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To: Doug Bean who wrote (34603)	11/12/1999 8:27:00 PM
From: BWAC	Read Replies (2) \| Respond to of 36349

Ever wonder what a little dsl chipset valuation might be worth? --------------------------------------------------- Metalink, Maker of DSL Chips, Files for $36 Million IPO Washington, Nov. 12 (Bloomberg) -- Metalink Ltd., which makes chip sets used by makers of digital subscriber line equipment, filed for a $36 million initial stock sale to finance its expansion. The company, based in Israel, said its chip sets are used to provide high-speed voice and Internet connections over traditional copper phone lines. Metalink has sold more than one million of its products, called DSL chip sets, for use in equipment made by companies such as Newbridge Networks Corp., ECI Telecom Ltd. and Tut Systems Inc. The ``last mile' of copper wires that connects homes and businesses to their network service providers has become congested because of growing use of the Internet. The wires were designed to carry voice traffic and operate at slow speeds when used to carry online traffic. Metalink said its chip sets help unclog bottlenecks along this ``last mile' without requiring the installation of expensive special equipment, such as is needed with ISDN technology. ISDN is an acronym for Integrated Services Digital Network, a set of standards used to provide voice and data transmission. Metalink filed with the Securities and Exchange Commission to sell 4 million common shares for $8 to $10 apiece. If shares sell for $9, at the middle of the range, Metalink would raise $36 million and have an implied market value of $64 million, based on 16 million shares to be outstanding after the IPO. Management Tzvi Shukhman, 38, Metalink is chief executive and chairman. Before helping to foundt Metalink, Shukhman was consultant for RAD Data Communications Ltd. and ECI Telecom. He served in the Israel Defense Forces, where he founded a group involved in digital signal processing applications, the filing said. Shukhman will hold a 31 percent company stake after the stock sale. Metalink outlined a number of risks to be considered by investors, including that the company has a history of losses and may not become profitable in the ``foreseeable future.' Metalink also warned that its quarterly results have been volatile, fluctuating because of factors such as the size and timing of chip-set orders and price changes. Net losses totaled $544,000 in the three months ended Sept. 30, compared with net loses of $304,000 in the same period one year earlier. Revenue rose to $2.9 million from $2.4 million. Metalink said it would use proceeds from the stock sale to expand its marketing and sales activities in the U.S., and to build a U.S. design center to make multi-channel mixed signal front end chips. Some money will be used to repay debt, including debt owed to customers Tut Systems and ECI Telecom. The rest will be used for increased research and development and general corporate purposes. Metalink hired Banc of America Securities LLC, CIBC World Markets and U.S. Bancorp Piper Jaffray. Metalink has applied to trade on the Nasdaq Stock Market under the symbol ``MTLK.' Nov/12/1999 15:58