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Technology Stocks : PROGRAMMER'S PARADISE (PROG) -- Ignore unavailable to you. Want to Upgrade?

To: KellyW who wrote (711)	2/16/1999 2:40:00 PM
From: Bruce A. Thompson	Read Replies (1) \| Respond to of 2383

Kelly & Zeev, I also spoke to John Broderick a few minutes ago. Specifically to ask about internet sales. John says that internet sales are not affecting the catalogue sales in any way. Meaning, they are not cannibalizing to grow. John went on to say that the entire order processing system is computer controlled with 90% needing no human intervention and, when drop shipping, all they do is count the $$. He also says that Internet sales last Q were $1.4-$1.5MM and agreed with me that a 43% increase should put them over $2MM for 1Q. Not a big % of the $76MM in sales. (to agree with what Zeev said last week) Zeev, Using 40% increase per Q I come up with $14.18MM in internet sales for '99. This would be up from >$2MM last year. Are we in the same ball park? BT

To: KellyW who wrote (711)	2/16/1999 2:43:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 2383

Kelly, I think it is important that people know that not the whole 1.3 MM shares covered by the S-8 are actually going to be exercised anytime soon. These are "allotment, thus some of these options have not even been granted yet. In the share count for dilution (5.2 MM in the last report) a good chunk of these options (those in the money and excercizable) are in the count. Those that are not yet excercizable are not in the count. We will have to watch "insiders" for sale to see if there is anything to worry about. While such a large portion of all shares being optionable is somewhat out of the norm, we must remember that PROG had made a number of acquisition and brought in a new chief (last year) both of which required some sizeable incentives packages, and in this regard, I think this number is quite fair. Zeev