President's Report 2011

December 8, 2011

Dear Juniper Systems Shareholders,

As I look back upon fiscal year (FY) 2011 lam proud of what we have been able to accomplish. Despite what has been a lackluster economic recovery in many of our markets, we were able to grow our sales by 16% over the previous fiscal year, reaching a record level of revenue for the company of just over $20M.

Perhaps the most marked financial accomplishment of this past year was driving our cost of goods down by 2.3%, from 50% to 47.7%. This helped significantly increase our profitability over the previous fiscal year, going from $665,283 after-tax profit (FY 10) to $1,566,655 in FY11.

This past fiscal year we’ve launched some exciting new products, including the launch of Mesa (December 2010 / January 2011). While demand was initially soft, Mesa sales have picked up momentum over the past several months. We recently signed Topcon, the largest land survey equipment manufacturer in the world, to sell the Mesa under their brand name “Tesla.” We anticipate this, plus the recently introduced barcode pod for the Mesa and the anticipated Class 1 Div 2 certification will help ramp up demand for this product.

In August 2011 we launched IntuiTrace, a powerful, easy-to-use landscape mapping package. The interest in IntuiTrace is quite high; however because this is a new product in a new market, it will take some time to build sales momentum. IntuiTrace also gives us a nice platform on which we can base development of additional geospatial applications for other core markets.

HarvestMaster revenue stayed approximately the same in FY11 as in the previous FY — in the neighborhood of $4.SM. The majority of the sales came from Wintersteiger and overall the market remained fairly strong. Increasing adoption of larger PC-based tablets by competitors in the market have influenced our product roadmap and we will be putting increasing focus on offering a PC-based tablet solution with our HarvestData Systems in the coming year.

In addition to new product launches through the year, FY 2011 also brought a number of personnel changes to the Juniper Systems management team. Ryan Harris moved from VP of Manufacturing to VP of Engineering. Jessica Riggs assumed Ryan’s responsibilities at about the same time, as she was promoted from Operations Manager to Director of Manufacturing. Eric Thorson was promoted to the Quality Manager position in early 2011, replacing Preston Chandler. Later this year (October 2011), lgnacio Birkner, our CFO, accepted a dual-role responsibility and promotion to CFO I General Manager of the HarvestMaster division.

We convened in September of this year to identify ways we can continue to build our market share while preserving our margins and delivering a premium product to customers. In the coming year we will be putting a significant amount of effort into the following areas of the company:

1. Reducing cost of goods by examining both the efficiency of our designs as well as optimizing our supply chain.

2. Refining and improving the effectiveness of our sales processes and improving the way we gather knowledge about market needs.

3. Continuing our focus on quality, formalizing it with an 1509000 quality certification effort.

4. Expanding our manufacturing capability; initially with some machining, touchscreen integration, and proto-type surface mount processes.

In the coming years I envision us growing our handheld product line in terms of both breadth and depth, offering a full line-up of rugged handheld computers. An ideal line-up would start with a smaller, more lightweight product than Archer and extending all the way through the Mesa up to a 7-inch or 10-inch tablet.

In FY 2012 we anticipate growing our revenue 10-20%, well above the projected industry average of 8%. While the rugged handheld market is as volatile as I’ve ever seen with the rapid pace of innovation in consumer electronics, this gives us significant upside potential as a company as we capitalize on the wireless and mobility trends in the industry. We will need to leverage the strength of our operational and engineering competencies in order to respond to the challenges ahead, and I have full confidence in the leadership team that we will do so.

Sincerely,

Robert H. Campbell

President & CEO

Juniper Systems, Inc.

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