Notes

Outline

Scandura.com http://www.scandura.com scandura@scandura.com Opportunity for Partners by Joseph M. Scandura, Ph.D.

"Scandura Corporate Background" Scandura Corporate Background Objectives and Market Patented Technologies - Products - In the Pipeline Competitors/Partners Key Business Considerations

"Developer of Productized e-business..." Developer of Productized e-business Solutions - unique easy to use Development Environment - extensible Integration Environment - broad array Pre-built and EECOMS B2B Components Holder 3 U.S. patents, one pending Corporate member IBM-led EECOMS ATP project - TRW, Boeing, Vitria, QAD, Baan Initial Commercialization Partner: CommerceQuest - leader in integration software and services Founded by J.M. Scandura, U. Penn Prof. - author 200 scientific publications, including 8 books - led development of major software systems - key discoveries in cognition & software engineering

"Strategic Partnerships and M&A" Strategic Partnerships and M&A OEM Licensing and Bundling Cutting Edge R&D and Field Testing

Target Markets Development Tool Market Enterprise Application Integration (EAI) B2B e-commerce Reengineering

Slide 6

Building Distributed Systems: Everyone Else Don’t know whether system will work until built Hard to make changes

Scandura Approach to  Distributed Systems            Local    Local 2                    test Advantages: intuitive, quicker development, easier maintenance, component interoperability Method: Use Scandura’s neutral cognitively meaningful ASTs and HLD

Slide 9

Local Supply Chain during converting from one XML DTD to another

Local Supply Chain w/ substituted 3rd party components w/ HLD adapters

Distributed Supply Chain

Slide 13

Universal Software Bus (used by Integration Engine)

Pre-Built Components Full HLD Development Environment Full Integration Environment Automatic Adapter Generators Standards Independent XML Support - Visual Editing, Automated Conversion Extensible Support for Any Language with Grammar Visual Integrated Design & Programming Environment - C/C++, Java, Fortran, COBOL, Ada, Pascal Automated Reverse Engineering, Code Generation, Reengineering, Checking for HLD & Legacy Languages - C/C++, Java, Fortran, COBOL, Ada, Pascal Automated Language Translators - Pascal -> C/C++, COBOL/C,Fortran -> Ada Fully Functional Tutorials for Efficient Training on Major Components License Server System Monitors Component Usage over Web Shared Access to ATP-supported EECOMS Components - emi messaging infra-structure - virtual situation room - negotiation server

Technical Advantage I Faster - Each event handler represented by single HLD component - All HLD components work together seamlessly (e.g., low   level HLD for manipulating ASTs & powerful HLD   reengineering components) - Default event handlers with human interface and/or    automated HLD callback logic - True plug and play - Seamless high level integration of distributed systems - Testing minimized if not eliminated - Automated HLD wrapper/adapter generators - Automatic code generation, reverse engineering,   conversion in HLD & legacy languages, integration - Construct automatic custom legacy reengineering &   conversion tools - Automatic runtime generation for any os after development   on Windows

Technical Advantage II Broad Applicability - All real world data and processes represented uniformly as     hierarchical Flexforms: data (e.g., XML, proprietary data) and     process (e.g., High Level Design [HLD] language) ASTs - Event-driven components exchange events, data and processes - Dynamic real time interoperability: event handlers can execute each   others data and processes - Fully extensible: easily add new &/or incorporate 3rd party     components - Applicable to any language w/ well-defined grammar - Supports both new high level development and legacy code/systems - HLD components support all XML standards - Built-in support for Java, C/C++ and other common legacy     languages (COBOL, FORTRAN, Pascal) - HLD meta-components for creating custom XML (& other) converters - Shared availability of research by EECOMS ATP partners (IBM etc.),   including emi messaging, Virtual Situation Room & negotiation server

Technical Advantage III Easy to Learn and Use - Full set of fully functional tutorials - Can be used effectively by personnel with limited   technical skills - Plug and play by simple reference - Drag & Drop development of distributed systems - Visual Flexform environment for creating & debugging   systems - Develop on broadly available Windows - Automatically generate runtime for any os

