EFTA00578114.pdf

PUBLISHING PROPOSAL THE PERFECT SPELLING DICTIONARY SERIES STRICTLY CONFIDENTIAL March 22'd 2003 Publishing Proposal by Christine Maxwell 3/24/03 © Copyright Christine Maxwell March 22 2003 1 All Rights Reserved. No distribution without permission. EFTA00578114 Page 2 of 25 of TABLE OF CONTENTS Contact Information Ms. Christine Maxwell Objectives Description of "The Perfect Spelling Company" Products/Services Description and Theoretical Basis Hard copy Downloadable, customized dictionary Online/Soft copy Preliminary Market Research Identified Markets Identified Market Summary Competition Hard Copy Dictionary Series A. Direct competition B. Indirect competition C. Specific competition Online/Software Spelling Checkers Conclusions "The Perfect Spelling Company" Personnel Authors Linguistic and Computational Consultants Summary Supporting Documents Appendix 1: Copy of original Pergamon Dictionary of Perfect Spelling Appendix 2: Online concept customization directives Investment Sought C) Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578115 Page 3 of 25 of Contact Information Ms. Christine Maxwell FRANCE: PHONE: FAX: EMAIL: (same) Pont des 3 Sautets, 13590 Meyreuil U.S.A.: Oakland, CA 94618 PHONE: O Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578116 Page 4 of 25 o f Objectives "The Perfect Spelling Company." Is now seeking to secure the Thomson Corporation as a publishing partner for the purpose of developing and publishing The (hard copy) Perfect Spelling Dictionary Series, The Publish-on-Demand Perfect Spelling Dictionary, and The (software/online) Perfect Spelling Customizable Online Spelling Checker. The hard-copy series is a unique, phonetically-focused, linguistically-based, user-friendly series of hard-copy dictionaries that takes into consideration the user's native and target languages. The downloadable dictionary is a user-focused, customizable, "publishable-on-demand" package that allows users to input their linguistic background information as well as target language needs, then download and print a hard copy dictionary to their own personalized specifications. The software/online version is an interactive, Internet-based spelling application to be distributed worldwide. These spelling aid products will establish themselves as state-of-the-art in personalized spelling assistance and will help to reinforce the Thomson Corporation as a leader in this particular arena. This spelling aid series will establish an industry standard for phonetically-based hard- copy spelling dictionaries, published-on-demand customizable dictionaries, and a new generation of improved personalized, online spelling checkers on the Internet. Cultural and linguistic understanding, appreciation for the learning challenged, and respect for education are key foundations of the authors' vision, and, from our understanding, values shared by the Thomson Corporation. © Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578117 Page 5 of 25 of Description of "The Perfect Spelling Company" The Perfect Spelling Company is a development stage partnership created specifically to produce The Perfect Spelling Dictionary Series, The Publish-on-Demand Perfect Spelling Dictionary, and The Perfect Spelling Customizable Online Spelling Checker and a series of hardcopy and electronic "Power Spelling" activity works. As a start-up dependent upon intellectual capital, the Company currently owns all rights to the Pergamon Dictionary of Perfect Spelling, which was first published by Christine Maxwell in 1977. (The copyright reverted in full to Ms. Maxwell in 1984 after publication ceased.). At this time, the Company has no capital expenditures. The partners currently invest their time, use of personal equipment, and intellectual capital into the company and the project. However, as the project has now reached development stage, the authors wish to engage the international publishing expertise and resources of the Thomson Corporation to complete computational linguistic research, update and expand the hard copy series, produce the downloadable version, develop the customized software to an alpha testing level for the online spelling checker, and bring the first works to publication and sale. O Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578118 Page 6 of 25 of Products/Services DESCRIPTION AND THEORETICAL BASIS The Perfect Spelling Dictionary Series is a renewal and expansion of the original Pergamon Dictionary of Perfect Spelling, which was published between 1977 and 1984, and achieved distribution of more than 300,000 within a limited, targeted market (British English language learners). Based on theories of phonetics, each spelling dictionary in the series will be specifically created to help users who have difficulty spelling correctly in their language of choice, and who therefore would have difficulty finding words being sought in regular dictionaries. This dictionary series and online spelling checker will forever put to rest the frustration that "to find a word in the dictionary, one has to already know how to spell it." Those with weak spelling skills, learning or using a second language, or with learning challenges, can search for correct spellings based upon how they "hear" the word or "think" the word is pronounced, instead of only how the word is actually