MOORESTOWN, NEW JERSEY, USA, (January 9, 2007)…Formation, Inc. announced today it has signed VSYSTEMS AB, a subsidiary of VMETRO (OSE: VME), to market its ToughDisk® Rugged Hard Disk products for commercial and Military applications in Sweden, Norway, Denmark and Finland. The agreement enables Formation to expand its marketing reach to better meet the growing demand for rugged data storage.

“VSYSTEMS' main customers are system integrators and OEMs of high-end embedded computer systems used to solve the most computer-intensive signal processing problems, including electronic warfare, telecommunications, and Radar,” says Otto Johnsson, Managing Director of VSYSTEMS. “The ToughDisk product line dovetails nicely with our rugged product offerings to bring cost-effective and robust data storage to the aerospace, military and telecommunications industries.”

Formation's ToughDisk Rugged Hard Disks provide a low-cost alternative to solid state data storage built specifically for extreme environments. The disks perform reliably in temperature, shock, vibration, humidity and dust conditions that would destroy conventional hard disks.

About VSYSTEMS AB

VSYSTEMS AB, a subsidiary of VMETRO, is a total solutions provider of high performance processing systems, data recorders and analyzers. VMETRO is one of the world's leading suppliers of embedded computers and systems. Through partnerships with its customers, VMETRO is able to supply cost effective solutions to fulfill the most demanding requirements. This is backed up by a single point of contact for technical, application and sales support. For information visit www.vsystems.se.

About Formation, Inc.

Formation, Inc. of Moorestown, NJ, USA designs and manufactures hardware and software products and provides related engineering services for the defense, aviation, data communications and transportation industries. Products include ToughDisk Rugged Hard Disks, Advanced Integrated Recorders, avionics-class servers, rugged wired and Wireless networks and the Mobile Vehicle Tracker. For information visit www.formation.com or call +1 856.234.5020.