DATE: July 27,2000 FROM:Hal Weinreb Rick Caporino (ppi-TimeZero), Frank Simons (ppi-TimeZero) Art Brody, Joe Flicek, Mike Keating, Jack Lacci, Gautam Nair, Henning Schulzrinne and Nita Younger A kick-off meeting was held at ppi-TimeZero's Paterson NJ facility to develop the schedule and responsibilities for the manufacture of a total of 100 ephones model 2.2. Attending the meeting were Rick Caporino, Director of Sales and Frank Simons VP Sales & Marketing of ppi-TimeZero, Mike Keating, Nita Younger and Hal Weinreb representing SIPComm and Jack Lacci, Manufacturing Representative. The purchase order for 100 ephones model 2.2 was approved by Joe Flicek on July 18th based on ppi-TimeZero's quote of July 14,2000. The manufacturing program will be run in 2 campaigns. The first is a shake-out campaign for 5 units starting on August 3 with the fabrication of the bare PCB boards and going through the mounting of components on the PCB and the installation of the populated PCB in a modified Sprint phone case. It is expected that the manufacture of the first 5 units will be completed by September 22,2000. Attached is the initial schedule of activities and responsibilities for the first 5 units as well as for the subsequent 95 units. It is anticipated that the complete 100 units will be manufactured and packaged by October 27,2000. Manufacture of the first 5 units will be based on the latest schematics, Gerber file and assembly instructions that have either already been transmitted or will shortly be transmitted to ppi-TimeZero. The initial 5 unit manufacturing campaign will be closely monitored by Keating, Younger and Weinreb and, where necessary, changes will be made for the remaining units. The bill of materials, schematics, Gerber files and assembly instructions have gone through a number of revisions because of changes in components and configurations to get around obsolescence and long lead times items. Also, board changes are complicated by having to deal with 4 layers. The latest set of revisions is number 6 and it is anticipated that these documents will be transmitted to ppi-TimeZero per the attached schedule before starting fabrication of the bare board on August 3. ppi-TimeZero has received earlier versions of these documents and it is anticipated that there will not be any significant cost or manufacturing consequences. Following is a list of items that still need to be completed to meet the anticipated schedule for 100 ephones: Sourcing and purchase of approximately 65 additional Sprint phone cases model 903 (white) or 904 (black) single lines which are no longer being sold. We are currently working with contacts at Radio Shack and Sprint to locate excess inventory. Otherwise, we will have to switch to the available 2 line Sprint model 707 with some change in software. Application (stack ) software is needed by August 18th for most convenient installation and testing. QC protocols. These will be prepared by Mike Keating with in-puts from ppi-TimeZero. Redesign of the labeling on the package carton and resolution of FCC compliance notice that may or may not appear on the package. See item 23 on the attached schedule. Some cable changes for attaching the boards and components to the phone case to eliminate weak solder joints. Some good suggestions were made for connectors and this needs to be followed-up by Keating, Younger and ppi-TimeZero