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To: SIer formerly known as Joe B. who wrote (2331)	4/3/1998 6:57:00 PM
From: bob zagorin	Read Replies (1) \| Respond to of 13797

The Delphi Group, Inc. ------------------------------------------------------------------------- NewsFlash!NewsFlash!NewsFlash!NewsFlash!NewsFlash!NewsFlash!NewsFlash! ------------------------------------------------------------------------- Friday, April 3, 1998 In Wake of Financial Uncertainties, Altris CEO, Board Member Resign Summary: Over the past few weeks, a series of announcements have buffeted Altris Software (NASDAQ:ALTS). First, the company announced that it was reviewing its financial statements for the past two years; that Price Waterhouse had withdrawn its audit statement for 1996 and the first three quarters of 1997; and that downward revisions of revenue and earnings are likely. The same day, NASDAQ halted trading on the stock. Then a shareholder lawsuit was filed alleging misrepresentation of performance and artificial inflation of the stock price. Finally, yesterday and today, the company announced the resignations of its chief executive and one of its board members, reducing board membership to five. Delphi Opinion: Over the past 2 - 3 three years Delphi has watched Altris, the new entity resulting from the merger of Alpharel and Trimco software organizations, establish a strong competitive position for itself in the integrated document management and workflow market. The organizational and management shakeups of the past several weeks cause speculation on what the future of Altris might be. Problems with revenue recognition have become commonplace among smaller, growing software firms. Share price volatility is also common in today's superheated equity market (Altris' market capitalization yo-yo'd between $94M and $13M this year). But at a stage in the development of the market when leadership is being established for the high end applications that Altris services, the company can ill afford a black mark, whatever the source. The company's customers are world class organizations looking for world class suppliers. In the next weeks, Altris' new management will have to put the financial issues on a sound footing and craft a serious get well program among its customers and suppliers if it expects to compete again.