LERACH COUGHLIN STOIA GELLER RUDMAN & ROBBINS LLP WILLIAM S . LERACH (68581) 2 SPENCER A. BURKHOLZ (147029) DANIEL S. DROSMAN (200643) 3 JONAH H. GOLDSTEIN (193777) MATTHEW P. MONTGOMERY ( 180196) 4 JESSICA T. SHINNEFIELD (234432) 655 West Broadway , Suite 1900 5 San Diego, CA 92101 Telephone : 619/231-1058 6 619/231-7423 (fax) Bi11L@lerachlaw .com 7 [email protected] [email protected] 8 [email protected] [email protected] 9 [email protected] - and - 10 PATRICK J. COUGHLIN (111070) LESLEY E . WEAVER (191305) LEVIN, PAPANTONIO, THOMAS, MITCHELL, 11 100 Pine Street , Suite 2600 ECHSNER & PROCTOR, P.A. San Francisco, CA 94111 TIMOTHY M. O'BRIEN (pro hac vice) 1 2 Telephone : 415/288-4545 316 South Baylen Street , Suite 600 415/288-4534 (fax) Pensacola, FL 3250 1 13 [email protected] Telephone : 850/435-7000 [email protected] 850/497-7057 (fax) 14 Co-Lead Counsel for Plaintiffs 15 UNITED STATES DISTRICT COURT 1 6 NORTHERN DISTRICT OF CALIFORNI A 17 SAN JOSE DIVISION 18 In re CISCO SYSTEMS, INC. SECURITIES ) Master File No.C-01-20418-JW(PVT) 19 LITIGATION ) . 20 CLASS ACTION
21 This Document Relates To : DECLARATION OF JOSEPH S . KRAEMER, Ph.D. IN SUPPORT OF MOTION FOR 22 ALL ACTIONS . FINAL APPROVAL OF CLASS ACTION SETTLEMENT AND PLAN O F 23 ALLOCATION OF SETTLEMENT PROCEEDS, AND AWARD OF 24 ATTORNEYS FEES AND 25 REIMBURSEMENT OF EXPENSE S
26 DATE: December 5, 2006 TIME : 9:00 a.m. 27 CTRM: The Honorable James Ware
28 1 I, Joseph S. Kraemer, Ph.D ., declare as follows :
2 INTRODUCTION 3 1 . I submit this declaration to set forth the basis for the charges incurred by 4 plaintiffs' counsel for my work in connection with the action entitled In re Cisco Systems, Inc. 5 Securities Litigation , No. C-01-20418 -JW(PVT). I performed all work in connection with the 6 Cisco litigation on an assignment basis . 7 2. The purpose of this declaration is to summarize my professional qualifications 8 I and the services I rendered in connection with the Cisco litigation. 9 1 QUALIFICATIONS 10 I
11 3 . I am currently a Director at the firm of Law & Economics Consulting Group
12 ("LECG") where I work in the Washington, DC office. I am a member of th e
13 telecommunications industry practice group.
14 4. I have consulted in the telecommunications and high technology industries since
15 1975 . My areas of expertise include business strategy, regulation, market analysis, new product
16 development and rollout, revenue/cost forecasting and operational improvement. I have
17 provided consulting services to a range of telecommunications service providers including :
18 incumbent local exchange carriers, competitive local exchange carriers ("CLECs"),
19 interexchange carriers, wireless carriers and satellite carriers . I have also consulted with network
20 equipment and high technology manufacturers, as well as with television and radio
21 broadcasters/content providers. At various times, financial institutions have engaged me to
22 perform due diligence on potential investments in telecommunications companies /ventures. The
23 range of clients served includes both start-up companies and well established service providers .
24 My clients have included companies in North America, Europe and Asia.
25 5 . I began my consulting career at, and was a partner with, Touche Ross (which later
26 merged with Deloitte, Haskins & Sells to form Deloitte & Touche) where I led the Globa l
27 Telecommunications and Electronic Service practice. In 1994, after retiring from Deloitte &
28 DECLARATION OF JOSEPH S . KRAEMER, Ph.D . IN SUPPORT OF MOTION FO R FINAL APPROVAL OF CLASS ACTION SETTLEMENT - C-01-20418-JW(PVT) - 1 - 1 Touche, I joined EDS where I led a consulting practice focused on the telecommunications, hig h
2 technology and media industries.
3 6. In 1999, I left EDS and joined PHB Hagler Bailley ("PHB"), an economic and
4 I management consultancy, where I led the firm's telecommunications practice . When PHB was
5 I sold, I left and joined LECG where I continue to provide consulting services to
6 telecommunications service providers.
7 7 . I am a Certified Public Accountant (Virginia) and a Certified Managemen t
8 Consultant. My education includes a Ph .D. and Masters degree (University of Michigan), a
9 Masters of Business Administration (George Washington University), and a Bachelor's degre e
10 (Georgetown University). I currently serve as an adjunct professor at both Georgetown
1 1 University's McDonough School of Business and at American University's Kogod Business
12 School where I teach courses related to electronic commerce and Internet-based business strateg y
13 and practice.
14 8 . I have appeared as an expert witness in multiple regulatory proceedings and in
15 disputes involving mediation, arbitration and litigation. I have also testified before state and
16 federal legislative committees on competition and other public policy issues in the
17 telecommunications and television industries.
18 9 . My curriculum vitae is attached hereto as Exhibit A.
19 10 . I was compensated for my work on this case at my usual and customary billin g
20 I rate of $425 per hour. My compensation was not dependent on the outcome of this matter or on
2 1 the opinions I expressed.
22 I DESCRIPTION OF WORK PERFORMED 23 11 . The law firm of Lerach Coughlin Stoia Geller Rudman & Robbins LLP retaine d 24 me in this case as a telecommunications industry expert . In that role I was engaged to express an 25 opinion as to : (1) whether reports filed by defendants' experts, James H . Vander Weide ("Vander 26 Weide") and Jeffrey P . Williams ("Williams"), accurately described industry conditions ; (2) the 27
28 DECLARATION OF JOSEPH S. KRAEMER , Ph.D. IN SUPPORT OF MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT - C-01-20418-JW (PVT) -2- 1 impact of those conditions on Cisco System, Inc .'s ("Cisco") business plans; and (3) what was
2 known and disclosed by Cisco's management with respect to that impact .
3 12 . If there were defects in reports filed by Vander Weide and Williams, then I was
4 asked to correct such errors, supply additional information and/or provide the necessary industry
5 context on an as required basis so as to correct defects in the expert reports of Vander Weide an d
6 I Williams.
7 13 . In preparing my report, I reviewed the relevant sections of the Vander Weide and
8 Williams Reports, as well as the documents listed in Exhibit B attached hereto . Those
9 documents included:
10 (a) The First Amended Consolidated Complaint for Violation of the Federal
11 Securities Laws;
12 (b) The Expert Report of D . Paul Regan;
13 (c) More than a dozen transcripts of depositions taken in the litigation;
1 4 (d) A book about Cisco ;
15 I (e) Numerous internal documents produced by Cisco in discovery ;
16 I (f) Economic data; and
17 (g) SEC filings for Cisco and several other companies within the
18 telecommunications or network provider industry.
19 14 . While the Vander Weide report suffered from a multitude of errors and omissions ,
20 I identified the core defects as follows :
21 (a) Vander Weide's "Summary of Opinions" contains five opinions of which
22 the fourth ("[t]he rapid decline in industry revenues in the spring of 2001 was unexpected") and
23 fifth ("Cisco's vendor financing and inventory practices were a rational and necessary response
24 to industry and competitive conditions") were the most relevant and significant to the issues
25 raised in the case .
26 (b) Although the relevant period in this case included the full calendar year
27 I 2000, Vander Weide emphasized industry conditions in the spring of 2001 in his fourth summar y
28 I DECLARATION OF JOSEPH S . KRAEMER , Ph.D. IN SUPPORT OF MOTION FO R FINAL APPROVAL OF CLASS ACTION SETTLEMENT - C-01-20418-JW(PVT) - 3 - 1 opinion while largely ignoring conditions during 2000 . After analyzing Cisco's internal
2 documents, deposition testimony from Cisco's management and publicly-available documents
3 such as SEC filings, scholarly articles and books, and economic data, I concluded that by mid-
4 2000, the external market conditions had become adverse and put the successful attainment of
5 Cisco's FY 2001 (beginning August 2000) business plan goals at risk . The record showed that
6 the information necessary to understand the market situation was in the possession of Cisco
7 management . However, Cisco's management chose to ignore information that was contrary to
8 the attainment of the company's FY 2001 plan . Consequently, Cisco's management failed to
9 disclose information in a timely way that would have been of value to investors .
10 (c) I also concluded that Cisco seemed to have viewed vendor financing as a
11 sales channel or as a sales channel complement . Vendor financing was focused primarily on the
1 2 Service Provider ("SP") markets , especially in Cisco's FY 2001 . The CY 2000 surge in the
1 3 demand for vendor financing should have served as a warning of deteriorating financial
14 conditions among customers and prospects in the SP industry . The information required to
15 update the financial information in the lease/loan files (had Cisco bothered to collect it) would
16 have provided even more confirmation that the new entrants in the SP industry (e.g., CLECs)
17 were at risk of insolvency .
18 15. My analysis led me to conclude that Vander Weide missed or failed to describe 19 the basic situation as it existed in the time frame addressed by his report . For example, Cisco's 20 FY 2001 (August 2000-July 2001) plan was dependent upon a significant increase both in 21 bookings and revenues in the SP line of business . Furthermore, within the SP industry, the plan 22 targeted primarily the U .S . SP industry, in particular, Network Service Providers ("NSPs") and 23 buyers of optical equipment . Beginning in the first quarter of FY 2001, Cisco failed to execute 24 against its FY 2001 U .S. SP plan. 25 16 . I discovered that Cisco was positioned ideally to understand its customers and th e 26 I markets, including and especially the SP market, in which Cisco competed . The critical 27 I components of this information engine included an Executive Information System ("EIS") tha t 28 DECLARATION OF JOSEPH S . KRAEMER, Ph.D. IN SUPPORT OF MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT - C-01-20418-JW(PVT) -4- 1 facilitated the "virtual close" on any given day or hour, 14,000 sales personnel in daily contact
2 with customers, and a forecasting process that was designed to facilitate the attainment of
3 "stretch" goals. Although Cisco's management chose to disregard the information received
4 about market conditions, such information was available on a near real-time basis . For Cisco to
5 claim ignorance of market conditions until late December 2000 or early January 2001 meant tha t
6 Cisco's management chose recklessly to disregard information that contradicted what
7 management wanted to hear, even when such information was available from systems and
8 processes that management had put in place .
9 17. Accordingly, I concluded that in its communications with investors, Cisco's
10 management recklessly disregarded information and signals received from the SP market -
11 including customers, its own sales people, competitors, industry analysts, and its own forecastin g
1 2 system/EIS.
13 18 . I also concluded that the analysis and conclusions of Williams were flawed .
14 Many of the errors and omissions in the Williams report overlapped with those identified in the
1 5 Vander Weide report, including:
16 (a) Williams disregarded the economic linkages between the dot .coms and the
17 NSP sector;
18 (b) Williams ignored both the timing and the significance of the closure of the
19 public capital markets to new entrants, such as CLECs and ISPs ;
20 (c) Williams used revenue as his primary indicator of economic conditio n
21 I rather than other more relevant indicators including, and especially, cash flow;
22 (d) Williams failed to acknowledge the significant deterioration of ke y
23 inventory metrics, such as inventory turns and growth rates in excess of revenues ; and
24 (e) Williams failed to identify the undisclosed risks and the implications of
25 the expansion of Cisco's vendor financing program in early CY 2000.
