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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: Would you begin by telling us which storage hardware and software companies you follow and how these companies fit into the technology sector?

Mr. Hargil: Storage is what you use every time you save a document, retrieve any sort of information, or even use your credit card. Most all data generated by us is saved nowadays, most likely in a semi-permanent fashion. Storage hardware are the large machines containing disk drives or tape back up where the data is actually saved. Storage software helps users utilize their hardware in the most efficient way possible.

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: Are there any other companies in your universe that you would care to discuss?

Mr. Hargil: We look at companies in the network monitoring space. Those companies are OPNET (Nasdaq:OPNT) and Precise (Nasdaq:PRSE). On both of them we have a buy rating. We find both companies very attractive. Precise is an innovative company allowing you to go into a database, for example, or essentially any system, and dig deep down to find out what is hindering the performance of the network. For example, if you do a query into a database and it takes a very long time to return the information, Precise’s software will find out where the most time is being taken up and suggest ways to fix that problem. It will then be able to implement that solution off-line so it doesn’t affect your operating environment and show you what the results would be if you were to implement that solution. If you like what you see, you can go ahead and implement that solution or ask the software to give you an alternative solution. So that kind of software truly has added value. We’re seeing customers being very excited about the possibilities that this kind of software offers and we really are excited about Precise’s future. The company is also coming out with a substantial number of new products and is increasing its sales force at a very quick pace, both of which we think will help them continue to grow their revenues over the next few quarters.

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.