Geneone Scenario

SCENARIO: Gene One

COMPANY OVERVIEW

In 1996, Gene One entered the biotech industry with groundbreaking gene technology that eradicated disease in tomatoes and potatoes. As a result, farmers no longer needed to use pesticides when growing these plants and consumers were pleased to buy homegrown products untainted by chemicals. The win-win situation helped Gene One grow to a $400 million company in just eight short years.

Accordingly, sharply rising stock indices on Wall Street indicate a growing interest in biotechnology. And leadership changes at the Food and Drug Administration are further enhancing investor confidence in the industry. At Gene One, the CEO and his Board believe that in order to keep pace with demand and realize conservative annual growth targets of 40 percent, Gene One is going to have to go public within the next three years. The time seems right, but the company needs IPO capital for new development, advertisement, and marketing if it is to remain successful.

Working toward a 36-month maximum deadline, the CEO and his Board have devised a clear strategy with the help of key members in the investment community. It is their hope that implementing it will help Gene One realize its growth targets, establish the company as a strong competitor and show Wall Street that Gene One has the leadership and organizational capabilities to succeed as a public entity.

THE PLAYERS

Don Ruiz, Chief Executive Officer: At age 37, Don became a young entrepreneur when he recruited four colleagues to make his brainchild -- Gene One -- a reality. As CEO and creative force behind Gene One, Don not only brought his extensive technology and industry knowledge to the company, but a significant part of the $2 million dollar start-up investment as well. Now, as a $400 million company, Gene One is positioned to realize growth targets that will make it an industry leader. Don is excited about the company's IPO opportunity, and has engaged his leadership team, as well as an external consulting firm, to develop a sound strategy to ensure that Gene One not only serves the public but leaves a legacy of his work.

Michelle Houghton, Chief Financial Officer: Part of the start-up five, Michelle invested everything she had into Gene One and, as a result, feels a strong sense of ownership and emotional attachment to the company. Don and Michelle share a solid working relationship and friendship; in fact, with their spouses, they socialize often. Reserved and quiet, Michelle is often mistaken for a pushover when in truth, she is passionate about issues that put the company at risk and has been very successful in securing funding from government and private investors. At 35, Michelle had never before directed Finance in a large corporation or been involved in an IPO; nonetheless, she has earned a credible reputation with the leadership team, the Board, the FDA leadership and the government.

Charles Jones, Marketing Officer: Two years after Gene One's start-up, Don recruited 35-year-old Charles because of his reputation for "smart" risk-taking and his biotechnology connections. Don saw him as the perfect person to develop and implement Gene One marketing strategy. Self-confident and moral, Charles easily garners trust for himself and the company. He has no personal investment in Gene One, but his professional pride motivates him to work hard at defining products that will sell, and creating a Gene One brand image that is synonymous with technology innovation, future of America, potential for major economic returns, etc. But Charles likes to focus on the big picture rather than the details, which means his efforts to design and implement a marketing infrastructure have yet to be completed.

Teri Robertson, Chief Technology Officer: Part of the original start-up team, and Don's niece, 37-year-old Teri has a world-renowned reputation; it was her doctoral research that led to the genetic breakthrough discovery that Gene One's success is built on, and she holds a number of patents pertaining to it. A scientist at heart, Teri is highly competent with a passion and talent for technology research and development. Though Charles involves her in marketing to a degree, he recognizes where her talents lie and, most often, leaves her to them. That suits Teri just fine; Gene One has become her life.

Greg Thoman, Chief Human Resources Officer: Six years ago, at age 30, Greg came to Gene One after an eight-year stint at a Human Resources Consulting company. Known for his "can do" attitude, Greg has staffed Gene One with talented researchers and innovative product developers. In the past two years, Gene One's massive growth has meant thousands of new hires, and Greg has had his hands full with staffing. As a result, he hasn't had time to focus on developing future talent, or creating a corporate culture conducive to growing the business.

John Kirby, Executive Director Board Member: CEO of Nuke, Inc., a nuclear medicine company, John has spent more than thirty years in the science and technology industry. His expertise has made him an influential member of the industry community and he knows it -- when he wants something, he doesn't take no for an answer.

Susan Wells, Executive Board Member: Serving her second term, 62-year-old Wells is a well-respected Board member with myriad connections in the media and political communities. She's very thorough and logical, and has been known to reverse decisions at the eleventh hour based on new data received from her vast network of influential friends.

MARCH 2, 2005

E-MAIL TO: The Senior Leadership Team

FROM: Don Ruiz, CEO

I just returned from a Board meeting, and you'll all be pleased to know that we've gotten the go-ahead we need to proceed with the IPO. The Board agreed with us on all counts -- the three-year timetable, the 40% growth targets and the need to raise capital and develop new products. I'm very excited about this; I think the time is right and it's the right thing for Gene One.

That said, I realize that, collectively, we have zero experience with IPOs, so I think it's critical that we get ourselves a bit of an education about IPOs and begin outlining the steps we need to take as we move through this process. To that end, I've set up a two-day, off-site meeting that will give us time to determine what we need to do to realize this opportunity, as well as identify any challenges we might foresee.

I've attached