Dear Shareholder,

This is the Fundamental Technologies II shareholder letter and AGM notice for June 2010.

New Investments

The economy is finally starting to show signs of healthy growth. This quarter we made two new investments – our first in almost two years.

These links provide more on our investments in Digital Scirocco and Internet Marketing.

Net Asset Value and Cash Position

The FTII net asset value per share at March 31, 2010 is $13.91. The graph of our NAV, on our homepage, shows a modest increase this year as the economy has improved.

Our cash positions are still high from our conservative stance over the past two years.

Redemption Offer

We are reiterating our offer to redeem shares for any shareholder at our current net asset value. If you are interested in a redemption, please contact Basil directly.

Thanks to Rick Peterson

After almost five years with FTII, Rick Peterson has resigned as a director. On behalf of all of the FTII shareholders, I would like to thank Rick for his excellent contribution and wish him well in the future.

Annual General Meeting

This is our formal notice of the Fundamental Technologies II Corp. Annual General Meeting which will be held on June 30, 2010 at 2:00. In keeping with our practice, this will be held virtually unless any shareholder would like us to have a physical meeting. If you are interested in attending, please contact Basil by replying to this email or by phone.

Best regards,