Computervision International Corp. - Page 15

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          workstation4 on which to run its CAD/CAM software.  Its customers           
          desired a computer workstation with an “open system environment”            
          that would enable its user to run software other than CV’s.  To             
          CV, the change to such a system was a significant strategic                 
          change because CV previously had sold products based only upon              
          its own closed proprietary operating systems.  An additional                
          significant strategic change for CV was the decision to purchase            
          its workstations from a vendor, rather than to manufacture them             
          itself, because manufacturing workstations had been its primary             
          activity up to such time.  Due to its large investment in                   
          manufacturing assets, however, CV needed be able to continue                
          manufacturing.  CV sought to establish a long-term relationship             
          with a supplier for the design and manufacture of its new                   
          workstation.                                                                
               Two manufacturers, Apollo Computer, Inc. (Apollo), an                  
          established firm in the computer workstation industry, and Sun              
          Microsystems, Inc. (Sun), a smaller competitor, submitted bids to           
          CV for such a workstation in response to a solicitation by CV.              
          In a May 9, 1983, letter to CV, Sun acknowledged that it might              
          not be able to produce workstations in quantities sufficient to             
          meet CV’s demands, and indicated that it would be willing to                

          4                                                                           
               A computer workstation is a desktop computer utilized by               
          scientists or engineers that performs complex computing tasks               
          using its own computing power rather than that of a central                 
          computer shared with other users.  Workstations, however, may be            
          linked together to form a network.                                          




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