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To: John Chapman who wrote (10086)1/31/1998 11:35:00 AM
From: Karl Drobnic  Read Replies (1) | Respond to of 31646
 
The last I heard on revenues from WNDR was that TPRO got the whole paycheck. WNDR is distributing the CD in order to offer a total Y2K bundle. Their incentive is that they think they can wipe any competition off the map by being the "one-stop" bundle for Y2K factory floor compliance. FactorySuite makes the interface software Y2K compliant, and the CD gets the factory a head start on the embedded chips. WNDR gets the revenue from FactorySuite, and TPRO from the CD.



To: John Chapman who wrote (10086)1/31/1998 12:29:00 PM
From: Zebra 365  Read Replies (2) | Respond to of 31646
 
John, your question was:

<<What is the deal with Wonderware as to $ for TAVA for CD sales?>>

Please read the following exchange from November 1997:

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

As far as I know, this has not changed in the Wonderware distribution of the CD-ROM. Please note that in the pricing scheme above there would be one Vendor Compliance Report needed for each embedded chip at the site, regardless of whether the chip is Y2K compliant or not. i.e. $200 times ?? number of chips. That is how we get to $20-40k revenues per site for tool use only.

Hope this helps,

Zebra