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Technology Stocks : Keane The leading y2k service provider -- Ignore unavailable to you. Want to Upgrade?

To: Mark T. Heath who wrote (322)	1/23/1998 9:55:00 AM
From: tech	Read Replies (1) \| Respond to of 1316

============================================================ News Alert from PR Newswire via Quote.com Topic: (AMEX:KEA) Keane Inc, Quote.com News Item #5159662 Headline: Keane Signs Agreement to Acquire Omega Systems; Acquisition Will Expand Keane's Presence in Pittsburgh Marketplace ====================================================================== PITTSBURGH, Jan. 23 /PRNewswire/ -- Leading software services firm Keane, Inc. (AMEX:KEA) today announced it has signed a definitive agreement to acquire Pittsburgh-based Omega Systems, a privately-held, $6 million application development and software consulting company. The transaction will be accounted for as a pooling of interests. The proposed acquisition, which will enable Keane to expand its presence in Pittsburgh, is consistent with Keane's strategy to achieve critical mass in markets it serves. Combining operations will increase Keane's Pittsburgh consulting staff to 130 employees. It will also enable Keane to provide its full range of application development, integration and outsourcing solutions to an increased client base. "Acquiring Omega will be an important step in establishing our leadership in a market with a strong demand for the types of services Keane provides," said Brian Keane, Office of the President for Keane. "Omega's strengths in application development and support complement Keane's industry-leading application management, development and integration solutions. We also believe that there is a strong synergy between the two companies' core values, culture and project management business philosophy." It is anticipated that Omega's senior management will assume management positions within the combined Pittsburgh operation. "I am very pleased that Omega will become an integral part of Keane, a national firm with an outstanding reputation," said Bill Mariotti, president of Omega Systems. "Together, Omega and Keane can address the highly competitive information services environment by helping our joint clients evaluate and capitalize on new technologies and delivering on-time and within budget solutions." Upon consummation of the merger, Keane will issue or reserve for issuance approximately 190,000 shares of its Common Stock in exchange for all of the outstanding shares and vested options to acquire shares of Omega. The transaction is scheduled to close on or about January 30, 1998. The consummation of the merger is subject to approval by the stockholders of Omega and the satisfaction of certain other conditions. In connection with the merger agreement, certain Omega stockholders, who currently own approximately 88% of the outstanding shares of Omega, have agreed to vote their Omega shares in favor of the merger. Keane, Inc. is a $600 million application development, outsourcing and integration services firm headquartered in Boston, Massachusetts. Keane helps Fortune 1000 corporations, government agencies and healthcare institutions achieve their business objectives by developing, maintaining and applying information technology. Keane's services, delivered through a North American network of 40 branch offices, include application development, application management outsourcing, year 2000 compliance, and help desk outsourcing. Information about the company is available via the Internet's World Wide Web at keane.com. This press release contains forward-looking statements that involve a number of risks and uncertainties, including statements regarding the expected consummation of the acquisition of Omega and the future benefits Keane expects to derive as a result of such acquisition. There are a number of factors that could cause actual results to differ materially from those indicated. Such factors include, without limitation, the satisfaction of various customary closing conditions, Keane's success in integrating Omega into its own operations, and the various factors set forth under the caption "Certain Factors That May Affect Future Results" in Keane's annual report or Form 10-K for the year ended December 31, 1996, which important factors are incorporated herein by reference.

To: Mark T. Heath who wrote (322)	1/23/1998 10:41:00 AM
From: Hawkmoon	Read Replies (2) \| Respond to of 1316

Mark, Sorry to get you worried... My thoughts were based mainly on the ability to capture revenue through billing. To be quite frank.... I see 1998 being the year to be in Y2K stocks and out of Big Caps. The reasons behind this are that 1998 will be the period that the most work will be done relative to Y2K. There will be continuing press releases and good news. Then.... I have a strong hunch, which I am not absolutely wedded to, that we see a severe recession in 1999 that sinks all boats, to include Y2K stocks. This will be the period in which I will be mainly in precious metals or maybe gold stocks. I have no doubt that KEA will survive and thrive in a post-2000 economy, but first I think there are going to be major economic events, one of which will be the decoupling of US and Asian financial markets. The Asians have not dealt with Y2K at all. They are going to smashed quite hard and nothing we do will likely prevent that. Europe may also face a similiar scenario if they aren't more pro-active in remediating Y2K. Basically, I'm looking 5-20% of small cap companies going out of business rather than dealing with the costs of Y2K. That is a big chunk of the economy. So while I'm bullish on the Y2K sector overall, I'm guarding against over-inflated valuations as people look for the best earnings. As 1998 progresses, I hope that my worst fears are not realized. I like being pleasantly surprised... :0) I basically saw KEA doubling to $60 in 1998 when it was in the $30 range. We are already up 40% from two months ago and almost half of my target price. Now I have to look at which companies have the greatest strength in revenue and earnings as my best opportunities. In sum, I am certainly not growing nervous but when I look at the fundi's compared to some other company growing faster and making more money than KEA. But I want to maximize my investment dollar in 1998 in preparation for what I feel lies ahead in 1999. Call me a gloom and doomer... but this Y2K stuff kinda' gets a guy thinkin' which sometimes leads to ramblin' in public.... :0) Regards, Ron