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To: taxikid who wrote (902)	3/1/1998 12:55:00 AM
From: Rajiv	Read Replies (1) \| Respond to of 2506

There are several reasons because of which EA might continue its slide down - Its largest customer is seriously planning on outsourcing from Asia. This customer used to contribute a third of EA's revenues. The contribution in the first 9 months of 97 was 19.6M out of a total revenue of 52.5M - EA has been bleeding for several years. It has managed to stay afloat using the proceeds of a series of floorless convertibles. As of Sept, 97 is has used 85% of its primary credit facility. My guess is it will continue using the floorless convertibles approach to avoid going belly up. This will seriously limit the upside risk. The number of outstanding shares has doubled over the past one year. EA will continue this dilution for a long time (after all, it will continue losing money on its operations). Other issues include : - Several board members have quit at regular intervals. - Litigation regarding environment concerns with reference to a property previously owned by the company. - Problems maintaining listing requirements on the NYSE. Regards, Rajiv