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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)
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To: TokyoMex who wrote (6710)12/1/1997 6:44:00 PM
From: Zebra 365   of 31646
 
Gentlemen (and ladies) Start Your Calculators !!!

Zebra365@aol.com wrote:

Dear Scott:

Thanks for your reply regarding the CD-ROM, sorry for being dense, but I still have some questions:

1) In a message dated 97-11-24 22:22:48 EST, you write:

<< The one part you forgot in your formula was the $2,000 proprietary search engine fee. >>

Yes, I had not heard of this fee. So the pricing is:

..$2000..Search Engine
..$4000..Per Seat
..$5000..Data Base Access
....$200..per Vendor Compliance Report

Please confirm if this structure is correct?

2) Does the above pricing include any significant TAVA engineer time?

3) What is the Definition of a "Seat"?

4) Are any of the above fees foregone by TAVA in the Wonderware
distribution? (Of course I am aware that not all who receive a disk have any obligation to pay TAVA, unless they want to proceed in the evaluation process)

Many Thanks again

Zebra

Scott Liolios (TPRO Investor Relations) Replies:

Dear Zebra,

The pricing structure you outlined is a good estimate of the revenue associated with the CD. The pricing is always subject to change, but you do have it correct. This pricing does not include any engineering time from the TAVA engineers.

To answer your question (what is a seat?):. The way it has been explained to me is that a company may purchase the C.D. but that does not give them the right to use the CD throughout the organization. Each location the CD is used, the company must pay additional seat charges. You may be able to find a more detailed explanation from an industry expert. I understand seat charges are very common throughout the software industry.

And to answer your last question: In the situation as you outlined there would be no fees going to Wonderware. The revenue generated all goes to Topro.

Cordially,

Scott Liolios

I've got to get a bigger calculator !! <gg>

Zebra
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