spelled. Because individuals, whether acquiring a first language as a child or leaming a subsequent language as a youth or an adult, learn to listen, think, and speak before they learn to read and write, basing a spelling tool such as a dictionary on the first learning skill (listening/ hearing)— and incorporating into the online version an audio pronunciation feature—enables both children and adults to learn language faster and better. In addition, the dictionaries will be a valuable tool for individuals suffering from dyslexia and similar learning challenges. First, these individuals they will have many more chances of finding what they are looking for; second, a "sound- based," natural format will more easily lead these individuals to the correct spelling. The Perfect Spelling Company intends to create three major categories of products: (1) a hard copy series of spelling dictionaries based (initially) on the most spoken English language variants, (2) a downloadable dictionary allows users to input their linguistic background information as well as target language needs (3) proprietary spelling-checking software, able to be customized to suit individual user's linguistic backgrounds. O Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578119 Page 7 of 25 of In updating and expanding the premise of the original version, the objectives of The Perfect Spelling Company are to create both hard-copy and online spelling dictionaries that target worldwide markets, including the general public, worldwide users of Business English, second- language learners, English-variant speakers, and the spelling and learning challenged. HARD COPY Each hard-copy dictionary in the series will provide an abridged list of approximately 20,000 head words, based on their most common (including phonetic) misspellings, and will offer up to six different opportunities for finding the correct spelling. We define mainstream dictionaries as those geared toward native speakers of that language/variant who want spelling assistance; "linguistically-based" dictionaries are customized for speakers of a particular language/variant with a target spelling language different than their native language/variant. DOWNLOADABLE DICTIONARY The downloadable dictionary can be customized by the individual user, by having him or her input linguistic background and target language information. It will have the same foundations as the hard-copy series, but instead of being available in bookstores, will be accessible online for download and printing, per the user's specifications. For both the hard copy and downloadable versions, Thomson's market research will help determine the order in which language variants should be prioritized for publication. First variants such as British English and American English should likely be prioritized. We expect that potential volume and user motivation will be key elements in determining release priorities for subsequent languages/variants. The following are examples of editions in the dictionary series. • American English • British English • Spanish (Spain) (Mexico) • French (France) Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578120 Page 8 of 25 of • Portuguese (Brazil) —> American English • American English -> British English • British English —> American English • Spanish —> American English • American English -> Spanish • British English —> French • French —> British English Once the selected foundation products are published and the markets have demonstrated the ability to support them, dictionaries for additional languages and variants will be produced. ONLINE/SOFT COPY The Company's objective is to develop a new, customizable online spelling-checker based upon the particular linguistic background of the user, taking into account the spelling/word-processing tendencies and vocabulary needs of each user who acquires the software (via download or purchase of a CD-ROM). Like the hard-copy versions, languages and variants to be developed will be prioritized in response to market demand. The online version, based upon novel technologies in development by Perfect Spelling Company's Chief Technology Officer, will provide on-demand, personalized, customized, real- time correct spelling confirmation, and an optional printable, personalized hard-copy dictionary, based on inputs from the user. A special user interface, asking the user to select primary language and target language, and to provide linguistic background and other relevant specifications, will help customize the outputs for that user, using a combination of computational linguistics and mathematical theory. The online dictionary will then offer a targeted response that will narrow the options to match each user's particular linguistic background and real-time spelling needs. This capability is ideally suited to replace the current stardardized "one size fits all " spelling checkers currently incorporated into major word processing applications, such as Microsoft Word. Please refer to Appendix 2 for sample online customization directives (NOTE: concept only, not design). © Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578121 Page 9 of 25 of Preliminary Market Research This research is provided to the Thomson Corporation for two purposes: (1) to provide background that demonstrates the foundation in the Company's belief