Overview

Solutions Group, Inc. is an international engineering firm that provides cost-cutting solutions for Fortune 500 Companies through Bulk-Outsourcing Solutions and Product Development Engineering. The Company's engineering centers located in the United States, Mexico and Romania are seamlessly integrated and work closely with the customer at the time of project launch through completion. As a result customers are able to reduce their product development investment by up to 50% without sacrificing product quality or time-to-market schedules.

The Company has also expanded into producing and selling products of their own. idrive,a subsidiary of Solutions Group Inc, is a Professional Event Data Recorder system for vehicles which can capture High Definition videos, both of the front of the vehicle and the rear, using a dual camera device and records when an event occurs, including: accidents, aggressive driving behavior, door open event or panic (after pressing the specially designed panic button). The Company has also planned to launch several other technological products in the future to address unmet market needs.

---

Investment Highlights

---

Profile

Solutions Group, Inc. (PINKSHEETS: SOLU) is an international engineering firm that provides cost-cutting solutions for Fortune 500 Companies through Bulk-Outsourcing Solutions and Product Development Engineering. SGI was founded by industry leaders who drew from their executive experience in top domestic and international engineering and contract manufacturing firms to develop a unique strategic solution to address current market needs.

Unlike many small-caps, Solutions Group, Inc. is currently generating solid revenues through its Managed Engineering Services. With two decades of operations in its field, the Company has developed a network of business relationships and affiliations that provide a strong foundation for success and expansion. The Company generated revenues in excess of $650,000 in Q2 2009 with positive earnings. Current sales pipeline for Managed Engineering Services for the balance of 2009 indicates steady growth with an estimated range for the year between $3,700,000 and $7,000,000; not including Royalty Partnerships, Intellectual Property Commercialization or Acquisitions. SGI currently employs 65+ people and has a highly scalable business model of which a majority of the team is directly involved in some aspect of the revenue generation process.

As one can see, Solutions Group expects to be able to realize substantial revenue growth for the remainder of the year. According to the Company, inquiries for new service contracts have increased dramatically, and if these contracts are closed at a rate consistent with past performance, they should represent strong revenue increases for FY '09. In addition, due to the scalability of the Company's business model, operating expenses should remain relatively stable. As a result, further revenue increases should result in increased margins and enhanced profitability, barring unforeseen circumstances. In any case, it is an encouraging sign to see the Company conducting profitable operations already so early in the business cycle.

Solutions Group business model is highly scalable and includes a multi-pronged approach to achieve rapid financial growth. This includes Managed Engineering Services, commercialization of the Company's own Intellectual Property, Royalty Partnerships with leading OEMs and Acquisitions. SGI seamlessly integrates its regional design centers in North America and Europe with its lower cost offshore engineering locations. As a result, the Company's customers enjoy a significantly reduced product development cost without sacrificing quality or time-to-market. In the midst of global economic insecurity, SGI is well positioned to support those companies that seek to reduce operating costs while remaining competitive. The Company's market is global in nature, dynamic and includes any activity related to the development of electronics products.

SGI's rapidly expanding customer base includes many premier Fortune 500 customers including Agilent, Freescale and Qualcomm. Revenues from the 2nd Quarter came from 10 different customers including Agilent, Qualcomm, Sorrento Networks, Hughes Network Systems, Procon and Freescale. Relationships with this customer type are long term and include both design services and some integration with their internal engineering groups. The Company's customer base is also very diverse as its services are also well positioned for small to mid-range OEMs and early stage venture funded companies.

As the global financial system continues to experience volatility, technology companies are looking for additional ways to cut development costs, while maintaining the quality and control that has brought their success. Building on successes learned from the Contract Manufacturing world, SGI offers its partners a solution that is more effective at achieving these goals than traditional offshoring for companies needing to divest themselves of engineering functions and departments that are not considered "core competencies" and do not contribute to IP or market differentiation.

