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AUTODESK ACQUIRES XANADU SAUSALITO, California, April 6, 1988 — Autodesk, Inc. announced today that it has signed an agreement to acquire an eighty percent equity interest in Xanadu Operating Company, of Palo Alto, California. Xanadu is the developer, along with concept originator Theodor Nelson, of the XanaduTM Hypertext System. . The Xanadu Hypertext System stores, manages, and manipulates text and graphical information. It is a new fundamental tool for information processing in the work group environment. . "Autodesk and Xanadu are forming this alliance because we believe that hypertext has the potential to fundamentally change the way individuals and groups process information," said Autodesk President Alvar Green. "More pragmatically, we think the alliance makes sense. Autodesk has always been a pioneer in bringing new technology to market. Xanadu has demonstrated that their vision is real. We see this acquisition as adding increased utility to the current set of tools we provide to over 140,000 design professionals world-wide, as well as opening an entirely new market for personal computers." . Roger Gregory, a founder of Xanadu, concurs. "Autodesk has the financial, marketing, and distribution resources essential to our success," Gregory remarked. "Combined with Xanadu's technology, these resources will allow us to deliver true hypertext products within the next eighteen months, with only modest support during the development period." Gregory added that Xanadu will deliver a preliminary Xanadu Hypertext System for research institutions and advanced developers later this year. . The acquisition of Xanadu will not materially affect the financial results of Autodesk, Inc. Xanadu will operate as an independent entity with Autodesk representation on its five-member board of directors and in a key management position. Board members from Autodesk will be President Alvar Green, Executive Vice President Dan Drake, and Vice President for Corporate and Business Development Chris Record. Other members of the board will be Phillip Salin and Roger Gregory. Mr. Record will also act as President of the new Xanadu subsidiary, to be located in Palo Alto, California. Mr. Gregory will be Chairman.