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To: Bilow who wrote (42501)	5/18/2000 6:20:00 PM
From: Joe Donato	Read Replies (1) \| Respond to of 93625

There are some interesting interpretations of the latest news of the DRAM folks only supporting a ramp of RDRAM if the orders on non-cancellable non-returnable. Let me spell it out: They don't want to get stuck with the product because they don't believe they will have anyone else to sell it to. That is the definition of illiquidity - little or no demand. Think about it.

To: Bilow who wrote (42501)	5/18/2000 6:26:00 PM
From: Don Green	Respond to of 93625

Hi Bilow You give yourself way too much credit, a.k.a. "Carnac the Magnificent".. Of course they would BALK! No one likes to be told what to do, especially those who think they can predict the future. Regards Don

To: Bilow who wrote (42501)	5/18/2000 6:58:00 PM
From: jim kelley	Respond to of 93625

Carl, Are you an insider??? 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. Thus the OEMs are equally exposed to a shortfall in the product launch. 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