26
27
28 DECLARATION OF JOSEPH S . KRAEMER, Ph.D . IN SUPPORT OF MOTION FOR FINAL APPROVAL OF CLASS ACTION SETTLEMENT - C-01-20418-JW(PVT) - 5 - 1 19. Finally, both Williams and Vander Weide failed to focus on the core issue of what 2 Cisco's management knew, but failed to disclose and/or recklessly ignored in mid-to-late CY 3 2000. 4 FEES AND EXPENSE S 5 20. Pursuant to a non-contingent agreement with plaintiffs' counsel, I spent 574 .5 hours 6 working on this matter at a rate of $425 per hour. My case associate, Charlotte Brown, spent 65 .5 7 hours assisting me in this matter at a rate of $125 per hour . Another principal at LECG, Richard 8 Levine, spent 8 .5 hours assisting me in this matter at a rate of $350 per hour . The fee for my 9 firm's expert services totaled $244,162.50. Plaintiffs' counsel has paid my firm's fees and 10 expenses related to this matter . 11 21 . In addition, I incurred $4,949.12 in expenses directly related to my work as an 12 expert in this matter. 13 22. Attached hereto as Exhibit C is a summary further detailing my fees and 14 expenses.
15 I declare under penalty of perjury under the laws of the United States of America that the 16 % foregoing is true and correct. Executed this ILeday of November, 2006, at Washington, DC. 17 18 19 20 JOSEPH S . KRAEMER, Ph.D. 21 22 23 24 25 26 27 28 II DECLARATION OF JOSEPH S . KRAEMER, Ph .D . IN SUPPORT OF MOTION FO R FINAL APPROVAL OF CLASS ACTION SETTLEMENT -C-01-20418-JW(PVT) -6- CERTIFICATE OF SERVICE
I hereby certify that on November 20, 2006, I electronically filed the foregoing with th e
Clerk of the Court using the CM/ECF system which will send notification of such filing to the e-mail addresses denoted on the attached Electronic Mail Notice List, and I hereby certify that I hav e mailed the foregoing document or paper via the United States Postal Service to the non -CM/ECF participants indicated on the attached Manual Notice List .
s/Spencer A. Burkholz SPENCER A . BURKHOL Z
LERACH COUGHLIN STOIA GELLER RUDMAN & ROBBINS LLP 655 West Broadway, Suite 1900 San Diego, CA 92101 Telephone: 619/231-1058 619/231-7423 (fax) E-mail: SpenceB(a%lerachlaw. com Mailing Information for a Case 5 :01-cv-20418-JW
Electronic Mail Notice Lis t
The following are those who are currently on the list to receive e-mail notices for this case .
• George E. Barrett [email protected] • Eric J. Belfi [email protected] ElectronicCaseFiling@labaton .com • Stuart L . Berman sberman@sbclasslaw .com • Ronald S Betman rbetman@winston .com • Patrice L . Bishop service@ssbla .com • Norman J. Blears nblears@hewm .com susan .griffin- preston@hellerehrman .com;yvonne. [email protected];victor.gonzales@hellereh rman .com • Ruth Marian Bond, Es q ruth .bond@sfgov .org blanca [email protected] • Jennifer Corinne Bretan jbretan@fenwick .com • George H. Brown gbrown@hewm .com nsims@hewm .com ;rsazegari@hewm .com • Spencer A. Burkhol z SpenceB@lerachlaw .com e_file_sd@lerachlaw .com;[email protected] • Connie M. Cheung conniec@lerachlaw .com e_file_sd@lerachlaw .com;e_file_sf@lerachlaw .com ;KiyokoH@lerachlaw .com • James Nixon Daniel [email protected] • Daniel S . Drosma n DanD@lerachlaw .com e_file_sd@lerachlaw .com;[email protected] • Krista M . Enns kenns@winston .com hhammon@winston .com • Kathryn Fritz [email protected] • Donald P. Gagliardi [email protected] [email protected] • Bruce C. Gibney bgibney@hewm .com • Daniel C. Girard [email protected] cma@girardgibbs .com • Lionel Z. Glancy info@glancylaw .com • Jonah Goldstein jonahg@lerachlaw .com • Mark Gordon • John Halebian jhalebian@lshilp .com Ishscanner@lshllp .com • Thomas J. Harrison • Alice L. Jensen [email protected] vadelman@fenwick .com • Robert A. Jigarjian CAND .USCOURTS@CLASSCOUNSEL .COM • Willem F. Jonckhee r wjonckheer@schubert-reed .com • Dean S. Kristy [email protected] • Felix Lee [email protected] • William S. Lerach e_file_sd@lerachlaw .com • Robert L. Michels rmichels@winston .com • Matthew Paul Montgomery mattm@lerachlaw .com e_file_sd@lerachlaw .com ;[email protected] • Kevin P . Muck kmuck@fenwick .com cprocida@fenwick .com • Lucas Olts LukeO@Lerachlaw .com • Troy Alan Rafferty trafferty@levinlaw .com balverson@levinlaw .com • Brian J. Robbins [email protected] zimmer@ruflaw .com;[email protected];[email protected] • Darren J. Robbins • Daniel T. Rockey [email protected] nsims@hewm .com;rsazegari@hewm .com • Michael L . Rugen mrugen @hewm :com • Robert Yale Sperling rsperling@winston .com • James G . Stranch, III jgs@branstetterlaw .com [email protected] • Jessica Tally JessicaT@lerachlaw .com • Carol Lynn Thompson CTHOMPSON@HEWM .COM • Lesley E. Weaver [email protected] e_file_sf@lerachlaw .com • Dan Keith Web b dwebb@winston .com • Ethan Richard York [email protected] ECF_CH@winston .com
Manual Notice List
The following is the list of attorneys who are not on the list to receive e-mail notices for this case (who therefore require manual noticing). You may wish to use your mouse to select and copy this list into your word processing program in order to create notices or labels for these recipients.
J . Erik Connolly Winston & Strawn LLP West Wacker Drive Chicago, IL 60601-9703
Christopher Alan Garcia Attorney at Law Dell, In c 1 Dell Way-Legal Round Rock, TX 78682
Frederick W . Gerkens, II I Wechsler Harwood Halebian & Feffer, LLP 488 Madison Avenue, 8th Floo r New York_ NY 10022
Corey D . Holzer Holzer Holzer & Cannon LLC 1117 Perimeter Center West Suite E-10 7 Atlanta, GA 30338
Peter Lawrence Kaufma n Levin Papantonio Thomas Mitchell Echsner 316 South Baylen Street, Suite 600 Pensacola, FL 3250 2
Frederick T . Kuykendal l Levin Papantonio Thomas Mitchell Echsner 316 South Baylen Street, Suite 600 Pensacola, Fl 3250 1
Christopher R . Leclerc Heller Ehrman LL P 275 Middlefield Road Menlo Park, Ca 94025-3506 Fredric G . Levi n Levin PapantonioThomas Mitchell Echsner 316 South Baylen Street, Suite 600 Pensacola, fL 3250 1
Timothy M . O'Brien Levin Papantonio Thomas Mitcgell Echsner 316 South Baylen Street, Suite 600 Pensacola, Fl 3250 1
J . Papantonio Papantoni o Levin, Papantonio, Thomas, Mitchell, Ech 316 South Gaylen Street, Suite 600 Pensacola_ Fl 3250 1
Joe Scarboroug h Levin, Papantonio, Thomas, Mitchell, Ech 316 South Baylen Street, Suite 600 Pensacola_ Fl 3250 1
Robert E . Smith, J R Levin Papantonio thomas Mitchell Echsner 316 South Baylen St ., Ste 40 0 Pensacola, FL 32502
Melvyn I . Weiss Attorney at Law One Pennsylvania Plaza New York, NY 10119-1063 Manual Service List (cont.) In re Cisco Systems, Inc . Sec. Litig. Master File No. C-01-20418-JW(PVT)
Stephen B. Morris, APC MORRIS and ASSOCIATES 401 West "A" Street, Suite 2200 San Diego, CA 92101 Telephone: 619/239-1300
Wayne Schneider, General Counsel NEW YORK STATE TEACHERS' RETIREMENT SYSTEM 10 Corporate Woods Driv e Albany, NY 12211-2395 Telephone : 800/356-312 8
Richard P . Bosson 2703 Montague Court East Clearwater, FL 3376 1
Charles W. Morgan 2220 Calle Opal o San Clemente, CA 92673 Telephone: 949/498-8296
John P. Dillman Tara L. Grundemeier 1301 Travis, Suite 300 Houston, TX 77002 Telephone : 713/844-343 6
John R. Ihms 19149 Sierra Estates Drive Newhall , CA 91321-227 2
Lee M. Cassidy 1503 North Colonial Court Arlington, VA 22209
Steven L. Moldane 3309 142nd Place NE Bellevue, WA 98007-3249 Telephone : 425/376-2830 EXHIBIT A e
Joseph Kraemer, Director, LECG
1725 Eye Street, NW, Suite 800 Washington, DC 20006 direct: 202.973.9384 mobile : 703 .501 .1270 fax: 202.466.4487 email: jkraemer@lecg .com
BIO/SUMMARY Dr. Kraemer holds the title of director at the Washington DC office of LECG . For over .25 years, he has worked with, and served as counselor to, senior management at communications, media, and high-tech companies in Asia, Europe, and the Americas . He teaches electronic commerce and business strategy courses at both the Georgetown University McDonough School of Business and the Kogod Business School at American University. The Progress & Freedom Foundation (Washington, D .C.) has designated him an Adjunct Fellow.
EDUCATION Ph.D ., University of Michiga n M .B .A., George Washington University M .A., University of Michigan B.S., Georgetown University
PRESENT POSITIONS LECG, Director, 2000 to present American University, Adjunct Professor, 1998 - present Georgetown University, Adjunct Professor, 1999 - presen t
TEACHING EXPERIENC E Dr. Kraemer serves as an Adjunct Professor and guest lecturer at Georgetown University's McDonough School of Business in Washington, D.C. where he teaches "Electronic Commerce Strategy & Policy." Dr. Kraemer is also an Adjunct Professor at the Kogod School of Business at American University where he teaches the "Fundamentals of Electronic Commerce," a required course for upper classmen.
OTHER POSITIONS HELD PUTNAM, HAYES & BARTLETT/HAGLER BAILLY, Senior Vice President, 1999-2000 EDS/A.T.KEARNEY, Vice President, 1994-199 9 DELOITTE & TOUCHE, Partner (Retired), 1989-1994 TOUCHE ROSS & CO ., Partner ( Retired), 1974-1989 MERRILL LYNCH, Investment Research and Advisor, 1972-1974 U.S. ARMY, Captain, 1966-197 2
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BOARD MEMBERSHIPS Exigent, Inc. (Melbourne, FL): public company in the software business ; member of Audit & Investment Committees; chaired Outside Director Committee that presided over sale of company to Harris Corporation (2000-2001) . Center for Telecommunications Management (Los Angeles ) : University of Southern California (1998-2001) . Linguatek, Inc. (McLean, VA): start-up company in software industry ; sold to Sonus ; member of Advisory Board (1997-2001) . Wintergreen Partners, Inc. (Charlottesville , VA): Resort Operator ; Chairman Finance Committee, and member Executive Committee (2004-Present) . Wintergreen Hospitality LLC (Charlottesville , VA): Resort Investment Fund ; member of the Board (2005-present) .
PROFESSIONAL Certified Public Accountant (CPA) Certified Management Consultant (CMC )
SELECTED BUSINESS & CONSULTING EXPERIENCE : Strategy and Financin g • Wireless Broadband Business and Market Plan . Prepared a plan for a national wireless broadband business; compiled secondary sources for purposes of market research and analysis; assessed both communications and entertainment services with priority assigned to supplying access and connectivity for business customers ; included P&L and balance sheet pro formas . • Diversification and Investment Strategy . Directed a case team that analyzed investment options in the United States; the scope included local, long distance, wireless, competitive access, entertainment, business information services and Internet-related opportunities ; the core issue was how to leverage investments to become a full service provider in the United States; performed for a major European carrier . • Fiber Optics Demand Study . Forecasted the demand for fiber optics over a five-year period; °study involved interviews with current and potential customers, data analysis, and a regression model to forecast levels of demand given different economic and market assumptions . • Broadband Consumer and Business Market Assessment. Conducted primary market research to identify addressable markets for cable TV, Internet access, and telephony ; client architecture was hybrid fiber-coax (HFC) ; developed penetration strategies for each segment and for the total market, including optimal service packaging and pricing ; developed strategy to achieve market share, cash flow and EBITDA targets set by the Board of Directors and potential JV partners . • Telecommunications Market Entry by Power Companies . Led several analyses of the optimal strategy for power companies to enter telecommunications markets ; scope included all options including, facilities-based, resale, and leasing towers and rights-of-way; included bundling telecommunications and energy at the retail level ; involved primary and secondary market research .
