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Subject:  Re: Is EAI a ripe take over target - Part III Date:  12/9/1999  2:24 PM
Author:  sbehrens Number:  118 of 129


Seems to me that with the big CAD vendors scrambeling to come up with viable EPD/PDM product strategies of their own and with EAI's
current strong core technology and low market valuation that they would be a great take over prospect.

Any thoughts on this?

Also what are the chances that they go belly up and loose all market valuation?

They may be a takeover target, though I don't think it would be necessarily by a CAD vendor. Dassault and PTC probably wouldn't be interested since they already have made plays for some competing technology. SDRC and UG are possible candidates but my gut feeling is that they are going in a different direction. Autodesk is possible but again I think unlikely.

As for loosing all valuation? Won't happen. Don't confuse what has happened with the stock price with the company's market position and technical strength. EAI has some very promising technology in FactoryCAD and their SDX format for simulation data. All the major simulation vendors are going to be using this. They also recently bought a company called Delta (they're german) and aquired a lot of good technology in the process. The company has it's problems but there's no need to be worried about it as a going concern. It may get bought out but it will not go out of business.

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