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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Greg Growth who wrote (19777)	5/17/2000 12:36:00 PM
From: Doug McKenzie-Mohr	Read Replies (2) \| Respond to of 27311

This is the third CC that I have listened to. While there were a number of positive elements mentioned, perhaps the most significant was the number of individuals who were asking questions. In short, Valence appears to be creating a following in the financial community. Further, many of those who asked questions were very pleased with progress made to date by Valence. It doesn't take a rocket scientist to conclude that we should be receiving additional analyst coverage and that the coverage is likely to be very positive.

To: Greg Growth who wrote (19777)	5/17/2000 1:08:00 PM
From: I. N. Vester	Read Replies (1) \| Respond to of 27311

more interesting notes from CC (sorry for random order based on the highlights of what i was looking to get firm answers on. btw i was very satisfied with all the answers): Klockner line is now running 3 shifts per day making cellphone batteries for qualcom. Based on 5 batt/minute i calculate this to be $6M per quarter run rate that they are now running on this machine. AND that is not enough capacity so they have to shift that product to another line. It sounds like they are very close to closing a deal on laptop batteries. "the (OEM) president asked last week if we really have the capacity to fill the order and we invited him to visit the NI factory". Confirmed that they are dying to get the laptop order and can start producing the laptop batteries immediately on the Klockner (or "david" after the Vlnc engineer who finally got it working) line and the FABL line. Since they can produce the same number of laptop batteries as cellphone batteries on the Klockner at about 10x the price, I think this confirms that they have to potential to start kicking in very serious revenues as soon as they close this deal. Could be up to $30M/quarter - that is the production capacity, initial volumes probably (IMO) would be smaller, but still highly significant addition to rev. Target capacity by end of this fiscal year is $125-250+ million. The $125M figure is based on shipping ONLY cell phone batteries. Not to say that's what they expect, just that it's a very conservative number of what their capacity will be. The actual $ amount of capacity will improve significantly from that based on the mix of larger sized batteries they can achieve. Expect Hanil-Valence to begin production in September and to be able to book their entire capacity. When asked if management would buy shares (not sure if this questioner was asking about corporate buy-back, but Lev took it to mean buying for their own accounts), Lev implied that he would be buying (because he said that some did want to buy but were restrained until the numbers were released, and at the same time said "i can't speak for anyone else"). I'm pretty sure he'll show up in next months insider buying reports....