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• When a call center can handle an incremental ten percent of its case load by <br /> computer (without human intervention) then the call center can save <br /> hundreds of thousands of dollars annually. K-G will sell its services based <br /> upon those costs savings factors (value added pricing). <br /> It has received funding from the Elk River Investment Club and is likely to <br /> receive an investment from the Anoka Sherburne County Capital Fund <br /> shortly according a conversation with Roger Jensen last week. <br /> Joe has organized a good group of advisors that work a) for stock <br /> options/warrants and/or b) to help assure the success of their investments in <br /> the company. One investor is the spouse o f one oft he top o fficers o f a <br /> major health care company in the twin cities (Joe Roushar had done about <br /> $150,000 of independent software consultancy services for that same <br /> company at the rate of$150 per hour prior to launching K-G). <br /> This one investor became quite familiar with Joe and his work and has <br /> invested over $50,000 in K-G. It is likely that this major health care <br /> organization will be one of the first 'beta' sites for testing of the K-G <br /> • software. <br /> Yours truly is an investor and an advisor to K-G. <br /> Vertical Publishing, Inc. <br /> Vertical Publishing (VP) continues to modify its approach to marketing its <br /> products and services while it adds new products and services in order to <br /> beef up its revenues and margins. <br /> Mr. Ben Moyer, its new CEO, is working hard and smart to grow the <br /> business. It is likely that a new employee will be added in the near future. <br /> We remain highly optimistic about the long term success of VP. Yours truly <br /> is a cash investor in the company. <br /> • <br /> Page 6 <br />