Working progress report

Technical Review Board joint project "Porting Etalon-technology on DB2 and iSeries"

IBM corp, Partner World for Developers, Rochester, Minnesota. USA,

29 January 2002 - I February 2002

Participants.

IBM corp , Partner World for Developers,

Gottfried Schimunek, Consulting IT Architect Application Design

Mike Cain, Senior Technical Support Manager

Charlie Quigg, iSeries Porting Consultant Enterprise System Group

Kent Milligan, Senior Software Engineer

Jarek Miszczyk, Senior Software Engineer

Michael Sandberg, e-business App Programmer IBM eServer iSeries

Cefey

Marina Khokhlova, CEO

Andrey Drozdov, deputy chief officer

Mikhail Vorotnev, user interface designer

Pasko Nikolai, SW engineer, database specialist

Goals:

Analysis, estimation and review of a project plan ‘Porting Etalon-technology on the DB2 and iSeries'

Letter of intent for partnership

Performed work:

Cefey company:

Company presentation

Etalon technology presentation

Introduction and analysis of:

Etalon modeling concepts for object management

Etalon product architecture as it pertains to the ERP application development

Etalon product technological design

Etalon ‘case-technologies’ development tools for systems analytics

Etalon applications for end users

IBM corp Partner World for Development (PWD)

Overview:

DB2/UDB for iSeries

Introduction to the query optimizer

Indexing strategy on iSeries

SQL and access methods

Extended dynamic SQL/ODBC'

Performance tuning with DB monitor

Compilers on iSeries

Questions and answers discussion on the results of preliminary testing in Moscow of selected tasks of Etalon applications on DB2 and iSeries.

Development of a draft plan for the porting of Etalon technologies on DB2 iSeries platform including project stages, detailed tasks description, project timeline and resource requirements estimation

Results.

Cefey acknowledged the excellent technical qualification of IBM specialists participated in the TRB Which is one of the major prerequisites of a successful realization of porting Etalon products to iSeries

IBM TRB participants offered their positive opinion regarding the high level and solid potential

Etalon scientific and technological solutions

Cefey specialists participated ii the TRB

which are major prerequisites of a successful realization of porting Etalon products to iSeries.

Conducted meeting with Elaine Case, Director of Business Partner and Channel Enablement to reconfirm porting activities

Meet with Buell Duncan, General Manager eServer Midmarket to introduce Etalon solution of Cefey company as a new' iSeries solution to the Russia marketplace

Attachments:

Draft project plan (Attachment 1)

Draft project timeline (Attachment 2)

Draft detailed action plan (Attachment 3)

Resource requirement estimation (Attachment 4)

Product high level design document (Attachment 5)

IBM will prepare draft agreement between Cefey and IBM corp.