Donovan Letter Updates Members on Project A

Dear Members: Following the intermittent MCI WorldCom network outage that shut down Project A throughout much of last week, Project A trading resumed as scheduled last night at 6:00 p.m. with our full emergency backup plan and the MCI WorldCom network. Project A trading terminals worldwide are now functioning normally. Throughout last night, our emergency backup Project A trading plan was in place in case the MCI WorldCom network failed again. This backup plan was a financial and logistical hardship for some of our members and member firms, but it ensured ongoing trading opportunities for Project A users affected by the MCI WorldCom outage. In my phone call to MCI WorldCom CEO Bernard Ebbers this morning, he informed me the MCI WorldCom network is 100 percent reliable for Project A trading. Over the weekend, MCI WorldCom shut down its data network and reverted to a prior version of system software; essentially taking its system back to ground zero. This was a drastic measure, highlighting the severity of MCI WorldCom's customer service plight. However, the positive results of MCI WorldCom's work over the weekend demonstrate they appear to have taken an important step toward resolving their problem. Therefore, based on MCI WorldCom's assurances and the concerns of our member firms relating to the hardships and additional costs of the backup trading plan, we are disengaging our backup plan today. The CBOT has been proactive in dealing with the MCI WorldCom network problems, beginning with my meeting with top MCI WorldCom executives two days before the first outage occurred and subsequent discussions with CEO Bernard Ebbers. We remain in constant communications with MCI WorldCom to monitor network activity, and special procedures are in place to ensure Project A continues to be a major priority for MCI WorldCom system engineers. This MCI WorldCom outage has been frustrating for CBOT members and customers around the world, and we appreciate your patience and understanding. I will keep you updated on further developments. Sincerely, Thomas R. Donovan