future. This will not be easy and we will face challenges
 as we start this new chapter in HOVS history, but we are confident
 that our expanded SOURCEHOV team can overcome obstacles and seize
 opportunities of all kinds. SOURCEHOV dedicated resources commit to
 work hard together and aim to excel beyond the paces of our
 competitors, carving out a significant role for SOURCEHOV in the global
 market and are excited to be a part of the team making history. We are
 very proud of our team and share their excitement and commitment to a
 very bright future.
 
 On behalf of the shareholders and the Board of HOVS, I would like to
 thank each and every employee and member of HOVS (now part of
 SOURCEHOV), the SOURCECORP members and our partners at Apollo for
 making this combination a reality.
 
 Furthermore, we were honored by the Maharashtra Government with an
 award for Maharashtra Information Technology Support Services- BPO /
 KPO award 2010. We were nominated by Global Services 100 survey 2010
 amongst the Top BPO provider in three categories namely, Industry
 Specific BPO Vendors, Top BPO Vendors and Top FAO Vendor list; and
 NASSCOM, in its Annual BPO Survey 2010, ranked us on the list of Top
 15 BPO Exporters list. Each one of these awards is a testimony of your
 Companys robust business model and delivery excellence.
 
 We believe that 2010-11 was the pivoting point for the industry in many
 ways. From 10,000 ft, the industry has witnessed the mutual benefit of
 outsourcing from all involved - contrary to what analysts had initially
 warned. Indian companies have notably invested in the US, while US
 companies have increased the sale of US products to India, in effect
 creating jobs that many had feared were lost to outsourcing. Secondly,
 the maturity of the domestic market, product ecosystem of start-ups,
 growth in core markets and recognition that global sourcing is not just
 about cost savings (but fundamentally transforming each customers
 business model) are significant trends that will reshape the industry
 in this decade.
 
 In closing, I would like to thank you in addition to each and every one
 of our HOV family members for your continued and unwavering support.
 Our future is bright and each new step beholds challenges unforeseen,
 but, that being said, we are committed and steadfast.
 
 I look forward sharing our victories - small and large - with you.
 
 Best Regards and thank you again,
 
 Parvinder S Chadha 
 Chairman & Executive Director