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To: tiquer who wrote (22102)	11/2/1999 5:45:00 AM
From: JDN	Respond to of 64865

Dear tiguer: Look, I happen to feel that the use of options, especially in the high tech field is overdone but that is the way it is and not likely to change. The purpose of an operating statement is to match Revenue and expenses. Options are not an expense to the company unless they are issued under water ie less than current market value at date of issue. Going purely from memory I believe if they are issued UNDER water then an expense is recognized but most options are Qualified Plans meaning they are issued AT current market value. Thus there is no actually current expense and the fact they later become of value due to the rise in the value of the underlying stock is not an expense but is reflected in the calculation of DILUTED earnings per share. JDN