Message from Carol Bartz

Employee Addendum to AMIX and Xanadu Press Release

As the attached press release states, Autodesk has officially given notice that it will sever it ties to AMIX and Xanadu at the end of 30 days. This is being done for a fundamental reason. In developing our strategy for the future we determined that we want to commit our resources exclusively to programs that strengthen our core business. While both AMIX and Xanadu are doing important work, they simply do not fit into Autodesk's core strategy and the management team feels we should devote these resources to future strategic opportunities.

Autodesk is providing both companies with a period of transition in which to locate other funding and move forward with their business plans. And Mark Stiegler, who is an Autodesk employee, has chosen to leave Autodesk and officially join AMIX and Xanadu. Our discussions with both companies, however, indicate that they believe they have real funding sources ready to step forward and plan to continue as independent companies in the future.

I want to assure you that this was done with the utmost sensitivity to each company's particular needs and they responded with appreciation to Autodesk's concern and commitment. I believe, and both management teams from AMIX and Xanadu told me, that they looked upon Autodesk as a mentor over the last four years and understand the business reasons behind today's decision.

If you have concerns or questions about this news, please bring them to the employee meeting on 8/31. I will be happy to address any outstanding issues in that forum. Thank you.