Solutions Group is experiencing rapid growth during the economic downturn by leveraging its global infrastructure and expertise utilizing a hybrid of local outsource management and wholly owned off-shore engineering centers in low-cost regions. Solutions Group supports a variety of market sectors, including: Semi-Conductor, Cellular, Networking, Medical, Military/Aerospace, Industrial and commercial electronics.

The Company has recently stepped into the field of making their own products as opposed to only make them for others. Their first venture, the idrive,a subsidiary of Solutions Group Inc, is a Professional Event Data Recorder system for vehicles which can capture High Definition videos, both of the front of the vehicle and the rear, using a dual camera device and records when an event occurs, including: accidents, aggressive driving behavior, door open event or panic (after pressing the specially designed panic button).

The videos are stored on internal memory together with other information like G-force values, GPS coordinates, date, time and more, all collected from the device. The transfer to the computer or to a specific network is made using wireless or USB. The idrive dual camera device is designed to be mounted to the windshield, behind the rear view mirror.

Since early October, SOLU has released announcements of the success of the XI in various industry trade shows. Orders are in the pipeline and the reason is that iDrive's price to the customer beats the cost that the competition is making their product for. A few weeks ago the company announced Authorization by the City of Seattle, Washington for its taxi cab fleet. This alone could result in thousands of units being ordered. Estimates for 2010 sales in iDrive alone could exceed $10 million.

The Company also announced in October of this year that it had signed a memorandum of understanding with A-1 Limousine of Princeton, New Jersey. Under the agreement, A-1 will purchase 240 units of idrive's X1 Video Event Recorder and supporting hardware and software. The agreement calls for the sale to close in the fourth quarter and is valued at more than $120,000. The Company has indicated that other technological products are in the pipeline, which is great news for anyone considering SOLU as a long-term play as well.

Technically speaking, there seems to be strong support at $0.03 and weak resistance at about $0.08, which bodes well for investors. Should the stock trade just a bit over its trading range, there is a good chance of a potential upside breakout. That being said, stop losses would be recommended around the $0.03 mark to protect against a run in the opposite direction, because let's face it, it's better to be safe than sorry. As we just mentioned, the stock has traded in a very narrow trading range, and any significant volume event given the low float, could cause the price to run. As always, this is just our interpretation on this Company's stock chart, and we always recommend that all investors perform their own due diligence before investing in any Companies mentioned on AllPennyStocks.com and consult with a financial advisor.

Solutions Group is gaining a strong presence in the burgeoning offshore engineering market, all while making great strides on their balance sheet, which is something not always seen with $0.04 Pink Sheet companies. Companies with strong and growing revenues as well as ones that have positive earnings are truly diamonds in the rough these days, and with this Company expanding in both the engineering side as well as the product development side with sales from their idrive product, and shortly with other products, SOLU should make even the most sceptical of investors take a closer look at them and add them to their watch lists.

---

Market

Highlights:

• Offshore outsourcing business worth approximately $50 Billion annually (Source: New York Times)
• Outsourcing by the financial services industry is expected to increase by as much as 40 to 45 times from 2008 to 2013 (Source: Business Finance Week)
• Business Process Outsourcing grew at an approximate annual growth rate of 35% from 2005 to 2008 (Source: National Post)
• Offshore outsourcing was growing at a 29% annual growth rate until the second half of 2008, and is still expected to continue to grow at a double-digit rate in 2009 (Source: New York Times)
• Worldwide Business Process Outsourcing revenues estimated between $26 Billion and $29 Billion in 2008 (Source: National Post)
• Knowledge Process Outsourcing expected to grow at a compounded annual growth rate of 46% and be worth $17 Billion by 2010 (Source: Sourcingmag.com)
• Engineering Services Outsourcing is predicted to grow to $40 Billion by 2020 (Source: Toostep.com)

Business Process Outsourcing (BPO) is a type of outsourcing involving operations of particular business functions, or processes, to a third party. Traditionally, this has involved the outsourcing of functions that do not require extensive training and/or expertise (customer service, call centers, etc.) or functions that demand time that detracts from the core operations, but that can be consolidated and scaled in such a way as to create large-scale, specialized third-party operations (payroll services, accounting, human resources, etc.). Because of the nature of these processes, much BPO is very close in nature to information technology services.

