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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: John Curtis who wrote (950)	8/12/1997 1:09:00 PM
From: Gordon Quickstad	of 27311

Good job, John! I would just say that the audio quality of the call is good, but not excellent. Reviewing my notes, I would add: 1. When Cal said there were no contracts, he also said that there were no contracts announced - until the near future. 2. Lines 1 and 2 are expected to be ready about the same time. 3. 3rd line is going to Korea and will make telecom batteries. 4th line expected in 1998. 4. The Alliant effort is R&D to make batteries for the government and they're pleased with the progress. 5. There may be additional advantages in polymer over liquid in safety and cost. He considers the liquid as a safe battery, though. 6. Production in 1Q98. 7. He's very pleased with line 2. It is getting some retooling and there is some delay with the August slowdown in Italy. The most significant points for me were that line 2 is much more trouble free that line 1 and Cal's remark about contract(s) in the near future. Cal also mentioned that the conference calls would be sooner after the end of the quarter from now on, as this one was.

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