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To: Robert Rose who wrote (70395)	7/28/1999 7:30:00 PM
From: Tom D	Read Replies (1) \| Respond to of 164684

Excellent analysis, Robert. Thanks. You have given me a lot to think about. I may need to reply in pieces to this. The problem is not really the amount of shares being offered. It is the amount of shares already issued. Somebody posted on the ICGE thread that the $1.5B nominal valuation (125M shares x $12 per share) was the sum of a) the VERT holding (37% of a 1.5B market cap = $550M) b) 30% discount to the current valuation of the late stage nonpublic companies c) cost basis for the early-stage companies. Maybe they were wrong, considering that it takes a lot of prepublic companies to add up to $950 million. Another factor is that VERT already has the internet mania premium built into its valuation. While one could anticipate that an internet mania premium could be applied to the companies in b) and c) above, it is wrong to apply it twice to VERT. I will study this more. Thanks again, Tom D