MfgTraining, Inc. May 25, 2000 Shravan K Goli Sam Hall Ahmed A Hudda Campbell Mathewson Chris Roark

The Problem No single destination for manufacturing training Training providers fragmented Over 5000 companies worldwide Providers only have access to limited markets Many medium-sized companies do not maintain in-house training departments

Market Corporate e-Learning market is poised to explode – expected to grow to $11.5 billion by 2003 Vertical Markets – manufacturing, financial services, retail/wholesale distribution, professional services and transportation/communication/utilities (TCU) – expected to spend in excess of $5 billion Use of off-the-shelf training tools decreasing (IDC)

The Target Market “Manufacturing” Large and Medium sized business in manufacturing $ 1 Billion was spent on continuing education in manufacturing (excluding IT and Soft Skills) in 1999 Estimated to grow at 15.9% per year until 2004 Captured segment as Continuing Education Units essential in maintaining certification E.g.: Quality control training content suitable for online delivery and self-paced study Manufacturing organizations like SME, APCQ, ASQ are seeking to partner with us

THE Manufacturing Training Destination

Products and Services B2B eLearning networks in specific vertical segments (Manufacturing) – aggregate providers and offerings ASP – hosting for eTraining providers Complete eTraining solution for businesses – for both intranet and extended enterprise needs Value Add Services – great personalization, multiple delivery methods based on open standards, learning communities, reporting, tracking, reminders etc Conversion services and tools for converting offline content to online content, upload tools based on open internet standards Future :- Catalog provider to all eLearning portals, cobranded eTraining market places, global markets like India, China – localized delivery and partnerships

And now for a demo...

The Competition  Click2Learn TrainingNet Advanced Online MfgTraining Depth of Offering  Focused Targeted Segment Personalization Training Management Ratings Conversion Services

Value Proposition For Businesses For Providers For Strategic Partners Targeted to their industry segment Great personalization, ease of use – anytime anywhere, depth of offerings Extended enterprise – essentially we help increase their ROI in employee and customer training Synchronous (real-time interactive) and asynchronous (self-paced, anytime, anywhere) learning modes For Providers Targetted demographic Increased reach Rapid development and time to market For Strategic Partners Value add for their services. First mover in the vertical space – THE brand in vertical eTraining Networks

Distribution Distribution Phase 1 Trade Associations Industry associations in manufacturing sector like SME, ASQ Leverage association’s reputation to quickly build credibility with members Association would get a cut (5%) of revenue generated by members Partnerships Training providers Ecommerce portals like Vertical Net, Onvia Professional consulting companies like Andersen, KPMG Affiliate Programs Alliances with localized providers in various global markets Distribution Phase 2 Direct Market`ing Training purchasers at corporations via direct sales force

Why we win? No one concentrates on the depth of offering within the manufacturing segment First Mover Advantage in manufacturing Move aggressively to partner with trade associations to build up critical mass of customers and lock out competition

Revenue Model Transaction Fees – Obtained from provider Subscription Fees – Obtained from businesses to provide integrated tools for managing e-training usage Conversion Fees – Consulting services to help port content online. Provided for both businesses and providers Other sources of revenue Value added services to businesses – co-branded training site Content and catalogue provider to other sites

Financials

The Plan Phase I – Go Live Phase II – Entrench Initial offerings such as Safety, Quality Control, etc. Provider Aggregation Key Customers – Early adopters Phase II – Entrench Businesses – Customization, Communities Build depth in offerings Conversion services to port offline content to online (possible partnership opportunity)

The Plan Phase III – GET BIG FAST Phase IV - Evolution Extend offering to other segments within manufacturing Research extending offering to other vertical markets Phase IV - Evolution Technology to provide content delivery to multiple mediums Possible expansion to other vertical segments (TrainingVortal)

Exit Strategy IPO Merger 36 to 48 months after launch – Strategic partner like Vertical Net Competitor like Click2Learn.com or other broad based training network Training Network