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

February 23, 1999                                                                    03 00050 61 99022201



Mr. David Buoncristiani, Esq.
Thelen, Reid & Priest LLP
2 Embarcaderro Center, 21st Floor
San Francisco, CA  94111

Subject:  Oakland Harbor Project

Dear Dave,

The Corps says Communication Metrics saved $200K on a small matter separate from (though related to) your case. On Oct 15, 1996 District Counsel said Communication Metrics should be used to complete the project. A few months later, that counsel retired and the effort was ended by the District Engineer, as not cost effective, though apparently under pressure by the Port of Oakland. The staff estimated Communication Metrics was cost effective, but lacked "proof." $200K savings 2 years later is some proof. Analysis on Oct 27, 1998 indicates Communication Metrics may have contributed to settlement and avoidance of litigation expense. Is there any evidence that supports reasonable inferences from your case on this point?

Sincerely,

THE WELCH COMPANY

Rod Welch