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Subject:  Re: Status check Date:  10/7/1999  12:31 PM
Author:  Arnquist Number:  104 of 129

I have never seen a class action suit benefit a shareholder. At most, people seem to recover a a few cents per share. In one suit, shareholders recevied additional stock along with their pennies a share. And that additional stock is only valuable if the company has the resources to recover and post solid numbers. IMO, the only ones who seem to benefit are the attorneys, who take the money. The company has to put time and money into the suits that should go into reorganizing the business.

I think EAI needs some major changes. They seem to have the technical expertise and solid products, but they need help with marketing and support. I thought they made a good start at addressing the issues in the CC, but identifying problems and solving problems are not the same thing. I see a rough couple of months.

I would describe their core businesses as 3D engineering, design, and process management software. I would also say that a core business is information-sharing, which is appropriate because design and manufacturing teams have joint information needs. E-Vis is a new way of delivering these capabilities.

I still hold the major portion of my investment. I think there are 2 possiblities. Either the company recovers and deals with their problems, or they have to seek a merger partner.

There may be disgrunteld employees posting here, as I am sure there is some significant stress now. But the board is anonymous, and anyone can claim to be anyone. I find it interesting that it was through this board that I was contacted about possibly becoming involved in a law suit.

I'm sure there are unhappy employees. They are dealing with personal losses from the stock price decline, from the decreased prestige (EAI has been a premier employer in Ames, hiring the best of the best), and from added stress at work as they struggle to solve the problems. But I know at least a few employees very well who, while disappointed with results and stressed by some of the problems, feel favorably about the company and the work they do for the company.

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