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To: Bilow who wrote (42497)	5/18/2000 5:02:00 PM
From: jim kelley	Respond to of 93625

Carl, If you read the release carefully the memory companies want their risk to be covered but they also want to be able to benefit from market prices. The deal may end up being between the OEM's and Intel. Intel could provide the "insurance" while the OEM's pay for the product. The major risk for the memory companies lies in possibility of schedule slips in the Willamette launch. They want to make sure they get paid anyway. This is understandable following "caminogate" last year. If Willamette launch is successful then the memory companies will have undeserved profits. <G> The problem is the same for DDR. The impact might not be quite as large since it is addressing server primarily. These guys have been a surly bunch for the last year or so. DELL had a run in with Micron last fall if you recall. This industry has not been very profitable in periods of overcapacity. The pendulum has now swung. The insurance need only cover the losses that might be due to schedule slip. Perhaps, that could be as much as a quarter. Perhaps as little as a month. JK