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• Dark Fiber Business Strategy. Directed a case team to evaluate the options available to a natural gas pipeline company that wanted to deploy and sell fiber optic cables along its inter- city rights-of-way; evaluated demand for, and supply of, fiber along specific routes ; identified costs and benefits of entry; utilized primary and secondary sources for market analysis ; recommended potential partners for our client among cable and telephone companies . • Strategic Assessment of the Future of the Broadcast Television Industry . Reviewed historic trends (1993-2002) and projected the probable future economics of broadcasting (2003-2007) ; scope included all stages of the industry supply chain (programming, networks, local distribution, and syndication) ; stress was placed on the relative economics of cable vs . broadcasting ; participants included broadcast networks and station groups ; conducted interviews that included senior executives, as well as station-level managers in multiple markets . • Market Entry and Diversification Strategy. Assisted a major multistate electric utility to develop an entry strategy into various segments of the telecommunications industry to include wireless, broadband, and switched voice with both a wholesale and retail component to the strategy ; used primary and secondary sources ; included partnership options at the line of business level. • Cable Television . Directed support for a county government that was reviewing the transfer of its cable franchise from one MSO to another ; scope included financial condition and operating efficiency . • Analysis of Fundamental Changes in the Global Network Services Industry . Our client, an information technology services company and network services reseller, engaged LECG to analyze'the nature and extent of the changes to the telecommunications industry in the 1998-2002 period with projections for 2003-2005 ; our client used the analysis both to : (a) change business strategies ; and (b) restructure its carrier contracts . • Analyses of Voice, Data, and IP Market Competition . LECG was engaged by a regional bell operating company (RBOC) to assess the nature and extent of competition in multiple states within its service territories; our analysis covered : (a) the types of competitors ; (b) the contested markets by service line and geographic area ; (c) competitive strategies, especially those targeted at business customers ; (d) competition from mobile wireless, cable television digital systems, and IP-based instant messaging ; and (e) critical business trends (2002- 2005); used secondary sources for market and competitive information . • Post-Acquisition Integration Strategy for Two Telephone Companies . Defined a course of action by which the two parties to the transaction could integrate business strategies and consolidate operating functions but leave the acquired company sufficient autonomy so as to preserve minority shareholder value ; reviewed organizational models from several industries ; scope also included dispute resolution and HR policies . • Market Entry Strategy . Developed 'a U .S. market entry strategy for a Canadian carrier; used secondary sources to identify trends in U .S. markets for underserved opportunities ; scope included voice, data, and IP services, as well as prepaid calling cards, dial around, and resale. • Due Diligence . For a London-based bank consortium, directed a due diligence assessment of a mobile satellite services company; capital at risk exceeded $1 .0 billion ; conducted full review of operating systems, business systems, space, handset, and ground systems as well as program management processes and capabilities ; identified risks to cost, budget, and
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market-based performance specifications ; prepared capital draw down schedule tied to key milestones ; provided support for IPO, high-yield debt, and bank structured financing . • Customer Retention Strategy. Led a joint consultant-client team that developed a Customer Relationship Management strategy for a national wireless carrier ; scope was end- to-end from lead generation and initial sale through customer care, add-on sales, credit, and collections; included identifying required changes to culture, processes, and systems . • Market Study of Alternative Access Services . Directed a study for an ILEC of the market for metropolitan area fiber optic-based networks ; utilized primary and secondary sources; scope included an analysis of the competitive implications for pricing, service, and network configuration; developed a range of potential competitive responses . • Analysis of the Market for Small Satellites . Directed a study of the civilian market for small space satellites ; scope included a worldwide supply-demand analysis of transponders, as well as a comparison of the economics of small versus traditional satellites to provide domestic and/or international communications services . • International Partnership Negotiations . Assisted three carriers (one each from the U .S., Europe, and South Asia ) to define the benefits of forming a new partnership to provide global end-to-end provisioning to multinational corporations; conducted primary and seconda ry research ; analyzed the potential market , evaluated management structures for the new entity, and valued the partnership contributions of each carrier . • Global Strategy . Directed a study for an overseas carrier to analyze the international strategies of major U.S. and foreign carriers ; developed criteria for success and forecasted the "winners " over a ten-year period , study was used by our client to develop a competitive international strategy . • International Service Contracting Suppo rt. Supported an agent representing multiple lesser-developed country PTTs; assisted to assess an existing contract and provided recommendations for a to-be-negotiated extension with emphasis on price adjustments under a most-favored-customer arrangement with mark-to -market provisions . • Market Entry by a Second Korean Carrier. Directed a study of the market for long- distance domestic and international voice and data services; scope included design of a fiber optic backbone network and an analysis of the economic , operational , and market implications of entry by the second carrier; prepared a business plan including capital requirements, adoption cu rves, penetration strategies , and financial projections . • National Digital Multicasting Television Business Feasibility Study . Assisted to forecast the costs and revenues over an eight-year period; included all aspects of the business such as market analysis using primary research , program acquisition, technical feasibility , set top box development and distribution, operations , sales, marketing , and billing ; also included the action-reaction cycle of competitors . • Nationwide Multipoint Distribution System (MDS) Feasibility Study and Cost Analysis . Managed a study to estimate the feasibility and cost of developing a two-channel MDS in the top 100 television markets; included capital expenditures for equipment, towers, and software, as well as ten-year operating pro formas showing revenue and operating costs . • Feasibility Study of Using Microwave for Home Delivery of Multichannel Video . Directed an analysis of the technology and cost of a nationwide MDS system in the United Kingdom ; client was the U .K. government; scope included market adoption scenarios, financial forecasts, and an overall feasibility assessment.
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• Residential Video Market Analysis. Analyzed the fundamentals of the entertainment video market using secondary sources ; emphasized advertising vs . subscription support, wired vs . wireless delivery, and analog vs. digital media ; provided in-depth comparison of cable, DBS, LMDS, MMDS, and standard over-the-air systems . • Milestone Study of the Effects of Competition and the AT&T Divestiture . Performed for a foreign dominant carrier confronted with potential divestiture by its government ; scope included price effects, social effects, impact on R&D, public opinion, labor impacts, and effects on business and residential users ; used secondary sources in combination with primary research . • Regional Bell Operating Companies Market Research . Directed multiple market surveys for RBOCs to quantify the existing nature and extent of competition in their service territories and forecast future losses of market share, lines, and profitability ; survey results used as basis for new business plans, new product development, modification of competitive strategies, and regulatory testimony . • Delphi Panel. Directed a study utilizing a panel of North American, Japanese, and European experts on the subject of global competition among international carriers ; objective was to forecast potential winners and their strategies ; used iterative survey rounds as a forecasting technique. • Spectrum Licensing and Availability . Participated in a spectrum study that compared U .S. licensing and assignment practices to specific proposals by the U .K. government. • Fiber Optics Feasibility and Due Diligence . Reviewed the feasibility of a fiber optics network in a major Pennsylvania city ; client was a financial institution; scope included interviews with potential customers and review of city-specific market data . • Private Satellite Network Study . Directed a market study of the use of private satellite networks for voice, data, and video traffic; analyzed trade-offs between fiber optics and satellites for long-haul transmission . • Aerospace Market Opportunity and Competitive Analysis . Assessed the market for satellite-based communications services and the activities of competitors in the services business for an aerospace manufacturer of satellites and launch vehicles ; objective was to evaluate potential entry into the services business . • New Telecommunications Venture Evaluation for a Bank. Conducted due diligence on the business plan of a venture proposing to deploy fiber optic cable in the Washington, D .C . area; client was a major bank that was considering financing the venture ; scope included interviews with potential customers and an analysis of the competition, as well as review of financial forecasts . • Satellite Communication System Feasibility and Implementation . Supported the Public Broadcasting Service (PBS) and National Public Radio (NPR) in their successful effort to move their programming to satellites; scope included feasibility study, RFP preparation, vendor negotiation, program management, and earth station site acquisition ; total earth stations exceeded 300 . • Retail Business Entry . Assisted an international carrier's carrier to initiate a retail business ; scope included channel design, avoidance of channel conflict with existing resellers, pricing, cost allocation, profitability measurement, and automated systems support. • Due Diligence. For equity investors, directed due diligence on a Russian-French satellite venture; scope covered manufacturing, systems engineering, testing, and launch for a four-
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satellite GEO system; also included program management and contractual risk mitigation activities; identified risks, their probability of occurrence, and the potential impact on cost, schedule, and performance. • Data Services Joint Venture . Supported a joint venture between an IT services company and a RBOC; negotiations and structuring the venture ; used primary and secondary market, research; subsequently assisted to structure go-to-market strategy in terms of products, pricing, and distribution channels . • Competitive Local Exchange Carrier Strategy, Processes, and Business Launch . Supported the rollout of a CLEC, including market definition and penetration strategies, organizational structure, partner and agent relationships, operating support systems, and outsourcing tactics . • Digital Television (DTV). Conducted senior management roundtables on DTV technology and rollout; prepared a book for publication by the National Association of Broadcasters (NAB) on use of DTV spectrum to transmit revenue-generating data carriers . • Economic Value Creation (EVC). Supported an assessment of the EVC generated by the world's largest telecommunications companies ; rank ordered the carriers; identified at the carrier level specific levers that could increase EVC . • Segmentation Analysis and Divestiture Options . For a leading book publisher, analyzed the business interdependencies (e.g., cross selling, market reputation impact) of the various segments -- journals, education, professional, and trade ; strategic issue was the potential for selling off one or more segments to focus on the remaining segment(s) without damaging the overall market position of the company . • Market Entry Acceleration . Supported market entry by a new carrier, including market entry tactics, operating processes, and support system requirements ; included retail and wholesale markets; accelerated market entry and cashflow . • Corporate Restructuring and Market Assessment - Satellite Communications . Directed a market-based analysis of five global businesses : (1) international public switched service ; (2) direct-to-home video ; (3) video contribution and distribution ; (4) very small aperture terminal services; and (5) consumer multimedia/Internet services ; based on the concept that the market drives strategy which then drives structure; recommended a partial spin-off of a global telecommunications business unit . • Merger & Acquisition Analysis . Led a strategic assessment for an interexchange carrier ; potential candidates were information services/ technology companies ; focus was upon synergies of a carrier with an IT company ; scope included niche markets and dominant IT firms. • Teaming and Joint Venture Opportunities. Directed a strategic market study to identify teaming opportunities and joint ventures between RBOCs and facilities-based long distance carriers; scope included joint marketing, industry-specific network services, network management, billing, and database services . • International Partnership Negotiations. Assisted three carriers (one each from the U .S., Europe, and Asia) to define the benefits of forming a new partnership to provide global end- to-end provisioning to multinational corporations ; researched the potential market using primary and secondary research methods ; evaluated management structures for the new entity, and valued the partnership contributions of each carrier .