The advantages of BPO are numerous. Companies can enhance flexibility by shifting non-essential or administrative operations from employees whose effectiveness can be enhanced by allowing them to function on core business functions. In addition, BPO frequently provides cost benefits by employing non-specialized labor for functions that do not require extensive training or expertise. In addition, many companies outsource business processes overseas to emerging countries in which wages are lower with large, welleducated labor forces, such as India and the Philippines. In many of these countries, jobs that are typically served by BPO are frequently regarded as high-status occupations, whereas in some of the more developed nations they can often be characterized as menial, low-status occupations. As a result, BPO can often attract talented and welleducated workers overseas.

A number of substantial market drivers are propelling this market forward, and give every indication that the overall outlook for the industry is very favorable. These factors include the tremendous level of improvement in IT and telecommunications, constant pressure on companies to reduce costs, and the inability of businesses to automate a large number of essential business processes. As IT and telecommunications infrastructure has made giant strides in sophistication and efficiency, it has become possible to transfer data virtually anywhere at minimal cost, allowing unprecedented ease of communication across the globe. Of course, it is not a new development to see businesses attempting to reduce costs, but as IT and telecommunications improvements have facilitated the ability to outsource business processes, BPO has boomed, with every indication of continuing to grow at a rapid pace. The global market size for BPO is estimated to be around $382.5 Billion in 2004, and robust growth is projected in the BPO industry with more and more companies taking advantage of the flexibility and cost-effective benefits of BPO all over the world. The BPO market is expected to reach $641.2 billion by 2009 with a Cumulative Annual Growth Rate (CAGR) of 10.9 percent from 2005 to 2009. (Source: IDC).

In addition, continued concerns over the state of the global economy and worries about stability may in fact enhance the attraction of BPO. According to a recent study by the Everett Research Institute, the global recession appears likely to accelerate global sourcing adoption (Source: Business and Finance Week). Also, outsourcing has begun to find more acceptance in many technical industries that were formerly mostly rejected by companies who considered the level of expertise required to perform the job functions as a prohibitive barrier to outsourcing. More and more, the automotive, pharmaceutical, and engineering industries are becoming hotspots for outsourcing (Source: Financial Times). This has further accelerated the growth of the industry in recent years. For instance, the states of New Mexico, Nebraska, and Mississippi have outsourced their unemployment and taxation payment processes, and according to some estimates, the BPO market has seen an annual growth rate of approximately 35% from 2005 to 2008, and is estimated to generate worldwide revenues of between $26 Billion and $29 Billion in 2008 (Source: National Post).

One of the most rapidly growing sub-sectors of BPO is Knowledge Process Outsourcing (KPO). KPO involves knowledge-related and information-related work carried out by workers in a different company or by a subsidiary of the same organization, which may be in the same country or in an offshore location to save cost. Unlike the outsourcing of manufacturing, this typically involves high-value work carried out by highly skilled staff. KPO firms, in addition to providing expertise in the processes themselves, often make many low level business decisions-typically those that are easily undone if they conflict with higher-level business plans. For a number of reasons, companies were reluctant to outsource the types of processes that are typical of KPO. Certainly, some of this reluctance was likely due to a perception or bias that the education and skill levels of outsourced labor, particularly those overseas, were insufficient to be able to accomplish the requisite job functions effectively.

Lately, though, companies have begun to recognize the advantages of KPO, and it has grown at an extremely rapid pace in recent years. According to a study conducted by the National Association of Software and Services Companies, KPO is projected to grow at a compounded annual growth rate of 46% and reach a value of $17 Billion by 2010 (Source: Sourcingmag.com). According to this same report, KPO is expected to employ more than 250,000 professionals by 2010. Also, while low-end outsourcing services are projected to experience a solid CAGR of 26% by 2010, the global KPO market is expected to grow by a CAGR of 46% by 2010 (Source: Buzzle.com).

