TechnoMarket Performance (TMP) Value The First Component of Market Value This Power Point presentation concerns Kesting Ventures® Corp.’s TechnoMarket Performance (TMP) Values. If your consulting services need concerns: Competitive Intelligence - How does your product compare with competitors’ products? Customer Satisfaction – How does the features of your product compare with the customer’s wants? Line Extensions – Which features should our next line extension stress? Innovation – Is it possible to completely break the market with an improved product? TechnoMarket Performance Value is the preferred research tool by far.

What is TechnoMarket Performance Value? TechnoMarket Performance (TMP) Value combines technology with market requirements to define past, present and future properties. TMP Value is a component of Market Value. TMP Value is a scale that links all of a product's properties together and correlates them with functional value during the product's use for a specific application. TMP Value is the product. This is what the customer purchases and not the specific widget that embodies the properties. TMP Value enables competitive products to be compared in great detail and matched with optimum property profiles that meet the long term needs of specific markets. Without a complete TMP Value scale and companion glossary, it is improbable that long term needs of a market could ever be determined. TechnoMarket Performance (TMP) Value combines technology with market requirements to define past, present and future properties. TMP Value is a component of Market Value. TMP Value is a scale that links all of a product's properties together and correlates them with functional value during the product's use for a specific application. TMP Value is the product. This is what the customer purchases and not the specific widget that embodies the properties. TMP Value enables competitive products to be compared in great detail and matched with optimum property profiles that meet the long term needs of specific markets. Without a complete TMP Value scale and companion glossary, it is improbable that long term needs of a market could ever be determined. Not only is TMP Value a stand alone service but it can be combined with other Market Value System modules years later to create a complete business blueprint.

TechnoMarket Performance (TMP) Value Profile Red bars connote the property level in 2003 Green bars show that the market will require >20% more properties by the year 2005. TMP Value describes the technical worth of a product or service. From the perspective of the market, TMP Value is the product. The higher the TMP Value of a product, the higher its level of properties. However, there is always an optimum TMP Value. Optimum is defined as the property level beyond which the market will not appreciate the added value of increased properties. This slide compares the 2003 TMP Value Profile of a market with the TMP Value Profile that will be required by that market by the Year 2005. Experiential modeling can be used to decipher specific property gaps that must be improved to achieve Year 2005 properties.

THE PUZZLE Conceptual slide showing how all properties must be linked 5 1 4 This is a conceptual slide showing how all properties must be linked together to reveal gaps. 1. The eight colored balls connote families of properties (aesthetic, physical, chemical, mechanical, etc.) 2. The families of properties must be linked together. 3. The overlaps must be studied. 4. The integrated model must be studied to reveal property gaps. 5. The new product must be reassembled. The gray area connotes properties and technology that doesn’t relate to the new product. Work in this area would be wasted. TechnoMarket Performance Value is the only research methodology that provides this much detail. Conceptual slide showing how all properties must be linked together to reveal gaps. 2 3

Testimonials “We needed techniques that would permit us to correlate product concepts with customer value. In my view that is the only way to ensure success, TechnoMarket Profiling was the new marketing technology that I was looking for.” “I was really amazed that Kesting Ventures® Corp.’s TechnoMarket Value technology was able to correlate more than 45 technical properties of a complex composite structure with the technology needs of future markets. This thorough analysis certainly enabled us to make a knowledgeable decision. Quite frankly, in my entire career, which includes sales, marketing, R&D, commercial development, general management and consulting services, I have never come across a rigid mathematical technology that could handle something this complex. I was also impressed with the fairness of your fee structure.” “We needed techniques that would permit us to correlate product concepts with customer value. In my view that is the only way to ensure success, TechnoMarket Profiling was the new marketing technology that I was looking for.” “I was really amazed that Kesting Ventures® Corp.’s TechnoMarket Value technology was able to correlate more than 45 technical properties of a complex composite structure with the technology needs of future markets. This thorough analysis certainly enabled us to make a knowledgeable decision. Quite frankly, in my entire career, which includes sales, marketing, R&D, commercial development, general management and consulting services, I have never come across a rigid mathematical technology that could handle something this complex. I was also impressed with the fairness of your fee structure.”

