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August 9, 2013

INSCOR On Track With Ghana Initiative

With the return of its CEO from a highly successful trip in Ghana, INSCOR, Inc. (OTCQB – IOGA – Spec Buy), along with the other partners associated with an impressive mass social welfare initiative, is gearing up for the 4Q13 launch of the program, which could eventually encompass as many as 650 million living in poverty in Africa.

The National Mass Social Welfare Scheme (program) known as MSWS, was established with the objective of providing critical social assistance to the needy in the Republic of Ghana and across Africa. Like most emerging market programs of this size and scope, successful implementation can only be accomplished via public-private partnerships.

To that end, Ghana's Millennium Development Authority (MDA) has been tapped to implement the broad social welfare program to poverty-stricken citizens in Ghana.  It should be noted that all MDA projects are backed by the full faith and credit of the Millennium Challenge Corporation, an innovative and independent U.S. foreign aid agency that is helping to lead the fight against global poverty. The Millennium Challenge Corporation was created by the U.S. Congress in January 2004 with strong bipartisan support.

The MDA’s first stage objective is to complete enrollment of participants into the program throughout the Republic of Ghana in order for them to be provided with an electronic stored value card that is similar to EBT (Electronic Benefit Transfer) cards issued by state welfare departments in the U.S.  The MDA’s mandate calls for 3 million participants to be enrolled by the end of October 2013, with as many as 18 million people estimated to participate in the program by the end of 2015.  Once basic needs are met via the cards, the MDA, with the aid of other private and public partners will provide other services such as: affordable housing, educational grants, and providing capital to set up new businesses.

Thanks in large part to the lobbying efforts of its CEO Kenny Andam, INSCOR was selected as one of a handful of outsourced service providers in this venture and is working closely with the selected provider of cards to the MSWS participants.  With an estimated heavy card attrition rate due to loss and theft, the MDA elected to reduce its capital and operating costs associated with managing the card program by hiring INSCOR to guarantee the replacement of cards that may be lost or stolen via a program geared specifically for this venture.  By outsourcing most of the replacement costs and critical administration functions by paying what amounts to a per card monthly insurance premium (much like with cell phone insurance options in the U.S.), the MDA can address other, larger issues affecting its members. 

Clearly, the contract alleviates unnecessary burdens for the MDA and is lucrative for INSCOR, despite costs associated with premium finance and expenses related to the card replacements. Once the 3 million cards are issued, INSCOR will receive a monthly fee of $1.00 per card by the end of November 2013, and continuing for 12 months. As the program is expanded to include all of Ghana and other neighboring African nations, the Company could record as much as $216M in annual revenue by the end of 2016.

A savvy and internationally acclaimed entrepreneur, INSCOR CEO’s Andam, a former Olympian looks like he may have brought INSCOR the gold via this lucrative deal in Ghana.

Senior Analyst: Robert Goldman
Rob Goldman has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

Analyst Certification
I, Robert Goldman, hereby certify that the view expressed in this research report accurately reflect my personal views about the subject securities and issuers. I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the recommendations or views expressed in this research report.

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