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To: Mike Healy who wrote (1055)	9/17/1998 11:51:00 AM
From: PCSS	Respond to of 1069

FWIW, I just voted AGAINST the merger ... (1) do not see any substantial leverageable synergy/value with MIFGY, and (2) am pleased with ISLI's direction/revenue/profit growth over the past 18 months and its continuance, and (3) believe that if ISLI is to be mergerd/sold that there is a better partner than MIFGY ! Michael

To: Mike Healy who wrote (1055)	9/17/1998 12:52:00 PM
From: Michael L. Busser	Respond to of 1069

I also believe this merger will now be cancelled or renegotiated with cancellation being the more likely scenerio since the only thing MIFGY has to offer in negotiations is a depreciated stock. I do not believe management could endorse the merger at these prices without the potential for a substantial class action lawsuit. Clearly, the market does not believe the merger is in the best interest of the stockholders. Why else would we see MIFGY lose 50% of its value and ISLI lose 40% of its value since the annoucement. The market has corrected during that time period between 10-20% depending on the measurement metric (ie Dow, S&P, Nasdaq, ect).

To: Mike Healy who wrote (1055)	9/18/1998 6:13:00 AM
From: Ian Burton	Read Replies (1) \| Respond to of 1069

Mike - Good post. Good analysis of earnings quality. My error regarding s/w depreciation. Mixed up with another holding I have. Should have claimed that they are better than most at depreciating their s/w asset - a comparison I still believe to be valid even in consideration of your comment about bloated balance sheets. On the basis of the MIFGY Q1 numbers I was concerned about the level of accounts receivable from the perspective of customer satisfaction. I fired off a mail to the CFO. FWIW he replied. "The primary reason for the increase in the Trade Debtors account related to the year over year differences in the quarterly performance. The 4th quarter of FY97 had declined 4% compared with the prior year, and had relatively low turnover. The 4th quarter of FY98, by contrast, increased 39% compared with the prior year. In our products business, most of the activity occurs within the last month of the quarter, and is therefor not collected by the end of the period. As you noted, the receivable (debtor) figure actually came down in Q1 as much of this activity was collected following the end of the year. Hopefully that answers your question -- let me know if you need anything else." From a different angle - why do the ISLI board want this merger and Gary Greenfeild in particular? The public reasons are:: to extend ISLI sales outside of domestic US where MIFGY are stronger; leverage each other's customer base; product synnergies; economies of scale etc. All somewhat generic. I have requested more specific details of the business benefits that the merger will bring - but been told that I have to wait 'till after the EGM's since he US authorities prevent the company issuing any forward looking statements at this time. A road show is planned to sell (mainly to the financial institutions) the benefits of the merger in the two week period following the merger- seems about face somehow! 1st week Europe, 2nd week US. Bottom line then - what's your take on why the ISLI board want this deal?