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To: Nouveau_Riche who wrote (65376)	7/20/1999 11:53:00 PM
From: Captain Jack	Respond to of 97611

N R -- Computer Maker Micron Buying Internet Service Firm SEATTLE (Reuters) - Computer maker Micron Electronics Inc. (Nasdaq:MUEI - news) said Tuesday it plans to buy an Internet service provider as part of its accelerating shift in what the company's top executive called its ``e strategy.' Micron Electronics said it signed a letter of intent to buy Micron Internet Services from its parent company, Micron Technology Inc. (NYSE:MU - news), for book value, which was not disclosed. The deal should close within a few days pending approval of both boards, Micron Electronics Chairman and Chief Executive Officer Joel Kocher said. Micron has been among the most aggressive of the major computer makers offering so-called ``free' computers for the price of a multiyear commitment to buy Internet services. Earlier this month, the Nampa, Idaho-based direct seller became the first manufacturer to announce plans to buy a Web hosting service, indicating its intention to focus on business customers. ``We're seeing a huge secular shift toward an e-services-driven profit model,' Kocher said in an interview. ``Frankly the computer industry has matured to a point where people shouldn't find this shocking,' he said. ``What's shocking to people is the rapidity with which this is happening.' Kocher said the company would be making an aggressive effort to sign up small to medium-sized businesses for Web hosting and other Internet services and then cross-sell them Micron computers. He said some Web services carry gross margins as high as 80 percent, which could be a significant boost to profitability. ``What it all boils down to from my perspective is very simple -- gross margins,' he said.