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To: NJ Investors who wrote (8603)10/27/1998 2:09:00 PM
From: JG  Read Replies (2) | Respond to of 10786
 
BUSINESS ANNOUNCEMENT
Alydaar Software Corporation Holds Earnings Conference Call
Management to Discuss Third Quarter Earnings

October 27, 1998

Alydaar Software Corporation (NASDAQ: ALYD) announced today that it will hold an earnings release conference call on Friday, October 30th, at 8:30 a.m. EST. Interested parties should dial 888-454-9342 in the United States. International callers should dial 712-271-0052. Callers must identify themselves and their company affiliation (if applicable) to be admitted to the call. Please use the pass-code "Alydaar Software" when prompted by the conference operator for admittance into the call.

Following management discussion of the quarter, questions will be taken.

A replay of the conference call will be available for one week by dialing 888-446-2543 in the United States and 402-344-6817 internationally.

Alydaar Software Corporation is a software re-engineering company, specializing in computer language translation and systems migration services. Its central focus for the past two years has been resolving the Year 2000 problem. Using SmartCode, its core re-engineering technology, Alydaar remediates or audits most computer languages on most hardware platforms. Alydaar's clients include: Advanced Micro Devices (AMD), Northern States Power (NSP), 3M (MMM), Nabisco (NA), DuPont (DD), Whirlpool (WHR), RJ Reynolds (RJR), and McDonnell-Douglas (MD), among others. Alydaar also provides remediation services under a strategic alliance agreement with Compuware (CPWR). More information about Alydaar Software Corporation and its services can be found on the World Wide Web at alydaar.com.

###


www.alydaar.com
2101 Rexford Road West, Suite 250, Charlotte, North Carolina 28211
704.365.2324 Fax:704.365.5175









To: NJ Investors who wrote (8603)10/27/1998 9:20:00 PM
From: Grashopper  Read Replies (1) | Respond to of 10786
 
Your idea of setting up a process is great but someone or other we keep procrastinating on the ?s we allready discussed. I thought we had arrivedf at about 14(more or less) simple and direct ?s. Ask them to answer these ?s now!!!!! Why wait. We are falling so in love with PROCESS that we forgat that process shouldnt be confused with wisdom. By way of example with all these talks with alyd about setting up our PROCEDURE why could not our alyd contact simply teel you Yankees or tell TM who will tell us..the $64 ? namely..did BOB buy or didnt he like he said he would on Aug 17th. ???? Inquiring minds want to know!! Right now it looks to me that we are bogged down in the trenches with an old southern tactic known as a fillibuster where everybody's talking but no one has said anythinCome on TM get us some answers, i've never known you to be so patient.



To: NJ Investors who wrote (8603)10/28/1998 11:19:00 AM
From: NJ Investors  Read Replies (2) | Respond to of 10786
 
NJ Investors update:Institutional perspectives

This message provides information to individual investors and Alydaar's executives. Recent contact with two former fund managers offer differing view points but both opportunities. First, the former fund manager from GartnerLewis has purchased shares(amount not disclosed by NJ Investors)in his current fund and believes the stock will raise into the mid-teens some time in the future.

The former Rothchild Fund Manage continues to be bullish on Alydaar and here is the rationale. Pricing will continue to escalate from current prices of $2.20 to $8-10 by the end of '99. The remediation portion of the $2.20 was $.37 in '97, $.40 Q1 '98, $.43 Q2, est. $.48 Q3. Europe is already at $.60

The EPS for a company of Alydaar's nature is 25. The driver for the PE are operating margins of 40% and should increase to 60% by the EOY. Estimated earning for Q3 is around $.35! He has been close in forecasting earnings for the past two quarters, by the way. Earning and sales forecast still are $1/shr and $50 Million respectively. $1 x 25= 25 share price for '98 and $4 or $75 to $100 for '99.

High cash flows offer the company an avenue for acquisition vs. debt which is attractive strategically and warrants a higher PE, as well.

Contracts in Europe exist and the backlog of code could be in the 50M LOC area. Current production levels for the past quarter would be a good indicator of effectiveness and capacity; while, the backlog is an indicator for the future.

Rothchild still retains half of its position in Alydaar.

Contact size for Alydaar generally is in the range of 2 to 10M LOC, and exceptions would have to be announced.

The market will continue beyond year 2000 as non-mission critical code will still need remediation.

This Fund Manager will be on the conference call and is currently employed at another firm. I'm being vague to avoid any conflicts, so accept my apologies.

Please use this information with extreme caution as it does not reflect Alydaar's position and is only individual opinions that may or may not be informed. It is offered only to promote understanding and formulate specific questions for the conference call on Friday.