Trestle Holdings, Inc. (Trestle) develops and sells digital tissue imaging products and solutions in support of pathology in clinical and biopharmaceutical applications. Its products include MedMicro and Digital Slide Module (DSM), digital tissue imaging products; MedReach product, a platform for remote examination, diagnosis and treatment of patients, and Xcellerator service platform, a product under development with applications in biopharmaceutical and clinical markets. On March 11, 2005, the Company acquired the assets of InterScope Technologies, Inc. InterScope had been developing a family of database applications designed to manage a digital workflow for anatomic pathology, quality control and peer review, toxicology and educational and reference users. The Company focuses to commercialize these applications in support of a data mining and tissue informatics offering. It is anticipated that such product will be licensed to end users as software applications, as well as integrated into the Xcellerator service platform. The digital tissue imaging products are microscopy devices that employ the optical components of a standard microscope, robotic automated slide handling capabilities combined with imaging and communication software to capture high-magnification images in digital format. These devices are comprised of both hardware and software, and can be used in conjunction with Trestle's SL50 Slide Loader System or Integrated Grossing Station. Marketed under the names MedMicro and DSM, these products are used in clinical, pharmaceutical and research environments. When used specifically for pathology, they enable pathologists to consult and collaborate with each other remotely and may be referred to as telepathology products. DSM and MedMicro DSM is the stored digital tissue-imaging product. In stored digital tissue imaging, images are captured and stored in whole slide imaging format digital format for viewing at a later time without requiring the original slide to be on the microscope. DSM performs whole-glass slide digitization. By creating whole slide digital images, DSM enables pathologists to access entire tissue samples at sub-micron resolution in digital format. DSM facilitates image analysis, data management, digital workflow and data association for clinical and research applications. MedMicro is a live digital tissue-imaging product. It allows multiple physicians and scientists to view, navigate and share high fidelity microscope images at sub-micron resolution over standard Internet connections in real-time. MedMicro is also available with options, such as SL50 Slide Loader System, which allows remote, unattended access to up to 50 glass slides, and Integrated Grossing Station, which connects to MedMicro and uses MedMicro's annotation, image editing and image archiving functions. The Integrated Grossing Station enables remote supervision, direction and documentation of the processing of frozen sections and other specimens. Competitors in the digital tissue imaging market include Aperio, Applied Imaging, Apollo Telemedicine, Bacus Labs, BioImagen, Clarient, D-metrix, Hamamatsu, Medical Solutions, Nikon, Olympus-SIS, and Zeiss. MedReach MedReach consists of software that integrates videoconferencing, clinical devices, medical images and patient data. It allows healthcare providers to remotely examine, diagnose and treat patients, and enables improved service, increased patient traffic and improved patient access to specialists. The product was first released commercially in 1998. Competitors in the telemedicine market include, VitelNet, Polycom, Tandberg, Televital, Health Hero Networks, Healthcare Vision, Second Opinion, Phillips and Siemens. Xcellerator In November 2004, the Company announced the introduction of a service platform under the name of Xcellerator. The service platform provides image acquisition and digitization services. The Xcellerator image acquisition service offers the digitization of whole-glass slides and their remote viewing through the Internet. Xceller

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