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To: C.K. Houston who wrote (271)	11/16/1997 10:42:00 AM
From: C.K. Houston	Respond to of 810

CD REVENUE: In John Jenkins (CEO) own Words ============================================================= Question: "What do you see in revenue for the future on your CD?" John Jenkins: "Well, the opportunity (let me roll it out that way for the moment), first of all when we sell tools, its a combination of the CD, which is sort of the key to the compliance data base - so there's our pricing model there (and if I'm being redundant for some of you, appologize) - but its basically ... $4000 for the CD. That includes the methodology and several support tools. Then to switch on and have access to the vendor compliance database, your talking about $5000 per site. The CD price is per seat. So in a straight forward model, you've got somebody who buys 1 CD. He pays 4000 for that, he's going to pay 5 for the vendor compliance data base access, and he's going to pay $200 per vendor compliance report. Most organizations that we're looking at on the small end of the quote average range would have at least 100 unique devices in their facility. So its 100 x $200 = $20,000. He buys some training along the way. You can get to a model that says between $30,000 and $35,000 on an average basis per individual facility. The total facility count out there is, on a conservative basis, between 70,000 and 100,000 facilities that have to address this problem. So its a very large number at the high end. We won't reach all those facilities and not everybody's going to pay retail price. When you sit at the table with somebody that's got 600 sites to address, there's a fair amount of negotiating pressure from his side of the table. But I think we've used a conservative number of about $20,000 per site for a straight up tool purchase by a client. I still think that number works and I have no reason to push it one way or the other at this point. The mix of tools and services is hard for us to pin down today. We've got a wide range. Some organizations have absolutely no engineering staff and they want to buy services wrapped around tools. Others have solid engineering staffs and are really looking at tools and projects. ______________________________________________________________________ Transcript from 11/4 Conference Call, contributed by Clayleas Reply #6078 CLAYLEAS SIDEBAR: OK, so potential for tools alone for what's in the pipeline is $20,000 x 3500 = $70MM!!!

To: C.K. Houston who wrote (271)	11/16/1997 10:59:00 AM
From: C.K. Houston	Read Replies (1) \| Respond to of 810

CD-ROM (80%+ PROFIT MARGIN) Revised 11/16/97 ============================================================ CD includes a detailed methodolgy that guides user through the four key phases of: 1) Assessment 2) Analysis 3) Planning 4) Remediation Reason for CD. What it is used to find & fix techstocks.com CD Revenue (Explained by John Jenkins in 11/4 Conference Call) techstocks.com CD Description by John Jenkins (CEO): Sep '97 techstocks.com *CD & PlantY2KOne Web-Site - Check out how this works!:* planty2kone.com Review (by Engineer) of Web-Site: techstocks.com CD 800 #, Sales Staff & Responses: techstocks.com BIG DEMAND FOR CD: Discussed in 11/4 Earnings Announcement: biz.yahoo.com Earnings do not YET reflect Y2K work or any CD sales 10/16 Initial Shipment of CD's (PR Release) biz.yahoo.com ARCHIVE PREVIOUS DISCUSSIONS Potential techstocks.com Revenue Discussion (thru 10/12/97): techstocks.com