dsmpr.txt       press release
        dsmqam.txt      question & answer document
        dsmlet.txt      letter (included in this message)

Paul Grabscheid

+++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++

30 December 1994

To the M Community:

I am pleased to announce that Digital Equipment Corporation and
InterSystems have formed a strategic partnership to expand the
worldwide use of M Technology, particularly in the enterprise
client/server arena.  Simultaneously, InterSystems has acquired
the DSM software product line, Digital's implementation of M.

Given the rumors that have circulated about this topic and the lack
of factual information previously available, I am certain that
many in the M community have questions.  The materials that
accompany this letter are designed to answer as many of those as
possible, but I would like to offer my perspective on a few key
issues.

   - First, we will not kill DSM or force customers to migrate to
     another platform.  To the contrary, we will continue to
     aggressively enhance and support DSM.  As the press release
     emphasizes: "Choice among platforms has always been a key
     strength of M Technology.  The choice of M implementations is
     not decreasing because of this acquisition."  DTM has
     flourished under our stewardship.

   - Second, we will provide a smooth transition for DSM customers.
     A DSM Council comprised of executives from InterSystems,
     Digital and key DSM customer organizations will be formed to
     provide advice and feedback.  Both Digital and InterSystems
     will provide DSM support.  In addition, InterSystems will
     honor outstanding price quotes and will freeze DSM license and
     maintenance prices at the level of Digital's current price
     list for at least six months.

   - Third, we will accelerate our efforts to expand the worldwide
     awareness and use of M.  For a long time, no single M vendor
     had the resources to broadly market M technology.  Over the
     last six months, we have worked hard to increase the
     visibility of M, generating a series of articles in major
     publications.  With the acquisition of DSM, we finally have
     the resources to dramatically increase the exposure of M.

I know that many people are concerned about having fewer M vendors,
yet I believe this acquisition and partnership are vital to
competing vigorously with alternate technologies and preserving
the choice of M.  Over the last few years, our market has changed
dramatically.  Instead of asking "why should I use your M
implementation instead of someone else's?", customers now ask "why
should I use M instead of Sybase or Oracle or SQL Server?"    For
M to grow   in fact, for it to survive   we must compete
effectively with these bigger and better-known database and
application development software vendors.

The good news is that M is alive and well!  In international
markets our growth rate exceeds 100%.  As one of the 100 largest
independent software companies in the U.S., InterSystems now has
the critical mass to compete in the 90s and beyond.  We are now
able to carry out ambitious R&D plans that advance the state of the
art in database  technology and that maintain the competitive edge
that M has always provided.

These events represent a major change   for DSM customers, for the
entire M community, and for everyone here at InterSystems.  While
we will work hard to make this transition as smooth as possible,
any change is unsettling and a period of adjustment is natural.
I urge you to keep this in mind, to contact us if you have any
questions, and to join with us in expanding the use of M throughout
the multi-billion dollar database market.

Sincerely,