Ascend Communications:												
		Earnings dilution worksheet
				Assume 30% Total earnings yearly growth		
	Trailing EPS		Assume 5% dilution/year	
				==>    23.8	Forward PE Multiplier
		#SHARES	$ EARNED	EPS			
3/31/97		193.5	40.3	0.21 				
6/30/97		195.9	43.0	0.22 	PEG=1		$$ Cash	
9/30/97		198.3	46.0	0.23 	Value	(2)	per share	
12/31/97	200.7	49.1	0.24 	27.6		1.00 	(3)
3/31/98	0.937	203.2	52.40	0.26 	29.5	(1)	1.26
6/30/98		205.7	59.69	0.29 	31.1		1.54 
9/30/98	 1.080	208.2	63.74	0.31 	32.8		1.85 
12/31/98 1.157	210.8	68.06	0.32 	34.6		2.16 
3/31/99	 1.238	213.4	72.67	0.34 	36.5		2.50 
6/30/99	 1.306	216.0	77.60	0.36 	38.5		2.85
9/30/99	 1.378	218.6	82.86	0.38 	40.6		3.22
12/31/99 1.453	221.3	88.48	0.40 	42.8		3.62
3/31/00	 1.533	224.0	94.47	0.42 	45.2		4.03 
6/30/00		226.8	100.88	0.44 	47.7		4.46 
9/30/00		229.6	107.72	0.47 	
12/31/00		232.4	115.02	0.49 									
3/31/01		235.2	122.82	0.52 									
6/30/01		238.1	131.14	0.55 	
								
Notes:													
1. Due to higher earnings in QE 12/96 the actual trailing eps as of 3/31/98 are $1.
so earnings subsequent to QE 3/31/98 are adjusted by this amount.
2. "full value" is calculated as 
     (Forward PE factor) X (forward earnings) / (anticipated #shares)"
3. Cash is accrued from earnings, with 4% annual after tax interest

	To arrive at today's market value of $44 under dilution such as occured
since QE 3/31/97 (9.5%), a sustained earnings growth rate of 45% is required.
This leads to a forward PE value of 32.4 and a $55 valuation on Jan 1, 1999. (For market PEG=1).  For this table I assumed a gradual moderation of dilution to 5%.

Recent earnings growth rate has been substantially less, and even after an
upgrade by COWEN & Co. the most optimistic is 30.

This rate discards substantial "special charges" of $111 million and other
factors that result in an overall loss for 12 months to December 1977.