One of the most significant developments that has emerged as part of this larger trend is the growth in Engineering Services Outsourcing. With increasing levels of education abroad combined with falling enrollment in engineering and the sciences in the United States, fewer and fewer qualified workers are entering the workforce in the U.S. Full-time undergraduate engineering enrollment has steadily fallen from its peak in the early 1980s (Source: Aviation Week). At the same time, enrollment in these programs continues to rise in many other countries of the world. As a result, either by choice or by necessity, companies are discovering that it is a realistic option to outsource many of their engineering needs. For example, according to some reports, as much as 80% of the Boeing 787 is outsourced (Source: Aviation Week).

According to Frost and Sullivan, the Engineering Services Outsourcing market is forecast to reach a value of $40 Billion by 2015 (Source: Business Wire). Others are even more bullish. In a recent report by the National Association of Software and Service Companies compiled in conjunction with Booz Allen Hamilton, the total offshore engineering spend was expected to grow to between $150 Billion and $225 Billion by 2020. Through 2007, engineering design had been the fastest growing outsourcing subsector, with a 55% average growth rate over the previous three years (Source: BusinessWorld).

What is particularly encouraging is the Company's sales pipeline that indicates significant reason for optimism for the remainder of the fiscal year. No doubt at least in part due to the widespread impact of the global economic recession, many companies are looking to trim their costs, and as detailed above, are looking to outsourcing, particularly in previously overlooked high-skill positions like engineering, in order to reduce their expenses.

In addition, we do not expect the overall trend towards greater adoption of KPO and ESO to abate with economic recovery. Instead, it is our expectation that this trend, although perhaps accelerated by widespread economic woes, will continue for several reasons. First, as businesses become more comfortable with outsourcing tasks that require high levels of education and expertise, they will be more likely to continue to employ outsourced labor even once economic conditions improve. Second, with the increase in outsourcing documented above, businesses will become more familiar with the process, and therefore become more efficient and effective in managing projects that involve contributions from outsourced labor. Third, as enrollment in engineering programs declines in the U.S. and grows in many other regions of the world, many firms in the U.S. may be compelled to increase their use of KPO and ESO by necessity. Finally, the main growth driver of KPO and ESO, namely the ability to reduce costs for clients, will not disappear as economic conditions improve.

---

iDrive Information

Improve driving behavior and safety

It has been definitively proven that use of a video monitoring device reduces the number of accidents by more than 40%. Drivers pay more attention to the rules and therefore reduce incidents. This greatly increases safety of the driver and security of the vehicle.

Cost reduction

When a driver pays more attention to the rules, driving speed and safety, other benefits are achieved. Lower speeds combined with slower starts translate into a 20% increase in fuel economy. Lower speeds and slower stops contribute to longer life on tires, break pads and many other vehicle components. The modified behavior translates directly into less accidents, lower insurance costs and less vehicle and driver down time. Accidents also can often lead to litigation that can be costly. Drivers without direct supervision often take liberties with owners' vehicle that they will not do with the idrive installed.

Insurance

Many insurance companies are aware of the huge benefits of vehicle monitoring devices and have now started to award 10-20% discounts to companies installing them in their fleets.

Customer Service

In industries that service customers such as taxi and other transportation firms, customer service is paramount. It has been determined that not only when driving but when greeting and sending a customer off, the device records and reminds the driver to be courteous. Customer loyalty is a major part of repeat business in the service industry.

Environmental

In the current climate of our world, being not only financially frugal but environmentally friendly is a huge plus. With global warming and fuel consumption on the headlines daily, your firm will be doing it's part to reduce consumption and environmental effects. Go Green and save money.

---

idrive Technology

An internal accelerometer along with other sensors and a GPS module can detect: aggressive driving behavior, accidents, speed and more. Exceptional forces such as hard braking, swerving, collision, etc. cause the recorder to save critical seconds of audio and video footage immediately before and after the triggered event.

The videos are stored on an up to 32 GB internal memory along with other information like G-Force values, GPS coordinates, date, time and other information.

An innovative USB adaptor - idrive USB Flash - can be used to safely download the data in cases where there is no wireless network or in any emergency situations when the vehicle cannot connect to a wireless network.