in the future success of this project, and (2) to provide information upon which the Thomson Corporation can build its research. When considering marketing for The Perfect Spelling Dictionary Series, we considered the original publication on which the series is based, The Pergamon Dictionary of Perfect Spelling. The initial sales projection for Pergamon, based on all information available at the time, was 20,000 units to be sold in the British English market. At a cost of roughly U.S. $2.00 per book for a two-color, cloth-back 336-page volume and a bulk discount sale price of $3.50 per book, projected gross profits were $30,000. Between its first publication in 1977 and its last distribution in 1984, we believe that 300,000 cloth-back units were sold— totaling 15 times the original estimate—for between the $3.50 bulk rate and a $6.00 single-unit price. (In addition, there were about 10,000 hard copy sales to libraries at a $4.50 per unit sale price.) The actual market, instead of being limited to British English ESUEFL, extended to include British primary, middle, and secondary schools; the secretarial market; and ESL/EFL markets in the Soviet Union, South Africa, Australia, and New Zealand. Total gross profits between 1977 and 1984 were in excess of U.S. $1 million. Based on the success of this early version of The Perfect Spelling Dictionary, the partners have developed a more far-reaching market analysis for the current project. IDENTIFIED MARKETS We identified several markets as ideal targets for this dictionary series. These markets include but are not limited to: • mainstream adult dictionary users (M) • worldwide users of Business English (BE) • learners of English (or other target language) as a Second Language (ESL) • learners of English (or other target language) as a Foreign Language (EFL) • individuals with learning challenges such as dyslexia, who depend on phonetic sounds as a basis for reading skills (LC) O Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578122 Page 10 of 25 of • youth markets, from ages 9 and up (Y) The first market identified for The Perfect Spelling Dictionary Series and Online Spell Checker consists of adults seeking spelling assistance in their primary language/variant', a market to which we refer as "mainstream" (M). These are individuals who may be weak spellers, have learning difficulties, or simply prefer a phonetically-based dictionary to a traditional dictionary. In addition, this market encompasses individuals who want spelling assistance with commonly misspelled words and who wish to quickly and easily refer to a spelling reference that saves them time and eliminates extraneous information. Business people, college students, and others are "mainstream" users. The second market includes worldwide users of Business English (BE). This group includes speakers of English as both a first or second language (advanced second language learners) who use Business English in professional contexts. The third market consists of speakers of a "second" (or subsequent) language or variant. This market is quite large and offers seemingly endless possibilities-thus the proposal for a dictionary series. Examples include British English to American English (and vice versa); American English for Spanish speakers; and French for speakers of British English. Speakers of English (or other language) as a Second Language (ESL)2 or Speakers of English (or other language) as a Foreign Language (EFL)3 are subsets of this market. In addition, travelers and business people working overseas or with foreign associates are ESUEFL users. A fourth market includes individuals with learning challenges (LC) such as dyslexia, who depend on phonetic sounds to help them spell words accurately. The Perfect Spelling Dictionary Series and Online Spell Checker serve as assistive technologies for development enhancement. As tools for individuals who have biological foundations for reading and spelling difficulties, phonetically-based, customized dictionaries that provide multiple opportunities to find the correct spelling provide the concrete support touted by disability experts. The authors suggest that American English and British English be the first variants published. 2 ESL is the learning of English in a predominantly English-speaking country or region. 3 EFL is the learning of English in a non-English-speaking country or region. © Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578123 Page 11 of 25 of Finally, while the level of each dictionary will be suitable for adults, it will also be ideally suited to children ages 9 and up (Y). Beginning through advanced users will benefit from using an easy- to-access, easy-to-use spelling helper. The general word list will be complete enough to range from the most essential vocabulary to professional and trade terms. The software that will be developed will also allow users to choose specialized word lists incorporating emphasis on special areas, for example, business/commerce, medical, legal, etc. terms. IDENTIFIED MARKET SUMMARY • Mainstream users, including individuals seeking fast spelling help, weak spellers, business people, students • Worldwide users of Business English • Second language learners, both ESL and EFL (and additional languages), travelers, business people working overseas or with foreign associates • Individuals with learning disabilities/challenges • Levels: primary, secondary, high school, young adult, university/institute, adult, professional • Proficiency level: beginning, intermediate, advanced, specialized • Geographical regions: to be determined by market research to meet market demand; will begin with English and its variants COMPETITION To assess existing and potential off line and online competition for The Perfect Spelling Dictionary Series°, the partners of this project researched dictionaries currently on the market. HARD COPY DICTIONARY SERIES The hard-copy search included databases in the New York Public Research Libraries, the New York Public Circulating Libraries, Amazon.com, Borders Books & Music, and on the Internet. Despite this thorough investigation, no direct competition, and certainly no spelling dictionary series, was uncovered. We identified only very limited indirect competition. 4 Based on the original book, "The Pergamon Dictionary of Perfect Spelling", by Christine Maxwell, Published by A. Wheaton & Co. first published in 1977, reprinted through to 1988. © Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578124 Page 12 of 25 of A. Direct Competition (M, BE, ESL, EFL, LC, Y) To be direct competition to a "Perfect Spelling Dictionary"—for any of the six identified target markets-spelling assistance must be based on the existence of all four of the following factors: • declared primary focus of a given dictionary to be an aid to spelling, • appearance of actual misspellings as a core feature in the dictionary, • phonetic organization of the spellings, and • different linguistic backgrounds and/or leaming difficulties or disabilities of the reader/user taken into account. No such direct competition has been identified. B. Indirect Competition (M, BE, ESL, EFL, LC, Y) "Indirect competition" was qualified as a dictionary that is based on any of the main features of the original Pergamon Dictionary of Perfect Spelling, namely: • focus on provision of spelling help, • provision of misspellings, • provision of phonetic organization • provision for linguistic and learning difficulties and/or background of the reader/user. The following publications were identified as indirect competitors: 1001 Commonly Misspelled Words: What Your Spell Checker Won't Tell You, by Robert Magnan and Mary Lou Santovec, McGraw-Hill Trade, 2000, 278 pages. DIFFERENTIATION: This dictionary "features an easy-to-use phonetic access system" for a mere 1,001 words; however, The "Perfect Spelling Dictionary" provides phonetics and other most common spelling errors, based on targeted linguistic backgrounds, which ensures a more focused approach to helping the reader find the correct spelling. Further, The "Perfect Spelling Dictionary" will be a strong 'abridged' dictionary of more than 20,000 headwords. It will also include an emphasis on Internet, multi-media, and computing, and professional and technical words. Instant Spelling Dictionary: 3rd Edition, by Margaret M. Dougherty, Julia H. Fitzgerald and Donald O. Bolander, Warner Books, 1990, 384 pages. © Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578125 Page 13 of 25 of DIFFERENTIATION: This dictionary is a 25,000-word list that "contains the most commonly misspelled and commonly used words in the "English language." (English variants will be published, starting with American English and British English.) The words appear as in a standard dictionary (not phonetically); and also, unlike The "Perfect Spelling Dictionary", it does not provide misspellings based on the reader/user's linguistic background. Oxford Spelling Dictionary, Oxford University Press, 2000, 624 pages. DIFFERENTIATION: This Oxford Spelling dictionary "makes the job less distracting than using a normal dictionary, because it eliminates all that interesting stuff"... as stated by a professional book reviewer. "Less may not be more, but it's certainly faster," he claims. The "stuff" that Oxford Spelling Dictionary eliminates includes definitions of words. In addition, spelling errors are based on common British English to British English errors (with some notations of American English spellings). The Mini Oxford School Speller by GT Hawker, Oxford University Press, 1995, 256 pages. DIFFERENTIATION: The Mini Oxford School Speller is aimed at a small age range, though it says it is a spelling aid for students of all ages. It contains the entire text of "Spell it Yourselr by GT Hawker, which was originally written in the 1950s. It contains a limited vocabulary, listing just over 8,000 root words and their derivatives. Its spelling help concept has not been extended since its original publication. Scholastic Dictionary of Spelling, by Marvin Terban, Scholastic Trade, 2000, 224 pages. DIFFERENTIATION: Geared only for children, the vocabulary in this dictionary is limited to 15,000 words, consisting of an alphabetical list of spellings to try to help with spelling difficulties. Also included are general rules and exceptions of spelling. Therefore. only very limited indirect competition has been identified. C. Specific Competition (ESL, EFL) "Specific competition" is a dictionary that responds to the unique needs of the second language student by providing explanations, illustrations, and related information not given in ordinary © Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578126 Page 14 of 25 of dictionaries. Entries use carefully worded definitions and provides contextual examples of usage, grammar, and idioms. Even basic words are fully explained. We consider a dictionary to be a specific ESUEFL competitor if it includes the following features: (1) focus on provision of spelling help, (2) provision of misspellings, (3) provision of phonetic organization, (4) provision for linguistic background of the reader/user. We identified the following publications as specific competitors: (Level: Beginning-Low Intermediate) Oxford Elementary Learner's Dictionary of English, Angela Crawley, Ed. DIFFERENTIATION: Illustrated dictionary containing only "essential" vocabulary for very basic British English learners. Unlike The "Perfect Spelling Dictionary", it is not based on phonetics, does not include intermediate or advanced language, and does not take linguistic background into account. (Level: Intermediate) Diccionario Oxford Escolar, para Estudiantes Mexicanos de Ingles Espanol-Ingles, Ingles-Espatiol DIFFERENTIATION: Limited to a Mexican culture perspective; contains 52,000 references, idiomatic expressions, and examples. Unlike The "Perfect Spelling Dictionary", it is not based on phonetics, does not include beginning or advanced language, and does not take targeted English dialect into account. (Level: Intermediate) Oxford Learner's Dictionary of English Idioms, by Isabel McCaig and Martin H. Manser DIFFERENTIATION: Limited to British English idioms only. Unlike The "Perfect Spelling Dictionary", this dictionary does not include a full scope of language, is not based on phonetics, and it only takes one linguistic background into account. (Level: Intermediate-Advanced) Oxford Dictionary of Business English for Learners of English, Allen Tuck, ed., © Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578127 Page 15 of 25 of DIFFERENTIATION: Limited to business jargon only. Unlike The "Perfect Spelling Dictionary", this dictionary does not include a full scope of language, is not based on phonetics, and does not take linguistic background into account. (Level: Intermediate-Advanced) Diccionario Oxford Study, para estudiantes de ingles Espanol-Ingles, Ingles-Espanol DIFFERENTIATION: This dictionary for Spanish-speaking students provides an in-depth treatment of a wide range of vocabulary. Although it includes10, 000 terms and expressions, 58,000 usage examples, and 185,000 translations, this dictionary does not include beginning or low intermediate language, is not based on phonetics, and is limited to only Spanish-English. Therefore, only extremely limited specific competition has been identified in regard to The Perfect Spelling Company's efforts to develop a hard copy series of customized spelling dictionaries. DOWNLOADABLE DICTIONARY SERIES The downloadable search included extensive searches on the World Wide Web. Despite this thorough investigation, no direct competition was uncovered. We identified only very limited indirect competition. A. Direct Competition (M, BE, ESL, EFL, LC, Y) To be direct competition to a "Perfect Spelling Dictionary"—for any of the six identified target markets—we maintained minimal requirements in this category. Spelling assistance must be based on the existence only the following two factors: • declared primary focus of a given dictionary to be an aid to spelling, • appearance of actual misspellings as a core feature in the dictionary, No such direct competition has been identified. B. Indirect Competition (M, BE, ESL, EFL, LC, Y) "Indirect competition" was qualified as a downloadable spelling dictionary that is based on any of the main features of the original Pergamon Dictionary of Perfect Spelling, namely: © Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578128 Page 16 of 25 of • focus on provision of spelling help, • provision of misspellings, • provision of phonetic organization • provision for linguistic and learning difficulties and/or background of the reader/user. Only one software package, produced by Alcoda Software <http://dcalcoda.com>, was identified as an indirect competitor. DIFFERENTIATION: Al Coda's software products consist of traditional spelling checkers. The users linguistic background, target language, or phonetic abilities are not taken into consideration. In addition, this software is designed to be compatible only with the Windows platform. ONLINE AND SOFTWARE SPELLING CHECKERS The online/soft copy search included databases such as Dow Jones and Dialog, and databases on the Internet. Despite this thorough investigation, no direct competition was uncovered. We identified only very limited indirect competition. Viable companies and products include: • Aspell • AutoSpell • Corel WordPerfect Spelling Checker • Excalibur • Grammarian 2 • Ispell • Machina Sapiens • Michael Quinion Associates Spell Checker • Microsoft Spelling Checker • SpellCatcher 8 • SpellCheck.net • Spellex Development, Inc. • VarCon O Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578129 Page 17 of 25 of DIFFERENTIATION: Every competitor provides the same genre of product: a real-time spelling checker. Some of the competitive products are designed for use with Microsoft Word, some for WordPerfect, and some are strictly Mac-based. Several are server-side and others are designed for