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Cruttenden Roth Initiates Coverage of IAIC With Strong Buy Rating

The date of this research report was March 19, 1998 and was written by the highly quoted Y2K stock analyst Neil Cooper (tel. 714-757-5704).

Here are some tidbits from this 13 page report:

CR projects EPS of $0.77 in 1999 which means that IAIC is trading at a multiple of 18.8x on next year's earnings. IAIC's revenue projections are $48 million in 1999, up from $30 million in 1998 and $6 million (actual) in 1997. CR expects IAIC to be profitable in the second quarter of 1998.

Their 1999 stock price target is $31.

As Matt Kern has previously described in this folder, it seems that CR's estimates are "low-ball" numbers with significant upside potential.

CR expects that IAIC can use its Y2K remediation work to position themselves for post-Y2K work WRT EMU, maintenance, migration, conversion and re-engineering of large-scale applications.

CR believes that there is too much unremediated code and too little time for the automated tool vendors like IAIC not to experience a surge in demand during the next couple of years.

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