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Technology Stocks : VALENCE TECHNOLOGY (VLNC)

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To: John Curtis who wrote (9040)3/9/1999 10:56:00 AM
From: FMK  Read Replies (2) of 27311
 
John, As I understand it, the Mars program involves several launches over a long time span. Before a launch, the equipment is designed and built over a similar long time span. Often different suppliers are involved and I am not sure if every detail is revealed to your sources during design and construction phases.

I heard about Valence's involvement in January from more than one source and was looking forward to a joint announcement. It was explained to me that Valence would not announce it themselves. It would be controlled instead by the government or by the contractor supplying the powered equipment.

As with the OICW combat weapon, Valence's involvment became known months ago and there still has been no announcement. We know the battlefield weapon with laser range finder, night vision zoom scope with a screen projected on the soldiers helmet and on-board computer is supplied by Alliant tech.

Most would not have known about it except for an inquiry by a broker who spoke with an Alliant IR person. Alliant told the broker that the batteries were being supplied by Valence. Another contact called to confirm, and determined further that the quantity and size etc were more than the joint venture was set up to handle and Valence would be making them in their own plant. I suggested that Alliant would probably retain at least a 10% contractor fee or something of that nature, leaving most of the profits for Valence.

As far as the Mars probe is concerned, I believe my information is at least as accurate as with Valence's involvment with Alliant's battlefield weapon. I am not sure how close you are with MCI/Worldcom chairman Bert Roberts whose joining Valence's board came as a surprise to you.

I find it likely that he would know about the Mars program. If you get a chance, or share a key to the executive men's room, corner him and ask. If you don't like his answer, just explain in your own words: "...if'n folks play it straight we'll all be better off". Otherwise, keep checking your sources John. I am willing to wager some large stakes that Valence will be supplying batteries both for the Army's combat weapon and for equipment in the Mars program.

Regards, FMK
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