Me:   1. China has great potential as an Internet play.

You:  Agree with points 1 & 2, but it is not company fundamental
      specific.

Me:   1a.Rising tide lifts all boats, ships, and super tankers.

Me:   2. China.com has a cool name.

You:  Agree with points 1 & 2, but it is not company fundamental
      specific.

Me:   2a.Get real. It's more than just a cool name. Is Yahoo just
      a cool name. Where would they be if they were named Search 
      Engine for the WWW?

Me:   3. China.com is at the right place at the right time and
      occupies the right space.

You:  Point 3 is debatable, as dispite the fact that they operate as a 
      China portal, they only expect to have S1 million in revs in 
      1999 (out of a total of S16 million)

Me:   3a. You just don't get it.  It's not about how many marbles you
      have today.  It's about how many marbles you will hve five years
      from now.

Me:   4. China.com has a lot of money - besides the money they made on
      the IPO - they have raised quite a bit of money before the IPO
      and I suspect they have plans to raise a lot more money 
      subsequent to the IPO - only now they have quite a bit more 
      credibility.

You:  Point 4 , so they have money now, can they capitalize on it 
      properly? Btw, they will not be able to raise more money from 
      capital markets till at least 6 months post IPO (due to lock up
      period).

Me:   4a.  Only time will tell if anyone spends their money wisely.
      but for now, it is  far  better to have money than not to
      have money. Is six months suppose to be a long time? Besides,
      there are other sources for financing other than Capital markets 
      in the public space. In any case, I don't think China.com will 
      need more money over the next six months.

Me:   5. China.com has the right partners - AOL owns 10% and has 
      options for another 15% - SUNW, Edelson Technologies - and the
      Chinese government. If the Chinese government is going to 
      intervene, think about what might happen to the other 
      non-government related Internet companies? It may be a mixed 
      blessing to have the Chinese government as your partner. Also,
      they seem to have positioned themselves in a way where they have 
      access to all the latest internet technologies.

You:  Point 5, the investment amount for AOL was petty cash and does 
      not have to be construed as a major stepping stone in their Asia 
      strategy. AOL has Asia presence thru many other affiliations 
      including Netscape (Asia). I am long AOL myself, but that does
      not mean that I applaud every move they make without looking 
      into it deeper.

Me:  5a.  At 25%, $.25B is a pretty good committment.  I don't
     think that they have anywhere near this amount anywhere else in 
     Asia.

Me:   6. Take another look at the names of some top management 
      personnel - some of them sound distinctly occidental. I don't 
      know what that means, specifically, but, I don't think that is 
      going to hurt.

You:  Point 6. I know who represent senior management, and don't  
      believe that you have stated anything that has changed my views

Me.   6a.  So clue us in - what do you know about their senior 
      management and espeically the occidentals?

Me:   7. Steve Case as a role model. Steve Case if you have forgotten
      has for nearly a decade surprised investors by coming up with 
      creative new initiatives - quarter after quarter. Remember AOL 
      had only 6 years ago, less than 250k subscribers. Can China.com
      use the same blueprint from hindsight to acheive similar, if not
      better results? 

You:  Point 7. 6 years ago Steve Case operated in a different space 
      with a lot less competition as well, hence it was relatively 
      easier to realize the upside in a mature market.

Me.  7a.  This sounds like revisionist history to me. 6 years ago 
     Steve Case didn't have a clue where he was going.  No one saw the
     the Internet coming - not, Bill Gates, not Andy Grove, not Steve
     Case, not anyone.  All Steve had to do was compete against 
     Compuserv and Prodigy - companies that were owned by IBM and 
     Sears with greatly vaster resources and technologies.
     There was nothing easy about what Steve Case achieved.  Now,          there is some hindsight as China.com tries to do in China what
     Steve did in America. And, Steve will be able to make an 
     appointment to their board of directors.

Mary