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Technology Stocks : INTERFACE SYSTEMS (INTF) GETTING INTO EBPP? -- Ignore unavailable to you. Want to Upgrade?

To: TLindt who wrote (806)	1/16/2000 2:22:00 AM
From: David H. Zimmer	Respond to of 1203

>>Bob Cooper Chevrolet....Berrien Springs Michigan Midnight Blue for Mama with a couple cases of Bud in a cooler in the back. No problem.

To: TLindt who wrote (806)	1/17/2000 4:00:00 PM
From: David H. Zimmer	Read Replies (1) \| Respond to of 1203

A few thoughts on INTF: From time to time I will update my thoughts about INTF. Over the coming days you will be receiving the 1999 Annual Report. It makes for excellent reading, take the time to read it from cover to cover to better understand where this company under the guidance of Bob Nero is heading. Over the past few weeks some very interesting pieces of the INTF puzzle have fallen into place, the foremost of which was the relationship with ORCL. This piece of the puzzle has further been enhanced with a potential relationship with Bell & Howell as one of Bell & Howell's Vice Presidents, Bruce Rhoades sits on the INTF Board of Directors. It has always been my belief that INTF can do very well on its own, as will be shown in the increase in revenues from the "L2i" sector in this and all future upcoming quarterly reports. The effects of Y2K were most obvious in this previous quarter, INTF's first quarter of 2000, the October through December quarter but the firm held its own. This quarter is always the weakest for INTF but its gains in the "L2i" sector continue. This coming quarter will also show some of the effects but will also show increases in the "L2i" sector. It is the April through June quarter that will show us how big and how fast INTF will achieve it goals. It will also illustrate to you at what price INTF will be acquired. Nero has completely turned this company around. At the annual meeting we will vote strongly for all matters on the agenda, especially the increase in the authorized number of shares. As spelled out in the 14-A, these shares will be used to incentivize existing employees, attract new employees, enable the company to split the stock, and for purposes of acquisition, financing and to fend off unfriendly takeovers. We believe the following is necessary for INTF to achieve its goals (1) split the stock 2:1 to create liquidity and attract additional market makers; (2) acquire, on an accretive basis one or two private firms whose products and clients augment existing INTF clients and products; (3) raise capital, for each $1 raised and spent today, $3 will hit the coffers of INTF six quarters out; and (4) to allow flexibility for future decisions. Nero and the board have been working on this plan for more than six months. They have accepted our input and have acted logically upon our suggestions. We are behind them 100%. The recent decline in the stock was met with aggressive buying which we would expect given the number of firms who now have INTF on their radar screens. In late December, the day before CKFR bought out BlueGill for $250,000,000 or 50 times revenues, we met with two of the highest level investment banking companies on the street and sent packages of information to eleven others. Our phone continually ring off the hook, all contacts from which have been submitted to Bob Nero. In January, after the ORCL release, we began to contact the second tier firms. Meetings which concluded this weekend suggest that two or three higher up second tier firms are interested in initiating coverage as well. Again, we will not stop this level of contact until our goals are met. Any decrease in the price of INTF stock represents a buying opportunity that should not be passed up. Our targets of between $80 and $110 per share, based solely upon other market capitalization ratios within the industry, remain intact. One publicly traded true competitor XNS.TO, is trading up today @ $42.00 Canadian in the Canadian market. The exchange rate between Canadian and US is $1.45 Canadian to $1 US. This values XNS.TO shares at $29 US giving it a market capitalization of $225 million US. There is no reason, given the fact that INTF is stronger in these respective markets than XNS.TO, that the market capitalization of INTF is only $125 million, approximately $100 million less than its mirror image competitor. The markets are efficient and this discrepancy will not last long. XNS.TO was named the best IPO in Canada last year. Otherwise, from the horses mouth, this company is firing on all cylinders and the future prospects have never been better. We are on the radar screens of several possible acquirers, the likes of ORCL, BCE EMergis, MSFT, TIBX, BEAS and Bell & Howell which recently announced the splitting of its company to further enhance its entry into INTF's segment, to name but a few. The investment bankers and analysts are aware of INTF as well as exhibited by Wit Capital's participation in an upcoming roundtable discussion to be held in New York on February 14th at the SIA Conference which will revolve around electronic statement delivery. Others on the panel are the largest Unit Trust facilitator Reich & Tang and INTF's partner ADP. It is all rolling out before your eyes. In short, the stock remains a strong buy and should be accumulated during this weakness and through its previously set new highs. Thank you for taking the time to read this long memorandum. I can be reached at 1-800-330-4215 if you have any other questions or feel free to contact Bob Nero directly at 1-734-769-5900 ext. 1740.