ALSM Alphasmart (MM)

William Blair & Company Initiates Coverage of AlphaSmart, Inc. With Outperform Rating CHICAGO, March 19 /PRNewswire/ -- William Blair & Company today announced that it initiated research coverage of AlphaSmart, Inc. , one of the leading providers ofone-to-one computing for the K-12th grade levels, with an Outperform rating and company profile of Aggressive Growth. Analyst David Farina estimated that the company would earn $0.37 per share in 2004 and $0.46 per share in 2005. "AlphaSmart is a low-cost alternative to computers or laptops, with product prices ranging between $199 and $429 on a stand-alone basis," Farina said. "This is a more affordable price point for cash-strapped schools than an $800 computer with monitor, which does not include the costs of maintenance and software." "With more than 50 million students enrolled in K-12th grade in the United States and only slightly more than 1 million AlphaSmarts in use, the company has a large addressable market," he added. "School computer labs do not offer the true one-to-one computing experience like AlphaSmart. The company's newest device, which includes a wireless version, could expand the addressable market to college students, as well as other industries such as professional writing." William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months. William Blair & Company, L.L.C. was a manager or co-manager of a public offering of equity securities within the prior 12 months. William Blair & Company, L.L.C. is a market maker in the security of this company and may have a long or short position. For important disclosures and information regarding the firm's rating system, valuation methods and potential conflicts of interest, please visit: https://www.williamblair.com/pages/news_story.asp?uid=641 Additional information is available upon request. William Blair & Company, L.L.C. is a member of the National Association of Securities Dealers, CRD number 1252. DATASOURCE: William Blair & Company CONTACT: Tony Zimmer of William Blair & Company, L.L.C., +1-312-364-8611, Web site: http://www.williamblair.com/

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