* To: slug@Sunset.AI.SRI.COM
    * Subject: Company Update
    * From: chay@RIVERSIDE.SCRC.Symbolics.COM
    * Date: Wed, 17 Feb 1993 11:06-0500
    * Sender: Little@RIVERSIDE.SCRC.Symbolics.COM

Dear Symbolics Customer:

On January 28, 1993 Symbolics announced that it filed for Chapter 11
reorganization.  Although progress had been made to financially
restructure the company, our Board of Directors determined that this
action was necessary to execute a reorganization plan.  We intend to
reorganize as quickly as possible under the Federal Bankruptcy Code
process and emerge as an economically viable company.

During the reorganization we will continue to serve our customers in
the United States and around the world without interruption. Symbolics
UK subsidiary, Symbolics Ltd., has not filed for Chapter 11
reorganization and is conducting business as usual.

The liquidity problems that led us to take this step resulted from our
poor financial results for the quarter ending December 31, 1992, which
saw revenues drop 29 percent from the previous quarter. These results
forced us to look at the fundamentals of our business including its
markets and its competitiveness, and to formulate a new plan for the
company. Symbolics has been long constrained by the legacies of past
business decisions: long term leases, financing quarter to quarter
losses, and expenses associated with products that need additional
investment to meet the changing needs of our customers. Filing for
Chapter 11 gives the company the opportunity to make the changes we
believe will bring it back as a vital and competitive player in
expanding markets.

Our overall goal is to maintain Symbolics as a going concern so it can:

	*Allow our customers to benefit from continued use of our technology,

	*Continue to support our installed software and hardware customers,

	*Provide opportunities for our employees, and 

	*Maximize the recovery for each class of creditor.

We believe that we can maximize opportunities for our employees, our
customers and the recovery for all classes of our creditors if we
remain in business with a renewed focus on our core markets with
software products and services that conform to industry standards. The
reorganization plan that will be submitted to the courts contemplates:

	*Porting Genera to standard platforms,

	*Marketing and supporting our value added products such as Statice and Joshua,

	*Providing hardware and software service to our customers, and

	*Evolving Symbolics into a software and services company.

This plan will allow us to withdraw gradually over the next two years
from the business of manufacturing, assembling, selling and shipping
proprietary computer systems, and to migrate our customers to standard
platforms without loss of performance or functionality. The resulting
cash savings can then be directed to software development. This is a
fundamental change to the companys business model, and we believe that
the reorganization plan will make these changes possible.

EVENTS LEADING UP TO THE FILING

Over the past two years we have been working with key customers on
large projects.  In recent quarters this business has accounted for
nearly 10 percent of our revenues.  Though we delivered consistently
on all the milestones and passed all the acceptance tests for
performance and reliability, late in December we were notified by one
of these customers that they have decided to scale back one of our
major projects. The reasons for the decision were economic. Like many
companies, our customers are also feeling the pinch imposed by the
slow economy and they look for ways to defer expenses and push off
projects.  Unfortunately, our project was one of those sacrificed for
the sake of budget tightening.

This decision had an indirect effect on another project that was also
important to our revenue. During the last six months we have been
negotiating with a potential business partner regarding funding for a
major development project. In late December we were informed of their
decision not to fund the project, which meant we will continue the
project without additional investment.

These lost business opportunities came at an unfortunate time. As the
quarter came to a close, product revenues fell sharply. The
U.S. graphics revenue was off as a result of competitive pressures and
a general slowdown in the graphic arts industry.  U.S. Genera sales
and service revenue followed the same trend and also declined from the
previous quarter. One of the bright spots in the revenue picture was
the UK subsidiary, which achieved its best revenue results in many
quarters.

BUSINESS IMPLICATIONS

The overall decline in revenue during the last quarter left the
company with lower cash reserves and forced us to reduce our work
force. While this was a necessary step, it was not sufficient to cover
the shortfall. In order to keep the company operational so that we can
continue to serve our customers and make the changes that we believe
will lead Symbolics to recovery, we have sought the protection of the
bankruptcy courts. This was a difficult decision, but we are convinced
that it offers the best opportunity for the company to focus its
resources on its core business, invest in its product line and to
return the company to the position of technological leadership it has
always occupied in the industry.

THE FUTURE

As we start the new year, we also enter a new period for Symbolics. My
overall goal is to maintain the Symbolics tradition of encouraging the
evolutionary use of our technology by our customers and users.  In the
United States, a Chapter 11 reorganization is a formal legal process
fora company to continue operations while it reorganizes its financial
affairs. For Symbolics this means we can get relief from the legacies
of past business decisions that have constrained the company, and
devote our resources to evolving our product line.  Near term product
plans include the release of Genera 8.3, and the ported version of
Genera on a 64 bit standard hardware platform.

On behalf of our employees, I appreciate the loyal support you have provided 
us in the past. I ask for your continued support as we reorganize Symbolics 
for the future.

Sincerely yours,



Kenneth J. Tarpey
President & CEO