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n City of Santa Ana, CA Request for Clarification No. 2 <br />l Enterprise Resource Planning Software and Implementation <br />Services <br />August 13, 2007 <br />Toby Genaro <br />Lawson Software <br />2030 Main Street, Suite 400 <br />Irvine, CA 92614 <br />Toby.genaro(a)-lawson.com <br />RE: RFP No. 06 -189 <br />Dear Mr. Genaro: <br />The City of Santa Ana has some additional questions and clarifications that have <br />occurred as part of the Discovery process. Those questions are listed below. <br />General Question: <br />To help us understand how Lawson can meet our functional needs today, and how <br />easily Lawson adapts to change to meet tomorrow's requirements, please discuss your <br />long -term plan with regard to your organization's financial viability and corporate strategy <br />direction, including plans for annual investment in new product development and other <br />broad strategic implications, including current and future technology direction. <br />Lawson Response: <br />Financial Viability & Corporate Strategy: <br />Lawson is a publicly traded company listed on the NASDAQ exchange under the symbol <br />LWSN. LWSN common stock has delivered double -digit returns over the past several <br />years. Strong financial performance and solid returns have been characteristic of <br />Lawson; total revenues increased 16.6% in 2006 year over year, and license fees <br />increased 48.9% in 2007 partly due to an acquisition. Lawson is a $750M entity focused <br />completely on Enterprise Resource Planning applications. Earnings per share estimates <br />according to industry analysts are $0.34 per share for fiscal year 2008, and $0.50 per <br />share for fiscal year 2009. <br />New Product Development: <br />Current R &D investment is $85M annually, significantly up from last year's $61 M. New <br />products developed for public sector over recent years include Strategic Sourcing, <br />Budgeting & Planning, Grant Mgmt, Enterprise Asset Mgmt, Learning Accelerator, <br />System Foundation 9.0. <br />Specific Functional Questions: <br />Position Control <br />Ctrl BIT D <br />Lawson Software - Confidential <br />