S3 (A LONGER TERM PERSPECTIVE) Message Board

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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE)

SIII 0.0001000

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May 12 5:00 PM EST

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To: Jan A. Van Hummel who wrote (8640)	1/4/1998 4:39:00 PM
From: Ken Muller	Read Replies (1) of 14577

Jan: Re: Stock Sale to UMC The Cirrus patent issues must be addressed. They are not going away. That will take cash. 1998 will be non-profitable for S3. Therefore taking a capital gain on USC would be appropriate. My continuing research on the financials leads me to believe S3 deliberately provided false accounting information on both the Accounts Receivable and Inventory for every quarter since 1st quarter 1996. The lawsuit insurance will not provide coverage. They will need cash for the company's legal defense and settlements. (I'll address this issue further with a separate post.) Good luck, Ken

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