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To: Lutz Moeller who wrote (877)	3/9/2000 9:42:00 AM
From: Rob Preuss	Respond to of 1762

Wow! What a great day yesterday!! That was my biggest 1-day gain ever. Presently it appears that the price will hold up pretty well. My SI RTQ says that, so far today, we've traded between 44+7/8 and 46+1/4. Here is a link to next weeks wireless show in San Francisco where DMIC will be present. broadband-wireless.com

To: Lutz Moeller who wrote (877)	3/9/2000 10:56:00 AM
From: Rob Preuss	Respond to of 1762

[SG Cowen reiterates DMIC a "Strong Buy".] From the yahoo thread... 07:56am EST 9-Mar-00 SG Cowen Securities Inc. (CARROLL, BLAINE 617-946-3957) [12 ú Rcvd: Mar 9, 08:01 AM EST ] TFN First Call March 9, 2000 SG COWEN B. Carroll/J. Kedersha 617-946-3700 3/9/00 Digital Microwave (DMIC: $43 1/2) RATING: Strong Buy (1) STRONG DEMAND IN DMIC'S BUSINESS CONTINUES INTO CURRENT QUARTER QTRLY EPS FY=Mar OLD NEW P/E* Q1 Q2 Q3 Q4 1998A $0.69 $0.13 $0.20 $0.22 $0.14 1999A ($0.47)* ($0.47) ($0.14) ($0.18) ($0.11) ($0.04) 2000E $0.15 $0.15 104x $0.00a $0.02a $0.05a $0.08 2001P $0.50 $0.50 65x $0.09 $0.11 $0.14 $0.16 =========================================================================== * Based on EPS of $0.42 and $0.67 for CY00 and CY01, respectively. Excludes one time charge of $0.27. * Excludes one time charges of $1.13. Key Points: Our $0.08 Estimate 2. Rebound In Core Markets And Rollout Of New Products Continue To Add Excitement 3. Expect Orders To Be Strong Rising Almost 40% Y/Y Resulting In B/B>1.0 Thesis: radios are used in the buildout of telecommunications networks, specifically those used in short to medium haul networks used to connect cellular and PCS base stations to the local phone network. Through a couple of key acquisitions and internal product development, DMIC has better positioned itself within the microwave market. We believe that the market is beginning to show signs of recovery and that DMIC is positioned to benefit. As such, we rate the stock a Strong Buy (1). QUARTER EXHIBITING ONGOING STRENGTH - that DMIC has experienced over the past couple of quarters is continuing into the current quarter as its core markets rebound and its new high capacity radio, Altium, continues to gain momentum. As a result, we feel there could be some slight upside to our $85MM in revenue, a 42% increase Y/Y and that our $0.08 estimate is achievable. Additionally, we expect that orders will once again be strong and could rise 35-40% Y/Y and approach the $90MM level. This level of orders should be viewed very positively, especially in light of the exceptional orders received last quarter ($104MM). With the renewed growth in its business, one of the key issues for DMIC is its ability to ship enough radios to fill the increased orders. As a result, the company is now putting increased demands on its suppliers in an attempt to properly guage manufacturing capabilities versus its previous strategy of controling excess inventory levels during the weak market last year. ALTIUM GROWTH CONTINUES TO BE SOURCE OF STRENGTH - drivers to DMIC's business is the rollout of its new high capacity radio, Altium. We expect that Altium revenue (Broadband division) will quadruple Y/Y and rise 36% sequentially to $17MM. Additionally, we expect Altium orders to reach the $20MM level, a five-fold increase Y/Y and a 10% sequential increase. With the core markets clearly on the rebound, the Narrowband division should also show strong growth. For this division, we are looking for revenue of $53MM, a 23% increase versus last year. Additionally, we estimate that orders could be $55MM, a significant improvement versus the $35-45MM rate a few quarters ago. MAINTAIN STRONG BUY - in the microwave business with some added excitement from the fixed wireless applications. DMIC continues to strengthen its position in the market via its product portfolio and the introduction of its new products, particularly Altium. With the stock trading at a reasonable valuation, relative to its peers, of 6.4X CY01 revenue and the likelihood of upside to these projections as the fixed wireless market continues to ramp, we believe the stock will apppreciate from these levels. As a result, we continue to rate the shares a strong buy (1).

