Exerpts from DOW coverup memo

[Guest guest]

DCC Committee

It has been two weeks since we had the great session

with the BOD at which time they pointed out some of

the problems we were facing and suggested ways we

might get beyond them. This communication is intended

to simply summarize where I feel we are.

The issue of cover-up is going well from a long-term

perspective. We are moving rapidly ahead on our press

conference, and all things appear to be in place for

that with the exception of the University of Michigan

study being finalized. I did talk to four other

presidents of the main breast implant manufacturers on

Friday, and they have given us the go-ahead on

discussing the NYU study. I asked Tony Getty from

Mentor if he was going to participate in the

University of Michigan study, and he said he was not

sure but would respond early this week for a final

resolution. Jan Varner said McGhan will go with us

regardless.

The issue of the Breast Implant Communications Center

is almost completely put to bed at this point. It will

be very tight for our July 8 deadline in terms of

having letters out and having all the printed material

ready. The final sign-off is today, June 24. The

selection of people is completed and the training will

begin this week.

The number one issue in my mind is the establishment

of networks. I believe we have made no progress in the

two weeks. Obviously, this is the single largest issue

on our platter because it affects not only the next

2-3 years profitability of DCC, but also ultimately

has a big impact of the long-term ethics and

believability issues. If we do not win this one, or at

least minimize the financial impact that people are

able to achieve, you can forget about whether we have

done all these other things correctly.

I know I am the long ranger after all of our sessions

on this, but I still believe appointing Burnett

full time to do nothing but orchestrate the networks

is absolutely critical. I still favor having somebody

who has moxie and judgement skills which are excellent

to be turned loose to make the contacts to get the

ball rolling. This is critical to the patient

community. While I have no problem with your approach,

Barie, of turning it over to Burston Marstellar, it is

a very sterile approach in the final analysis. I

believe we can make a faster progress on our own, even

without all the communication documents established

since the early part of the job is primarily getting

contacts and establishing some believability as a

person. It takes a lot of time to do this, and it is

going to take someone like Burnett, as good as he is,

a fair amount of time just to get in motion.

It has become obvious to me that what is at risk here

is somewhere between $50 million and $500 million.

Right now, I think we are losing the time race badly

in this critical area, and I believe that the amount

of money we are going to lose is increasing rapidly

since we are not going to be in a position to divert

the opposing forces into the directions we want soon.

The latest information that July will be the day when

a legal firm in Chicago makes an announcement they

have 25 women assembled who will be suing breast

implant manufacturers is just another example of how

good Wolfe is in knowing when our red-letter days are,

and anticipating and muting them with excellent

counter strategies. I fear that if he can pull it off,

he may have a multi-city announcement which we are not

aware of at this point. In talking to the other

companies, they were not aware of the Chicago

announcement, and did not know of any others besides

the southern California group. I hope this is true,

because we would be ill-prepared in terms of counter

measures through the grass roots system to try to

present a counter perspective.

I have started to initiate the surgeon contact

sessions by getting the people at DCW together

tomorrow for an extensive development of a plan of how

we want to organize the plastic surgery community and

involve our ITSA organization, which should be

extremely affective in this. Also, I am beginning to

line up the price discussion that is desperately

needed so we present a uniform picture to the outside

community.

Finally, I have been in contact with Dick Hazelton,

Colin Rowland and Alain Jacquin from Europe concerning

strategies there. I believe they are in good shape at

this point, but it would be critical to get them

rolling. I understand, Barie, you have contacted

Dean and he will be attending the press conference. I

think this is good, because at this point in time

after talking with the sales representatives in

Europe, I am convinced they do not have the same

problem yet. We obviously have a chance to get in

front there, and stay there.

As far as Australia is concerned, I am out of date at

this point, but will get caught up.

The place we have the biggest hole still missing and

two weeks behind from the time we got the word from

McKennan, is in this whole arena of getting a

patient grass roots movement going. I will keep

working diligently and as needed to help us get to the

other side, but I am very worried.

Best regards,

Dan

cc:

BSCARMIC

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