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• Global Strategy. Directed an analysis of the international strategies of major U .S. and foreign carriers ; developed criteria for success and forecasted the "winners" over the next five to seven years ; study was used by our client to develop a competitive international strategy. • Forecast of Satellite Transponder Demand and Supply . Directed an analysis of the markets for transponders and various supply scenarios ; scope included both C and Ku band transponders; forecast covered a ten year period . • Market Study of Long-Distance Satellite Telecommunications Services . Managed a market survey for a resale common carrier that covered 16 major markets for long-distance voice and data traffic ; compiled relevant raw statistics to forecast point-to-point voice and data traffic. • Digital Television Strategy (DTV). In an effort to accelerate the rollout of DTV in the United States, conducted single and group interviews with broadcasters, consumer electronics companies, networks, and FCC staff; analyzed enhanced capabilities of DTV over analog ; developed multiple rollout scenarios ; assessed relative significance of critical factors affecting rollout; developed business case for 8VSB broadcast modulation standard . • Study of the Five-Year Demand for Satellite Earth Stations by Common Carriers and Broadcasters. Directed a market analysis for an earth station antenna manufacturer ; developed forecast using secondary sources and client's proprietary market data . • Financial Analysis of a Nationwide Satellite System . Directed a financial analysis of several options available for deployment of a second generation system of 300 earth stations; scope included ground and space segment cost projections . • Feasibility Study of the Direct Broadcast Satellite (DBS) Market. Directed a study of the competitive, regulatory, and technical risks of the DBS market . • Pricing Study for a Cable Television Program Service . Conducted a market analysis to determine the price elasticity of demand ; assisted the service to implement a successful price increase ; utilized primary market research as basis to compute subscriber willingness-to-pay .
SELECTED BUSINESS & CONSULTING EXPERIENCE: Operations and Systems • Margin Improvement at Wireless Company . Directed an analysis of the performance of a carrier's HR, Finance, Tax, and Supply Chain organization; goal was to scale support functions in order to allow revenue and profit growth without an increase in G&A costs ; scope included benchmarking over 100 metrics against industry standards and other third party sources; developed . an organizational process model; allocated labor among processes; identified inefficient practices and over-staffing ; facilitated cultural change and organizational redesign. • Operational Performance Measurement and Repo rting . Identified key performance indicators for a national wireless carrier, including corporate reports of record for inclusion in a company-wide scorecard system that focused on financial measures, customer satisfaction, and internal operating performance assessment; designated metrics and reports available from a newly-implemented ERP system . • Joint Process Improvement and Supplier Relationships . Assisted an aerospace company to redefine and restructure first and second tier vendor relationships to improve th e
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efficiency of its satellite manufacturing process ; objective was process improvement to facilitate bidding on high volume LEO and MEO contracts . • New Venture Business Launch . Assisted the management of a wireless subsidiary of a major carrier to enter the market after license award ; developed core processes (e .g., concept-to-market; sales-to-service management ; usage-to-cash; customer contact-to- restoration) and support systems necessary to begin operations and accelerate entry into the market for PCS services . • Pre- and Post-Merger Integration. Adapted a template for use by an acquiring carrier to manage pre-merger and post-merger activities; the template covers 90 days before closing and 18 months after closing and allows management to control the process to improve the probability of meeting the objectives of the transaction . • Process and System Requirements for New Service Rollouts . For a wireless carrier, defined the changes to existing order entry, activation, and fulfillment processes required by the introduction of new wireless services such as worldwide roaming and packet data ; also developed functional IT requirements to support new services rollout . • Process Improvement. For a national wireless telephony service company, directed a process improvement study of the order entry, customer activation, handset fulfillment, and network provisioning functions ; additional objective was to identify metrics and standards by which certain strategic questions could be addressed such as outsourcing, centralization, and the utility of over-the-air programming . • Fiber Optic Urban Deployment. Structured the real estate penetration strategy for the national rollout of a fiber optic-based Competitive Local Exchange Carrier (CLEC) ; focus was on negotiating with property managers and owners to accelerate penetration into target buildings across urban U .S.; also included a wireless broadband strategy to supplement the fiber infrastructure . • Local Exchange Order Entry Process and Systems . For an interexchange carrier, reengineered order entry process for the local service line of business ; reduced average elapsed time per order by 50 percent . • Rapid Rollout Product for New Carriers . Led the development of a packaged solution to accelerate market entry for new carriers; scope included market segmentation and business planning support, a full suite of core and support processes suitable for immediate implementation (e.g ., order entry, trouble resolution, billing), and automated systems requirements; objective was to put a carrier into business rapidly by leveraging pre-packaged capabilities . • Cost Reduction Through Sourcing Purchased Goods and Services . Participated in a project to reduce a carrier's cost to purchase specific categories of goods (e.g., outside plant) and services (e.g., leased labor) ; significant annual savings on the order of 15 percent identified. • Productivity, Process Improvement, and Organizational Structure. Served as senior advisor to a case team that was evaluating and improving internal processes at an Asian carrier in anticipation of intensified competition ; recommended a new organizational model to reduce duplication of functions and facilitate reorganization into separate retail and wholesale operations.
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• Long-Distance Carrier Selection . Assisted multiple clients to : (a) identify their current and expected future cost of service ; (b) formulate service requirements for voice, data, and video ; (c) issue an RFP ; (d) select a single vendor ; and (e) negotiate and implement a contract. • Satellite Vendor Selection . Directed an analysis of proposals received by a client for purchase of multiple transponders; required development of comparable costs for proposals which bundled different options into variable payment plans ; worked with the user to select most cost-effective proposal . • State of California Centrex Study. Directed a major study for the State to determine the feasibility of replacing Centrex with premise-based equipment at state offices ; scope included development of a PC-based model to run site-specific PBX versus Centrex cost analyses . • Telecommunications Study for a Major University. Directed a study of network utilizations, cost reduction possibilities, purchase vs . lease equipment choices, and voice- data integration options for the university .
SELECTED RECENT SPEECHES AND PRESENTATION S • Participated as a facilitator and commentator at management retreats focused upon the impacts of competition, revenue growth , and new product development with the associated requirements for rapid organizational change ; worked with Alcatel, Aliant, Ameritech, AT&T, Bell Atlantic, B .C. Tel, Bell Canada, Call Net, Canadian Broadcasting Corporation, Compaq, Edmonton Telephone, EDS, GTE, Hekimian, Kodak, Microsoft, National Association of Broadcasters (NAB), Nortel, Sprint (interexchange and local exchange), Telesystem, Telstra, Telus, Tribune Broadcasting, and Verizon . • "The Impact of Broadband : It Has Only Just Begun," Luncheon Speaker, America's Trust Sponsor, Capitol Hill, Washington, DC (February 2005) . • "The Myths and Realities of Universal Service ," The Progress & Freedom Foundation Sponsor, Capitol Hill, Washington, DC (December 2004) . • "Multicasting Power Panel : What's Hot, What's Not," Annual Convention of the National Association of Broadcasters, Las Vegas (April 2004) . • "The Multicasting Business Oppo rtunity," National Association of Broadcasters Futures Summit 2004; also moderated two panels, Pebble Beach (March 2004) . • "The Present and Future State of the Local Television Industry," Annual Convention of the National Association of Broadcasters, Las Vegas (April 2003) . • "Small and Medium Business Market for High-Speed Data Se rvices," United States Telephone Association's SuperComm Conference, Atlanta (June 2002) ; also given at the Telecommunication's Industry Association Meeting, Washington, D .C. (April 2002). • "Summary of Strategic Trends in the U.S. Telecommunications Industry," New Millennium Research Council, National Press Club, Washington (November 2001). • "Digital Television 's Impact on Broadcast Television," Annual Convention of the Maine Association of Broadcasters, Portland (October 2001) . • "Competition Policy and the Local Telephone Indust ry," Commentator on the address of Dr. Michael Porter at the Canadian Competition Policy Conference, Toronto (June 2001) .
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• "Facing the Realities of the Digital Television Age," Panelist at the National Association of Broadcasters (NAB) Annual Conference, Las Vegas, NV (April 2001) . • "The Dawn of the Digital Television Era : What Is & What Could Be," to the State Leadership Conference of Television Broadcasters, Washington, D .C. (March 2001) . • "Telecommunications Indust ry Investment: The Importance of Due Diligence;" at the SuperComm Conference, Atlanta (June 2000) . • "Telephony, Television & The Internet: Convergence Trends and Realities;" Sponsored by the Board of the Canadian Broadcasting Corporation (CBC), Montreal (May 2000) . • "The E-Commerce Revolution : Implications for the U.S. Telecommunications Industry ;" keynote speaker at a conference on industry strategies for the 21St century ; hosted by the Ivey School of Business of the University of Western Ontario, Ottawa (April 2000). • "E-Commerce: The Next Wave ;" at the Conference on Telecommunications and Information Markets (COTIM '99) (September 1999) . • "Technology Push & Marketing Pull: Migrating to a Data World ;" at the International Engineering Consortium's Executive Institute , Jackson Hole (July 1999) . • "The Business Case for High Bandwidth Satellites and Orbital Technology;" at the Telecom Conference organized by George Gilder and Forbes magazine, Lake Tahoe (September 1998). • "Digital Television in the United States : Long Fuse & Big Bang ;" served as co-chairman of a workshop on the future of digital television given for Congressmen and their staffs at the Rayburn House Office Building (July 1998) . • "The Competitive Environment in the Telecommunications Industry: Circa 2003-2005;" at a conference for clients and staff sponsored by Heidrich & Struggles, Dallas (June 1998) . • "Retailing in the Emerging Digital Economy;" at a conference sponsored by Les Echos on European retailing strategies, Paris (June 1998) .
PUBLICATION S • The Myths and Realties of Universal Service, with Richard O . Levine and Randolph J . May (February 2005). • "Deregulation of Retail Local Services is both Appropriate and Inevitable ," with Richard 0 . Levine and Randolph J . May, included in the International Engineering Consortium's Annual Review of Communications, (February 2005) . • "The High -Speed Access Market for Small and Medium Businesses : Total and Addressable Markets with Penetration Scenarios ," included in the International Engineering Consortium's Annual Review of Communications (Summer 2004) . • Trends in the Competitiveness of Telecommunications Markets , with Richard O . Levine and Randolph J . May, published by the Progress and Freedom Foundation (December 2003). • "The CLEC Experiment : Anatomy of a Meltdown ," with Larry F . Darby and Jeffrey A . Eisenach, published by the Progress & Freedom Foundation (September 2002) .
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• "Summary of Strategic Trends in the U .S. Telecommunications Indust ry," included in the International Engineering Consortium's Annual Review of Communications (Summer 2002). • "Local Exchange Competition : Progress in Ma ryland," with Randolph J. May, published by the Progress & Freedom Foundation (May 2002) . • Digital Television in a Digital Economy, for the National Association of Broadcasters, with Richard O . Levine (revised January 2002) . • "Beyond the Network : The E-Commerce Opportunity for the U.S. Telecommunications Industry," included in the International Engineering Consortium's Annual Review of Communications (summer 2001) . • "Local Exchange Competition : Progress in New Jersey," with Randolph J . May, published by the Progress & Freedom Foundation (July 2001) . • "Global Telecom Trends : A U.S. Perspective," included in Strategies for the 21st Century, published by the Richard Ivey School of Business at the University of Western Ontario (May 2001). • "Local Exchange Competition : Progress in Pennsylvania ," with Randolph J. May, published by the Progress & Freedom Foundation (October 2000) . • "The Market -Driven Economics of Voice over Internet Protocol," included in Carrier IP Telephony 2000, published by the International Engineering Consortium (July 2000) . • "The Convergence of Energy and Telecommunications ," Perspectives (4th Quarter 1999) . • "Tentative Steps Toward New Local Loop Technology," included in adapting to New Realities: The Canadian Telecommunications Industry, published by the Richard Ivey School of Business at the University of Western Ontario (Fall 1998). • "Winners and Losers Emerge From Judicial Review of the FCC' s Local Exchange Competition Order," with Richard O . Levine, A.T. Kearney (August 1997). • "Local Competition : The War of Many Against One (1997-2001)," A.T. Kearney Industry White Paper Series (Summer 1997) . • "A Primer on Technology Convergence : Causes & Effects," Annual Review of Communications 1997 by the International Engineering Consortium . • "The Future of Digital TV : Market Rollout Scenarios and Prospects for a More Unified Technology ," participated in and edited the transcript of a management roundtable (February 1997) . • "Local Competition : The War of Many Against One (1996-2001 )," Annual Review of Communications 1996 by the International Engineering Consortium . • "A Roundtable Review of the Future of Digital Television : The Implications for Consumers , Broadcasters , Cable Television, and Telephone Companies," served as organizer and transcript editor (Fall 1996) . • "An Assessment of the Telecommunications Act of 1996 and Its Impact on Competition and the Converging Communications , Information and Entertainment Industries," with Richard O. Levine, A .T. Kearney (March 1996).
