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To: Jeffrey S. Mitchell who wrote (10279)	9/2/1999 1:53:00 PM
From: Jeffrey S. Mitchell	Read Replies (2) \| Respond to of 10786

Just a random thought about DSYS. Recall the terms of the merger are: If the average ten-day closing price is below $6.00 per share, we will issue a greater number of shares equal to 9,666,282 divided by the average closing price. Bob Gruder owns 7,035,815 shares according to the 10K. Using the formula 9,666,282 / x = 7,035,816... we get x = 1.37. So, if DSYS decides to short against the potential 7M shares they stand to get in order to achieve an average 10 day share price of $1.37, once the merger is completed, they will be the controlling shareholder! In other words, who will be acquiring who?!* - Jeff P.S. Actually, the above is an over-simplification. DSYS may have to relinquish shares if they have a prior short and/or they'd have to relinquish any shares they used to short the price down in the above scenario. So, in reality, they'd have to get the price down even further to accomplish the above, but it's still food for thought.