Technical Advantages IV Tested - Supports IBM’s MQ Series and other enterprise level messaging - field tested just-in-time B2B scenarios (EECOMS ATP) - field tested XML conversions (EECOMS ATP) - automated conversion 600K lines VAX Pascal to Unix C/C++ (MD) Protected: Three patents & One pending - visual development environment - automated reengineering and conversion - top-down  plug & play method for building distributed   systems - automated construction & guaranteed correctness Summary: Faster, More Comprehensive & Easier, and its all Tested & Protected

Future Prospects: AutoBuilder Prototype* Automated specification, design and implementation processes Guaranteed design consistency and correctness with respect to specifications           *patent: final approval September 7, 2000

Sales Channels M&A / Strategic Partners - The Platinum Group OEM Marketing / Licensing / Bundling - CommerceQuest Field testing / Image Making / Contractors - internal automated marketing-sales system - research (e.g., EECOMS [IBM, TRW, Boeing],   university IT & SE research) - consultants, media

Scandura  Potential Strategic Partners / Licensees

Financial Payoff Incremental Revenue Expectations for Partner w/ Active Business Little or No Technology Start-up Costs - Unique Products, Market Ready - Patents Pose Barriers to Entry Multi-billion Opportunity - $2.6B Market to $9B by 2004, Growing at 61% Small % Translates into Large Opportunity - 2% of $2B Market = $40M - 10% of $9B Market = $900M

What Can You Gain? Break-Even in Year One Unique Patented Technologies Large Market Opportunities

One Scenario

XXX Projections! You Fill in the blanks

Following Slides Summarize Key Business Considerations

Key Business Considerations Softbuilder Flexsys Other Valuable Property Software Services Market Software Tools Market Commercialization Options

Products: Softbuilder 1. Unique, universal and easily extensible (patent pending) software bus enables true "plug and play" 2. Independently developed components can easily be added 3. Not tied to any specific messaging infrastructure. 4. Dynamic models can be a Compelling Sales Tool 5. Dynamic models provide Unambiguous Contract Specifications 6. Dynamic models provide solid foundation for subcontracting work

Products: Flexsys 7. Insures data exchange irrespective of XML Standard(s) 8. Increases the percentage of software maintenance projects that lend themselves to automation 9. Increases the percentage of Software Service Projects that lend themselves to Automation

Other Valuable Property 10. Key product ideas are protected by three patents with a fourth pending 11. Shared rights to all Government supported technologies in the IBM-led $30M EECOMS Advanced Technology Program (ATP) Project on automating the supply chain 12. Integrated license server-database technology makes it possible to license products on a usage basis in a secure environment over the Internet. 13. AutoBuilder proposal selected for semi-finals in NIST Advanced Technology Program (ATP).

The Software Services Market 14. Large and rapidly growing 15. Technical Personnel costly and increasingly scarce 16. Softbuilder & Flexsys (& potentially AutoBuilder) make it possible to offer services on a fixed-price basis -- creating an opportunity to significantly increase margins 17. Softtutor & Flextutor significantly learning

The Software Tools Market 18. Fundamental vs. incremental improvement of existing methods 19. Integrated with popular tools -- Visual C++ & UML Modeler 20. Softbuilder & Flexsys offer qualitative improvements in development speed &          ease of use 21. AutoBuilder: licensable/patented solution to critical problem of guaranteed correctness

Commercialization Options 22. Special requirements can easily be met by customizing and/or enhancing Softbuilder and Flexsys using HLD 23. A vision and sample abbreviated business plan:  If properly executed, leading to highly profitable $100M plus business within two-three years 24. Competitive products tied to technologies (e.g., Java, COM) which are intrinsically harder and more costly to use (patents protect use of ASTs and HLD)

Benefits! Development Times Cut by 10X Service Revenues Go Up Much Faster than Costs