CoRelation develops packaged data mining applications to help companies personalize customer experiences and improve marketing efforts. Their core technology includes a set of data mining algorithms and an "Application Specific Algorithm" approach. Their product set includes server/application bundles and individual modules for personalization, cross-selling, categorization, and other functions. They plan to sell directly to large enterprises and indirectly through value-added resellers and system integrators. Their financial objectives and use of proceeds will support marketing, sales, and product adoption goals to drive revenue growth.

1. The CoRelation Opportunity December 2000

2. What We Do Data Mining Predictive Analytics Boolean Searching Search Engine Relevance Mining CoRelation develops and markets packaged data mining applications

3. Content Mining Business Model Mine the Data Model for Desired Behavior Adapt for Best Results Aware of People and Groups Aware of Business Objectives Aware of Place and Content Aware of Products and Categories Product Data Purchase Data Click Stream Data Offline Data Call Center Data Application Specific Algorithms Home page Cross Sells Call Center Personal Email Wireless

4. The Space Sweet Spot Data Mining Strength Cost, Time Specificity, Effectiveness Custom Data Mining IBM, In-house Personalization Content Mgmt Tools Verity, Autonomy Packaged Ease of Use

5. Market Opportunity Worldwide product sales market forecast, 2004: Packaged analytic applications $4.0 B Document & content management $4.4 B Public comps: Verity, Autonomy, Inktomi Source: IDC + DataQuest

6. Technology Advantage More specific results than any competitor Embeddable engine + add-on apps Supports pre-rolled apps for key needs Enables 3rd party aftermarket for apps The Application Specific Algorithm ™ 1) Identify goals & data assets for emulating judgment 2) Test various algorithms 3) Create ASA

7. Technology Advantage Product Strategy Core Engine Embedability Scalability Full set of data mining algorithms Future CoRelation Applications ASA Toolkit

8. Technology Advantage Product Set Server / Application Bundles Application Modules Personalization available Cross-Sell/Up-Sell available Categorization available Call Center Link available Email Filler available Affiliate Targeter Q1 ‘01 Case Studies

9. Technology Advantage Personalization: Barnes & Noble Purchases ------------------- Joy of Cooking The New Book of Middle Eastern Food Cinema Year-by-Year Memories of a Geisha Variety Movie Guide Problem Personalization needs to be Personal to deliver Conversions Packaged Tools You = Overlap With masses Angela’s Ashes The Perfect Storm Animal Dreams Midnight in the Garden of Good and Evil Interpreter of Maladies ASA Solution Truly personal I Hated, Hated, Hated This Movie Angela’s Ashes Video Movie Guide The New Food of Life: Ancient Persian and Modern Iranian Cooking Authentic Mexican: Regional Cooking from the Heart of Mexico Result ASA gives higher conversions, better ROI

10. Technology Advantage Cross Sell – Up Sell: Barnes & Noble Problem Current statistical techniques poor Cross sells produce low conversions Solution Custom ASA developed in 2 weeks Result 100% Conversion boost No expensive data mining process

11. Technology Advantage Categorization: FirstSource Problem Labor intensive with 30% error rate Lost revenue opportunities, poor placement Solution Custom ASA developed in 2 weeks Results Fewer editors and Less Errors Relevant placement leads to more revenues

12. Sales Model Enterprise Direct for Platform Opportunities VARs for Aftermarket Application Revenue OEM for Peripheral Markets

13. Sales Model Enterprise Direct Target Customers Leading Multi-Channel Retailers & B2B Enterprises Financial, Telecommunications, Service Co’s Media Companies Current Pipeline Bertlesmann, Circuit City, Grainger, QVC, Crate & Barrel, CostCo, Best Buy, JCPenney, Nordstrom, Spiegel, Sears, FingerHut, Homeruns

14. Sales Model Indirect Sales Create Aftermarket Revenue Opportunity for Content Mining Applications Develop VAR/SI Program Estimated 50/50 Indirect to Direct Revenue Mix by 2003 Current Pipeline DigiMine, FryMultimedia, FloNetworks, AnyDevice

15. Sales Model OEM Opportunity Leverage Significant Secondary Markets for CoRelation Technology CoRelation & CoRelation VAR/SI Sell in Applications to Platform Customers In Discussion Informatica, LoudCloud, Claritas

16. Summary Key Objectives Product Set ~ Pricing Financial Summary Use of Proceeds

17. Summary Key Objectives Marketing Programs Launch company Q1 ’01 Analyst and press tour Present roadmap for successive niche penetration Regional seminars & CIO Outreach On-line educational briefings Interactive white papers / planning guides Sales Goals Drive product adoption Form relationships with integrators

18. Summary Product Set ~ Pricing Server / Application Bundles $100 K - $250 K (embedded server price = $50 K) Application Modules Personalization $200 K Cross-Sell/Up-Sell $100 K Categorization $50 K Call Center Link $50 K Email Filler $50 K Affiliate Targeter $50 K

19. Summary Financial Summary Top line and Bottom line summary To be Added

20. Summary Use of Proceeds $XXMM used to accomplish the following objectives: X Y Z