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To: BWAC who wrote (36457)	1/2/2002 8:24:50 AM
From: E.J. Neitz Jr	Read Replies (1) \| Respond to of 53068

BWAC- Here is a summary on ASCL---Won't spend any real time discussing it since it only represents 1/2 of 1% of my portfolio: S&P: Overview 30-NOV-01 In July 2001, the company sold its database software business to International Business Machines Corp. (NYSE: IBM) for $1 billion in cash. After the deal closed, the company was renamed Ascential Software, reflecting its remaining database applications business. Proceeds from the sale were about $800 million after taxes. ASCL intends to apply the proceeds to fund its growth as well as return a substantial portion of the available proceeds to stockholders through its stock repurchase program. We expect revenues for the new company to increase sequentially in 2002, reaching a low double-digit increase in the second half of the year. However, we don't expect ASCL to break even until the end of 2002. Our operating loss per share estimates exclude amortization and one-time charges. Valuation 30-NOV-01 Over the past two years, the company refocused its strategy, brought in new management, reduced expenses, strengthened its balance sheet, and imposed more conservative accounting. The culmination of these actions was the sale of the company's database software business to IBM for $1 billion in cash. The new company, Ascential Software, is focused on information management products geared toward the Internet. Ascential has approximately $1 billion in cash and no debt after the completion of this transaction. With the after-tax proceeds of the sale of the database business of approximately $800 million, shareholders will continue to benefit from ASCL's ongoing $350 million stock repurchase program. With cash and short term investments of approximately $3.40 per share, and a significant stock repurchase program in place, ASCL is a worthwhile holding.