Proactive Intelligence, Inc. ,
 Ken,

?

I have been watching a new company since April. The founder worked at=20
Insource Technology as a consultant for a while and is a good guy. The=20
service is explained in the executive summary attached, but in a nutshell=
=20
they solve the need for reliable information support for schools by getting=
=20
the server out of the schools and onto an Application Service Provider. The=
=20
result is much better information (attendance, grading, assignments,=20
messages, etc.) but the schools only need a simple computer with a browser =
to=20
access the service. If one computer breaks, they simply move to another=20
computer and access the service. This is the same concept as Questia, but=
=20
they can get by with much older computer technology, which is a big plus fo=
r=20
schools. Also, parents can access essentially real time information about=
=20
their child=01,s grades and attendance, and can easily communicate with the=
=20
teacher through the messaging.

?

When I met with them in April, I liked the idea but was consumed with=20
Questia. Since then, they have launched a beta test and then rolled out the=
=20
production version of the service in the DeSoto ISD. They trained over 200=
=20
teachers and have proven the simplicity and effectiveness of their system.=
=20
Lamar Consolidated ISD has requested that they rollout the service in three=
=20
test schools this fall.? They also just hired a new CEO, Roland Rodriquez, =
to=20
lead the company, with the founder continuing to be involved.

?

They are trying to raise $3 million. John Chaney and I met with them Tuesda=
y=20
morning and decided after the meeting that we were both interested in putti=
ng=20
around half a million in the company, and that we needed to get three or fo=
ur=20
others to put in about the same amount.? We are both willing to go on the=
=20
board, with one or two other new outside directors.

?

Ken, this is not in the same ballpark as Questia, but it is a very good ide=
a=20
and I believe they can pull it off. Please let me know if you have any=20
questions and if you would like to have a meeting with them.

?

Rod
 - PI Executive Summary.pdf
kenneth.lay@enron.com