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• "Local Competition : Changing Ground Rules for Network Access ," Business Communications Review (Fall 1995) .
• "The Realities of Convergence : A Perspective on How To Avoid Becoming a Road Kill on the Global Information Highway," EDS 1994 Thought Leadership Series (December 1994) .
• "Changing Ground Rules : Local Competition ," special supplement to Business Communications Review (September 1994) .
• "A New Perspective On the War of All Against All," Teletimes (Summer 1994), published by the United States Telephone Association.
• "Local Competition : The War of All Against All," Business Communications Review (March 1993) .
• "Prepare for Rate Regulation Now," Multichannel News (March 1993) . • "Outlook for Clinton Administration on Telecommunications and Cable Issues," with Dwight Allen (December 1992) .
• "The Effects of Competition on Dominant Carriers : Common Patterns of Worldwide Change ," Deloitte Touche Tohmatsu International Monograph (June 1992).
• "Global Telecommunications Leaders of the 1990s : A Delphi Analysis ," Deloitte Touche Tohmatsu International Monograph (March 1992) .
DISPUTE RESOLUTION AND EXPERT WITNESS EXPERIENC E Qualified as an expert witness by courts, arbitration panels, mediators, and regulatory commissions . Scope of testimony has dealt with subject matter such as market analyses, valuation of businesses, and calculation of damages . Also testified before legislative bodies on public policy matters, including the nature and extent of competition in the telecommunications, broadcast, and high technology industries . Regulatory/legislative appearances and/or filings include : • American Arbitration Associatio n • Arkansas Public Service Commissio n • California Commission on State Government Organization and Economy • California Public Utilities Commission • Florida: Committee of the State House of Representatives • Federal Communications Commission (FCC ) • Florida Public Service Commission • Illinois Commerce Commissio n • Indiana Utility Regulatory Commission
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• Kansas State Corporation Commission • Michigan Public Service Commission • Missouri Public Service Commission Montgomery County (MD) County Council • New York Public Service Commissio n • Ohio State: Legislative Committees (House and Senate) • Oklahoma Corporation Commission • Public Utilities Commission of Ohio • Public Utility Commission of Texa s • U.S. House of Representatives, Committee on Small Busines s • U.S. Senate Commerce, Science and Transportation Committee • Utah Public Service Commission • Wisconsin Public Service Commission
Participated as an expert in multiple disputes including a class action shareholder suit involving an interexchange carrier, two arbitrations involving pay phone contracts, a suit alleging theft of high-technology trade secrets, two suits involving FCC license awards for IVDS service, a dispute over the meaning of provisions in a senior executive's non-compete clause, an arbitration between an agent and an IXC over responsibility for order entry/billing errors, two suits over disclosure adequacy by telecommunications companies that went bankrupt, a dispute that alleged unfair negotiating practices on the part of an EMS radio equipment vendor, two contract disputes involving sales of cellular service at retail stores, and a shareholder suit concerning management actions in the CLEC industry . Almost all commercial litigation cases involved calculation of damages based on case-specific facts and industry conditions .
Witness Appearances (since 2001 )
Case Tribunal Deposition Trial
1 . MCI WorldCom Communications vs . Electronic Arbitration No Yes Data Systems (2001 )
2. Siesta Telecom, Inc. vs. Qwest Communications U.S. District Yes No Corporation (2002) Court
2/25/2005 www .lecg .com Page 13 of 13 EXHIBIT B EXPERT REPORT OF DR. JOSEPH S. KRAEMER
DOCUMENTS CONSIDERED
Deposition transcript and exhibits of Solectron Corp . /Michael Brooks, taken September 28, 2005. Deposition transcript and exhibits of Larry Carter, taken September 29-30, 2005 . Deposition transcript and exhibits of John Chambers, taken September 21-22, 2005 Deposition transcript and exhibits of Douglas Dennerline, taken August 18, 2005. Deposition transcript and exhibits of Kevin DeNuccio, taken August 25, 2005 . Deposition transcript and exhibits of Brian Fukuhara, taken April 28, 2005 . Deposition transcript and exhibits of Rick Justice, taken May 5, 2005 . Deposition transcript and exhibits of Kevin Kennedy, taken September 15-16, 2005 . Deposition transcript and exhibits of Donald Listwin, taken August 4, 2005 . Deposition transcript and exhibits of Carl Redfield, taken September 9, 2005 . Deposition transcript and exhibits of Robert Slater, taken September 20, 2005 . Deposition transcript and exhibits of Donald Valentine, taken August 18, 2005 . Deposition transcript and exhibits of Michelangelo Volpi, taken September 27, 2005 .
Deposition exhibits 919, 920 & 931 of Michael Ashby, taken August 3, 2005. Deposition exhibits 591 & 598 of Rebecca Jacoby, taken June 24, 2005 . Deposition exhibits 4, 5 & 7 of Paul Johnson, taken January 12, 2005 Deposition exhibits 38 & 46 of Sue Perkins, taken December 13, 2004. Deposition exhibit 349 of Randy Pond, taken March 30, 2005 . Deposition exhibit 1246 of Bill Sherry, taken August 19,-2005 .
Cisco Systems Inc.'s Objections and Responses to Plaintiff Central States, Southeast and Southwest Areas Pension Fund's Sixth Set of Interrogatories .
Transcripts of December 4-5, 2000 Worldwide Analyst Conference audio tapes CIS-PPNPF- HC180289-180298.
Confidential Communications Act of 1934, as amended, 47 U.S .C.S . §256, "Coordination for Interconnectivity ."
Implementation of the Local Competition Provisions of the Telecommunications Act of 1996, CC Docket 96-98, Third Report and Order and Fourth Further Notice of Proposed Rule Making (November 1999) .
SEC Form 10-K for Allegiance Telecom Inc. (1999 & 2000) SEC Form 10-K for AT&T (2000 ) SEC Form 10-Ks for At Home Corp. (1999 & 2000) SEC Form 10-Ks for Cisco Systems, Inc. (1999-2001) SEC Form 10-Ks for Critical Path Inc. (1999 & 2000) SEC Form 10-Ks for Digex Inc . (1999 & 2000 ) SEC Form 10-Ks for Digital Island Inc. (1999 & 2000) SEC Form 10-K for Electric Lightwave Inc. (1999 & 2000) SEC Form 10-Ks for Exodus Communications Inc . (1999 & 2000) SEC Form 10-K for Focal Communications Corp . (1999 & 2000) SEC Form 10-K for Genuity Inc. (2000) SEC Form 10-Ks for Globix Corp . (1999 & 2000 ) SEC Form 10-K for High Speed Access Corp . (1999 & 2000) SEC Form 10-K for iBasis Inc . (1999 & 2000) SEC Form 10-K for ICG Communications Inc. (1999 & 2000) SEC Form 10-Ks for Intermedia Communications Inc . (1999 & 2000) SEC Form 10-Ks for Internap Network Services Corp. (1999 & 2000) SEC Form 10-Ks for ITC Deltacom Inc . (1999 & 2000) SEC Form 10-Ks for Juno Online Services Inc . (1999 & 2000) SEC Form 10-Ks for Kana Communications Inc . (1999 & 2000) SEC Form 10-Ks for Lucent Technologies, Inc . (1999-200 1) SEC Form 10-Ks for McLeodUSA Inc . (1999 & 2000) SEC Form 10-Ks for Metromedia Fiber Network Inc . a/k/a Abovenet Inc. (1999 & 2000) SEC Form 10-K for Navisite Inc . (2000) SEC Form 10-Ks for NetVoice Technologies Corp. (1999 & 2000)
2 SEC Form 10-K for NextLink Communications Inc . (1999) SEC Form 10-Ks for Nortel Networks Corp . (1999-2001) SEC Form 10-Ks for OneMain.com Inc. (1999) SEC Form 10-Ks for PSINet Inc. (1999 & 2000) SEC Form 10-K for Rhythms NetConnections Inc . (1999 & 2000) SEC Form 10-Ks for Savvis Communications Corp . (1999 & 2000) SEC Form 10-K for Sprint (2000 ) SEC Form 10-Ks for Teligent Inc . (1999 & 2000) SEC Form 10-Ks for Time Warner Telecom Inc . (1999 & 2000) SEC Form 10-Ks for USlnternetworking Inc . (1999 & 2000) SEC Form 10-K for Verio Inc . (1999) SEC Form 10-K for Winstar Communications Inc. (1999) SEC Form 10-K for XO Communications a/k/a NextLink Communications Inc . (2000)
SEC Form 10 -Qs for AboveNet Inc . a/k/a Metromedia Fiber Network (6/30/00) SEC Form 10 -Qs for Allegiance Telecom (6/30/00) SEC Form 10-Qs for AT&T (3/31/00, 6/30/00, 9/30/00) SEC Form 10-Qs for At Home Corp. (6/30/00) SEC Form 10-Qs for Critical Path Inc. (6/30/00) SEC Form 10-Qs for Digex, Inc. (6/30/00) SEC Form 10-Qs for Digital Island, Inc. (12/31/99, 3/31/00 & 6/30/00) SEC Form 10-Qs for Electric Lightwave (6/30/00) SEC Form 10-Qs for Exodus Communications, Inc. (6/30/00) SEC Form 10-Qs for Focal Communications Corp . (6/30/00) SEC Form 10-Qs for Globix Corp . ( 12/31/99, 3/31/00 & 6/30/00) SEC Form 10 -Qs for High Speed Access Corp . (6/30/00) SEC Form 10-Q for iBasis Inc . (6/30/00) SEC Form 1OQs for ICG Communications, Inc . (6/30/00) SEC Form 10 -Qs for Intermedia Communications, Inc. (6/30/00) SEC Form 10 -Qs for Internap Network Services Corp . (6/30/00) SEC Form 10 -Qs for ITC DeltaCom Inc . (6/30/00) SEC Form 10 -Qs for Juno Online Services , Inc. (6/30/00) SEC Form 10 -Qs for Kana Communications (6/30/00) SEC Form 10-Qs for Lucent Technologies, Inc . (3/31/00, 6/30/00, 12/31/00) SEC Form 10-Qs for McLeodUSA Inc . (6/30/00) SEC Form 10-Qs for NaviSite Inc . (1/31/00, 4/30/00 & 7/31/00) SEC Form 10-Q for NetVoice Technologies Corp . (6/30/00) SEC Form 10-QSB for NetVoice Technologies (6/30/01 ) SEC Form 10-Qs for Nextlink (6/30/00) SEC Form 10-Qs for Nortel Networks Corp . (6/30/00, 9/30/00) SEC Form 10-Qs for OneMain.com, Inc. (6/30/00) SEC Form 10-Qs for PSINet Inc . (6/30/00) SEC Form 10-Qs for Rhythms NetConnections (6/30/00) SEC Form 10-Q for SAVVIS Inc . (6/30/00) SEC Form 10-Qs for Sprint (3/31/00, 6/30/00 & 9/30/00) SEC Form 10-Qs for Teligent, Inc . (6/30/00) SEC Form 10-Qs for Time Warner Telecom Inc . (6/30/00) SEC Form 10-Qs for USlnternetworking (6/30/00) SEC Form 10-Qs for Verio, Inc . (3/31/00 & 6/30/00) SEC Form 10-Qs for Winstar Communications, Inc. (6/30/00)
SEC Forom 8-K for High Speed Access Corp. (2/28/02) SEC Form 8-K/A for Nortel Networks Corp . (8/18/00) SEC Form 8-K for Winstar Communications (11/11/00)
SEC Forms S-1 for Genuity (4/7/00 )
Expert report of D . Paul Regan .
