April 15, 2003 VIA FEDERAL EXPRESS Douglas S. Hackett Chief Executive Officer Innovative Software Technologies, Inc. 204 NW Platte Valley Drive Riverside, MO 64150 Douglas S. Hackett Chief Executive Officer Innovative Software Technoolgies, Inc. 5072 North 300 West Provo, UT 84604 Dear Mr. Hackett: I am writing in response to your letter of April 11, 2003. First, your assertion that Grant Thornton was informed of Mr. Chipman's criminal history, including his convictions for tax fraud, and for larceny, is incorrect. At no time were Grant Thornton's engagement partners advised of this background, by you, Chris Chipman or William Chipman. Second, contrary to the assertions in your letter, Grant Thornton's engagement partners were never informed of Mr. Chipman's involvement with Knowledge Transfer Solutions. If you have documents reflecting the disclosure of either of these facts to Grant Thornton, kindly send them to me. Third, we are unaware of any consultation by the Company with another accounting firm. We ask that you provide us with the name and contact information for the firm, and any documentation you may have regarding the issues it considered in its conclusions. Finally, the antagonistic tone of your letter and its accusation that Grant Thornton has "little regard" for the facts, are inappropriate and at odds with any good faith intention to conduct the kind of independent investigation required under the circumstances. Some of your comments suggest that you have already decided that nothing improper has teken place, and are apparently more interested in investigating our conduct than that of your Company. We are, Suite 3100 Two Commerce Square 2002 Market Street Philadelphia, PA 19103-7080 T 215.561.4200 F 215.561.1066 W www.grantthornton.com Grant Thornton LLP US Member of Grant Thornton International Douglas S. Hackett April 15, 2003 Page 2 therefore, skeptical that you will proceed in an appropriate manner and further, we are concerned that the adversarial nature of your response impairs our indepencence. We remind you that it is the Company's financial statements that are in issue, and neither are "directed" by Grant Thornton. We believe this matter must be addressed immediately. Given your statement, however, that independent board members will form a special committee to address these matters, and that the Company has consulted outside securities counsel, we will await communication from them no later than April 22, 2003, before taking the final next step required of us under Section 10A.b.2 of Securities Exchange of 1934. Please communicate directly with me regarding this matter. Thank you. Yours truly, /s/ Robert P. Scales Associate General Counsel