The following are answers to some of the more frequently asked questions about Applied Innovation.

Q. What is Applied Innovation's fiscal year?
A. Applied Innovation is on a calendar year. The fiscal year begins on January 1 and ends on December 31.

Q. Where does Applied Innovation's Stock trade?
A. Applied Innovation's common shares trade on the NASDAQ National Market Tier under the trading symbol AINN. There are no preferred shares outstanding.

Q. Does Applied Innovation pay dividends? If so, does the Company have a DRIP?
A. Applied Innovation has not issued dividends and does not have a DRIP plan.

Q. Does Applied Innovation have a direct stock purchase plan?
A. No, Applied Innovation does not have a direct stock purchase plan.

Q. How do I transfer my shares or change my address?
A. These activities can be accomplished by contacting the Company's Transfer Agent at the address below.

National City Bank
Corporate Trust Operations
P.O. Box 92301
Locator 5352
Cleveland, Ohio 44193-0900
Phone: 800-622-6757

Q. How many employees does Applied Innovation have?
A. As of January 2007, there were 100 employees. Approximately 30% of our employees are committed to Research and Development

Q. When was the company founded? When did it go public?
A. Gerry Moersdorf, Jr. founded the company in 1983 in Columbus, Ohio. The company raised $750,000 in a public offering in 1986.

Q. Where does Applied Innovation have an international presence?
A. We currently have distribution relationships or remote sales, service and support locations in the following countries: Australia, Brazil, Canada, Dominican Republic, Mexico, Panama, South Africa, and Venezuela.