DANIEL N. CHAI Associate

Daniel Chai specializes in the application of the principles of modern financial economics. Mr. Chai also brings knowledge and experience from the securities industry where he focused on global strategic planning issues for a major brokerage house/investment bank. Prior to joining The Brattle Group, Mr. Chai was an associate at Putnam, Hayes & Bartlett, an economic consulting firm, and before that, he spent eight years at Prudential Securities in New York, ultimately achieving the title of Associate Vice President in the Consumer Markets Group. Mr. Chai holds an A.B. in Economics from Cornell, an M.B.A. in Finance from the University of Rochester, and is fluent in Mandarin Chinese.

REPRESENTATIVE CONSULTING EXPERIENCE

$ In a securities litigation involving an aborted merger between a publicly held software company and a privately owned software concern, Mr. Chai performed discounted cash flow valuations of both companies and modeled scenarios depicting original and restated accounting numbers. He developed event study analyses to study cumulative abnormal stock returns of the acquiring company. Mr. Chai also calculated possible economic damage ranges, assisted in formulation of the theory of the case, and helped draft expert witness testimony. Mr. Chai worked closely with counsel in developing deposition questioning for opposing counsel's expert witnesses and supported counsel at these depositions.

$ Mr. Chai worked on behalf of a privately held, international postal company in its defense of alleged misappropriation of trade secrets. Mr. Chai established the existence and effects of competition in the industry, demonstrated the dynamics of a sales force / customer relationship, and helped draft expert testimony stating among other things, the non-existence of damages.

$ For a large, west coast utility, Mr. Chai helped draft testimony detailing the downward biases in cost of capital estimation for the utility's transmission assets despite increased risk across all the utility's industry segments due to deregulation. He outlined some of the current data problems causing material downward biases in the cost of equity, including the limitations of traditional discounted cash flow models and biases in company beta estimations.

$ Mr. Chai consulted to a large, midwestern utility in a tax related dispute concerning their purchase of corporate owned life insurance ("COLI") to finance employees' post retirement health benefits. He demonstrated, among other things, that COLI evolved logically from the many tax advantaged financial instruments corporations use on a regular basis, and that COLI was not, as the Internal Revenue Service alleged, a tax scam.

$ For a privately held, automotive parts concern involved in an intellectual property dispute, Mr. Chai calculated damages based on a reasonable royalties model. He researched the automotive industry and documented that characteristics such as a competitive supplier market and ready availability of substitutes must be factored into the model. Mr. Chai also established the non-existence of plaintiff's lost profits and helped draft expert testimony.

$ On behalf of the United States Department of Justice, Mr. Chai assisted in development of economic argument and analysis for expert testimony filed in federal bankruptcy proceedings pursuant to the Federal Communications Commission's (FCC) auction of the "C" block portion of radio spectrum allocated to Personal Communications Services (PCS). Mr. Chai also identified and secured the commitment of two expert witnesses: an experienced cellular engineer to serve as the technical expert, and a nationally recognized wireless analyst to serve as the industry expert.

$ Mr. Chai led a team that performed a valuation of a privately held professional services firm and recommended specific actions to be taken in the firm's plans to execute an internal buyout. He utilized discounted cash flow models, and comparable company and comparable transaction multiple models.

$ For a large, publicly traded health care concern, Mr. Chai developed discounted cash flow models to value economic damages suffered by the company when it acquired a business from parties who were alleged to have been engaged in Medicare fraud. He performed rigorous analysis of the company's contractual covenants and restrictions in order to demonstrate these covenants were prudent and customary safeguards against anticipated financial risk. Mr. Chai also helped draft expert witness testimony and the expert witness report .

$ Mr. Chai worked on behalf of a large, publicly held consumer goods company that was involved in a failed interactive marketing venture. He evaluated various contract structures of the interactive venture to assess appropriateness of accounting policies, evidence of real options, and compensation and incentive systems in place.

$ In a case involving the sale of wheat forward contracts, Mr. Chai worked on behalf of a commodities trading concern and calculated damages / lost profits, assessed the extent of fiduciary duty, and assisted in preparation of the expert report. He also initiated contact and secured the commitment of a leading agricultural economist to serve as expert witness.

$ Mr. Chai worked closely with a privately held manufacturing company and developed a list of potential strategic alliance partners while performing exhaustive research in several industry sectors. For the same company, Mr. Chai also prototyped a plan to create a separate research and development subsidiary utilizing an equity carve out model.

OTHER EXPERIENCE

$ At Prudential Securities, Mr. Chai was the financial officer responsible for corporate capital projects involving 300 retail brokerage offices globally.

$ Mr. Chai developed business models to help formulate individual growth strategies for Prudential Securities= retail brokerage offices.