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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Rich Wolf who wrote (12881)	7/7/1999 2:02:00 AM
From: Larry Brubaker	Respond to of 27311

<<He was responding to two overlapping questions from Mr. Covington, the first being the R+D expenditures for this and coming quarters (which have contained the capital expenditures), and the second being 'when would they be in the black?'>> Mark, capital expenditures are not part of R&D. R&D are operating expenditures that can be expensed immediately. VLNC spent $9.5 million on capital expenditures in FY 99, but these expenditures are not part of the $29 million operating loss. They can be found in the statement of cash flows, not in the operating statement. A reduction of capital expenditures will have no bearing on the operating expenditure level, which is currently about $40 million per year. I would also presume a transition from R&D to production would increase the level of operating expenditures, not decrease.

To: Rich Wolf who wrote (12881)	7/7/1999 2:39:00 AM
From: FMK	Read Replies (1) \| Respond to of 27311

Rich, Thanks for helping keep the tag team in check! It would seem that if Valence's new CFO or COO stated that they would be in the black by this fall, we should accept it. They have access to information that Larry and Zeev don't have, just as those like yourself who attended the shareholder meeting and listened to the conference call have more information firsthand. So much effort by a few to hold the price down would seem to indicate that the shorts feel their time is running out to cover. Thanks again for helping counter the negative bias. Regards from FMK