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Technology Stocks : Breakaway Solutions Inc-(BWAY)

BWAY 16.97

-2.6%

Dec 12 9:30 AM EST

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To: Mohan Marette who wrote ()	10/5/1999 8:25:00 PM
From: William F. Wager, Jr.	Read Replies (1) of 178

A representative list of our clients includes: Advent Software Citizens Financial Group Commonwealth Financial Network Enterprise Risk Solutions Fidelity & Guaranty Life Insurance FoodService.com Giga Information Group Information Builders iTurf Kemper Open Systems Solutions Partners HealthCare System Plan Sponsor Exchange Portal Software Primavera SEI Investments Summit Partners Sun Microsystems VerticalNet Zymark During 1998, we had one client, Partners HealthCare, which accounted for 10% or more of our revenues. Our revenues from Partners HealthCare in 1998 represented approximately 27% of total revenues in that period. During the first six months of 1999, we had two clients which accounted for 10% or more of our revenues: Partners HealthCare, which represented approximately 25% of our revenues in that period, and Giga Information Group, which represented approximately 11% of our revenues in that period. We offer our strategy solutions, Internet solutions and eCRM solutions services on either a time and materials basis or a fixed price basis. We have initiated a program to make a percentage of our fee contingent on the client achieving agreed upon performance objectives. We call this program Breakaway Value Assurance. We are offering this option only in situations in which we and the client have agreed on a clear set of measurable values and we have provided a sufficiently broad range of services to influence the project's success. We believe that our willingness to tie our compensation to performance objectives is an important sales tool because it demonstrates our commitment to provide services that have measurable value to our clients. We provide our application hosting services for an initial set-up fee plus a monthly service fee. The monthly service fee is subject to maintaining stated service levels. Our hosting fees vary depending upon the scope of the client's requirements. From the 10/1/99 S-1

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