The system automatically switches to infrared night vision to record videos at night.

An internal rechargeable battery keeps the system on in case the device is disconnected from the vehicle battery.

Safety first! With two wireless panic buttons, one mounted on the dash and one for the keyring. A video recorded event is always within reach. Additionally all data captured is immediately encrypted for security.

---

idrive Video

Investors are encouraged to watch a short YouTube video of the idrive: http://www.youtube.com/watch?v=gYeLhRt5ktk&feature=player_embedded

---

Recent News and Press Releases

Solutions Group Inc. Announces Partnership With ARI Insurance (02.Dec 2009)

 

Solutions Group Announces Successful Demonstration at TLPA Trade Show (03.Nov.2009)

Solutions Group Retains WorldMarketMedia.com to Design and Implement Their Social Media Marketing Campaign (28.Oct.2009)

Solutions Group Announces Development Agreement With CrowleyJones(TM) (21.Oct.2009)

SOLU's idrive Monitoring Systems Announces Major Sale of Its X1 Video Event Recorder (14.Oct.2009)

Solutions Group, Inc. Announces Production Release of the idrive X1 Monitoring System (06.Oct.2009)

Solutions Group secures first round of growth capital funding to address near term requirements (28.Mar.2009)

Solutions Group Announces Development Partnership with ZF Micro Solutions (07.Mar.2009)

Difficult Economic Times Creates Significant Demand For Solutions Group Unique Offerings (20.Feb.2009)

Solutions Group Corp. Inc. Establishes Operation HQ in Austin, TX (08.Jan.2009)

Solutions Group Acquires Engineering Company in Bucharest, Romania (08.Jan.2009)

Solutions Group Corp Acquires Engineering Company in Guadalajara, Mexico (08.Jan.2009)
 

---

Management

Sean J. O'Neil, CEO

Sean has over 25 years of executive experience in the engineering services and technology industry. During his career, Mr. O'Neil started Design Solutions, Inc (DSI) as a founder in 1989, where he eventually became CEO. In 1995 DSI merged with bay area Proactive Consulting to form the largest service bureau in the US. During the merger and transition Sean worked as the companies CFO. In 1997 DSI was acquired by Colorado based Dii Group, a 3 billion dollar contract manufacturer. Sean moved into the position of Executive VP of Business Development of the Technologies division, controlling business development and expansion. Sean oversaw the expansion of internal growth and acquisition of world wide technology centers. In 2000, with the acquisition of the Dii Group by Flextronics, Sean reacquired DSI and grew the company form 25 to over 100 employees in 4 countries.

Mr. O'Neil maintains close ties with top industry companies in the Contract Electronics world. Sean holds an MA in economics, and currently lives in Santa Barbara, California.

Randy Aldridge, President

Mr. Aldridge joined Solutions Group Inc in December of 2008. Prior to joining Solutions Group Mr. Aldridge served as President of Design Solutions. Mr. Aldridge has also held the position of CEO at Newport Enterprises where he managed the successful development of many new complex systems. Over his 30 year career Mr. Aldridge has held management and executive positions in companies like Flextronics, Dii Technologies, Design Express, XeTel and others. He has also played key roles in the development of products at Apple and Applied Microsystems during his employment. His innovations in product development have played key rolls in the successful development and manufacturing of wireless handheld devices, personal computers, industrial and consumer produces along with several military programs.

He currently manages SGI's team of professional engineers in the U.S, Mexico and Romania. His team handles point solutions engineering services as well as full product development.

