TanCADEM Corporation is a for-profit venture. I doubt that anyone will be surprised by this revelation. This is not an offering of Securities. This page details (in general terms) what we can offer a potential investor as to return on investment and time to fruition based on the terms of our business plan. As with any business plans, many assumptions are made and many "hellifiknows" are glossed over in this short description. Let nobody assume the outline made here represents anything more than a general description as to what we believe we can accomplish.

TanCADEM Corporation intends to develop and deploy a product line that brings a new thesis of operation to the CAD/CAE/CAM marketplace. We believe we can introduce the first module of our CAD product line in twelve to fourteen months from receipt of financial backing. We believe that we can deploy all primary elements of our product lines in twelve to sixteen quarters. Our analysis of this market and product mix is that it will take a commitment of between $5.8 and $7.2 million deployed over a two and a half to three and a half year period. The difference between the high and low values of backing required deal with market acceptance of our product lines. If our products do extremely well, we will need to compress our development cycle to maintain market momentum. This drives our costs up -- and also drives our profitability up.

We believe that we can generate an annual rate of return of at least thirty-four percent (34%) in eight years or less based on dividends alone. We believe that it is possible for us to generate an annual rate of return as high as forty-six percent (46%) in as little as five years based on dividends alone. The performance models from which these predications are made are very conservative in nature. We have assumed (among other things) that we: "sink" development costs rather than recover what we can through tax deductions; "expense" capital equipment investments rather than recover them through depreciation; pay federal taxes at a rate five percent (5%) greater than the maximum corporate tax rate levied in 1996; etc. The operational costs used in our performance models have been exaggerated by twenty percent (20%) while sales revenue has been degraded by a factor of twenty-five percent (25%). This has been done to account for "unknowns" that we may not have considered in our business plan.

Please note that we have made no attempt to calculate the value of TanCADEM Corporation for rate of return purposes. (A) We have no intent to take TanCADEM "public" in the near-term of operation. The long gestation period of our products makes it inadvisable to attempt an IPO until after the product line and supporting philosophy are well established within the company. The history of technology-based companies that have "gone public" in their first decade of operation shows a very high rate of failure because of the loss of focus caused by worrying about short-term stock values rather than long-term product development. We do not want TanCADEM to repeat this mistake. (B) We downloaded more than fifty different "equations" from various respected sources (Wall Street Journal, Chicago School of Business, etc.) that are supposed to predict the value of a company based on operational finances. We calculated the "value" TanCADEM should have using these equations and obtained a "spread" that could not be reconciled. Since we do not understand the equations, we will not pretend we understand the valuation process. We believe that the value of TanCADEM will contribute to the overall return on investment our backers will enjoy, but we are not willing to attempt to predict this based on our admitted ignorance. This is why we rely on dividend analysis to predict the rate of return on investment.

We are looking for backers who can meet Securities and Exchange Commission (SEC) rules for participating in an investment in excess of one million dollars. If our unconventional proposal is of interest to you, please contact us for more information. We believe that TanCADEM presents a unique opportunity to build a new industrial equation and generate solid, long-term profits.

Lew Merrick, P.E.

TanCADEM Corporation

PO Box 5000

Quilcene, WA 98376-5000

USA

(360) 765-4933 (v)

(360) 765-4929 (f)

tangent@olympus.net