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To: stock talk who wrote (6748)	1/5/2000 9:06:00 AM
From: DJBEINO	Respond to of 9582

CSMF closed @10.600 +0.300 (+2.91%) Volume 1,489,000

To: stock talk who wrote (6748)	1/5/2000 9:08:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

S3 to Recognize One-Time $800 Million Pre-Tax Gain in First Calendar Quarter SANTA CLARA, Calif.--(BUSINESS WIRE)--Jan. 5, 2000--S3® Incorporated (Nasdaq:SIII - news) today announced that it will recognize an $800 million pre-tax gain ($500 million after-tax) in its Statement of Operations for the first calendar quarter of 2000. The gain represents the appreciation of S3's investment in United Semiconductor Corporation (USC). The event that triggered this gain is the now completed merger of USC into United Microelectronics Corporation (UMC). As a result of this merger, S3 now owns approximately 252 million shares of UMC. The gain, which S3 is required to recognize as ''Other Income'' upon completion of the merger, represents the difference between S3's cost of its investments in USC and the most recent quoted market price of UMC shares on the Taiwan Stock Exchange. Due to regulatory restrictions, the majority of the company's UMC shares may not be sold until July 2000. These regulatory restrictions will gradually expire between July 2000 and January 2004. As the regulatory restrictions expire, and if the company liquidates its UMC shares, it is likely that the amount of any future realized gain will be different than the accounting gain reported in the first calendar quarter. ''This is a significant financial milestone as our USC investment is now reported on our books at a valuation that nearly matches the current market capitalization for all of S3,'' said Ken Potashner, chief executive officer for S3 Incorporated. ''This reflects what we believe has been an under valuation of the company's stock and our ability to obtain liquidity of this asset should position us well for future acquisitions or other strategic investments.'' biz.yahoo.com

To: stock talk who wrote (6748)	1/5/2000 9:21:00 AM
From: DJBEINO	Read Replies (1) \| Respond to of 9582

an $800 million pre-tax gain ($500 million after-tax) means a 37.5% tax rate. so as of today UMC holding alone are worth: USC 247,700,000 $118.00 $924,663,081.30 USI 35,600,000 $118.00 $132,894,653.59 add money from umc $21,037,646.31 total $1,078,595,381.21 37.5% tax rate $674,122,113.26 # of shares $42,159,028.00 alsc (only UMC) $15.99 if you add BRCM & CSM alsc is worth $19.5 after tax (assuming same tax rate)