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KNEtica. <br /> • REQUEST FOR ADDITIONAL INVESTMENT <br /> TO: THE INITIATIVE FOUNDATION C/O SANDY VOIGT <br /> FROM: KNOWLEDGENETICA <br /> DATE: 11/25/2003 <br /> CC: ANOKA COUNTY ECONOMIC DEVELOPMENT PARTNERSHIP; <br /> 1TY OF ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY; <br /> ANOKA COUNTY ECONOMIC DEVELOPMENT PARTNERSHIP <br /> DEAR SANDY, <br /> Thank you for your support for KnowledgeNetica.As you have seen in our recent newsletter,we <br /> have filed with the Minnesota Secretary of State to do business as K-Netica — a small simplification <br /> so people will be able to pronounce the company name more readily. We are very close to achieving <br /> product revenues.We expect to ink an agreement this year with a division of The St. Paul Companies <br /> to use our Intelligence Fusion product to assist their underwriters in finding and analyzing large <br /> amounts of information about prospective customers, especially companies in businesses in which <br /> they have less experience and knowledge about potential causes of loss. We expect first revenues <br /> from that contract this quarter. <br /> We are also progressing with our homeland defense prospects and expect first revenues from <br /> • Federal customers during the first quarter of next year. I have attached our updated projections <br /> which include payroll data and the distribution of revenues we anticipate. Please note the ramp-up of <br /> employment (page 10 of the spreadsheet — Payroll Distribution) that goes along with our first <br /> product introductions. You'll notice that we are planning to take out an SBA loan. We have <br /> approached Greg Hohlen of Bremer Bank in this regard. This will permit us to hire two technicians <br /> and two support personnel full time. Our facility in Elk River is more than adequate to support our <br /> planned growth over the next four months. We anticipate a need to expand within the facility by <br /> mid-year,2004,and graduate from the incubator later in the year. <br /> Roger Jensen had planned on making a follow-up investment in July, and had it not been for his <br /> untimely passing, I am confident he would have followed through. I have stayed in touch with Lori <br /> Wawers, and I am pleased that the Board recently decided to proceed with the organization. I am <br /> personally determined to reward their investment and yours by increasing employment opportunities <br /> in this area by providing well-paying job opportunities. An additional investment from you at this <br /> time would be extremely helpful to us in reaching our goals. If you would like, we would be more <br /> than happy to provide a formal presentation to the Initiative Foundation regarding our progress and <br /> our projections. If there is any other documentation you would like, please let us know and we will <br /> gladly comply.Thank you again. <br /> Sincerely, <br /> • "Joseph C.Roushar <br /> President <br />