James H . Vander Weide, Ph.D.'s Expert Report and back-up documents : US Trade Industry Outlook '98, '99 & '00 (3 disks) ; articles : Dow Jones & Co ., Inc. "Ex-Fed Governor Gramley Sees Soft Landing of US Economy" (11/9/00), "Fed's Ferguson Suggests Fed Will Shift to Neutral Bias" (12/6/00), Reuters News "U .S . Fed stands pat on rates, warns of risks" (11/15/00), "Greenspan's blunt words leave economists puzzled" (1/28/01), Stanford University Graduate School of Business "Blue Chip Economic Indicators, Top Analysts' Forecasts of the U .S. Economic Outlook for the Year Ahead" (Vol . 25, No. 12, 12/10/00), stock pricing & long-term earnings growth estimates, GDP information ; 1 disk "Vander Weide Documents" ; The Insight
4 Research Corporation "Gateways & the Telecom Carrier : Middleware & Mediation Platforms for Next Generation Networks 2000-2004," "Telecom Services in Vertical Markets, Updated Report 1998-2003," "Telecommunication Services in Vertical Markets, 2001-2006" ; Analyst reports.
Jeffrey P. Williams' Expert Report and back-up documents : Business Week "Bad Loans Rattle Telecom Vendors When upstart carriers default, their suppliers take a hit" (2/19/01) ; Telephony, "The death of the CLEC has been greatly exaggerated" (Vol. 240, No. 11, 3/12/0 1); Moody's Investor Service Press Release, "Moody's Downgrades Lucent's Long Term Rating to A3 from A2 and Short Term Rating to P-2 from P-1" (12/21/00) ; The McKinsey Quarterly, "Caveat vendor" (6/22/01) ; Interactive Week from ZDWire, "The Inside Story of ICG's Collapse" (6/7/01); Dow Jones News-Service, "Smartmoney .com: A Ticking Telecom Time Bomb?" (1/25/01); CFO, The Magazine for Senior Financial Executives, "Road to Riches?" (8/1/00), FCC release "Federal Communications Commission Releases Latest Data on Local Telephone Competition" (5/21/01) .
AT&T Group Earnings Commentary, Fourth Quarter 2001, Appendix III - Historical Segment Data. Sprint Corporation, Pro Forma Selected Operating Results for Quarters Ended December 31, 2000-March 31, 2001 .
"Allegiance Telecom . Announces Restructuring Plans and First Quarter 2003 Results," PR Newswire (May 14, 2003) . "Cable & Wireless completes acquisition of Digital Island," M2 Presswire (Aug . 31, 2001). "Cable and Wireless Wins Court Approval to Buy Exodus," The New York Times (Jan . 18, 2002). Chris Nolter, "More CLEC consolidation ahead," Daily Deal (May 17, 2004) . "ClearBlue Technologies Acquires Majority Ownership Position in NaviSite ; Hewlett Packard Financial Services Become Minority Shareholder in ClearBlue," PR Newswire (Sept . 11, 2002) . "Compaq, CMGI throw $30M lifeline to NaviSite," The Boston Business Journal (Nov . 9, 2001). David Shabelman, "At Home-Excite : a failure on many fronts," Daily Deal (Nov . 13, 2001). David Shabelman, "Critical Path gets $15M lifeline," Daily Deal (Jan . 21, 2004). "EarthLink to acquire OneMain .com for 3.72 times revenue," NVST.com, Inc. (June 19, 2000) . Emily Burg, "At Home sells assets, goes bust," Daily Deal (Sept . 30, 2001). Eric Young, "Globix declares bankruptcy," Daily Deal (Mar . 4, 2002). FCC release, "FCC Releases Local Telephone Competition Report" and attaching "Local Telephone Competition at the New Millennium" (August 31, 2000) .
5 FCC release, "Federal Communications Commission Releases Data on Local Telephone Competition" and attaching "Local Telephone Competition : Status as of June 30, 2000" (December 4, 2000) . FCC release, "Federal Communications Commission Releases Latest Data on Local Telephone Competition" and attaching "Local Telephone Competition : Status as of December 31, 2000" (5/21/01). Gregory Zuckerman & Deborah Solomon, "Telecom Debt Debacle Could Lead to Losses of Historic Proportions," The Wall Street Journal (May 11, 2001) . Hilary Smith, "IDT picks up Winstar," RCR Wireless News (Dec . 24, 2001). Karen Kaplan, "Rivals Juno and NetZero Plan Merger ; Web: The $70.7-million deal would create the second-largest ISP, as free ISPs arrive to find ways to make money," Los Angeles Times (June 8, 2001) . Kris Hudson, "NTT Completes Verio Takeover," Denver Rocky Mountain News (Sept . 12, 2000). Larry Darby, Jeffrey Eisenach & Joseph Kraemer, "The CLEC Experiment : Anatomy of a Meltdown," September 2000, published by the Progress & Freedom Foundation (release 9.23). "Lessons from Lucent (Special Report) January 13, 2000," The Motley Fool, http://www.fool .com/specials/2000/spOO01 j3l ucent. htm. Lisa Endlich, Optical Illusions: Lucent and the Crash of Telecom (Simon & Schuster 2004) . "Lucent Technologies comments on expectations for first fiscal quarter 2000 earnings," Lucent Technologies press release, littp://www.lucent.com/press/0100/000106 .cob.html (Jan. 6, 2000). "MCI completes tender offer for Digex," Epicom Business Intelligence (Nov . 18, 2003). "Metromedia Fiber to acquire AboveNet," CBS MarketWatch (June 23, 1999) . "Nortel sparks sell-off," CNNMoney, http://money.cnn.com/2000/10/24/news/earns nortel .index.htm (Oct. 24, 2000) . P. Solomon Banda, "ICG files for bankruptcy protection," The Associated Press State & Local Wire (Nov. 15, 2000). Robert Slater, The Eye of the Storm (HarperCollins 2003) . Stephen Manning, "Annapolis Internet company files bankruptcy," The Associated Press State & Local Wire (Jan. 8, 2002) . "Summary of Strategic Trends in the U .S. Telecommunications Industry," Joseph Kraemer (editor), January 2002, published by Law & Economics Consulting Group and included in the International Engineering Consortium's Annual Review of Communications (Summer 2002). Telcordia Technologies Special Report, "Integrating Voice and Data Services in Next Generation Networks - An Architectural Framework" (Issue 1, March 2000) . Telecom-Wireline, excerpt of Morgan Stanley Dean Witter report, pp . 15-23 (November 28, 2000).
6 Terence Chea, "PSINet Continues Selling Operations," The Washington Post (June 21, 2001) . The Conference Board release, "U .S. Leading Economic Indicators and Related Composite Indexes for October 2005" (November 21, 2005). The Conference Board, Composite Index of Ten Leading Indicators - U .S ., Monthly Data. The Progress & Freedom Foundation, "The Local Telecommunications Marketplace : Are New Policy Directions Needed?" (Release 8 .7, April 2001). Yuki Noguchi, "USlnternetworking Out of Bankruptcy ; Md. Company Gets $81 Million in Funding, Plans Merger with N.C. Firm," The Washington Post (May 22, 2002) .
CISCO SYS INC CIS-PPNPF-0005453-573 4 Larry Carter, 8/10/99, 4Q FY 199 9 Question and Answer Transcript Letter from Brian Fukuhara to Jeff Cole ; January 23, 2001 CIS-PPNPF-006366 3 Credit Scoring Model, ISP/SP/CLEC CIS-PPNPF-0070874-70876 Email from Brian Fukuhara, To : drogan@cisco .com, CIS-PPNPF-0071522 rdrobny@cisco .com, ablacklo@cisco .com Cc : donichol@cisco .com, rcsnyder@cisco .com, Re: Risk Profile Slide s Cisco Capital Worldwide Tie out to CIS-PPNPF-0077833-86 2 Consolidated Balance Sheets - PDO1-02 Worldwide Financing Activity Program Description ; CIS-PPNPF-0078929-94 4 November FY0 1 Cisco FY01 January Month End Capital Leases Net CIS-PPNPF-0078939-78943 Exposure Worldwide Financing Activity, Balance Sheet Net CIS-PPNPF-0079881-89 4 Exposure Analysis, October FY0 1 Chase Equity Research Industry Report, July 11, 2000 CIS-PPNPF-0081433-81453 JPMorgan Equity Research Industry Report, December 7, CIS-PPNPF-0081454-8151 5 1999. "Beyond the Internet.. .The emergence of Broadban d and IP Data Services as the Prime Mover of a Technology- Driven Economy." Conference Call Transcripts, Ql& Q2 FY01 ; Q3 FY00 CIS-PPNPF-0084701-84767 Issues Conference Call Transcripts, Q4 FY00-Q1 FY01 ; Q101 CIS-PPNPF-0084797-84874 Issues Conference Call Transcripts, Q3 FY01 CIS-PPNPF-0084910-84943 Issues/ Q&A Table of Contents, 3QFYO1 CIS-PPNPF-0084944-84969 Cisco Transcript, Moderator Larry Carter, August 8, 2000 CIS-PPNPF-0088632-88649 Report: "NextGen IP Optical" Is the Future CIS-PPNPF-0089329-89426 Worldwide Analyst Conference 2001, "Master Project CIS-PPNPF-0090607-62 0 Plan." December 4-5, 200 1 Q4 FY00 Issues CIS-PPNPF-0091551-91556
7 Conference Call Transcripts, Q3 FY00, May 9, 2000 CIS-PPNPF-009346 1 Worldwide Financial Policies and Procedures Doc . CIS-PPNPF -0099406-99453 Approved by Dennis Powell ; effective date: September 22 , 1998 Email from [email protected], to CIS-PPNPF-010131 7 [email protected]; cc: [email protected]; Re: Our Last Plea; March 15 200 1 E-mail from Ron Bernal re: Prep for conf. call, dated CIS-PPNPF-0101406-408 10/16/00, to David Vellequette, Lawrence Lang, Gre g Thomas, Roberta DeTata, Kevin Kennedy , Carl Redfield, Blaire Christie , [email protected], acra@cisco .com, braskamp .rr ,cisco.com, smarshal a,cisco .com, a ierce c cisco.com Morgan Stanley Dean Witter, September 5, 2000 Equity CIS-PPNPF -0107461-10746 6 Research report/Company Update on Cisco Systems, "Squeaky Clean on Customer Financing" Larry Carter, 11/09/99, 1Q FY 2000 CIS-PPNPF-0107572 - 107598 Question and Answer Transcript Larry Carter, 02/08/00, 2Q FY 2000 CIS-PPNPF-0107631-10765 1 Question and Answer Transcript WW Sales Operations Review, December 11, 2000 CIS-PPNPF-0110353-11043 2 From: Cory Ellsworth
