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To: Box-By-The-Riviera™ who wrote (2863)	11/19/1999 10:55:00 AM
From: Edwarda	Read Replies (2) \| Respond to of 3646

Good morning, J. One thing to keep in mind is that although Windchill is a very exciting product suite--and I am the first one to acknowledge it--and although it is growing like a weed, it still represents a relatively small part of the company's overall revenue stream. It accounted for $82 million on a base of $1 billion in fiscal 1999 and even at the kind of growth rate that makes $175 to $250 million possible for the current fiscal year, part of this terrific growth is serving merely to offset the slowing in the base business. Because of this, it is difficult to see the company earning more than 85 cents per share in the current fiscal year and difficult to posit a five-year total earnings growth rate of more than 20%. In this context, the valuation does start to look full for the overall company, despite the enormous potential of Windchill over time. Having said this, I acknowledge that it was my opinion that there would be more time required to assess the growth rate and re-establish the management's credibility before we were off to the races. Obviously, I was mistaken.