State of Symbolics Business

[cook@RIVERSIDE.SCRC.Symbolics.COM (Kimberly L. Cook)]

April 30, 1991


Dear Symbolics Customer,


	I would like to take this opportunity to brief you about the 
state of Symbolics' business, our accomplishments over the last 12 
months and our plans for the near future.

	Throughout  the 80s,  our customers invested in Symbolics' 
technology for their research organizations and advanced technology 
groups.  In the 90s, this investment has paid off with breakthrough 
applications.   For many customers the savings are over $10 million 
each year.  Other customers report dramatic productivity improvements 
and new competitive advantage.  For the United States government, a 
Symbolics application coordinated Desert Storm air sorties.   

	Today, Symbolics is redoubling its efforts to help customers 
to complete their advanced applications and achieve benefits like the 
ones below:    
            
	At a major semi-conductor manufacturer, we've helped with the 
deployment of a sophisticated scheduling application for their manu-
facturing facility which has improved their manufacturing utilization 
for custom chip delivery.     

	At Lufthansa, cargo scheduling is optimized with an expert 
scheduling system that maximizes cargo yield and customer satisfaction. 

	At Houston Lighting and Power, a Symbolics scheduling system 
has reduced plant maintenance down-time and increased maintenance 
personnel productivity. 
 
	A major building automation firm is deploying a knowledge-based 
design system throughout their U.S. branch engineering offices.  This 
system, built on our MacIvory workstation, dramatically improves engineer-
ing productivity.

	Recently we've helped to expand the Authorizer's Assistant at 
American Express.  This system approves all U.S. Green and Gold card 
transactions for the Company, handling millions of dollars of credit 
daily without human intervention.  Today, 23 Symbolics XL 1200 systems 
are used to keep the Authorizer's Assistant available 24 hours a day. 
        
	Several major Symbolic-based applications assisted the allied forces 
in Operation Desert Storm.  While only two can be discussed publicly, 
Templar, a tactical mission planner for flight sortie planning, and a 
MacIvory-based warfare planner model used by the Navy in the Gulf, other 
classified Symbolics' applications assisted in a variety of communications, 
command and control operations.  The importance of Templar and expert systems 
in the Gulf is highlighted in a recent New York Times article which I've 
included with this letter.  

	Symbolics Graphics division serves the international professional 
video production and broadcast industry with turn-key animation systems.  
Our Unified Graphics are being used by the largest television and film 
producers in the world.  Recently Symbolics' systems were used by CNN-
Headline News to produce this network's "War In The Gulf" news graphics 
seen worldwide.

	These applications highlight our ability to solve today's business 
needs and characterize the kind of business that Symbolics intends to pursue 
in the future.  We are particularly focused on pursuing customer-funded develop-
ment in two areas:  adding the power of our Genera development environment to 
standard operating systems and assisting users to get Symbolics-based applications 
deployed cost-effectively. 

	As an example of these development partnerships, today we are in the 
process of finalizing an agreement with AT&T Bell Laboratories.  Together we 
will prototype an object-oriented processor and software system.  For a major 
domestic airline, we are developing a decision support system built with 
object-oriented technology, for deployment on OS-2 and UNIX platforms.

	Over the past 3 years, because of increased competition, a maturing 
LISP market and poor U.S. economic conditions, Symbolics has faced financial 
challenges.  We've met these challenges with a strategy to broaden our markets 
and apply our expertise in object-oriented technology to industry problems in 
standard operating environments.  We've introduced more powerful products and 
instituted on-going cost containment programs.   Many customers have asked if 
we have the resources to continue with our business plans.  I'm happy to report 
that despite the poor business climate we have a sound financial base.

	We have finalized a new line of credit and hold no long-term debt.
	
	Our cash position is good and we continue to make progress towards a 
	positive cash flow and profitability.

	We signed a licensing agreement worth over $3.9 million with a Japanese 
	consortium headed by Nichimen. 

	Product sales of our newest Ivory-based workstations and boards have 
	exceeded our plan.

	Quarterly consulting revenues have increased by over 400% from a year ago.

	To support our plans, we've built a new organization.   We've formed 
the Software Engineering Group which provides all the resources for field sales, 
service, consulting, and development in one business unit.  I've appointed 
Kenneth J. Tarpey to lead this unit as vice president and general manager.  
Ken brings both customer-oriented management experience from Computervision 
and Prime and an international consulting background from Price Waterhouse.  

	Going forward, we will aggressively seek opportunities for putting our 
industry and technological expertise to work on a variety of customer projects.  
With an increasing demand for rapid prototyping tools,  the flexibility of 
object-oriented software, and system engineering talent that can implement 
complex projects, we feel we are well positioned to offer comprehensive 
customer solutions.   We look forward to the opportunity to put our unique 
skills to work for your organization.


Sincerely,


Jay Wurts
Chairman, Chief Executive Officer and President