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Biotech / Medical : Acuson (ACN)

ACN 250.10

+0.3%

Oct 31 9:30 AM EST

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To: Ron Mayer who wrote (27)	8/20/1997 2:32:00 PM
From: Jeffrey Greenberg	of 55

Yes. I should have said Revenues not Earnings... my big mistake. The losses were announced as part of introduction of Aspen and earlier with Sequoia. Note that the loss was at the low end of the pre-announced range. This should indicate that things are pretty good, especially when you combine that with substantially increasing revenues; i.e. leading technology, new machines that address new market (e.g. cardiology now dominated by HP, and growth in the diagnostic imaging market as a whole); and you have a reasonable argument for continued growth and profitablity. I agree with the remaing part of your text. As for ATL and the HDI-5000, i'm sure the new sequoia/aspen technology remains very significantly superior. Will people pay more for these machines? I think the answer is: if seqoia/aspen technology can show things other machines can't or show them with enough clarity to increase their confidence enough, they will pay for them. So far the revenue increases argue that this is occuring. I am not legally able (I believe) to describe customer product comparison results (because that would be a clue as to revenues) unless they are done by outside people or organizations.

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