Paradigm September 3, 1998
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WE NEED ANOTHER 60,245 SHARES TO VOTE YES!
Dear Valued Stockholder:
Paradigm has adjourned its annual shareholder meeting again due to insufficient
voting to carry proposals to their conclusion. The shareholder meeting is now
scheduled to reconvene on September 10, 1998 at 3 p.m. at Paradigm's
headquarters in Milpitas. You are receiving this letter, and another proxy
card, because you are the owner of record of Paradigm Technology common stock
as of June 19, 1998, and our records show that as of September 3, 1998 your
vote had not been confirmed. It is mandatory that Proposal 2 through 4 all
carry to consummate the merger.
If you have voted and have received this letter- that means that your vote has
not yet been registered. Please take a moment to call the toll free number and
re-vote your shares using the control number on the ballot. Please be advised
that if you have voted AGAINST, ABSTAINED or HAVE NOT VOTED you are in fact
casting a vote for Paradigm's probable liquidation. Fellow shareholders, we are
so close that it would be tragic if all shareholder value was lost due to a lack
of approximately 3.4% of the outstanding shares. We have approximately 62% of
the total share vote cast on the merger proposals, and we need a total of about
60,245 additional votes FOR the proposals to carry the merger favorably.
I am once again writing to you to ask that, regardless of the number of shares
you own - If you haven't voted, please take the time to do so FOR the proposals
in order to save any shareholder value. - If you voted against, or abstained-
please rethink your vote and recast your vote FOR the proposals.
For the past several weeks the remaining Paradigm employees and I have been
attempting to contact those of you who permitted your addresses to be provided
by your Brokers. Those calls are being performed because our people are
sincerely attempting to work on your behalf to save shareholder value. If any of
you are having difficulty in understanding the complicated proxy, or need an
opportunity to speak with me directly I may be reached at my direct dial of 408-
546-1116, or alternatively I am available at my personal cellular number of 408-
921-8522. I urge you to contact me with any concerns that you may have about
Paradigm or the merger. I will do my best to respond to each of you in an
effective fashion.
To save you time and effort we are offering a convenient way to vote your shares
by phone or by the Internet if your broker permits. Simply call the toll-free
number on the top of the voting form or alternatively, please sign and date the
card and mail it back today. Because of timing issues it is urgent you vote your
proxy regardless of when you receive the mailing, even if it is after the
September 10th adjournment date. Your vote counts. I sincerely hope this
communication clearly conveys Paradigm's position on the merger, and perhaps
makes a very confusing situation clearer.
Urgently,
/s/ Richard M. Morley
Richard M. Morley
Acting President and CEO
<PAGE>
Paradigm September 3, 1998
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WE NEED ANOTHER 60,245 SHARES TO VOTE YES!
Dear Valued Stockholder:
Paradigm has adjourned its annual shareholder meeting again due to insufficient
voting to carry proposals to their conclusion. The shareholder meeting is now
scheduled to reconvene on September 10, 1998 at 3 p.m. at Paradigm's
headquarters in Milpitas. You are receiving this letter, and another proxy
card, because you are the owner of record of 500 or more shares of Paradigm
Technology common stock as of June 19, 1998.
In my last mailing I indicated that we had adjourned the meeting for the third
and final time. We have been able to adjourn the meeting again in anticipation
of receiving sufficient votes to carry the proposals. As of this writing we are
absent the favorable vote of only 3.4% of the outstanding shares. We have
approximately 62% of the total share vote cast on the merger proposals, and we
need a total of 60,245 additional votes FOR the proposals to carry the merger
favorably. Fellow shareholders, when Paradigm started its aggressive phone and
mail campaign after the first adjournment we required approximately additional
443,000 shares. It would be tragic to lose shareholder value when we are this
close. It is Critical that Proposal 2 through 4 all carry to consummate the
merger. A majority of all outstanding shares is required since these proposals
require a change to our Amended and Restated Certificate of Incorporation.
If any of you are need an opportunity to speak with me directly I may be
reached at my direct dial of 408-546-1116, or alternatively I am available at
my personal cellular number of 408-921-8522. For any shareholder with urgent
questions I request that you contact me directly and I will do my best to
respond to each of you in an effective fashion.
You may have already voted your shares FOR the Paradigm and IXYS merger. If you
have voted FOR, or recently changed your vote to FOR and have received this
letter- that means that your vote has not yet been registered. Please take a
moment to call the toll free number and vote your shares using the control
number on the ballot. Regardless, we thank you for your support on these
matters.
If you have voted AGAINST, ABSTAINED or HAVE NOT VOTED you are in fact casting
votes for Paradigm's probable liquidation. Please reconsider this position on
behalf of all of the shareholders, creditors and employees of Paradigm.
To save you time and effort we are offering a convenient way to vote your shares
by phone or by the Internet if your broker permits. Simply call the toll-free
number on the top of the voting form or alternatively, please sign and date the
card and mail it back today. Because of timing issues it is urgent you vote your
proxy regardless of when you receive the mailing, even if it is after the
September 10th adjournment date. Your vote counts. PLEASE CALL ME WITH YOUR
CONCERNS!
Urgently,
/s/ Richard M. Morley
Richard M. Morley
Acting President and CEO
