NEC/NECSI MEETING

JULY 14, 2000

Whistler, BC, Canada

Agenda

¨ Kanji Suzuki's attendance at NEC/NECSI meetings--importance of firsthand communication with channel; market issues. NEC response: Kanji was unable to attend due to other scheduled meetings. Many staff changes are taking place at NEC . Tamie Takashima has been named Senior VP at CNG. Cliff Cozzolino has been name VP and General Manager. Dale Graver has been named VP and GM.

¨ NEC White Paper on IP Strategy. Dealer Council pointed out the immediate need for simple brochures showing that NEC does have an IP strategy and sample diagrams showing how existing products will connect via IP. Dealers are picking up other brands as we don’t have an IP story to sell or at least tell.

¨ NEAX product competitively priced in the 400-1000 port configuration. Council requested price adjustments for the 2000 with 129 ports as we are losing sales in the larger line size. Also, we need a more affordable 2400 in the 2-4 PIM range. Dealers aren’t selling as many 2400’s as they need to.

¨ NEC position on SNMP Network Management Protocol. NEC response – beta test ready. Charlie Eazor will volunteer to test.

¨ Software subscription program for NEAX systems (need for program comparable to data models MIS managers are accustomed to).

¨ Platinum Program – many dealers have not signed up for the second year. NECSI will send broadcast email. Coop money and training dollars available for signing up.

¨ Contract issues with dealers selling outside of their territory, plus NEC web listings of dealers that don’t have offices in the areas listed. Doug Wonson will look into that.

¨ NEC announced that key systems are ready to go under GSA shortly.

¨ Convergent Technology Course will be set up on the CNG website to teach VOIP etc.

¨ NEC Japan annncounced a $6 Billion budget for acquisitions.

¨ NEC Major Account Program. NEC handed out an overview. Council supports a flat pricing for all dealers instead of x% additional discount. MA sales would require a penalty clause to the customer and to NEC by the dealer.

¨ Sales Training. Council indicated excellent feedback from the new sales training classes. Scott Espy said he’s looking at Sant Proposal and RFP development tools for dealers.

¨ NEC web pages – Short courses being set up for on line/on demand product training over the web. Sample programs are on line for Council members to preview.