To: Glenn Norman who wrote (34360 ) 11/1/2002 7:31:59 PM From: Don Green Respond to of 93625 Rambus Shares Jump on Heels of Licensing Agreement With Toshiba Friday November 1, 6:04 pm ET By Pat Maio Dow Jones Newswires LOS ANGELES -- Shares of Rambus Inc. (NasdaqNM:RMBS - News) rallied after the company announced it entered a licensing deal with Toshiba Corp.A Morgan Stanley analyst issued a research note Friday outlining the significance of the deal, which was announced late Thursday. The companies said Toshiba signed a licensing agreement for Rambus' Yellowstone technology, a new high-speed signaling technology the company unveiled last year. "This is the first Yellowstone license that Rambus has signed, and we believe it could be the first of several licenses for this technology over the next several years," wrote Morgan Stanley analyst John Cross. At 4 p.m. EST on the Nasdaq Stock Market, shares of Rambus closed up 91 cents, or 16%, at $6.49 on volume of 1.3 million, compared with the daily average of 480,800. Los Altos, Calif.-based Rambus makes technology for accelerating the performance of memory chips and related products. The Yellowstone license with Toshiba was for application with dynamic random access memory, or DRAM, chips, which are used in most personal computers. While Mr. Cross didn't see the Toshiba contract as having a meaningful near- term financial impact, he did view Toshiba's adoption of Yellowstone technology as significant because Japanese semiconductor companies historically have been early adopters of Rambus' technology. "We believe it is likely that more will license Yellowstone in the next six to 12 months," he added. Mr. Cross noted he doesn't expect shipments of products based on Yellowstone technology until 2004 or 2005. Initially, the technology will be targeted at graphics-intensive electronic applications such as three-dimensional games and graphics for PCs, he said. Morgan Stanley reported an investment-banking relationship with Rambus in the past year. It wasn't clear from disclosures in Mr. Cross' research note whether he owned stock.