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Joseph Tucci, President and CEO, EMC: Page 12 of 18

Tucci: We are Precise's largest reseller. You follow what I'm saying? We need the distribution capability.

Byte and Switch: Sure. So thinking about what you might pay in today's market, how do you weigh up the issue of getting what you pay for, or in simple terms, spending a big chunk for something good, versus being shrewd?

Tucci: It's not about being shrewd or not shrewd. The world has come back down to earth. The world has figured out that its nuts to give Cisco Systems Inc. [Nasdaq: CSCO] a 200 P/E. The world has figured out its nuts to give EMC a 160 P/E. This filters down; all I'm saying is that a lot of the small software companies out there still have delusions of grandeur. I'm certainly willing to pay up good value for a software company, but again, I'm going to let it trickle down. This is going to be the third year in a row of probably no growth. Maybe its flat... It's not that I'm cheap, or frugal. This is about playing games in the real world.

[Ed. note: It sounds like EMC is still searching for the right company, but would Tucci give us any hints? You gotta be kiddin' me.]

Tucci: I am expecting the market will be flat this year. That said, I am now going to take market share as I have the product portfolio to do it. EMC will grow this year, that's what I've said, as we will take market share. We will be profitable every quarter.