Net Shepherd, McLellan Software Ink Revenue Deal

Net Shepherd Inc. signed a $Cdn3.25 Million revenue contract with The McLellan Software Center LLC., to create what it calls “the
world’s largest database of Internet content ratings”.

McLellan Software’s “IconGuardIt” software will be applied to the database
to create a high-performance, seven-day, 24-hour, rapid-response database
system for Internet filtering.

“This revenue contract will enable us to scale our technology for a range of
business and consumer applications,” said Don Sandford, Net Shepherd
President and CEO. “When completed later this year, the system will be the
most intelligent, dependable, and user responsive system in existence for
Internet filtering.”

Founder and CEO of The McLellan Software Center LLC., Anthony A. McLellan,
commented that “the combination of Net Shepherd’s technology with our own PC
security technology and the world’s largest database of Internet site
ratings, will enable us to offer parents, educators, and employers a
unique and fundamentally new system of Internet filtering. Importantly, the
resulting Internet filtering system will also generate recurring revenue for
both companies.”

According to Net Shepherd, the signing of this revenue contract endorses the
company’s strategy, vocalized earlier this year, to further develop their
proprietary technologies through cash flow from customer contracts.