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Technology Stocks : Compaq -- Ignore unavailable to you. Want to Upgrade?

To: MikeyT who wrote (70404)	10/27/1999 7:54:00 PM
From: Elwood P. Dowd	Read Replies (1) \| Respond to of 97611

Gateway Signs 5-Year Memory Chip Deal With Micron SAN DIEGO, Calif. (Reuters) - Micron Technology Inc (NYSE:MU - news)., the No. 1 U.S. maker of memory chips, said Wednesday it had struck a 5-year deal to supply fast-growing computer seller Gateway Inc (NYSE:GTW - news). with such components. Financial terms of the deal were not disclosed, and officials with both companies said it was hard to put a dollar figure on the deal because of uncertainties over future prices of memory components. The companies said, however, the deal was structured similarly to a pact Micron reached with Compaq Computer Corp (NYSE:CPQ - news). Monday that analysts estimated to be worth up to $20 billion over five years. Gateway said the agreement would help it fight a worldwide shortage of computer memory after a devastating earthquake in Taiwan last month hit supplies, keeping its computers loaded with memory during the lucrative holiday shopping season. Such memory chips, known as dynamic random-access memory, or DRAM, chips, are an important part of computers that enable them to run software more quickly and handle more programs at the same time. Most consumer PC desktops come with 64 megabytes of memory, and more powerful workstations and servers are often fitted with more than 128 megabytes. ''We do not have any plans to de-feature any configurations when it comes to memory,'' Gateway spokesman John Spelich said. ''We do not expect to be price disadvantaged at any time during the fourth quarter.'' Some computer makers, such as Dell Computer Corp (Nasdaq:DELL - news)., have promoted PC models with less memory to hold prices down in the aftermath of the Taiwan quake. The deal would make Boise, Id.-based Micron a ''near-majority'' supplier of memory chips to Gateway, which shipped 1.234 million units in its third quarter, racking up revenues of $2.18 billion. The agreement represented a big increase in Gateway's business with Micron, with shipments of memory to start immediately, Kipp Bedard, vice president of corporate affairs for Micron, said. ''It's always hard to predict, but I think it is indicative of customers wanting to find a better long-term source of key components,'' Bedard said of the recent deals. ''The earthquake has heightened the need of buyers to ensure at least a baseline supply that may be less susceptible to natural disasters,'' he said. Shares in Gateway fell 1-1/4 to 62 in composite trading on the New York Stock Exchange Wednesday. Micron shed 3/4 to end at 61-3/8. Make a name for yourself online! Search: Stories Photos Full Coverage Oct 26 \| Oct 25 \| Oct 24 \| Oct 23 \| Oct 22 \| Oct 21 \| Oct 20 \| Oct 19 \| Oct 18 \| Oct 17 Home \| Top Stories \| Business \| Tech \| Politics \|

To: MikeyT who wrote (70404)	10/27/1999 8:30:00 PM
From: rudedog	Read Replies (1) \| Respond to of 97611

Mikey - the jan 01 20s were as high as 5 1/2 today before falling back, now down to 4 5/8 I think. Good luck on your purchase.