Pervasip Corp. Letter to Shareholders

We want to start by thanking you for supporting our company and believing in our vision and research. The best way to reciprocate our gratitude is by executing on our business plan, building our subscriber base, and increasing our shareholder value.

Very exciting year

2011 has been a very exciting year and our innovation team is looking forward to an exceptional 2012, with great confidence, as one of the pioneers in Internet video and voice.

We have a saying that not all VoIP (Voice over Internet Protocol) is created equal. We are pleased to report that significant players in the industry are discovering the robust scalability of our VoIP (Voice over Internet Protocol) product and they are coming to us to use our VoIP (Voice over Internet Protocol) in ways that very few VoIP (Voice over Internet Protocol) companies can support. These new marketing opportunities to incumbent carriers, combined with the VoIP (Voice over Internet Protocol) app and video VoIP (Voice over Internet Protocol) product that we sell to retail clients, is providing us with many exciting avenues for us to explore in the coming year.

We see a video eco system evolving in our development environment, and we are already passing video to an Android phone and tablet and we plan to expand video telephony to the iPhone and iPad in 2012.

The Ojo phone

We have already achieved six-party video conferencing using the Ojo phone and are confident that we will extend this research to the Android phone and tablet in the first quarter of 2012.

We note with great interest the partnership that another VoIP carrier recently entered with Microsoft for video voice mail and we note that our clients already enjoy this innovation. We use it on the Ojo Vision telephone and we plan to extend video voice mail to all Android devices too, including Android TV.

Video eco system similar to Facetime on steroids

Imagine a video eco system similar to Facetime on steroids, that could interconnect seamlessly using Wi-FI or 3G on all Android devices, iPhones, iPads, personal computers and televisions. The VoX innovation is truly capable of performing this task. Low bandwidth capabilities and the ability to receive multiple streams and transmit a single stream back are paramount to successful video and streaming products, and we already have this functionality on our network.

With the video elements that we have built, including video voicemail, call record and broadcast and video streaming similar to the Netflix model, we believe that we now have the atomic cloud elements to build innovative and invasive products for the anticipated explosive growth of video over the Internet, and we see that these elements could easily be used to drive some of the digital futures of tomorrow just as live social video and original content, which we believe will be one of the major drivers of social behavior in 2012 and beyond. At VoX we are not content with working to embrace the digital future, we intend to be one of the companies that helps define it.

Finally, we are in the extreme excited at the potential of our relationship with Lightsquared in 2012, a relationship that joins the VoX "Power of the Cloud" with the "LTE (Long Term Evolution, latest standard in the mobile network technology) Network of Tomorrow." Google's Android operating system has placed a great deal of power into the hands of developers and we see great potential in VoX entering the market as a super MVNO, with the lowest costs in the industry that can in short be passed on to the subscriber.

The innovation possibilities are limited only

As VoX adds resources in 2012 we look forward to growing our talented technical team as we demonstrate to you that the innovation possibilities are limited only by your imagination.

Pervasip delivers wholesale and retail video and voice VoIP telephone services for the residential and small business markets. Pervasip differentiates itself through a unparalleled combination of high quality voice services, flexible back-office capabilities and automated provisioning systems. It recently entered the mobile VoIP services and applications arena, which is expected to approach 300 million users by 2013. It offers a feature-rich, low-cost, high-quality alternative to traditional phone services. For more information, please visit www.voxcorp.net.