end-user integration with existing dictionary applications. One competitor, VarCon, provides a table that distinguishes among American English, British English, and Canadian English. However, their product is not interactive. Conclusions Although the authors conducted a search of thousands of database entries worldwide, no direct competition and very limited indirect competition has been identified. In contrast to any recognized competition, The Perfect Online Spelling Checker is customizable—not only to the user's individual linguistic background, but also to his or her word processing capabilities and particular misspelling idiosyncrasies. The software itself is designed on the principles of computational linguistics and mathematics. Only this Perfect Spelling Series provides the opportunity for the user to adjust the dictionary to his or her own unique spelling difficulties, and to adjust the inputs in real time. Only this series allows learning-challenged individuals to begin to overcome their difficulties by understanding the weaknesses in their cognitive processes in regard to spelling, while simultaneously providing spelling support. And only this Perfect Spelling hard copy series eliminates altogether the need to be able to spell a word before checking it in the dictionary. The success of the original Pergamon Dictionary of Perfect Spelling between 1977 and 1984 was based on the limited marketing available at the time. The entire marketing plan consisted of direct mail, advertising through academic and educational channels, and advertising in the Pergamon catalogs. Even with that limited marketing, however, distribution exceeded projections by 15 times the original estimate. In addition, more than 17 years after distribution ended, requests for an updated version continue to be received; most recently, Ms. Maxwell responded to a December 2001 inquiry from a Canadian educator. Because there appears to be no direct and very limited successful indirect competition, the proposed new, individually customizable Perfect Spelling Online Spelling Checker will be able to Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578130 Page 18 of 25 of prove itself unique in any market place in which the need for correct spelling is important. The concept— customizing real-time spelling help based on the linguistic background and particular spelling/ word-processing difficulties of a user, utilizing software based on computational linguistics and mathematics—will prove to be an unrivaled and nearly limitlessly expandable tool for mainstream, business, education, learning-challenged, ESL, and EFL markets on a worldwide basis. O Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578131 Page 19 of 25 of Financial Data © Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578132 Page 20 of 25 of Application and Expected Effects of Financing Without financing at this juncture, The Perfect Spelling Dictionary Series and Online Spelling Simplifier can progress no further. Funds are critical to provide research, salaries, product development, marketing development, publication, and distribution. Seed money will allow the company and the project to continue its efforts to become not only the market leader, but also the industry standard in both hard copy and online spelling dictionaries. AMOUNT REQUESTED:U.S. $150,000 EXPENSE PROJECTIONS: Management salaries 70,000 Financial analysis 5,500 Market research 4,500 Software development/prototype 9,500 Business plan preparation 3,500 Legal expenses 6,000 Travel for expert consultations 8,500 Web site design and presentation 6,500 Document production 1,000 Miscellaneous (including communications, purchase of equipment, additional personnel, travel for financing meetings, printing, etc.) 25,000 TOTAL 150,000 Income Projections © Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578133 Page 21 of 25 of Early projections indicate that the success of the original Pergamon dictionary will be far exceeded by The Perfect Spelling Dictionary Series in its various product forms. Seed money is required to allow the company to develop a prototype of the online Spell checker. Summary The company is currently in its initial start-up phase and requires funding in order to proceed. Having reviewed the original Pergamon dictionary, researched competition, and coordinated a start-up management team with solid experience and contacts throughout the world. Based on the combined experience and judgment of these individuals, the lack of credible direct competition, and preliminary financial projections based on the success of the prototype publication, we are confident in the potential of The Perfect Spelling Dictionary Series and Online Spelling Checker, request funding in the amount of the $150,000 to further develop the concept, conduct further financial and market analyses, and develop a first prototype of the online Spell Checker. (The prototype would take three months from funding and a roll out to Beta of first language variant within six months.). I O Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578134 Page 22 of 25 of "The Perfect Spelling Company" Personnel AUTHOR Christine Maxwell, the founder of The Perfect Spelling Company, and author of the original Pergamon Dictionary of Perfect Spelling, serves as CEO and Publisher. With A. Wheaton & Co., a