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

To: Rich Wolf who wrote (13535)	8/9/1999 2:43:00 PM
From: DKR	Respond to of 27311

Thanks for the clarification.

To: Rich Wolf who wrote (13535)	8/9/1999 2:46:00 PM
From: Rich Wolf	Read Replies (1) \| Respond to of 27311

OT: clarification of EPS/Eveready: Eveready wants to focus on primary batteries, though will continue with consumer rechargables (e.g., standard-sized cells such as D,C,AA, etc.). Analysts had noted that they were getting out-marketed by Duracell (even though the products were equivalent), and were simultaneously losing market share to Ray-O-Vac (#3 volume seller) who was price cutting. The EPS division of Eveready repackages for OEMs. The sale was first announced late last fall, confirmed this spring, and specifics of progress of sale made public in early June (at that time, the original interested parties had been reduced to five 'qualified' bidders, and sale was to be finalized within two months). EPS has been bleeding red ink, since the Japanese cut li-ion cell prices by one-half late last fall, before EPS could complete its new li-ion production facility in Gainesville, FL, and the project was mothballed. EPS was left with NiCad and NiMH only, which have been getting squeezed by the increasing supply of li-ion cells. Now one of the main values in EPS will be the revenue stream from repackaging li-poly cells from Valence, and this is what has prompted the buying interest. Of course, the buyers must take on the whole grab-bag of EPS assets, and I'm sure there's some sticky points there. As announced during the last Valence conference call, EPS is agreeable to promoting a 'Valence branding' of the cells they would repackage, and has customers lined up for Valence.