10 Cisco Worldwide Analyst Conference 2000 Slides - VP N CIS-PPNPF-HC_0012170-1218 8 Solutions for the Enterprise and Service Provider Cisco Worldwide Analyst Conference 2000 Slides - The CIS-PPNPF-HC_0012189-12214 Future of Ethernet Cisco Worldwide Analyst Conference 2000 Slides - Ne w CIS-PPNPF-HC_0012758-1279 8 World Services Cisco Worldwide Analyst Conference 2000 Slides - CIS-PPNPF-HC_0012861-1287 6 Cisco's Strategy for the Internet Economy Breakaway Opportunity, John Chambers Cisco Worldwide Analyst Conference 2000 Slides - The CIS-PPNPF-HC_0012877-1289 3 New Customer Value Proposition Cisco Worldwide Analyst Conference 2000 Slides - CIS-PPNPF-HC_0012907-1291 7 Telecoms?!? A World of Unlimited Bandwidth, Carl Russo Cisco Worldwide Analyst Conference 2000 Slides - MPL S CIS-PPNPF-HC_0013056-1307 0 Key Technology Enabled by Cisco IOS Software Cisco Worldwide Analyst Conference 2000 Slides - Cisc o CIS-PPNPF-HC_0013098-1311 3 Mobile Wireless Overview Cisco Capital, Highlights FY2000 -Aril Q3 M3 CIS-PPNPF-HC 0016147-15 2 Cisco Capital, Highlights FY2000 - January Q2 M3 CIS-PPNPF-HC 0018334-33 8 Cisco Capital, Highlights FY2000 - July Q4 M3 CIS-PPNPF-HC 0018866-87 3 Cisco Capital, Highlights FY2000 - October Q1 M3 CIS-PPNPF-HC 0021481-48 5 Cisco Capital Loan Administration Policy, 1/29/2000 CIS-PPNPF-HC 0054959-5502 9 October FY 01 Close Meeting, November 1, 2000 CIS-PPNPF-HC 040718-755 Cisco Worldwide Analyst Conference 2000 Slides - CIS-PPNPF-HC_090956-090969 Internet Services Provisioning for Appliances Invoices CIS-PPNPF-HC 093303 Email from Steve Darendinger, Fwd: Stretch Issues CIS-PPNPF-HCO6131 1 Meeting Minutes, Board of Directors, January 12, 2000 CIS-PPNPF-HCO61555-67 Meeting Minutes, Board of Directors, March 30, 2000 CIS-PPNPF-HCO61568-78 Exhibit A: Merger with ArrowPoint Communications, Inc . CIS-PPNPF-HCO61581-8 4 Meeting Minutes, Board of Directors, May 10, 2000 CIS-PPNPF-HCO61585-86 Meeting Minutes, Board of Directors, July 27, 2000 CIS-PPNPF-HCO61587-600 Meeting Minutes, Board of Directors, September 21, 2000 CIS-PPNPF-HCO61601-1 1 Meeting Minutes, Board of Directors, November 14, 2000 CIS-PPNPF-HCO61612-2 1 Meeting Minutes, Board of Directors, January 09, 2001 CIS-PPNPF-HCO61622-49 Meeting Minutes, Board of Directors, March 15, 2001 CIS-PPNPF-HCO61650-57 Meeting Minutes, Board of Directors, May 10, 2001 CIS-PPNPF-HCO61658-6 1 Board of Directors Meeting, Board Package, January 12 , CIS-PPNPF-HCO63224-300 2000 Board of Directors Meeting, Board Package, March 30 , CIS-PPNPF-HCO63371-58 3 2000 Board of Directors Meeting, Board Package, January 12 , CIS-PPNPF-HCO63589-622 2000 Board of Directors Meeting, Board Package, May 11, 2000 CIS-PPNPF-HCO63623-86 1 Board of Directors Meeting, Board Package, July 27, 2000 CIS-PPNPF-HCO63862-93 9
11 Meeting Minutes, Board of Directors, May 1, 2000 CIS-PPNPF-HCO63940-45 Board Package, September 21, 2000 CIS-PPNPF-HCO63946-405 6 Meeting Minutes, Board of Directors, July 27, 2000 CIS-PPNPF-HCO64057-7 8 Board of Directors Meeting, Board Package, November 14, CIS-PPNPF-HCO64079-64178 2000 Meeting Minutes, Board of Directors, September 21, 2000 CIS-PPNPF-HCO64179-20 1 Board of Directors Meeting , Board Package, January 9, CIS-PPNPF-HCO64202-2 8 2001 Board of Directors Meeting , Board Package, January 9, CIS-PPNPF-HCO64229-34 0 2001 Meeting Minutes, Board of Directors, November 14, 2000 CIS-PPNPF-HCO64341-8 3 Board Meeting Agenda, March 15 , 2001 CIS-PPNPF-HCO64384-49 5 Meeting Minutes, Board of Directors, January 9, 2001 CIS-PPNPF-HCO64496-53 1 Board of Directors Meeting, Board Package, May 10, 2001 CIS-PPNPF-HCO64532-60 8 PowerPoint Presentation, "FY02 Planning : Guiding CIS-PPNPF-HCO64609-24 Principles" PowerPoint Presentation, "eHub" CIS-PPNPF-HCO64625-50 Meeting Minutes, Board of Directors, March 15, 2001 CIS-PPNPF-HCO64651-60 Meeting Minutes , Special Meeting of the Acquisition CIS-PPNPF-HCO64730-3 9 Committee, January 12, 2000 Meeting Minutes, Special Meeting of the Acquisition CIS-PPNPF-HCO64740-44 Committee, February 9, 2000 Meeting Minutes, Special Meeting of the Acquisition CIS-PPNPF-HCO64745-49 Committee, March 10, 2000 Meeting Minutes , Special Meeting of the Acquisition CIS-PPNPF-HCO64750-54 Committee, March 13, 2000 Meeting Minutes , Meeting of the Acquisition Committee, CIS-PPNPF-HCO64755-5 9 April 4, 2000 Meeting Minutes, Special Meeting of the Board of CIS-PPNPF-HCO64760-65 Directors, May 1, 2000 Meeting Minutes , Special Meeting of the Acquisition CIS-PPNPF-HCO64766-74 Committee, June 28, 2000 Meeting Minutes, Special Meeting of the Acquisition CIS-PPNPF-HCO64775-84 Committee, July 24, 2000 Meeting Minutes, Special Meeting of the Acquisitio n CIS-PPNPF-HCO64785-89 Committee, August 22, 2000 Meeting Minutes, Special Meeting of the Acquisition CIS-PPNPF-HCO64821-29 Committee, March 15, 2000 Meeting Minutes, Special Meeting of the Acquisition CIS-PPNPF-HCO64830-3 5 Committee, May 5, 2000 Meeting Minutes, Special Meeting of the Acquisition CIS -PPNPF-HC06483 6-40 Committee, October 6, 2000 Meeting Minutes, Special Meeting of the Acquisition CIS-PPNPF-HCO64841-5 0 Committee, October 13, 2000 Meeting Minutes of the Investment Finance Commi ttee of CIS-PPNPF-HCO64851-5 2
12 the Board of Directors, January 12, 2000 Meeting Minutes of the Investment Finance Committee of CIS-PPNPF-HCO64853-5 7 the Board of Directors, May 9, 2001 Meeting Minutes of the Compensation/Stock Option CIS-PPNPF-HCO64858-91 4 Committee Meeting Minutes of the Investment Finance Committee of CIS-PPNPF-HCO64915-1 6 the Board of Directors, May 10, 2000 Meeting Minutes of the Investment Finance Committee of CIS-PPNPF-HC064917-18 the Board of Directors, January 21, 2000 Meeting Minutes, Special Meeting of the Acquisition CIS-PPNPF-HCO64920-25 Committee, January 12, 2000 Meeting Minutes of the Investment Finance Committee of CIS-PPNPF-HC064931-37 the Board of Directors, September 20, 2000 Dresdner Kleinwort, Benson Research, "Optical Switching: CIS-PPNPF-HC094401-9444 1 Unleashing the Power ofLight." September 2000 Worldwide Analyst Conference (December 4-5, 2000) CIS-PPNPF-HC 180289-18029 8 audio tapes Faxed Doc from Katie Easterly to Kevin Kennedy, CIS-PPNPF-HC191763-19304 1 November 20, 2000, Contains email from [email protected] to Kevin Kennedy; Re: My Summary of the Business PWC Audit: Assets, PP+E, Intangible Assets, Capital PWC 004950-5266 Corporation, In Process R&D Capital Corp Balance Sheet Flux 7/26/2001 vs. 4/26/2001 PWC 005237-5243 Revenue and Reserves & Deferral Meeting Agenda, July PWC 007768-777 6 25, 2000 Cisco Capital Loan Reserves Doc PWC 016109-1611 3 Cisco Lease Reserves Memo , 7/29/2000 PWC 017694-1769 6 Cisco Capital - Note Receivable Analysis, 07/31/1999 PWC 025865-2586 9 Email to John Hollenbeck from Michael A. Jerome, Re: PWC 037666-037670 Cisco Loan Geography, 12/08/1998
13 EXHIBIT C ry e
Invoice #0101
XPRT Professional Services, Inc.
Tax ID #: 20-3861288
December 3, 2005
Daniel S. Drosman, Esq. Lerach Coughlin Stoia Geller Rudman & Robbins LLP Suite 1900 655 West Broadway San Diego, CA 92101-3301
Project: In re Cisco Systems, Inc. Securities Litigation No. C-01-20148-JW(PVT)
For professional services and related out-of-pocket expenses for the period October 26 - November 30 :
Professional Fees $ 56,762.50
Expenses 1,412.77
TOTAL DUE $ 58,175.27
Please make payment by check to XPRT Professional Services, Inc.
Remit to: Dr. Joseph S . Kraemer XPRT Professional Services, Inc. 1202 South Huntress. Court McLean, VA 22102
. Kraemer 4D' Sor e
PROFESSIONAL SERVICES
Joseph S. Kraemer, Directo r $425 per hour
October 27 2.5 hours Review. depositions and related documentation October 28 4.0 hours Review depositions and related documentation October 29 3.5 hours Review depositions and related documentation October 31 3.5 hours Review depositions and related documentation November 1 10.0 hours Review depositions and related documentation November 2 4.5 hours Review depositions and related documentation November 7 6.0 hours Review depositions and related documentation November 8 7.5 hours Review depositions and related documentation November 9 5.5 hours Review depositions and related documentatio n November 10 6.0 hours Review case documentation November 11 6.5 hours Review case documentation November 13 2.0 hours Review case documentation November 14 6.0 hours Review case documentation November 15 6.0 hours Review case documentation November 16 8.0 hours Prepare for meeting with counsel November 17 8.0 hours Meet with counsel; review case documentation November 18 5.0 hours Meet with counsel; review case documentation November 20 3.0 hours Review case documentation November 22 4.0 hours Review case documentation November 23 5.5 hours Review case documentation November 24 4.0 hours Review case documentation November 25 2.5 hours Review case documentation November 27 4.0 hours Review case documentation November 28 4.0 hours Review case documentation November 29 7.0 hours Review case documentation November 30 3.0 hours Review case documentation
TOTAL HOURS = 131.5 $55,887.50
Charlotte L. Brown, Case Associate $125 per hou r
October 27 1.5 hours Organized case material November 7 1.5 hours Organized case materia l November 22 3.0 hours Organized case materia l November 30 1.0 hours Organized case materia l
TOTAL HOURS = 7.0 $ 875.00
TOTAL LABOR $56,762.50 EXPENSES
Source
Communications $ 85.89 LECG Accounting System
Express Messenger $ 360.98 LECG Accounting Syste m
San Diego Travel (November 16 - 22)
Hotel (3 nights) $ 659.70 Hyatt Hotel Receipt
Meals $ 196.20 Lower of per diem or actual - see attached
Taxicabs $ 96.00 No receipts - see attached
Fax $ 14.00 Hyatt Hotel Receipt
Subtotal - Trip $ 965.90
TOTAL EXPENSES $1412 .77 e' c
MEAL HISTORY
November 16 Dinner $35.00
November 17 Breakfast 15.00
Lunch NA
Dinner 31.20 (Hyatt receipt)
November 18 Breakfast 15.00
Lunch 25.00
Dinner 35.00
November 20 Breakfast 15.00
Lunch 25.00
TOTAL $196.20
Allowable meal expenses are the lower of actual or per diem. TAXIS
November 16
Home to Airport $38.00
Airport to Hotel 10.00
November 20
Hotel to Airport 10 .00
Airport to Home 38.00
TOTAL $96.00
Our firm does not require receipts for expenses of $50 or less . Invoice #0102
XPRT Professional Services, Inc .
