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Disclosure for Evolving Systems, Inc.

I, Mike Crawford, certify that this report reflects my personal beliefs about this company and that no portion of my compensation was, is or will be directly or indirectly related to the specific recommendations or views discussed in this report.

• B. Riley & Co., LLC does and seeks to do business with companies covered in its research reports
• A portion of this analyst’s compensation is based on the investment banking activities of B. Riley & Co., LLC.
• B. Riley & Co., LLC makes a market in the securities of the company covered in this report.

Initiated Coverage on 03/09/2005 with "Buy" Rating and Price Target of $6.00

Ratings Distribution as of September 5, 2010				% with Investment Banking Relationships
Rating	Number of Companies	Percent of Total		Rating	Number of Companies	Percent of Total
Buy	82	75.9%		Buy	3	100.0%
Neutral	25	23.1%		Neutral	0	0.0%
Sell	1	0.9%		Sell	0	0.0%
Total	108	100%		Total	3	100%

Explanation of B. Riley & Co. LLC’s Rating System

• Buy: We generally expect "Buy" rated stocks to materially outperform both the S&P 500 and Russell 2000 as well as other stocks in their sector. Further, we believe that the potential reward relative to the potential risk is particularly attractive.
• Neutral: We generally believe "Neutral" rated stocks will perform roughly in line with the S&P 500 and Russell 2000 over the intermediate and long term.
• Sell: We generally expect "Sell" rated stocks to materially underperform both the S&P 500 and Russell 2000 as well as other stocks in their sector. Further, we believe that the potential reward relative to the potential risk is particularly unattractive.

Risks and Considerations

• Financial Results - Due to the Company's relatively small revenue base and fixed operating cost structure, the loss or delay of one large license deal or services contract could significantly impact the bottom line.
• Pricing Pressure - The Company's business could be affected by pricing pressure within the market.
• General Industry - The Company could miss our estimates and/or their financial guidance.
• See the Company's SEC filings, particularly its 10-K filing, for a discussion of further potential risks.