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To: lee kramer who wrote (100758)	6/6/2000 4:47:00 AM
From: puborectalis	Respond to of 120523

Sycamore to Buy Closely Held Sirocco for $2.9 Bln (Update1) By Erik Schatzker Chelmsford, Massachusetts, June 6 (Bloomberg) -- Sycamore Networks Inc. agreed to buy Sirocco Systems Inc. for $2.88 billion in stock in a second effort to expand its line of fiber-optic equipment after losing a bid to acquire its first choice. Sycamore, whose products carry and switch traffic on fiber- optic networks, will pay 28 million shares for Sirocco, a closely held 16-month-old startup with no sales. It expects to complete the purchase in about 60 days, spokesman Rich Williams said. Sycamore had wanted to buy Chromatis Networks Inc. to gain products that extend the reach of its equipment to city networks and office buildings. The company, whose shares have risen eightfold since it went public in November, was outbid by Lucent Technologies Inc., which last week agreed to pay $4.65 billion. Demand for equipment to run metropolitan fiber networks is set to explode as traffic floods in from Web-based cell phones and high-speed Internet lines. Sycamore, which is just emerging from startup mode itself, now boasts a market value of about $25.2 billion. It reported its first profit in the fiscal third quarter as sales almost doubled from the second quarter to $59.2 million. Second Time The acquisition will be the second time Sycamore founders Dan Smith and Desh Deshpande have bought a company from Jonathan Reeves, the president and chief executive of Sirocco. Reeves sold Sahara Networks Inc. to Cascade Communications Corp., a maker of networking equipment run by Smith and Deshpande, for $216.5 million in 1997. ``We know these guys,'' Williams said. ``It will be an easy integration.'' Reeves will become a vice president at Chelmsford, Massachusetts-based Sycamore. He founded Sirocco in January 1999 together with Ed Stern and Thomas Shea. As with Sycamore and Cascade before it, Sirocco relies on complicated software to make its products work. Other companies are more dependent on chips. Williams said Sirocco will begin testing its products with potential customers next quarter and start more extensive tests in the following quarter. It expects sales by yearend, he said. Sirocco, backed by Bessemer Venture Partnets, Greylock, Weiss Peck & Greer Venture Partners and Silicon Valley Bank, is based in Wallingford, Connecticut. It employs about 115 people. Sycamore shares fell 7 1/16 to 102 15/16 yesterday. They reached as high as 199 1/2 on March 2.

To: lee kramer who wrote (100758)	6/6/2000 6:38:00 AM
From: Bob Biersack	Read Replies (1) \| Respond to of 120523

Lee..That's true....I don't want to be guilty of calling you an investor :-))) It's DRTN!! Interesting news for NTRO!! biz.yahoo.com