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To: Jeff Leader who wrote (87)	5/11/2000 7:19:00 PM
From: 16yearcycle	Read Replies (1) \| Respond to of 57684

J I was in on the session with Mu management 48 hours ago, at a conference in London. There is a summary of Rick Wittington's take on MU's comments somewhere on the web,he is the B of A analyst,but briefly and in no particular order: 1.Prices have risen from 4.80 on 1/30 to 6.20 recently. 2.Mu's supply has shriveled from 60 days to less than 1 week since the beginning of the year. Demand is unusually high now. 3.Capacity, the ability to ramp supply dramatically to meet the current imbalance isn't there from the Asian overhang. The equip simply hasn't been ordered to do it. 4.They have NEVER seen this happen this time of year. The gentleman presenting, Kipp Bernard, has been at the company more than a decade. He feels that the above scenario is much more positive than it was at the beginning of 1995. All fwiw. All the best Gene

To: Jeff Leader who wrote (87)	5/11/2000 11:11:00 PM
From: Bill Harmond	Respond to of 57684

Jeff, I think Gene Kearney answered for me. I probably sould have said "inventories" instead. You are right that supply has increased dramatically (nearly double), however demand is increasing even faster. I don't know the Samsung issues you mention, and they can surely be right. However, Micron's fabs are very efficient and produce chips at very low cost. Whether Samsung matches or betters those prices I don't know. What's important for my thesis on Micron is the operating leverage of higher prices. The Micron story is very compelling right now. If you remember 1994-95, I think we are in a similar window today.