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In This Issue:

• PeopleSoft Could Bow To Oracle If Price Is Right
• The EU Versus Microsoft: An Update
• Oracle Database 10g Sets New World Record for Price-Performance
• Getting Tougher To Do Business In Russia
• Parker and Honeywell Create Alliance For Process Industry
• Auto Vertical: Safety Is The Differentiator
• SAP Launches Wholesales Distribution Solution
• Webcom Launches V4.0 of its Configurator
• F&B Vertical: Coors and Molson Merger Cleared By Fed
• ERP: SoftBrands Adds Randy Tofteland To Its Board
• Australia: Merger and Acquisition Activity Rises
• Commodity Chemicals Manufacturers Could Get A Lift

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PeopleSoft Could Bow To Oracle If Price Is Right - In court in Wilmington, Delaware, PeopleSoft director Steven Goldby said, "If there's an indication that [Oracle] would pay what we consider to be the right price, and there's a possibility that we could close the transaction quickly, I'm open to discussions with Oracle."  This indicates, for the first time, that the third largest "pumpkin" in Plant-Wide Research's ERP "Vegetable Garden" would consider a bid from its number two "pumpkin" Oracle, provided the price was right and a deal closed quickly. This opening comment could begin the end of Oracle's 16-month long battle to acquire PeopleSoft. Mr. Goldby was testifying in a trial over Oracle's lawsuit seeking to overturn PeopleSoft "poison pill" designed to thwart a hostile takeover. PeopleSoft spokesman Steve Swasey has confirmed Goldby's latest testimony, but noted that the Board had so far rejected all four Oracle bids because they undervalued the company; the confirmation essentially laying the groundwork for Oracle to increase its $7.7 billion bid. On the other hand, Mr. Ellison testified during the trial that Oracle has been meeting internally to consider lowering its bid price, hinting that PeopleSoft is not worth the $21 dollars it has currently bid.  Thus, the sparing has turned to settling the dispute focusing on the final price, and if Oracle fails to win the poison pill removal, PeopleSoft has a much stronger hand in commanding a higher price. We will keep watch.

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The EU Versus Microsoft: An Update - Microsoft is trying to have the EU's March ruling suspended pending an appeal.  It argued that one of the key demands, stripping its digital media software from some versions of the Windows operating system, would do the most damage to small companies and their customers. Judge Bo Vesterdorf, President of the European Court of First Instance, is the judge deciding whether to suspend the European Union's landmark antitrust ruling against Microsoft. Judge Vesterdorf pressed the EU to justify imposing its most sweeping order and questioned its effectiveness in reining in the U.S. software giant. EU Commission lawyer Per Hellstrom argued that forcing Microsoft to sell a version of Windows without its own Media Player would "level the playing field" by allowing rivals a greater shot at landing on desktops. But, the judge challenged representatives from the EU's Executive Commission on what the outcome of such an order would be. "Is it realistic that this remedy will have a real effect?" Vesterdorf asked, on the final day of a two-day hearing. "Isn't it kind of dramatic to impose a remedy in which you do not know the results, with all the complications it is going to bring?" he continued.  If Vesterdorf grants Microsoft's request, it would delay implementation of the order and could provide impetus for renewed settlement talks.

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Oracle Database 10g Sets New World Record for Price-Performance - On October 1, Oracle announced a world record 2-processor benchmark on Linux that placed Oracle Database 10g Standard Edition One (SEO) in the coveted Top Ten TPC-C, by Price-Performance category. This record benchmark is the best price-performance ever on a 2-processor system. This Benchmark is intended to prove Oracle's ability to deliver exceptional performance and value on low-end servers. The SEO benchmark was set using an HP Integrity rx2600 server with two Intel Itanium 2 processors at 1.3 GHz each with 3 MB L3 cache running on Red Hat Enterprise Linux AS3, Oracle Standard Edition One achieved 51,506 tpmC (transactions per minute) with a price-performance ratio of $1.80/tpmC.

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Getting Tougher To Do Business In Russia - We are seeing a backsliding in democracy in Russia at the moment, yet cannot project how far or deep this slide will go. We point this out as many companies outside Russia have, or are contemplating, investing in Russian manufacturing businesses.  "It's quite obvious, let me be quite clear on that, that we are seeing a backsliding in democracy in Russia at the moment," Benita Ferrero-Waldner, the outgoing Austrian foreign minister, told a confirmation hearing in the European Parliament. "We need to speak frankly, and you know what that means in diplomatic jargon, with each other about this, but also as equal partners," she said. Ferrero-Waldner insisted she would press Russia on human rights, saying that even in the aftermath of the school siege in the southern town of Beslan in which more than 300 people died, there was no excuse for reverses in basic rights.

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Parker and Honeywell Create Alliance For Process Industry - The Instrumentation Products Division of Parker Hannifin Corporation and Honeywell announced last week that they are teaming to deliver next-generation solutions for process sampling, sensing and analysis. The alliance combines the Parker IntraFlow line of surface mount flow control components with Honeywell pressure, temperature and flow transducers, joining mechanical and electronic technologies to make the most comprehensive and advanced flow control system available from a single source in the industry today. The system supports the ISA (Instrumentation, Systems & Automation)/ANSI (American National Standards Institute) 76.00.02 industry standard for surface mount technology. The New Sampling Sensor Initiative (NeSSI) developed the standard. NeSSI is an industry-driven consortium created to standardize sampling systems to improve the efficiency of process analyzers that measure the quality of output from some of the world's largest processing plants. Beyond improving efficiency, productivity and return on assets, the Parker-Honeywell flow control system offers customers the following key benefits:

• Configuration: easy setup and startup
• Control: real-time sample system control,
• Connectivity: connect to LAN, analyzer or other higher-level system; and
• Confidence: full diagnostics and reporting capability.

