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 automated business interactions to be electronically co-developed and transacted

3. Growth of E-Business

   E-business is top issue in executive suites

   Forecasted dramatic revenue increase/cost decrease from e-business deployments

   50% of organizations now moving beyond rudiments of e-mail and static web site

   E-business capabilities not yet being developed in integrated fashion

   E-business commerce reached $144B in 1999 & projected to reach $540B in 2004

4. E-Business Value Levers

   Purchasing power

   e.g., volume pricing through supplier & buyer consortiums

   Process efficiency

   e.g., electronic order taking & auto replenishment

   Supply chain integration

   e.g., improved supply chain visibility & reduced lead time

   Aggregate content/community

   e.g., industry collaboration & benchmarking

   Market efficiency

   e.g., on-line matching through auctions or e-catalogues

5. Tof Five Barriars to E-Business

   High/uncertain costs of implementation

   Lack of key standards

   Low use of e-business by customers

   More pressing priorities

   Lack of proven benefits in their industry

6. Internet Market Evolution

   Past Stage - HTML

   One way web page transmission

   Current Stage - XML

   Two-way data structure exchange

   • Between machines through servers

   • Between people through client web page

     PC

     PDA

     TV set top box

7. 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

8. 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

9. 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

10. Binary XML Standard

    While W3C is useful, it does not go far enough

    CoreTalk implementations uniquely provide...

    • Technology support for creation of information communities

      Facilities interoperability between online knowledge organizations

    • Precise methodology for information expression

      Accelerates understanding

    • Universal atomic and molecular data representations

      Heterogeneous system data can easily be transmuted into highly efficient form

    • Highly constrained graphical syntax constructs

      Replaces coding with a quick to learn expression medium used by many

11. Binary XML Advantages (2)

    Language-neutral graphical expression medium

    • Enables community specification to be comprehended by non-English members

    Data life cycle expressed as DNA components
    • Enables specification to gracefully adapt to changing community requirements

    Integrated capability for storing & retrieving persistent data
    • Directly supports sophisticated transaction, versioning, access control, security, configuration, & licensing requirements for comprehensive data management

    Automatic hyperlinks between all web components
    • Enables community members to quickly navigate diverse information space

    Comprehensive reviewing mechanism
    • Embedded communal annotations and remarks ensure specification relevance

    Direct silicon execution of data structure transformations
    • Several order-of-magnitude performance increase for demanding application

12. CoreTalk Products

    XML Collabrium(TM)

    [Para 13 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
    • Far easier to integrate XML with application databases

    • Enables advanced and very fast operations on XML: tree traverse, edit, read/write, queue, archive, data format translations, & schema transforms

    • Highly optimized footprint targets server, client, & silicon deployments

13. 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.

14. 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.

15. 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

16. 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

17. Business Model

    Strategic partners provided early access

    • OEM license

    • Equity participation

    Trial distribution and meter pricing model
    • CollabriumTM software available on trial basis & low purchase price

    • 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

18. Revenue Projection

    [Looks like projecting revenue of $150M 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.]

19. 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

20. Resource Requirements

    Personnel (12 months)

    • SBK retains CTO & Chairman roles

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

    • Karen Aiken, VP Training & Curriculum

    • Engineering staff - 22

    • 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

21. 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

22. Key Milestones

    Near Term

    • Secure the management team

    • Establish strategic partnerships

    • Raise Series A Financing

    Intermediate Term
    • Second generation products

      Replace SGML with clear document format

      Analytical processing

      Next generation complex data types, i.e. MPEGx

23. 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