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

February 7, 2000

03 00050 61 01020701

Mr. Jim Wendling
Managing Partner
8952 Barrhill Way
Fair Oaks,

Subject:   SDS Progress Since 1993

Dear Jim,

Thanks for your letter on February 7, 2001 following up our discussion about SDS on January 28, 1993.

You can see actions taken after our call on January 28, 1993 by clicking on links in that record that look like this example....

[On 930204 Jim called; sent SDS product information. ref SDS 10 0001

In sum, following the January 28, 1993 record, you were concerned that fear of accountability restrains people from adding "intelligence" to daily management. Fear of accountability remains a strong cultural force against improving management; however, demand is growing for ways to improve earnings, and performance (see for example the High Cost of Medical Mistakes).

Since our discussions in 1993, SDS has been endorsed by PG&E, and by the US Army Corps of Engineers, who report that SDS saves time and money.

Interest is picking up on SDS, as a result of having a presence on the web that demonstrates advantages of delivering timely intelligence. As you recall, it is hard for people to grasp this idea from reading and talking about it. Clicking around SDS records on the web lets people experience a practical way of augmenting "intelligence," which impacts management, earnings and stock prices, that occupy a lot of attention recently.

Good to hear from you.



Rod Welch