Hi Vince

Here's a rough draft for your perusal and comments.  I can be reached at
(517) 423 5617.


We at ICAST have had a meeting to explore the two problems we discussed with
you and Vasant over the phone last week, and we have decided we feel
confident we can find optimum solutions to these problems given the
necessary support.

Outlined below is the approach we have used for solving difficult pattern
recognition problems in the past for Eli Lilly and GM.  If Enron is
interested in this approach, we would be happy to submit a proposal to Enron
to take on this project for one or both of the problems you described.

Task 1.  Our company will analyze the data sets available from Enron for one
week at our own expense.  The purpose of this analysis is to estimate the
cost (amount of time and the skill set needed) to develop proof-of-concept
prototype software.

Task 2.  ICAST will then demonstrate the POC software to the Enron
scientists at the Enron facilities using the training set(s) and one or more
new data sets.

Task 3.  Given successful demonstrations of the POC solution(s), ICAST and
Enron will meet to discuss the efficacy of the approaches used and will
determine jointly the specifications of planned production software, and the
method of providing this capability to Enron for routine every day use.

Task 4.  ICAST will submit proposals for developing the production versions
of the softare that will meet the agreed upon specifications.


The cost of developing the proof-of-concept software, and the labor needed
to demonstrate it to Enron is estimated to be $150K (plus out-of-pocket
expenses) for each of the problems, and, it is estimated at this time that
the calendar time needed for each of the projects is about 4-months.  It may
be possible to do the two Proof-of-concepts concurrently.

I will call you before the end of the week to discuss this recommended
approach.


Tom Limperis
CEO ICAST