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

December 17, 2000

03 00050 61 00121702

Mr. Matt Placek
Wegener Communications
Technology Park
11350 Technology Circle
Deluth, GA 30097

Subject:   SDS Opportunities

Dear Matt,

Thanks very much for your inquiry and compliments about SDS. Your offer to support product development is greatly appreciated.

SDS uses technology to grow "knowledge," based on a design that reflects the architecture of human thought, explained in POIMS. There is growing interest in this field, generally called Knowledge Management (KM), however, it appears at this time that KM is a secret of SDS, which is owned by Welch.

Having worked out the design of SDS, formulated the science of Communication Metrics, and shown cost benefits from this combination of tools and practices are approximately 10:1 (see report by the US Army Corps of Engineers), the next step is to grow customers. Current difficulties in the economy indicate demand for SDS to improve management, may trend up with increased demand to improve earnings and stock prices.

Capitalizing on these conditions requires commercial partners to support product development and marketing.

Terms for using SDS are set out in a recent letter to SRI on November 21, 2000.

If you wish to contribute individually, I would be pleased to consider how to accomplish installation and training within the framework of the November 21 letter.

Thanks again, very much, for your interest in SDS.



Rod Welch