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To: David Weis who wrote (2687)	2/5/2000 1:19:00 PM
From: Voltaire	Read Replies (1) \| Respond to of 35685

The World at Qualcomm?s Feet Thursday, Feb. 3, 2000 10:15 PDT By Dan Gruber and Shannon Peavey, America-iNvest.com Pete Peterson of Prudential-Volpe?s Technology Group says the deal sealed between Qualcomm and China Unicom this week is a major breakthrough that opens the door to Qualcomm?s CDMA technology worldwide. America-iNvest.com: Summarize the deal Qualcomm (QCOM) made in China this week. Pete Peterson: This week China Unicom, the number two telecom carrier in China, and Qualcomm cut a deal for licensing code division multiple access (CDMA) technology into China and ASIC sales from Qualcomm into China. America-iNvest.com: What is the significance of the deal? Pete Peterson: It opens up a quarter of the world to CDMA technology. Now there?s a market of 1.2 billion users, with teledensity of wireless and wire lines of about 12%, who now have access to CDMA via their second largest and most significant carrier. That market size compares very favorably to the US where you have a quarter of the people and 10 times the penetration. This is a tremendous opportunity. We calculated that this more than doubles the addressable market for CDMA. It?s a more strategic inroad into what was arguably the most important GSM growth market in the world, and we think this is very important in establishing CDMA as the gold button technology of the Pacific Rim. Now we can count on this technology going into Japan, China, Korea, Hong Kong, Brazil, Australia, and all countries circling the pacific will eventually have or plan to have CDMA networks. America-iNvest.com: What is outlook for Qualcomm going forward? Peterson: It adds a significant footprint to the geography of CDMA. This deal brings in a very strong Asia component where you have not only Japanese users but also Japanese manufacturers; Korean users and Korean manufacturers. And now, Chinese users and Chinese manufacturers. If you think about how important these three countries are to the electronics market at large, and now consider that they have this tremendous potential advantage in the cellular market vis-a-vis the Europeans, this is potentially very significant. America-iNvest.com: What?s your price target for Qualcomm? Peterson: Our current target is 183, but that was determined before the China announcement. We?ll have to take a look at what this will mean numerically. China was not accounted for in our model before, and I don?t think it was considered in the Street?s model either. But I think we?ll wait to hear what else the company has to say before we go and change anything quite yet. America-iNvest.com: Did anything about Nokia?s (NOK) earnings surprise you when they reported earlier this week? Peterson: Nokia beat its numbers by a nice but not excessive margin. The real surprise was how they did it, and that was through handset sales, which were 10% above what we were expecting. Network sales were somewhat below what we expected. As far as handset sales go, they had significant market share accretion, where in 1998 they had 25% penetration. We think they should finish 1999 at 29%. This is a large move for a company that already enjoys a very significant market share. They did this on an operating margin that increased to 25%. A 25% operating margin is phenomenal, especially when you compare to what Motorola (MOT) has, at less than 10%; and Ericsson (ERICY), at less than 6%. These guys are manufacturing arguably one third of the world?s phones at operating margins that are 2.5 times those of their next largest competitors. America-iNvest.com: Were you surprised Nokia didn?t buy Qualcomm?s handset division? Peterson: Qualcomm?s handset division didn?t have a lot to offer Nokia. Bringing on a market of Qualcomm?s size for Nokia would have been very insignificant. For Nokia it would create much more of an integration issue to do this than to just buy some equipment and add to the lines they already have. Qualcomm?s assets were not important, even though Qualcomm?s US sales and distribution in handsets is very strong. Nokia didn?t really need this, but Kyocera (KYO), which actually did buy the division, did need US distribution very much. This is very important for them. What they might still use in the future in Qualcomm?s chip sets, but they don?t need to buy the handset division to get the chipsets. America-iNvest.com: What are your top picks in wireless for 2000? Peterson: My top pick in terms of large caps is Qualcomm. If you look at what?s happening in the world in terms of mobile telephone growth and penetration of the market, you can see that there is tremendous growth in capacity. Fundamental shifts in technology need to be made so that not only will capacities be able to go up, but at the same time costs have to come down so the world?s markets can be significantly addressed. CDMA is the biggest, easiest, most effective leap in technology to get us where you need to go, so we think Qualcomm has some tremendous advantages there. Voltaire

To: David Weis who wrote (2687)	2/5/2000 3:01:00 PM
From: Murrey Walker	Read Replies (2) \| Respond to of 35685

RE: Who started this whole 4 corners discussion? David...I think Jill started talking about Santa Fe and it went from there. Uphill or downhill – depends on your perspective. <g>

To: David Weis who wrote (2687)	2/5/2000 5:30:00 PM
From: elpolvo	Read Replies (2) \| Respond to of 35685

4 corners weis-man, if you lived in farmington in 1978 you missed pinon hills golf course which was built in the late 80s, i think. Golf Digest, in its November '95 issue, rated Pinon Hills as "the best public golf course" in the U.S. to all, the 4 corners discussion got started in a post to me by lurqing dude who musta looked at my profile and saw that i live in NM. it's been great to read all the nice things said about my back yard. for the ultimate new mexico experience i have to recommend my friend curtiss frank's bed and breakfast in truchas. tell him you are a friend of elpolvo and you will be treated as a friend too. i made him a basic website three years ago and taught him how to add to it. he's really made it into a great informational and historical site now. go see it if you like NM and the outdoors! there are lots of stories and great photos on it... there's even a couple of pictures of hale-bopp comet over the sangre de cristos for cosmic scotty :-) ranchoarriba.com -elpolvo