Global Entelligence Status

Just want to give you a couple of updates.

The prototype of the Market Penetration window was shown to Jennifer Fraser
and Chris Gaskill yesterday. The overall response was very positive. Based
on this, IT will provide a firmer estimate for delivery of phase I by the end
of the week.

The cost for the D&B data has been reduced by $100K after additional
negotiations. Pursuant to that, the agreement was signed last week. The
requested data was received yesterday.

---------------------- Forwarded by Mary Solmonson/HOU/ECT on 03/21/2000
09:55 AM ---------------------------

Mary Solmonson
03/07/2000 05:50 PM
To: Greg Whalley/HOU/ECT@ECT
cc: Sally Beck/HOU/ECT@ECT
Subject: Global Entelligence Status

Just wanted to let you know a few updates:

1) We have a full IT team now ready to go. We are going to prototype the
first window, Market Penetration. The prototype will give us something with
sample data to show various traders to get additional feedback on
functionality. Hopefully, we will have something in 2 weeks.

2) The previous cost estimates still stand until we have more feedback from
the prototype. The estimates are $1.6M for phase I and $1.6M for remaining
phases.

3) Included in the cost estimate is a figure of $ 389K for the purchase of
customer prospect data from Dun & Bradstreet. The $389K is an O&M expense
amount that was not included in the 2000 budget. This amount combined with
other amounts ENA did budget for or will spend with D&B results in an overall
budget impact over the next 12 months of $278K.

I spoke with George Wasaff in Strategic Sourcing this morning at the request
of Philippe Bibi. George has some ideas for negotiating a better deal from
D&B. Either he will get more customer records for the price or negotiate
better terms for a longer term on the recurring contract with D&B. This
could take some time and push us late on getting the data scrubbed and ready
to go for implementation. I believe I can give George some time to try
something, but when it comes down to it, $389K isn't that much money.
Therefore, I suggest that if we don't have anything negotiated in the next
three weeks, we sign the current proposal from D&B and move forward. D&B
is currently threatening (a negotiation tactic, I think) to pull their
development resources off of this project until they receive a signed
agreement. In the event this comes to pass and adversely impacts our
delivery of Global Entelligence, we can provide a letter of intent to keep
them moving or sign the proposal at that time.

Give me a call at 3-6079 if you have any comments on any of the above items.