---

Contact

Corporate Headquarters:

Solutions Group, Inc.
4050 Calle Real Ste. 201 B
Santa Barbara, CA 93110
Phone: 805-964-3344

Investor Relations:

Kim Carroll
Phone: +1 949 630 9831

---

FORWARD LOOKING STATEMENTS

This report includes forward-looking statements that reflect Solutions Group, Inc. current expectations about its future results, performance, prospects and opportunities. Solutions Group, Inc. has tried to identify these forward-looking statements by using words and phrases such as "may," "will," "expects," "anticipates," "believes," "intends," "estimates," "plan," "should," "typical," "preliminary," "we are confident" or similar expressions. These forward-looking statements are based on information currently available and are subject to a number of risks, uncertainties and other factors that could cause Solutions Group, Inc.'s actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks, uncertainties and other factors include, without limitation, the Company's growth expectations and ongoing funding requirements, and specifically, the Company's growth prospects with scalable customers, and those outlined above. Other risks include the Company's limited operating history, the Company's history of operating losses, consumers' acceptance, the Company's use of licensed technologies, risk of increased competition, the potential need for additional financing, the terms and conditions of any financing that is consummated, the limited trading market for the Company's securities, the possible volatility of the Company's stock price, the concentration of ownership, and the potential fluctuation in the Company's operating results.

---

Disclaimer

AllPennyStocks.com feature stock reports are intended to be stock ideas, NOT recommendations. Please do your own research before investing. It is crucial that you at least look at current SEC filings and read the latest press releases. Information contained in this report was extracted from current documents filed with the SEC, the company web site and other publicly available sources deemed reliable. For more information see our disclaimer section, a link of which can be found on our web site. This document contains forward-looking statements, particularly as related to the business plans of the Company, within the meaning of Section 27A of the Securities Act of 1933 and Sections 21E of the Securities Exchange Act of 1934, and are subject to the safe harbor created by these sections. Actual results may differ materially from the Company's expectations and estimates. This is an advertisement for Solutions Group, Inc. The purpose of this advertisement, like any advertising, is to provide coverage and awareness for the company. The information provided in this advertisement is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation or which would subject us to any registration requirement within such jurisdiction or country.

© 1999-2009 AllPennyStocks.com. All rights reserved. AllPennyStocks.com is not a Registered Broker/Dealer or Financial Advisor, nor do we hold ourselves out to be. All materials presented on our web site and individual reports released to the public through this web site, e-mail or any other means of transmission are not to be regarded as investment advice and are only for informative purposes. Before making a purchase or sale of any securities featured on our web site or mentioned in our reports, we strongly encourage and recommend consultation with a registered securities representative. This is not to be construed as a solicitation or recommendation to buy or sell securities. As with any stock, companies we select to profile involve a degree of investment risk and volatility. Particularly Small-Caps and OTC-BB stocks. All investors are cautioned that they may lose all or a portion of their investment if they decide to make a purchase in any of our profiled companies. Past performance of our profiled stocks is not indicative of future results. The accuracy or completeness of the information on our web site or within our reports is only as reliable as the sources they were obtained from. The profile and opinions expressed herein are expressed as of the date the profile is posted on site and are subject to change without notice. No investor should assume that reliance on the views, opinions or recommendations contained herein will produce profitable results. AllPennyStocks.com may hold positions in securities mentioned herein, and may make purchases or sales in such securities featured on our web site or within our reports. In order to be in full compliance with the Securities Act of 1933, Section 17(b), AllPennyStocks.com will disclose in it's disclaimer, what, if any compensation was received for our efforts in researching, presenting and disseminating this information to our subscriber database and featuring the report on the AllPennyStocks.com web site. AllPennyStocks.com has been compensated twelve thousand eight hundred dollars and expects another ten thousand dollars by a third-party, World Market Media for its efforts in presenting the SOLU profile on its web site and distributing it to its database of subscribers as well as other services. AllPennyStocks.com may decide to purchase or sell shares on a voluntary basis in the open market before, during or after the profiling period of this report. As of the profile date, no shares have been sold. Information presented on our web site and within our reports contain "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as “expects’”, “will,” “anticipates,” “estimates, “believes,” or that by statements indicating certain actions “may,” “could,” or “might” occur.

THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN SMALL CAP SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK.

We encourage our readers to invest carefully and read the investor information available at the web sites of the Securities and Exchange Commission (SEC) at: http://www.sec.gov and/or the National Association of Securities Dealers (NASD) at: http://www.nasd.com. Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.