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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: Richard S. Schoenstadt who wrote (20540)	7/14/1998 11:20:00 AM
From: Karl Drobnic	Read Replies (1) \| Respond to of 31646

Richard - pilots: My understanding of a pilot project is that it ends at the completion of inventory and assessment. Tava says "This is what we found. Do you want to continue to the next stage?" So TAVA generally speaks of "engagements" rather than "contracts" to distinguish the "developing relationship" nature of its jobs. I heard several weeks ago of TAVA offering a sub-contractor deal to an independent systems integrator. Given the large number of 4Q engagements Tava has announced, TAVA must be getting these subs in place, as there is likely to be a large log jam if not. Since TAVA has targeted sub-contracting since early on, and has previously announced it has qualified a number of subs, I'm willing to believe that they've got a list of subs prepared to cooperate.

To: Richard S. Schoenstadt who wrote (20540)	7/14/1998 1:38:00 PM
From: Quad Sevens	Read Replies (1) \| Respond to of 31646

Richard: There is more I&A after the pilot. Note the word "preliminary" below (from Fallon at CC). TAVA probably investigates for well-known red flags during the pilot; that's enough for a preliminary report. The next phase would be a complete I&A. Wade ---------------------- Many of our customers have started with a pilot in order to evaluate their Y2K exposure. The pilot usually includes inventory and preliminary analysis, and may involve anywhere from one to 20 sites. The typical cost is approximately 100,000 per site, however, the range has been from 60,000 to 1 million. For example, a small low-tech consumer products plant may be 60,000 whereas a pharmaceutical campus may be $1 million. At the end of the pilot, customers are still not able to accurately estimate their exposure. However, at the end of the pilot there is empirical evidence of a sizable problem, a high probability of production outages, and if an outage occurs, a major business exposure. At this point, which is where TAVA is today on our earlier pilots, we usually move into full assessment, conversion planning, and remediation of the pilot group and negotiations for the full-scale program. Conservatively, a full-scale program per-site costs could be greater than eight times the cost per site for the pilot. So let's follow the money here.