division of Pergamon Press Publishers, she published and holds the copyright to the original Pergamon Dictionary of Perfect Spelling (1977), upon which The Perfect Spelling Dictionary Series expands. In addition, Ms. Maxwell co-founded Magellan, the Internet's first search engine, and sold it in 1996 to Excite, Inc. She also created and co-authored one of the first Internet directories, "New Riders Official Internet Yellow Pages," originally published by Macmillan in 1994. Ms. Maxwell holds degrees in Sociology and Latin American Studies, as well as teaching credentials from Lady Spencer Churchill College of Education, Oxford, England. She serves as a trustee on the board of directors of both the Internet Society (ISOC) and the Santa Fe Institute, a private, multidisciplinary research and education center in New Mexico. © Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578135 Page 23 of 25 of LINGUISTIC AND COMPUTATIONAL CONSULTANTS Bert Vaux, Philology Consultant, has been an Assistant/Associate Professor in the Linguistics Department of Harvard University since July 1994. He specializes in theoretical phonology, phonetics, and dialectology. Dr. Vaux has consulted to Time magazine, The New York Times, The Boston Globe, National Public Radio, the American Broadcasting Company and the National Broadcasting Company, among others. He is author of Introduction to Linguistic Field Methods (Lincom Europa, 1999) and has published numerous articles, including "Feature Spreading and the Representation of Place of Articulation" (2000) and "The Laryngeal Specifications of Fricatives" (Jan 1998) in Linguistic Inquiry. He earned his M.A. and Ph.D. in Linguistics from Harvard University, and is General Editor of Oxford Surveys in Generative Phonology. Vince Sabio, M.S. Electrical Engineering, heads the Software Development division of The Perfect Spelling Dictionary Series. Mr. Sabio developed Smartbounce®, the Internet industry standard e-mail bounce-processing software. In 2000, he sold Smartbounce to Retum Path, Inc., an email change-of-address service, and served as Chief Technology Officer for the corporation; in that capacity, he managed the company's technology program and led the software development efforts. Mr. Sabio has been an active Internet and email user since 1983,and has served as technical advisor to Topica.com, Lyris Technologies, and NetCreations, Inc. He also co-founded CAUCE (the Coalition Against Unsolicited Commercial Email), serves as treasurer of the U.S. Online Rights Society, and served as the official list administrator for the Internet Society (ISOC). With more than 10 years working within the U.S. intelligence community, he developed a novel secure-networking architecture, with international patents pending; continued development of the system was funded through the CIA. Mr. Sabio currently heads DoD Business Development for the Air Force Research Lab's High Performance Computing Center in Kihei, Hawaii. © Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578136 Page 24 of 25 of Summary The Perfect Spelling Dictionary Series and The Perfect Spelling Online Spell Checker are products that are needed by working adults, worldwide users of Business English, college students, youth, learners and users of second and foreign languages, and individuals with learning and/or word processing challenges. The products provide personalized spelling assistance based on one's own linguistic background, customized for the unique needs of the user. The strongest early indicator of success is the success of the project's prototype, The Pergamon Dictionary of Perfect Spelling, which is still in demand 18 years after its last publication run, and which exceeded its projections by 15 times the anticipated distribution. The growth of the learning-challenged industry and academic channels, awareness of communication strategies by mainstream adults, and the increase in technology that demands increased communication across linguistic borders, all suggest that the market is ripe for spelling dictionaries based on linguistic factors. Additionally, advances in technology for the first time in history allow us to match the needs of online and software users by creating customized, individualized spelling support. The Perfect Spelling Company's products fill a unique gap in the worldwide marketplace by offering these individualized products. No other hard-copy or software spelling dictionary provides the opportunity for the user/reader to customize spelling assistance based on his or her own linguistic background, target, weaknesses, and requirements. Combining publishing, education, linguistic, intercultural, and technology experience (that often overlaps), this team is poised to develop unique, highly marketable, user-friendly spelling products with worldwide appeal. The Perfect Spelling authors and their expert team, in partnership with the Thomson Corporation, have the vision and structure to make the hard-copy dictionary series and online software a reality. O Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578137 Page 25 of 25 o f APPENDIX 1 Copy of original Pergamon dictionary included APPENDIX 2 [File of sample online customization directives] I O Copyright Christine Maxwell 3/24/03 Written Permission of the Author is Required for Copying or Distribution EFTA00578138