Testimonials (Continued) “In my experience, Kesting Ventures® Corp’s TechnoMarket Value technology is not just the best tool of its kind, it is the only tool of its kind.” “It was quite an experience to be outside the industry and yet to be able to tell industry experts things that they hadn’t realized but had to admit were correct. All of our subsequent work showed that TMP Value was the most fundamental, accurate and insightful source to define market need that we had in our project.” “In my experience, Kesting Ventures® Corp’s TechnoMarket Value technology is not just the best tool of its kind, it is the only tool of its kind.” “It was quite an experience to be outside the industry and yet to be able to tell industry experts things that they hadn’t realized but had to admit were correct. All of our subsequent work showed that TMP Value was the most fundamental, accurate and insightful source to define market need that we had in our project.”

Conjoint Analysis Conjoint Analysis has become one of the most widely-used quantitative market research methods. It is used to: Measure the perceived values of specific product features, Learn how demand for a particular product or service is related to price, and Forecast what the likely acceptance of a product would be if brought to market. Before the Market Value System, Conjoint Analysis, with all of its flaws, was the best available methodology. Conventional one-on-one interviewing methodologies can, at best, only approximate prevailing thought. Discovery via this methodology is next to impossible. The best conjoint analysis software can only handle simple questionnaires with multiple choice answers. Mathematical models are not possible via conjoint analysis. Therefore, conjoint analysis can’t be used to create knowledge blocks.

Conjoint Analysis Flaws Although Conjoint Analysis has been successfully used to forecast the behavior of logical extensions of existing products and services, this approach is fatally flawed for the following reasons: Can only handle a limited number of features, Data collection methods are limited, Scales are statistically invalid, and Can’t be used as an innovation tool Can’t be used to create knowledge blocks Although Conjoint Analysis has been successfully used to forecast the behavior of logical extensions of existing products and services, this approach is fatally flawed for the following reasons: Can only handle a limited number of features, Data collection methods are limited, Scales are statistically invalid, Can’t be used as an innovation tool, and The fact that Conjoint Analysis can’t be used to create knowledge blocks is its most serious flaw.

Market Value System (TMP Value) The Market Value System is much more than an analytical approach to test the acceptance of product and service features. The Market Value System is a complete knowledge system that is being used to develop comprehensive business blueprints. Dynamic knowledge blocks are created that can be continuously updated. Market Value Modules cost no more than conjoint analyses. TMP Value is a component of the Market Value System. There just isn’t any comparison between the Market Value System and Conjoint Analysis.

TMP Value vs. Conjoint Analysis Knowledge blocks Market Value Correlation Product Features Competitive Intelligence Innovation Tool Modular Components Statistical Validity Value-added Economic Value Pricing First Cost (TMP Value) Second Cost (TMP Value) Yes Universal High $ 150 M $ 0 M No Limited Low $ 300 M This slide compares TMP Value System with Conjoint Analysis. TMP Value (Performance) is a component of Market Value. TMP Value defines the market optimum and identifies property gaps. TMP Value is determined in intense 1-day or 2-day experiential modeling sessions with world class experts. Conjoint analysis relies on 20-30 minute multiple choice interviews with anyone who will respond.

Market Value System Calculations Determine the % of the buy decision that concerns Performance, Economics and Influence. Specialty markets have an economics component that is less than 35% of the buy decision. Commodity markets have an economics component that is greater than 50% of the buy decision. The first step is to determine the % of the buy decision that concerns performance, economics and influence. Individuals and/or teams should estimate each market and defend their position by rational argument. Specialty markets have an economics component that is less than 35% of the buy decision. The balance is skewed towards performance if the market is driven by technology and towards influence whenever marketing is very important. Commodity markets have an economics component that is greater than 50% of the buy decision. The balance is skewed towards performance if the market is driven by technology and towards influence whenever marketing is very important.

Market Value System Calculations Performance = 45 x 1300/1000 = 58.5 Economics = 25/.85 = 29.4 Influence = 30 x 1000/1000 = 30.0 This slide illustrates the market value calculations. Calculations for the No.1, No.2, No.3 and all other cases are identical to the calculations for the optimum case. KVC’s Market Value Group prepares this type of data for all of the Client’s strategic markets. Show Models

Benefits Provides unique insights that are not possible by other research methodologies Applicable for all products and services, including new-to-the-world opportunities Creates a valuable knowledge block Can be continually updated via a knowledge portal Lower initial cost and provides so much more Dramatically lower maintenance cost What are the benefits to the client? Provides unique insights that are not possible by other research methodologies Applicable for all products and services, including new-to-the-world opportunities Creates a valuable knowledge block Can be continually updated via a knowledge portal Lower initial cost and provides so much more Dramatically lower maintenance cost