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





October 20, 1997                                                                     03 00050 97102001



Mr. Dale L. Ames
Private Brokerage
Van Kasper & Company
600 California Street, 17th Floor
San Francisco, CA  94108

Subject:  Communication Metrics Cost Savings

Ref:   a. U.S. Army Corps of Engineers' report Oct 7, 1997
          b. Telecon Dale/Rod Sep 22, 1997
          c. Welch letter to Dale Sep 19, 1997

Dear Dale,
This just closes the loop on our recent discussions. Last week the government issued the attached report, ref a, showing substantial cost savings using Communication Metrics. This should be welcome news to investors seeking better earnings. It supports the earlier report issued on March 28, 1998 on the role of "intelligence" to improve management.

Sincerely,

THE WELCH COMPANY



Rod Welch