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Five analysts and top management from eighteen sector firms examine the Document & Database Management Software sector in this special 93-page issue from The Wall Street Transcript, available at (212/952-7433) or http://www.twst.com/info/info407.htm

TWST: How are you approaching these stocks?

Mr. Hargil: We approach the stocks by looking at several factors, but primarily, what does the company do and what is it trying to solve? What is the element in the storage industry that it is trying solve? And essentially, how good are its solutions? That will determine how competitive it is going to be over the long term. Once we have that under control, we look at factors such as, how happy are customers with the product? How much competition does the company have? What is the quality of management? From there, we go ahead and look at comparables within the industry, outside the industry, as well as trying to put together all those softer factors that we discussed earlier. We combine these together into an estimated valuation we place on the company.

TWST: What do you anticipate for the hardware and software storage companies in the second half of 2001 and looking out further to 2002 and 2003?

Mr. Hargil: I think the main message as we go forward here over the next several quarters is that we will be looking at hardware continuing to have a difficult time both in terms of absolute sales as well as margins continuing to decrease because of lower purchase numbers and discounts. On the software side, I would continue to look for innovative solutions that improve the way people can utilize their hardware. People who spend a few million dollars to buy a storage system are very motivated to spend a few hundred thousand dollars on software to make sure they utilize it in the best way. The software investment in relative terms is not a major investment, and I think that it is definitely a growth area going forward.

TWST: On a final note, are you looking at any stocks today that you feel may prove to be interesting opportunities long term?

Mr. Hargil: Yes, I would say a stock like Akamai (Nasdaq:AKAM) is an interesting stock that has been taken down by about 98% from its highs, which is quite a move. Yet the company still has a very credible service offering, which I believe may be attractive over time. So I would definitely keep a close eye on what Akamai is doing. They’re providing the content delivery services, which are necessary for enterprises and networks to operate over the Internet. I believe they do have a sustainable long-term model, which is still not fully proven, and I would continue to keep an eye on the company.

This special issue includes:

1) Document & Database Management Software - In an in-depth (10,300 words) Analyst Roundtable, Robert Austrian, Managing Director at Banc of America Securities LLC, Brendan Barnicle, Vice Principle at Pacific Crest Securities and Christopher Shilakes, First Vice President at Merrill Lynch & Co., examine the outlook for the sector including, long term trends, developments in technology and share specific stock recommendations.

2) The TWST confidential Off-The-Record survey of management performance at seven sector firms asked market insiders about the ability of management teams to create shareholder value.

3)Storage Hardware & Software Stocks - In an in-depth (2,600 words) Analyst Interview, Nitsan Hargil, Senior Analyst at Friedman, Billings, Ramsey & Co., Inc. examines the outlook for the sector and shares specific stock recommendations.

4)Enterprise Software - In an in-depth (2,000 words) Analyst Interview, Greg Vogel, Managing Director at Banc of America Securities LLC, examines the outlook for the sector and shares specific stock recommendations.

5) CEO interviews (average 2,500 words). Top management of eighteen sector firms examine the outlook for their firm and the sector.