THE WELCH COMPANY
440 Davis Court #1602
San Francisco, CA 94111-2496
415 781 5700



June 8, 2000

03 00050 61 00060802



Mr. Sanford Klausner
CEO Founder
klausner@coretalk.com
CoreTalk Corporation
14537 Oak Street
Saratoga, CA 95070

Subject:   CoreTalk and SDS

Dear Sandy,

Thanks for timely follow up with your letter this evening, to our discussion earlier today.

Tried sending this last night, and it bounced back indicating your email folder is full. Tried calling to leave a voice mail message but could not find a phone number in your presentation, nor through information. Trying again this morning.

Generally, I do not see in your plan (Powerpoint Presentation) the proverbial "killer application," that will move a lot of people to change what they are doing and buy your stuff. SDS has that potential, and your capabilities can help present it in a form that the market can grasp, opening an opportunity to replace conventional methods of analysis and communication, within the meaning of a disruptive technology, per Christensen.

We have a simple concept...

Communication is the biggest risk in enterprise

...because technology has created, and continues to compound, the problem of information overload that can only be solved by adding intelligence to information from moving to knowledge management.

We have a simple solution...

At the end of every meeting, every call, every email, the boss says...

That sounds great....

How soon can I get this in SDS to see if it really makes sense?

This is a simple solution to a difficult problem, which is needed to get people to change what they are already doing. If we wrap it in email, as Eric proposes, that would ease the transition.

We can sell the idea that SDS is the engine of knowledge by showing the SDS record on the Internet, which is a deliverable that nobody else can deliver.

Last week we got an inquiry from someone who proposes making an application to let people process SDS records on the Internet to present it in different views, and search across records for particular subjects. This is the beginning of building applications for SDS that makes it an operating system for people and organizations, an engine of Enterprise Management.

Owning that engine is a big asset.

Technology breakthroughs, like the alphabet, printing press, and now SDS, require a confluence of forces to combine in order to gain attention and acceptance. This may be such an opportunity. Once SDS is established as the engine of knowledge management, and at this time there is no competitor, a new development path opens that can make use of the tools you are building. The strategic opportunity is owning that core capability and doing the spade work to establish it as a new operating system for people and organizations.

I would like, with your permission to discuss your submission today with Morris. He is in Israel this week and next, but we can visit by email. He will be back on 000619. Morris, also, lives in Saratoga, so getting together should not be hard.

In any case, I appreciate your consideration of my work, and applaud your initiative in bringing forward the kind of next generation tools essential for a New World Order...

Please let me know if you have any objections to my contacting Morris about your letter today.

Thanks.


Sincerely,

THE WELCH COMPANY



Rod Welch
rowelch@attglobal.net