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

To: James Calladine who wrote (16544)	1/21/2000 9:39:00 AM
From: zbyslaw owczarczyk	Read Replies (2) \| Respond to of 18016

James any comparison of Stanford Telecom and UB would be based on apples and oranges case. The idea (very wrong) of UB acquisition was to take 800 people and distribution channel and sell NN Vivid LAN lines of products. NN thought naively that customers who were taking CSCO products using UB distribution channels will suddenly switch to NN.It was distribution channels aquisition. It was huge addition to G&A expenses. In Stanford case NN acquired only broadbamd wireless technology and 90 people. As you know STII broadband division is involved generally in satellites and wireless broadband communications systems. This specific division has large number of patents (they were doing lots of work for Pentagon too). Most of NN wireless technology (LMDS) comes form STII. They were working on this for quite some time before LMDS was disclosed in fall 1998. Margin on LMDS will improved with STII being in house b/c NN no longer need to pay to STII . As I said without STII NN would not be able to offer LMDS, and even so STII/NN had long term agreement before merger any offer for STII by other company would put NN's LMDS into jeopardy. When MOT bought wireless division form Bosh,which already was co-operating with CSCO,CSCO got only 10% of JV despite its size. STII was also working with ALA on LMDS, and with NN/STII merger ALA lost precious source of patents and technology!!!!!!!!!! You have to keep in mind that fixed broadband wireless technology is still in the infancy and for NN it was must have aquisition. Of course I do not know specifics about new future products, and even if I knew I doubt I could share it in details. NN so far has great track record as far as aquisition of TECHNOLOGY, and when technology is going. However execution is compleatly different story. Regards Zbyslaw