CoreTalk Corporation
14537 Oak Street
Saratoga, CA 95070

Date: Sat, 10 Jun 2000 07:57:39 -0700


Mr. Rod Welch
rowelch@attglobal.net
The Welch Company
440 Davis Court #1602
San Francisco, CA 94111 2496

Subject:   CoreTalk and SDS

Rod:

Please forward version 6 of the CoreTalk Business Presentation to Morris. We look forward to meeting with Morris and yourself when he returns home. I will let you know when I switch over to the klausner@coretalk.net address.

Sincerely,

Sandy


Sanford Klausner
CEO Founder
klausner@coretalk.com





CoreTalk Business Presenttion verson 6


  1. Business Presentation

    Sanford B. Klausner, Founder & CEO CoreTalk Corporation

  2. Company Objective

    To develop and support Internet infrastructure products that enable a broad range of information models to be electronically developed and exchanged

  3. Founder Background

    Sanford Klausner

    28 years experience commercializing innovative products in biomedical, building automation, & computer H/S architecture fields

    Current XML products based upon 12 years of extensive research in breakthrough systems development technology

  4. Internet Market Evolution

    Past Stage - HTML

    Web page exchange

    Current Stage - XML

    Data structure exchange

    Future Stage - ???

    System behavior exchange

  5. Data Structure Exchange

    World requirement for a simple, flexible, and open architecture that allows all applications on all machines on all platforms to interact

    Possible through aegis of logical views and conventions rather than on native data formats

    In short, make it easy to discover and interact with structured data and applications on the web

  6. Lexical XML Problems

    "Lexical XML" represents nested data structures as mark-up text differentiated by (tag) sets

    W3C committed defining standard specifications

    • Many non-compatible commercial implementations underway

    • XML limited in people's ability to specify system interactions

    • XML difficult to machine process in efficient manner

  7. Binary XML Opportunities

    "Binary XML" represents nested data structures as meta objects differentiated by memory pointers.

    Establish binary de facto standard for information exchange

    Automated tool set to build exchange communities

    Engine to accelerate advanced data processing

    • Server: high volume B2B transactions, intelligent web searching

    • Client: drive information processing into intelligent portable devices

    • Silicon: "intelligent cache" implementation could result in several orders performance increase

  8. Binary XML Standard

    While W3C is useful, it does not go far enough

    CoreTalk implementations provide .

    • Technology support for creation of information communities

    • Precise ontology for information expression

    • Highly constrained syntactical and semantic constructs

    • Universal atomic and molecular data representations

    • Language-neutral graphical method of expression without coding

    • Data life cycle expression as DNA components

    • Integrated engine for storing & accessing persistent data

    • Automatic hyperlinks between all web components

    • Embedded multi-lingual documentation

    • Direct silicon execution of data structure transformations

  9. CoreTalk Products

    XML Collabrium(TM)

    [Para 10 has a diagram of hardware and system support.]

    • Enable collaboration between enterprise business professionals to build a broad range of information infrastructures

    • A cognitive laboratory equipped to perform information analysis, manage data relationships, & build exchange capabilities

    • A virtual auditorium where professionals meet in real time to develop graphical data schemata that directly execute without hand coding.

    XML Engine

    • Unique operations: tree traverse, edit, read/write, queue, & archive

    • Provides API support, data format translations, & schema transforms

    • Efficient data structure manipulation in Engine, outside of application

    • Virtual architecture targets server, client, & silicon deployments

  10. XML Collabrium(TM)

    [This is a diagram of hardware and system support that requires explanation of how it improves existing capabilities, beyond the listing under para 9.

  11. XML Engine

    [This is a diagram of software tools and integration, including Plexus, Java, XML, that requires explanation of how it improves existing capabilities, beyond the listing under para 10.

  12. Competition

    Many XML parsers & related free tools

    A few commercial offerings - SoftQuad, UML

    CoreTalk's competitive advantages

    Sophisticated binary object architecture enables:

    • Tremendous velocity increase in shared information modeling by domain experts across Internet

    • Elimination of DTD and schema programming requirements

    • Advanced information processing across wide number of platforms & applications

    • Foundation technology to migrate industry from OS-centric to Internet Operating Environment

  13. Goals & Objectives

    Strategic partnership goals (example set)

    • Intel - Drive Engine capabilities into silicon

    • HP - Leverage e-speak integration technology

    • Andersen Consulting - Leverage Internet professional services

    Market penetration objectives

    • Worldwide distribution of XML CollabriumT within 1 year

    • 25,000 servers executing XML Engine within 1.5 years

    • Binary XML established as de facto information exchange standard within te years

    • Establish an Internet Operating Environment within 5 years

  14. Business Model

    Strategic partners provided early access

    • OEM license

    • Equity participation

    Free distribution and meter pricing model

    • CollabriumTM software freely downloaded

    • Engine server software controlled via secure transaction metering


      • Enables dynamic pricing model to appeal to wide range of business activities

      • Transaction fee linked to high volume commerce flow

      Engine also available as client software on platform license basis

      Engine implemented in silicon generates royalty stream

  15. Revenue Projection

    [Looks like projecting revenue of $200M in five years; no math showing the amount of product/service that needs to be sold, the number of customers this requires creating or displacing from something. There is no earnings projections.]

  16. Development Roadmap

    Product

    • Detailed product design specification fully developed in advanced graphical language

    • Platform ports being performed in C++ through existing Integrated Development Environments

    Training & Curriculum

    • On-line interactive training tutorial

    • Franchised commercial training program

    • University curriculum

  17. Resource Requirements

    Personnel (12 months)

    • SBK retains CTO & Chairman roles

    • CEO, CFO, VP Marketing & Sales, VP Engineering

    • Karen Aiken, VP Training & Curriculum

    • Engineering staff - 16

    • Marketing, sales, & technical support staff - 12

    Financial Reserve

    • Recruit & remain salary competitive

    • Product launch advertising to jump-start market education

    • Position for IPO

    External

    • License persistence store technology

    • Engage XML parser developer community to support platform

  18. Risk & Reward

    Risk

    • Moving XML industry from lexical to binary standard

    Challenge

    • Provide integrated lexical XML transformational support

    Reward

    • True "guerilla architecture" for next-generation Internet infrastructure

  19. Key Milestones

    Near Term

    • Secure the management team

    • Establish strategic partnerships

    • Raise Series A Financing

    Intermediate Term

    • Second generation product - system behavior