11-Feb-2005 ITSC Meeting BMS/BES Status Update IT Team

11-Feb-2005 BMS Vendor Evaluation Status Continued Vendor Evaluation - Completed 31-Dec-2004 –Membership Specific Approach Rationalize fixed price bid from ACGI Engage Avectra/Aptify to understand their membership specific solution to benchmark costs/functionality –Oracle/Strategic Framework Approach Rationalized fixed price bid from Oracle –Engaged Oracle in a 3 week assessment ($0 cost) to develop functional requirements to define configuration/extension development required Engage 2-3 Oracle partners to benchmark Oracle consulting costs Confirmed Oracle TCO was too high

11-Feb-2005 BMS Vendor Evaluation Status Continued Vendor Evaluation –Completed further evaluation between Aptify and Avectra - Completed 31-Jan-2005 Chose Aptify (Path 1) as a vendor of choice for a Proof of Concept (POC) based on functionality, extensibility, etc. Completed customer referrals for 8 Aptify customers –Aptify Next Steps: Scope and Gap analysis – due 28-Feb-05 –Estimation of cost and implementation strategy Proof of Concept execution – due 31-Mar-05 –Will occur at Microsoft Waltham, MA site –Evaluate results and decide on path forward –Confirm Implementation Approach/Plan

11-Feb-2005 BMS Vendor Evaluation Status Concurrent Plan in progress –Siebel (Path 2) Received compelling proposal from Siebel (Path 2) Very preliminary evaluation conducted – Need to confirm out of the box functionality, extensibility and TCO Defined parallel evaluation path to enable POC to be completed by 31-Mar-05 Back-Up Plan –Avectra and Oracle (Path3) Avectra –Less out of the box functionality that Aptify Oracle –Received new offer from Oracle –License cost reduced back to 1MM –Oracle ready to support customization at additional cost No further activity with on Oracle/Avectra until POC with Aptify/Siebel is completed on 31-Mar-05

11-Feb-2005 BMS Vendor Selection Parallel Paths (Risk Mitigation Approach)

11-Feb-2005 BMS Preliminary Capital – DRAFT estimates ($ Thousands) Vendor Total Aug ITSC Model 2,9301,120 -4,620 Nov ITSC Model 3,7701,120 -6,010 Oracle (Post Nov deal) (Feb 05) 3,7582, ,798 Aptify (Estimates) (Jan 05) 3,3061, ,428 Aptify will give firm numbers By End of February – POC in March Went down by app. 2 MM From Jan,

11-Feb-2005 BMS Preliminary Expense – DRAFT estimates ($ Thousands – through 2008) Vendor Total Aug ITSC Model ,074 3,454 Nov ITSC Model ,074 3,666 Oracle (Post Nov deal) (Feb 05) 7341,4021,749 5,633 Aptify – (Estimates) (Jan 05) 4891,1531,086 3,814