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                               |                                     |                       MG                         Taylor 
 Enterprise                         Restructuring                                                   |                                                                 | At                                     the beginning of March, 2002, after 9 months                                     of planning, the MG Taylor Corporation has                                     started the process of a complete reorganization                                     and financial restructuring.   |                                                                | This                                     process will be formally initiated at the                                     April 6, Stakeholders meeting                                     to be held at the Palo Alto knOwhere Store.                                     At this meeting, All members of the MG Taylor                                     ValueWeb will be presented with details of                                     the plan.   |                                                                | Stockholders                                   and Board Meetings will follow the general session                                   which is open to Investors, Creditors, Clients                                   and producer members of the MG Taylor community                                   and MG Taylor, AI and knOwhere Business Units. |    |                                                    |                                                                 | The                                   MG Taylor Enterprise was started in the Fall                                   of 1979 after about 5 years of research on and                                   testing of the assumptions that make up the                                   theory and practice of the effort. |    |                                                    |                                                                 | The                                     ValueWeb as a mature concept emerged out of                                     the 23 years of MG Taylor experience, however,                                     the basic premise of a network economy                                     was at the root of the enterprise concept                                     from the beginning.   |                                                                | The                                   essence of the reorganization                                   of the MG Taylor Corporations is taking the                                   final step to becoming a true ValueWeb Enterprise. |    |                                                    |                                                                 | The                                   conversion process will start after the April                                   meeting and will continue through the second                                   quarter of 2002. MG Taylor, AI and knOwhere                                   have been operating in a highly integrated way                                   since the beginning of 2002. |    |                                                    |                                                                 | MG                                   Taylor has compiled over the years a significant                                   Body of Knowledge regarding work methods, collaboration,                                   work environments and the configuration and                                   uses of technology to augment knowledge work                                   and Group Genius. At the moment,                                   this knowledge is distributed among the MG Taylor                                   Business Units, iterations and several individuals.                                   In the reorganization, this will be pulled together                                   into systematic IP to be developed, licensed,                                   transferred and published in a variety of forms                                   as the main focus of the MG Taylor. In addition,                                   MG Taylor will function as the Systems Integrator                                   (SI) of a ValueWeb of Investors, Producers and                                   users who will take the MG Taylor system and                                   methods to scale employing many products, services                                   and enterprise structures. |    |                                                    |                                                                 | The                                   MG Taylor has gained in the last several years                                   a forceful position in the fields related to                                   ValueWebs, collaborative process, creative and                                   flexible work environments and leveraging technology.                                   A License was granted, in 2001, for the Taylor                                   System and Method and several applications are                                   filed that will add to this position. |    |                                                    |                                                                 | The                                   MG Taylor has a long history. It has achieved                                   proof of concept of regarding how to transform                                   traditional organizations to flexible, productive,                                   adaptable 21st Century enterprises. MG Taylor                                   has earned over $50 million in revenues doing                                   this and spent about 10% more learning how to                                   do it. While project profitability has long                                   been achieved, enterprise profitability has                                   not. The greatest challenge to this goal has                                   been the complexity of incubating products and                                   services across so broad a range and the conflicts                                   associated with competing with enterprise                                   partners. In addition, the ValueWeb concept                                   was far too nascent an idea to become operational                                   before now. The going maturity of the MG Taylor                                   nascent ValueWeb and the evolution of the market                                   place now presents an opportunity to create                                   a profitable enterprise able to achieve the                                   goal of ubiquity of a new way of working. |    |    Matt                         TaylorPalo Alto
 March 1, 2002
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 SolutionBox                                 voice of this document:VISION  STRATEGY  DESIGN
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                                                     posted:                             March 1, 2002 revised:                             March 12, 2002                             20020301.153501.mt  200200312.123499.mt                             
 Copyright©                           Matt Taylor 2002 |    |  
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