February 22, 1995 VIA FACSIMILE 310/996-3359 & U.S. MAIL Kathleen Carson, Special Agent Federal Bureau of Investigation 11000 Wilshire Boulevard Los Angeles, California 90024 Re: Kevin Mitnick Dear Kathleen: Congratulations on the arrest of Kevin Mitnick. Pursuant to your request, I asked our Cellular group to assess the damages caused to Fujitsu Network Transmission Systems, Inc. ("FNTS") by Mitnick's theft of the source code for the PCX telephone. The infor mation provided to me is as follows: Software development expenses ...... $1,100,000.00 Research & development expenses ..... 1.000.000.00 Total . . . $2,100,000.00 Additionally, attached is a worksheet showing what it would (will) cost FNTS to recall the PCX phones in the marketplace if the source code has been compromised or is not safe. Please call me at (214) 479-2931 if you need further information Very truly yours, Melanie W. Scofield Corporate Counsel MWS/lm Attachment cc: George Banash To: Nobuo Yamamoto COMPANY CONFIDENTIAL Yoichiro Fujino DO NOT RELEASE PCX Recall Cost Analysis PCX Recall for Software Rework COST ITEMS DESCRIPTION PRICE COMMENT REFERENCE Shipping $17.31Fed. Exp.=$7.50x2 + $2.31(PACKAGE) B5 Pre-Check $4.00Bench test to confirm operational statusB6 Labor to upgrade software$8.5015 min. @ $34.00 per hour B7 QC Cost $4.00After repair QC check - 6 min B8 Packing & Handling labor $6.40Overhead cost to unpack/pack & ticket9.6m B9 Customer Handling $15.00Dealer,FASC,End-User Compensation B10 PCX Admin. Overhead $2.00Mass Mailing,Accounting,Repair Admin,Misc B11 TOTAL $57.21 Total Cost per Recall Unit SUM(B5:B11) GRAND TOTAL $5,517,389.61 Total recall cost for 96,441 unit population CCN-2/21/95 Recall for source code rework. Based on population through December 1994 PCXRCL.XLS