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To: janet_wij who wrote (20026)	3/13/2000 12:54:00 PM
From: Seldom_Blue	Respond to of 54805

RE ELON Echelon's LonWorks System, including the LonWorks Network Services (LNS) API and ActiveX© control, already support the Windows© operating system and have built-in Internet/IP support to enable seamless integration of data and control networks When I said "the only protocol in town", I was referring (hopingly) to the fact that in the device level, I do not see anyone else that has the software/hardware solution. By device level, I mean the control for turning on/off the coffee pot, opening doors, etc (if I understand LONWorks correctly) that is build into each individual motors and such. The higher level interface, such as the software to initiate the commands, hook to the internet, etc, can be built by anyone. I hope my understanding of ELON is correct. Anyone care to comment? Seldom Blue

To: janet_wij who wrote (20026)	3/13/2000 4:30:00 PM
From: hueyone	Read Replies (1) \| Respond to of 54805

Since, ELON and WIND are in "complimentary spaces" of the smart device market, I think it would be worth doing some comparative valuation of the two companies. In part one I will give you some comparative historical numbers. In part two I will submit some brief newbie gorilla talk concerning the two companies going forward. Feel free to rip me. In the interest of full disclosure, I am long both WIND and ELON. Part One, Comparative Historical Numbers WIND ELON Market Cap 2.04 B 2.95 B Price to Sales (TTM) 11.92x 79.88x Trailing 12 mo revs 171.11 M 36.93 M Trailing 12 mo Net Inc. 22.47 M (4.4 M) 5 Year Rev Growth Rate 36.5% 22.8% YOY Rev Growth Rate 30% 23.5% 12 mo trailing PE 92x NM 12 mo EPS .61 (.13) Gross Margins 81.5% 60.5% I could go on with the numbers, but the general idea here is to highlight the large discrepancy in market cap Mr. market is currently rewarding ELON when related to historical performance, i.e., revenues, earnings and growth. But we are interested in the outlook going forward, not the past, so in part two, I will try to contibute something to the outlook for these two fine companies going forward using the FM. Of course I will invite critical feedback. And again, I am long both of these stocks. Sources: Provestor Reports, Equity Digest Reports, Charles Schwab Company reports, Reports directly from WIND and Janet's ELON Project Hunt Report. Full Disclosure: As was the case with Janet's report, most of the ELON figures are through September 1999. Provestor and Equity Digest have not updated yet for the final quarter of fiscal 1999 for ElON. In addition, WIND's numbers do not include the numbers from the number two player in the space they recently acquired, ISI. Thanks again for your excellent report Janet!!! Best Regards, Huey