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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: BANCHEE who wrote (9979)	7/22/1999 1:38:00 PM
From: Rande Is	Read Replies (2) \| Respond to of 57584

Northrop Grumman Files Lawsuit Against Adaptive Broadband; Seeks Unspecified Damages Related to Its Purchase of Government Business News July 22, 09:13 Eastern Time SUNNYVALE, Calif., Jul 22, 1999 (BUSINESS WIRE via COMTEX) -- Adaptive Broadband Rejects Charges, Saying It has No Merit; An Attempt to Renegotiate Price ADAPTIVE BROADBAND CORPORATION (Nasdaq: ADAP) announced today that Northrop Grumman Corporation has filed a lawsuit against it, alleging that Adaptive Broadband failed to disclose relevant events as required by terms of the Asset Purchase Agreement (APA) signed March 11, 1999, associated with the potential loss of certain government programs. Adaptive Broadband believes the claim has no merit and intends to defend any related action vigorously, and will consider all appropriate counter actions. Adaptive Broadband Rejects Demand "We conducted negotiations with Northrop in good faith, exercised reasonable judgment and breached no representations or warranties under the APA. We are surprised that a company of Northrop's size, market position and industry knowledge would make these allegations and demands," commented Frederick D. Lawrence, chairman and chief executive officer of Adaptive Broadband. "Northrop has owned the Government business for some time. They conducted months of due diligence and they thoroughly understand this market. We find these allegations completely without merit. They amount to an attempt to coerce us to renegotiate the purchase price without justification." Airborne Reconnaissance Low (ARL) Surveillance Program Key Element of Government Business In 1993, Adaptive Broadband, under its former name of California Microwave, fielded the ARL program, which has produced revenue for the company in the hundreds of millions of dollars. The company believes that this surveillance program and its associated communications and intelligence-gathering aircraft were of strategic interest to Northrop in its acquisition of Adaptive Broadband's Government business. In a related development, the June 16, 1999 edition of the Wall Street Journal reported that Northrop Grumman had lost to Raytheon Co. a $1.3 billion contract to build an airborne surveillance system for the United Kingdom Ministry of Defense. According to the article, "In a statement, Northrop expressed disappointment, saying the decision would have 'some impact' on the company's plans." Adaptive Broadband intends to explore fully any possible connection between Northrop's loss of a major surveillance program and its apparent attempt to reduce the purchase price of the company's Government business. Adaptive Broadband (http://www.adaptivebroadband.com) is a leading supplier of terrestrial wireless and satellite-based systems to support ultra-high speed Internet access, broadcast digital TV transport and worldwide Internet backbones. The company also provides industry-leading solutions for satellite-based data communications and terrestrial wireless telemetry networks. Copyright (C) 1999 Business Wire. All rights reserved. -0- CONTACT: Adaptive Broadband Stephanie M. Day, 408/743-3429 sday@adaptivebroadband.com Investor Information Line, 888/225-6789 adaptivebroadband.com

To: BANCHEE who wrote (9979)	7/22/1999 2:12:00 PM
From: Rande Is	Read Replies (3) \| Respond to of 57584

GOLD AND MINING SECTOR: This turnaround in gold has been great to me. AU, ABX, PDG in gold; SWC and DBRSY in related. . . are easily my favorites. . . . . and GRERF and maybe BMG for momentum on lousy fundamentals. I like AU best with its PE of 14; also ABX and PDG PEs of 23. Don't like NEM without a PE. Likewise I like the profit margins in ABX at 22 percent, AU at 12 and PDG at 9.1. . . whereas NEM has -21 pct profit margin. SWC is palladium and platinum. . . has a nice float of 26 mil, which is about the lowest float of any of these. . . . most have hundreds of millions, so they make their moves very slowly. . PE=35. This is not gold. Likewise, I have said many times how much I like DeBeers [DBRSY] diamond mining. . . it has been a great performing stock the past 6 months. ASL looks interesting with 9.8 mil float. . . a PE of 11 and 10 percent profit margin. HM is ho hum. GRERF has lousy fundies, but has a nice momentum going on here. . .caution. . .they are showing a -365 percent profit margin. BMG is in same boat. . . momo, but lousy fundies. Those I don't like include: DAY [0 employees] ECO VGZ CUSIF CBJ PSGQE SILMF AAUK [no info] KGC GOLD [no info] GLDFY [no info] LIHRY MDG DMM.B ABERF EUNMF FNMCF Many many other tiny ones. . . I stopped looking. . . the problem is that it is difficult to determine the damage done to these juniors. . . .unless we really do our historical homework to declare them "clean" . . . many were prosperous as little as one year ago. . . but have finally bit the golddust waiting for a turnaround. Some have 0 to 3 employees or are losing money at high rates of speed. Too dangerous, IMO. I think William and Kevin have some junior golds picked out, but not sure what they are. Hey, at least the sector is headed in the right direction. Rande Is Presently holding AU, PDG, ABX, DBRSY and GRERF