Tax ID #: 20-3861288
December 20, 2005
Daniel S. Drosman, Esq. Lerach Coughlin Stoia Geller Rudman & Robbins LLP Suite 1900 655 West Broadway San Diego, CA 92101-3301
Project: In re Cisco Systems, Inc. Securities Litigation No. C-01-20148-JW(PVT)
For professional services and related out-of-pocket expenses for the period December 1 - December 15, 2005 :
Professional Fees $ 68,300.00
Expenses . 721.93
TOTAL DUE $ 69,021 .93
Please make payment by check to XPRT Professional Services, Inc .
Remit to : Dr. Joseph S . Kraemer XPRT Professional Services, Inc . 1202 South Huntress Cou rt McLean, VA 22102
Joseph S. Kraemer Director C",
PROFESSIONAL SERVICES
Joseph S. Kraemer, Director $425 per hour
December 1 10.0 hours Review reports and related documentatio n December 2 10.0 hours Review reports and related documentation December 3 11.0 hours Review reports and related documentation December 4 10.0 hours Develop report outlin e December 5 13.0 hours Prepare report December 6 8.0 hours Prepare report December 7 14.0 hours Prepare report December 8 10.0 hours Prepare report December 9 6.0 hours Prepare report December 10 8.0 hours Prepare report December 11 12.0 hours Meet with counsel ; prepare report December 12 12.0 hours Meet with counsel ; prepare report December 13 10.0 hours Meet with counsel ; prepare report December 14 10.0 hours Meet with counsel ; prepare report
TOTAL HOURS = 144 .0 $61,200
Charlotte L. Brown, Case Associate $125 per hour
December 1 1.5 hours Organize case material December 2 1.0 hours Organize case material December 5 6.5 hours Type report December 6 7.0 hours Type report December 7 6.5 hours Type report December 8 7.0 hours Type report December 9 2.5 hours Organize case material December 12 1.0 hours Organize case material
TOTAL HOURS = 33.0 $4,125
Richard Levine, Principal $350 per hour
December 2 2.5 hours Perform research December 5 2.0 hours Perform research December 9 2.0 hours Perform research December 11 2.0 hours Perform research
TOTAL HOURS = 8.5 $2,975
TOTAL PROFESSIONAL FEE = $68,300 C
EXPENSES
Source
Communications $ 157.49 LECG Accounting System
Express Messenger $ 439.44 Apple Courier
Purchased Research $ 25.00 LECG Accounting System
San Diego Travel - Air, Hotel, and Meals Direct Billed to Lerach Coughlin (December 11 - 14)
Taxicabs $ 100.00 No receipts - see attached
TOTAL EXPENSES $721 .93 TAXIS
December 11
Home to Airport $35.00
Airport to Hotel $12.00
December 14
Hotel to Airport $15.00
December 15
Airport to Home $38.00
TOTAL $100.00
Our firm does not require receipts for expenses of $50 or less . Invoice #0103
XPRT Professional Services, Inc .
Tax ID #: 20-3861288
January 9, 2006
Daniel S. Drosman, Esq . Lerach Coughlin Stoia Geller Rudman & Robbins LLP Suite 1900 655 West Broadway San Diego, CA 92101-3301
Project: In re Cisco Systems, Inc. Securities Litigation No. C-01-20148-JW(PVT)
For professional services and related out-of-pocket expenses for the period December 16 - December 31, 2005 :
Professional Fees $ 37,187.50
Expenses 435.26
TOTAL DUE $ 37,622.76
Please make payment by check to XPRT Professional Services, Inc .
Remit to : Dr. Joseph S. Kraemer XPRT Professional Services, Inc. 1202 South Huntress Court McLean, VA 22102
Joseph S. Kraemer Director d-M r
PROFESSIONAL. SERVICES
Joseph S. Kraemer, Director $425 per hour
December 16 6.0 hours Prepare report December 20 6.0 hours Prepare report December 21 13.0 hours Prepare report December 22 7.0 hours Prepare report December 23 9.5 hours Prepare report December 26 9.0 hours Prepare report December 27 5.5 hours Prepare report December 28 8.0 hours Prepare report December 29 6.0 hours Prepare report December 30 10.0 hours Prepare repor t December 31 5.0 hours Prepare report
TOTAL HOURS = 85.0 $36,125
Charlotte L. Brown, Case Associate $125 per hou r
December 21 1.5 hours Organize case material December 22 2.5 hours Organize case material December 23 2.0 hours Organize case material December 27 2.5 hours Organize case material
TOTAL HOURS = 8.5 $1,062.50
TOTAL PROFESSIONAL FEE = $37,187.50 EXPENSES
Source
Communications $ 75.89 LECG Accounting System
Express Messenger 151.49 Apple Courier Receipts
FedEx Shipments 207.88 Kinkos Receipts
TOTAL EXPENSES $ 435.26 C-
Fedex
1. December 3 $24.30
2. December 12 79.80 ✓
3. December 12 25.48
4. December 27 78.30 ✓
TOTAL $207.88
C Invoice #010 4
XPRT Professional Services, Inc .
Tax ID #: 20-3861288
February 3, 2006
Daniel S. Drosman, Esq. Lerach Coughlin Stoia Geller Rudman & Robbins LLP Suite 1900 655 West Broadway San Diego, CA 92101-3301
Project: In re Cisco Systems, Inc. Securities Litigation No. C-01-20148-JW(PVT)
For professional, services and related out-of-pocket expenses for the period January 1- 31, 2006:
Professional Fees $ 36, 200.00
Expenses 224.64
TOTAL DUE $ 36,424.64
Please make payment by check to XPRT Professional Services, Inc .
Remit to: Dr. Joseph S. Kraemer XPRT Professional Services, Inc . 1202 South Huntress Court McLean, VA 22102
Joseph S. Kraemer Director
I PROFESSIONAL SERVICES
Joseph S. Kraemer, Director $425 per hour
January 1 7.0 hours Prepare report January 2 6.0 hours Prepare report January 3 3.0 hours Prepare report January 4 3.5 hours Prepare report January 6 2.0 hours Prepare report January 7 6.0 hours Prepare report January 8 8.0 hours Prepare report January 9 8.0 hours Prepare report January 10 2.0 hours Prepare report January 11 8.0 hours Prepare report January 16 3.5 hours Prepare for deposition January 18 5.5 hours Prepare for deposition January 19 8.0 hours Prepare for deposition January 30 4.0 hours Prepare for deposition January 31 9.5 hours Prepare for deposition
TOTAL HOURS = 84.0 $35,700
Charlotte L. Brown, Case Associate $125 per hour
January 5 2.0 hours Organize case material January 17. 1.0 hours Organize case material January 18 1.0 hours Organize case material
TOTAL HOURS = 3.0 $500
TOTAL PROFESSIONAL FEE = $ 36,200
2 EXPENSES
Source
Communications $ 49.00 LECG Accounting System
Express Messenger 87.90 Apple Courier Receipts
FedEx Shipments 72.43 Kinko's Receipts
Duplication 15.31 Kinko's Receipt
TOTAL EXPENSES $ 224 .64
3 C
Messenger
1. January 5 $29.30
2. January 17 29.30
3. January 18 29.30
TOTAL $87.90
4 Invoice #010 5
XPRT Professional Services, Inc .
Tax ID #: 20-3861288
March 3, 2006
Daniel S. Drosman, Esq. Lerach Coughlin Stoia Geller Rudman & Robbins LLP Suite 1900 655 West Broadway San Diego, CA 92101-3301
Project: In re Cisco Systems, Inc. Securities Litigation No. C-01-20148-JW(PVT)
For professional services and related out-of-pocket expenses for the period February 1 - 28, 2006:
Professional Fees $ 53,187.50
Expenses 2,047.38
TOTAL DUE $ 55,234.88
Please make payment by check to XPRT Professional Services, Inc .
Remit to: Dr. Joseph S . Kraemer XPRT Professional Services, Inc . 1202 South Huntress Court McLean, VA 22102
Joseph S. Kraemer Director
I PROFESSIONAL SERVICE S
Joseph S. Kraemer, Director $425 per hou r
February1 8.0 hours Prepare for deposition February 2 7.0 hours Prepare for deposition February 3 7.5 hours Prepare for deposition February 4 7.0 hours Prepare for deposition February 5 7.0 hours Prepare for deposition February 6 8.0 hours Prepare for deposition February 7 13.0 hours Meet with counsel February8 9.0 hours Deposition February 9 8.0 hours Deposition of defendant's expert February 15 6.5 hours Prepare for deposition February 21 7.5 hours Prepare for deposition February 22 5.0 hours Prepare for deposition February 23 8.0 hours Prepare for deposition February 24 8.0 hours Meet with counsel February 27 4.0 hours Prepare for deposition February 28 9.0 hours Deposition of defendant's expert
TOTAL HOURS = 122 .5 $52,062.50
Charlotte L. Brown, Case Associate $125 per hour
February1 1.0 hours Prepare invoice February 22 2.0 hours Organize case material February 27 4.0 hours Archive case material February 28. 2.0 hours Prepare invoice
TOTAL HOURS = 9.0 $1,125
TOTAL PROFESSIONAL FEE = $ 53,187.50
2 EXPENSES
Category Amount Source
Communications $ 67.15 LECG Accounting System
Express Messenger 33.30 Apple Courier Receipts
FedEx Shipments 94.65 Kinko's Receipts
Travel - New York 1,531.28 See Enclosures
Travel - San Francisco 321.00 See Enclosures
TOTAL EXPENSES $ 2,047.38
3 Invoice #0106
XPRT Professional Services, Inc.
Tax ID #: 20-3861288
April 11, 2006
Daniel S. Drosman, Esq. Lerach Coughlin Stoia Geller Rudman & Robbins LLP Suite 1900 655 West Broadway San Diego, CA 92101-3301
Project: In re Cisco Systems, Inc. Securities Litigation No. C-01-20148-JW(PVT)
For professional services and related out-of-pocket expenses for the period March 1- 31, 2006:
Professional Fees $ 4,450.00
Expenses 107.14
TOTAL DUE $ 4,557.14
Please make payment by check to XPRT Professional Services, Inc.
Remit to: Dr. Joseph S. Kraemer XPRT Professional Services, Inc. 1202 South Huntress Court
Director
1 PROFESSIONAL SERVICES
Joseph S. Kraemer, Director $425 per hour
March 8 2.0 hours Review transcript March 9 2.0 hours Review transcript March 12 3.0 hours Prepare errata sheet March 27 2.0 hours Review errata sheet
TOTAL HOURS= 9 $ 3,825
Charlotte L. Brown, Case Associate $125 per hour
March 1 1.0 hours Organize.case material March 13 2.5 hours Type errata sheet March 28 1.0 hours Type errata sheet March 30 .5 hours Perform billing reconciliation and . invoice preparation
TOTAL HOURS = 5.0 $ 625
TOTAL PROFESSIONAL FEE = $ 4,450
/
2 C7
EXPENSES
Category Amount Source
Communications S 48.55 LECG Accounting System
Express Messenger 58.59 Apple Courier Receipts
TOTAL EXPENSES S 107.14
3 If, Invoice #010 6
XPRT Professional Services, Inc .
Tax ID #: 20-3861288
August 1, 2006
Daniel S. Drosman, Esq . Lerach Coughlin Stoia Geller Rudman & Robbins LLP Suite 1900 655 West Broadway San Diego, CA 92101-330 1
Project: In re Cisco Systems, Inc. Securities Litigation No. C-01-20148-JW(PVT)
For professional se rvices and related out-of-pocket expenses for the period July 1- 31, 2006 :
Professional Fees $ 3,187.50
Expenses 0
TOTAL DUE $ 3,187.50
Please make payment by check to XPRT Professional Services, Inc .
Remit to: Dr. Joseph S. Kraemer XPRT Professional Services, Inc . 1202 South Huntress Court McLean, VA 22102
Joseph S. Kraemer Director
1 PROFESSIONAL SERVICES
Joseph S. Kraemer, Director $425 per hour
July 10 2.0 hours Review defendants ' filings July 11 5.5 hours Review documents ; participate in conference call with counsel
TOTAL HOURS = 7.5
TOTAL PROFESSIONAL FEE = $ 3 ,187.50
2