1999 PI System Users’ Conference 1998 Year in Review and Look forward Phil Ryder Vice President, Sales and Marketing

1999 PI System Users’ Conference This Presentation Outline last year’s accomplishments New Stuff for this year How software developments will effect our business

1999 PI System Users’ Conference Sales $39.7 Million in sales  95% License fees and TSA  < 5% Engineering services 23 % Growth Vs 1996

1999 PI System Users’ Conference Sales by Region Number of Systems

1999 PI System Users’ Conference 1998 Sales by Platform

1999 PI System Users’ Conference New Customers and Significant Expansions 141 New Customers last year

1999 PI System Users’ Conference Some Common Themes Batch Customers  A significant portion of the active S88 members bought PI in 1998 Utilities  Good customers are buying stations  T&D  Sub stations Mining  Sales were good despite low prices Enterprise PI

1999 PI System Users’ Conference Enterprise PI? Is that some kind of new Product? Same stuff, just lots of it ~36% of our Total Sales in 1998 were from PO’s that included Multi-Plant PI sales What’s good for one plant is good for them all  Comparisons between plants  Synergy between plants  Teaming  Product Tracking A Few New Enterprise PI Customers International Paper Eastman Lubrizol Shell Chemicals UOP Codelco Ameren First Energy Coors Brewing Carolina Power &Light Reichold Chemicals Detroit Edison Western Resources / KCPL PEPCO MOL Alcan Abitibi-Consolidated US Generating

1999 PI System Users’ Conference Partners and OEM’s Partners bring us many opportunities  There will be a whole room full of partners Tuesday OEM’s - In 1999 we will ship more systems than we have in history of OSI Little direct revenue from OEM’s  Customer benefits from easy connections to PI  OSI benefits by increased presence in the market

1999 PI System Users’ Conference “The PI System is the Plant Information for the Masses” As opposed to “Totally Responsive Application Software and Historians - Custom Applied to your Needs” “Software for the masses” is the only software that has any future Volume is key to:  supportability  de-bugging  feedback  profit

1999 PI System Users’ Conference What is the alternative to TRASH-CAN? Software that goes through continuous improvement Software on which you can develop applications on yourself Software that interacts easily with Quality software produced by other vendors Software that provides a solid infrastructure so that Integrators can work at the SOLUTION level Software that makes money for you now and for many years to come

1999 PI System Users’ Conference Developing Applications Yourself Little-ware Small High Value Applications You can do it yourself Close to end user’s needs

1999 PI System Users’ Conference You too can be a geek Our goal is to turn every one of you into programmers  Whether you know it or not. Code Generators  Excel Macros  Wizards  Script Libraries

1999 PI System Users’ Conference A Couple of Demos

1999 PI System Users’ Conference “But I don’t have time to become a Geek” DevNet  We finally have the OSI Developer’s Network ready to go Developer’s Work-shop on Thursday  New Person to run the program Curt Hertler from BP  Available to all customers on TSA and partners Tools that can be applied by System Administrators but be used by all  Add-ins  Server based tools

1999 PI System Users’ Conference What’s New This Year ?

1999 PI System Users’ Conference More Sales Representation Overseas OSI Singapore in place OSI Japan Sales Agents

1999 PI System Users’ Conference Sigmafine 200 Customers 15 to 18 new employees A core application on top of PI

1999 PI System Users’ Conference New Price List Active View Pricing Batch Template Manager Batch Template Server Later - An entirely different structure for PI and PI Pricing  More about this in a few slides

1999 PI System Users’ Conference What’s not new? PI Stands for Plant Information Data archiving is just one function that we provide  We happen to do this better than anyone else in the world Interfaces Data Transport Off-the-shelf Clients Application development environment Batch and Product Tracking Data reconciliation ERP Connection

1999 PI System Users’ Conference Product trends that I think are important from a business perspective Equipment Model Batch Model Middle-tier Software Web Interaction

1999 PI System Users’ Conference Some Old Ideas Are Just Too Good to Go Away PlantSuite Server  Equipment Model  Batch Model Data Reconciliation  Automatic material balances  Yield Accounting  Filter for Data going to ERP

1999 PI System Users’ Conference From the 1997 Users Conference PlantSuite Server is still a great concept (And a pretty cool trade name)

1999 PI System Users’ Conference Future Design for Plant Information PI Data Historian OLEDB Provider Other Historians Third Party Applications ERP ConnectionSigmafine Reconciliation PI Infrastructure Plant / Equipment Model Batch Monitoring and Tracking Performance Equations Real-Time SQC Network Communications PI Event Manager Interfaces Clients This is What We Call PI Now This is roughly what we have called PlantSuite

1999 PI System Users’ Conference Back to the Present Once Again, we would like to say: