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Technology Stocks : Ultratech Stepper

UTEK 30.23

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Jun 5 5:00 PM EST

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To: Justa Werkenstiff who wrote (1320)	9/13/1997 11:50:00 PM
From: Justa Werkenstiff	of 3696

So why has poletrimming in the backend production MR heads been such a mystery to those following UTEK? Poletrimming trims and contours the pole which gives it better "fly height" (makes the head ride more easily) on the surface of the hard drive.(Warning: I am no techie). Word has it that UTEK has entered into a exclusive working arrangement with one of the big disk drive manufacturers whereby said manufacturer has shared its roadmap for the future of disk drive development in exchange for first rights to the poletrimming devices. Word has it that once the first poletrimming device is shipped and accepted (news release should be out in the next few weeks), that same manufacturer will convert 25 letters of intent into orders, half to be filled this year and half to be filled next year approximately. UTEK's device will be nine times faster than anything on the market and UTEK will have 95% of the market share. Sure you might be able to modify a Nikon or a Canon I guess to perform the same process, but disk drive manufacturers have low margins in the 20% range and so cost of ownership is important and UTEK's device will go for $1.8M while a Nikon or Canon stepper goes for $3.5m. UTEK = low cost producer. So we will at least see close to $46.8m (26 x $1.8) in revenue on the books from poletrimming in the next year. But that is just the beginning. Other manufacturers are very interested and will be foaming so much at the mouth when the press release hits the wires, they will end up sporting the latest in druel bucket design. They are a very competitive bunch. Once the others realize they have been left eating dust by the original manufacturer which bargained for the first machines, they will be dialing UTEK to stand in line. A trimmed pole will be the rage in the industry! Remember Dr. Seuss's "Sneeches on the Beaches" and how it was the rage to have a "star upon thars?" Same deal here. And just like Sylvester McMonkey McBean (sp.?) in that book, Art Z. will be laughing all the way to the bank with front end and back end processes and a monopolistic market share in each knowing full well that PCs of today have 4-5 heads per box and the ones produced by 2000 will have 8-9 heads. (P.S. I have been reading too many children's books the past few days to my little one).

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