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Technology Stocks : ATC Communications ATCT -- Ignore unavailable to you. Want to Upgrade?

To: thomas odonoghue who wrote (2512)	4/16/1998 6:00:00 PM
From: Northern Marlin	Read Replies (1) \| Respond to of 2636

Below is an excerpt of an e-mail reply from Scott Guffey: Hi Scott, I've listened to the merger conference call, and I'm waiting for the S-4 to be filed before I ask questions about the deal. On the conference call there was discussion about pay-for-performance and pay- for-production. I did not come away from the call with a clear understanding of either concept. Can you explain them to me? Phil Phil - What we call pay-for-production (and the street thinks of as pay-for-performance) is an outbound pricing model where the teleservices vendor (be it ATC, IQI, etc.) uses the client's database to call potential customers and is paid on whether they meet or exceed a target number of sales. With true pay-for-performance, you are paid on meeting or exceeding a target number of sales using your own database. In IQI's Lexi division's case, they have very sophisticated proprietary databases and database management techniques which enables them, in most cases, to exceed the hit rate they would achieve using a client's database. They are in many cases able to receive premium pricing for this ability. We found this very attractive. Scott