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To: Ken W who wrote (1483)	3/6/2003 12:44:18 PM
From: JoeinIowa	Respond to of 23958

Ken, Other than STORs large cash position I did not find a lot that excited me. Worse case they may buy someone for cash and depending on how they merge the two companies will depend on how they do. I also though they might consider a reverse split if their stock price stays below a buck. Joe

To: Ken W who wrote (1483)	3/6/2003 2:05:10 PM
From: Findit	Read Replies (1) \| Respond to of 23958

STOR news article - Mar 06, 2003 (Datamonitor via COMTEX) -- StorageNetworks' decision to consider a sale follows soon after storage back-up software company Legato Systems made the same move. The two announcements suggest that storage software companies may be reaching a crisis point due to the continuing market downturn. Storage software company StorageNetworks has announced that it has appointed investment banking firms to "assess all available opportunities to maximize shareholder value." In effect, the Waltham, Massachusetts-based company is pleading for a buyer to take over the company. Two directors, George McClelland and William Weyland, quit the company's board, though the share price rose 7.1% to $0.90 on hopes of a bid. At this price the company is valued at $89.1 million. StorageNetworks began as a storage service provider during the period in 1999 and 2000 when dot-coms were expected to pack data centers the world over, and would look for specialist companies to outsource their storage needs. When this failed to take off, it positioned itself as a company that could manage its customers' own storage kit on their premises. More recently, the company saw its main business as an independent software vendor and this approach appeared to be paying off when, in February 2002, it announced a deal to provide its storage management platform for EDS Corp's data centers. But StorageNetworks continued to leak cash, and in the year to December 31, it reported a net loss of $76.6 million, down from a loss of $224.9 million on revenue 19.7% lower at $91 million. The company cut its workforce 50% in January, blaming a weak economy and immature storage resource management market, and co-founder Peter Bell quit as CEO. It has not been long since storage back-up software specialist Legato Systems also began looking for a buyer - it is currently rumored to be a target for EMC. Coming so soon after, the move points to a crisis for storage software companies in the face of a market downturn and the inevitability march of hardware vendors into their territories. Related research: Datamonitor: "SME networking opportunities" (DMTC0835) You can download a FREE technology report at www.dmfreereports.com datamonitor.com Republication or redistribution, including by framing or similar means, is expressly prohibited without prior written consent. Datamonitor shall not be liable for errors or delays in the content, or for any actions taken in reliance thereon Copyright (C) 2003 Datamonitor. All rights reserved NewsProvided by COMTEX, comtex.com