Announcement - posted on January 31, 2001.
Corrected 1099-DIV statements to be issued.
A corrected 1099-DIV will be issued to replace the 1099-DIV you may have already
received indicating CE Software, Inc. as the payer. Please disregard the first 1099-DIV
as the corrected version will show the payer as Lightning Rod Software, Inc. (formerly
CE Software Holdings, Inc.)
This 1099-DIV is the result of a dividend paid by CE Software Holdings, Inc. as
of the close of business on April 28, 2000. On this date CE Software Holdings distributed
one share of CE Software, Inc. for each share of CE Software Holdings that you owned.
This dividend was valued at 18.7 cents per share.
Your cost basis of your CE Software, Inc. shares is equal to the taxable value
of this dividend, that is, 18.7 cents per share. There is no reduction in your cost
basis of your shares of CE Software Holdings as a result of this dividend.
Subsequent to the payment of this dividend, Lightning Rod Software, Inc. was merged
into CE Software Holdings. CE Software Holdings then changed its name to Lightning
Rod Software, Inc.
Example: A shareholder who owned 100 shares of CE Software Holdings at the close
of business on April 28, 2000 for which he may have paid $3.00 per share received
a dividend of 100 shares of CE Software, Inc. After the merger the shareholder would
own 100 shares of Lightning Rod Software, Inc. (Nasdaq SC: LROD) with a total cost
basis of $300.00, and 100 shares of CE Software, Inc. (OTC BB: CESW) with a total
cost basis of $18.70.
For more information, please visit the companiesí Web sites: www.lightrodsoft.com
and www.cesoft.com. If you have further questions, contact Scott Bruflodt, Controller
of Lightning Rod Software, at 952/837-4042.