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To: Art Bechhoefer who wrote (25315)	3/10/2004 6:36:36 PM
From: Bridge Player	Respond to of 60323

<< EFII has lots of debt,>> Art, cash and equivalents plus short-term investments, exceed debt by some $9 per share. To me, this is not an uncomfortable situation. I think they just took advantage of very low interest rates, and are just sitting on their cash from the offering last year.

To: Art Bechhoefer who wrote (25315)	3/11/2004 12:13:26 PM
From: Sam	Read Replies (1) \| Respond to of 60323

OT Art, EFII has proven time and again that they can deal with Xerox with no problem. Nice trading stock, lots of ups and downs, though admittedly I haven't followed them for a few years.

To: Art Bechhoefer who wrote (25315)	3/11/2004 2:48:27 PM
From: Dave	Read Replies (1) \| Respond to of 60323

Art -- EFII has lots of debt, very high PE, yet is ranked 6th from the top EFII has about $240m in debt; however, Shareholder Equity is 654.8m and Cash & Equivalents are $524.1m. Therefore, while to you and me, $240m is "lots of debt", with respect to EFII in general it isn't alot. Additionally, EFII's operating margins are more than sufficient to cover the interest expense. Regarding it's Price to Earnings ratio, remember, a P/E ratio is a "shortcut" for valuation. Also, remember, one cannot look at these ratios in a vacuum. If investing were about investing in low P/E ratios, it would be easy and everyone would make money.