Tangram Enterprise Solutions (TESI) New Release Soon!?! Message Board

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Technology Stocks : Tangram Enterprise Solutions (TESI) New Release Soon!?!

TESI 0.0650

+209.5%

Oct 14 3:44 PM EST

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To: William R. Polk who wrote (111)	9/4/1998 1:57:00 PM
From: Walter High	Read Replies (1) of 120

Colleagues: Is anyone left still in this stock? I have come across an article that may explain some of the downside to the price and I don't think anyone else has mentioned it yet. It appeared in the July 24th edition of the Triangle Business Journal and is entitled: "Tangram, State Farm brawl may be costly." Unfortunately, the article does not appear in the electronic version of this journal, so I will have to summarize. According to the article, in February 1998, State Farm terminated a contract signed in June 1996 and Tangram then sued SF for $1.2 million. SF issued a counterclaim asking for the return of $1.7 million already paid. The lawsuit relates to consulting services not Asset Insight. Here is the key to the problem for Tangram: "... State Farm alleged that the company [Tangram] delivered faulty software on at least five occasions, costing State Farm time and, in some instances, data loss." "The rollout was a disaster, and it revealed that Tangram's software was malfunctioning even worse than State Farm had anticipated ..." according to documents filed by SF. "More than once, Tangram's software destroyed data in State Farm's databases ...." Tangram refuted the claim saying that problems were caused by SF's failure to configure its computer systems to allow for optimal performance. Tangram also claimed that SF made vague charges that did not specify specific performance problems with the software. I have left a voicemail message with John Nelli and I hope he will return my call. I would like to get an update on this situation and see what has changed if anything. It certainly appears to me that these claims could hurt future sales even though Tangram claims it has not done so (according to Nelli in the article). Who wants to buy a software product that might destroy one's data? Until Tangram can refute this claim or show that State Farm is mistaken, I can't imagine that Tangram's stock will do very well. Anyone interested in discussing this? I don't want to talk to myself here. Walter High

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