To: Lutz Moeller who wrote (877)	3/10/2000 10:17:00 AM
From: Rob Preuss	Respond to of 1762

[China spending heavily on telecom equipment. Should benefit DMIC.] Tuesday March 7, 9:42 pm Eastern Time China to shell out $1.0 bln on Internet backbone By Lee Chyen Yee SHANGHAI, March 8 (Reuters) - Chinese telecommunications operators say they will pump nearly $1 billion into Internet infrastructure this year, signalling increased competition in the sector and lucrative contracts for foreign equipment suppliers. Officials with China Telecom , China Unicom, China Netcom and China Jitong -- the four data carriers in the country's state-owned industry -- said this week they were spending heavily to soup up creaky infrastructure and spur sluggish Web speeds Foreign equipment makers are already reaping the rewards. U.S.-based Lucent Technologies Inc (NYSE:LU - news) said last week it had won contracts worth more than $100 million from China Telecom, China Unicom and China Netcom. Analysts said network hardware providers including Cisco Systems (NasdaqNM:CSCO - news), 3Com Corp (NasdaqNM:COMS - news) and AsiaInfo Holdings Inc (NasdaqNM:ASIA - news) -- whose shares jumped 300 percent on its Nasdaq listing last week -- were also aggressively marketing their wares. ``China will want leading edge technology as it builds its next generation networks,' said David Michael, vice president and director of China e-commerce practice at the Boston Consulting Group (BCG) in Hong Kong. ``That provides an important opportunity for those overseas players who have that technology,' he said. FIRMING UP AN ACHING BACKBONE The country's dominant telecom provider China Telecom said it would spend more than one billion yuan ($120 million) this year to expand its existing digital network. ``We are focusing on developing ATM and IP networks,' said Ye Yongdong, deputy chief engineer of the company's data communication bureau. ATM (Asynchronous Transfer Mode) is a high-speed technology which blends data, voice and video in a single pipe. IP (Internet Protocol) is a cheaper technology developed for data, but it is still unclear when it will be able to handle multimedia traffic efficiently, analysts said. Number two telecoms provider China Unicom said it was spending 5.6 billion yuan to build its ATM and IP network which will begin services in the first half of this year. A spokesman from China Jitong said his company would be improving its current IP and ATM network, but declined to give a figure for investment. China's newest player in the sector, China Netcom Corp, said it was investing 500 million yuan to roll out its IP network, scheduled to start operating in the third quarter. FROM DIRT ROAD TO SUPER HIGHWAY China's public network is already creaking from traffic generated by nine million users, and official figures are predicting 60 million Internet users by 2005. Internet speeds are notoriously slow, with surfers sometimes waiting several minutes to download a single Web page. ``When you're waiting that long, the super information highway is more like a dirt road,' said Matthew McGravey, e-commerce strategist at International Data Corp (IDC) Hong Kong. The changing habits of China's Internet users are also stretching the network thin, with an increasing number of people packing the bandwidth with software and music files. ``Just the ability to see basic sites is going to be hampered by lack of capacity at the backbone,' Eric Rosenblum, chief operating officer of Internet company ChinaNow.com. A robust digital infrastructure would also leave China prepared for foreign competition when it gradually opens up its telecommunications sector upon entry to the World Trade Organisation (WTO), expected this year, analysts said. (US$ equals 8.28 yuan) Rt

To: Lutz Moeller who wrote (877)	3/16/2000 10:30:00 AM
From: Rob Preuss	Read Replies (1) \| Respond to of 1762

[Article about DMIC competitor Triton Networks.] Triton Network Plans to Hold $75 Million Initial Stock Sale By Siobhan Hughes Triton Network Plans to Hold $75 Million Initial Stock Sale Washington, March 3 (Bloomberg) [snip] Triton said its equipment has some advantages. For example, its products provide faster connections than DSL lines, transmitting data at from 100 to 155 million bits per second. [snip] Source (full article): quote.bloomberg.com REMARK: DMIC's Altium product provides 155 Mbps (OC-3) capacity and has been selling like hotcakes. If all Triton has to offer is a product delivering 100-155 Mbps, they'll need some way to sweeten the deal (e.g., lower prices) in order to move any product out the door. Hence, Triton is no threat... but its an annoyance as its presence will pressure DMIC margins.