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Auto Vertical: Safety Is The Differentiator - Not only are domestic carmakers losing market share to imports, but from a manufacturing standpoint, the next big differentiator is safety systems, where they are also losing share. Detroit automotive manufacturers are taking a piecemeal approach to safety systems by putting intelligent safety systems only in selected models, overseas competitors - in particular, Japan - offers safety systems as standard equipment across product lines. Key components are electronic stability control (ESC), traction control systems (TCS), lane departure warnings and other advanced safety solutions. These, and other safety systems will be key differentiators for vehicle makers in the immediate future. For the U.S. automotive industry, it is a key race they are running, with a definite disadvantage. U.S. automakers may not be able to add safety systems to new models at a much greater rate than they are already doing, given the difference in design throughput.

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SAP Launches Wholesales Distribution Solution - On October 4, SAP AG announced the launch of SAP for Wholesale Distribution, a new industry solution comprising SAP's core enterprise software and new tailored applications for wholesale distribution companies. SAP also announced the creation of a dedicated business unit, Wholesale & Trade, which will focus on the unique requirements of midsize and large companies in the wholesale distribution sector. With its new solution and dedicated team, SAP says it is addressing an industry that, in comparison to other sectors in recent years, has seen less focus on leveraging IT advances to achieve business process improvements.

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Webcom Launches V4.0 of its Configurator - Webcom, Inc., a software solutions provider of high value quote-to-order enablement for the selling of complex products and services, announced last week the availability of Version 4.0 of its WebSource CPQ (Configuration, Pricing, Quotation & Proposal) solution. With this latest version, enterprise-level customers can support enhanced collaboration, further reduce the cycle time for approvals and further address the unique requirements of individual members of their sales, and distribution channels. Based on client feedback and requests, WebSource CPQ V4.0 provides many key new features, including:

• Advanced quote sharing for enhanced team selling and the collaboration process.
• Explicit and implicit approval process further reducing the quote-to-order cycle time.
• Event-driven triggers providing greater flexibility and efficiency.
• User-defined quote sorting and search capability.
• Enhanced rule writing simplifying the administrative process.
• Enhanced territory assignment capability.
• Ease of use features added to the Administrator module.

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F&B Vertical: Coors and Molson Merger Cleared By Fed - The Federal Government has cleared the merger of two longtime breweries, Adolph Coors Co. and Canada's Molson Inc., sending the deal to shareholders for final approval. The two, old-line, family-run breweries would together become the third-largest beer maker in North America. In announcing the merger deal in July, the companies said the new company will be known as Molson Coors Brewing.

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ERP: SoftBrands Adds Randy Tofteland To Its Board - SoftBrands has been struggling to maintain market share. It sells ERP into the manufacturing and hospitality sectors. Last week, SoftBrands announced that Randy B. Tofteland, President and COO, has been elected to serve on SoftBrands' Board of Directors. Tofteland was appointed President and COO in 2003. The Company said that under his leadership of worldwide operations, SoftBrands has delivered 15 quarters of profitability in its manufacturing software business and returned the hospitality business to profitability. The Company has formed a partnership with SAP to marry its acquired Fourth Shift manufacturing apps with SAP's Business One product for the SME space.

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Australia: Merger and Acquisition Activity Rises - Australian merger and acquisition activity has been strong so far in 2004, compared to the same time last year. 44 extra deals occurred, according to a recent survey by Thomson Financial.  The survey shows there have been 1,429 deals announced in the first nine months of 2004, compared to 1,385 during the same period last year. The value of the deals is also up by 61 percent to US $80.39 billion (A $111.54 billion). The Westfield Group merger topped the list as the biggest merger of the year so far with a yet-to-be-completed merger between Lend Lease and General Property Trust coming in right behind. The vast majority of acquisitions were made by Australian companies, accounting for three quarters of all merger and acquisition activity by value, with the other quarter of acquisitions made by overseas companies. The United Kingdom took an 8.5 percent market share of the consolidations in Australia, with Singapore investors accounting for 5.7 percent of the total. The same survey also shows that Macquarie Bank was the top adviser for Australia's merger and acquisitions, advising on 39 announced deals and 38 completed deals.

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Commodity Chemicals Manufacturers Could Get A Lift - A report last week gave Mid-cap commodity chemicals manufacturers a lift after Credit Suisse First Boston (CSFB) said that U.S. producers could benefit from difficulties that Middle Eastern chemicals projects are having difficulties in recruiting experienced workers from developed countries. According to CSFB, the U.S. commodity chemicals group should enjoy both improved price-to-earnings multiples in 2006 and strong control over the amount of available capacity and supply. The industry's ability to control capacity and supply stems from the fact that there do not appear to be any new ethylene production projects scheduled in the U.S. before 2008. In addition, CSFB said, "It appears as if some of the Middle East petrochemical projects -- including those in Iran -- will not come on as quickly as heretofore scheduled as a result of turmoil in the region."

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IFS Wins Award In the ERP Category - IFS announced today that China Three Gorges Project Corp. has been named a winner in the MIS Innovation Awards. The awards are an annual event organized by MIS Asia magazine to recognize IT departments across Asia whose achievements have added tremendous business value to their organizations. IFS won the award in the Enterprise Resource Planning (ERP) category. China Three Gorges Project Corp. submitted an entry for IT innovation for its electronic Production Management Information System (ePMS) project.

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