1. Center for MIS Studies University of Oklahoma Leading In Difficult Times November 7, 2002

2. Copyright 2002 by SolArc, Inc. Confidential and Proprietary About SolArc Established in 1991 Focused exclusively on enterprise software for energy supply and trade management Over 22 customers managing crude oil, refined products, gas liquids, petrochemicals and coal Approximately 100 employees Privately held and self funded Based in Tulsa, Oklahoma

3. Copyright 2002 by SolArc, Inc. Confidential and Proprietary The Mission To provide the world’s leading Enterprise Trade Management solution to global commodity businesses

4. Copyright 2002 by SolArc, Inc. Confidential and Proprietary Value Chain Wells Gas Plant Y-Grade Pipelines Purity Storage Caverns Y-Grade Storage Caverns Purity Product Pipelines Chemical Plants Agricultural Residential Production TransportationMarketing Vessels Pipelines Fractionator Refinery Vessels Pipelines Fractionation Marketing Plant Operations Production Transportation RefiningTransportation Retail Users Trucks Storage Industrial Fuels

5. Copyright 2002 by SolArc, Inc. Confidential and Proprietary Value Proposition Sales Forecasting Call Center Support Quote Generatio n MRPDRP Master Scheduling Forecastin g Financial Accounting Human Resource s Inventory Managemen t Procurement Contact Management Enterprise Resource Planning Supply Chain ManagementCustomer Relationship Management

6. Copyright 2002 by SolArc, Inc. Confidential and Proprietary Land Rush vs. Land War

7. Copyright 2002 by SolArc, Inc. Confidential and Proprietary What Happened? Macro-economic malaise Capital expenditure reductions Capital markets tightening Confidence erosion- trading

8. Copyright 2002 by SolArc, Inc. Confidential and Proprietary Strategies Align with strategic initiatives and invest Cut service levels Sacrifice long term potential Head for the bunker Out-sourcing?

9. Copyright 2002 by SolArc, Inc. Confidential and Proprietary Priorities Preserve long term potential Increase customer intimacy Field the best team Bring expense in line with visible revenue

10. Copyright 2002 by SolArc, Inc. Confidential and Proprietary Key Changes Restructure Top to Bottom Elevate Customer Care Reduce Sub-contractor Expense Focus Product Development Improve Sales Methodology Initiate Customer Value Delivery “Enabling SolArc to Help Customers Realize Value”

11. Copyright 2002 by SolArc, Inc. Confidential and Proprietary Results Hi-visibility on Increasing Cash Flow Embracing Current Customers Cautiously Optimistic Employees Increased Teamwork

12. Copyright 2002 by SolArc, Inc. Confidential and Proprietary Challenges ROI Credibility Low-visibility into new spending Focus

13. Copyright 2002 by SolArc, Inc. Confidential and Proprietary Thank You