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To: KY who wrote (12102)	6/20/2000 1:13:00 PM
From: Ausdauer	Read Replies (2) \| Respond to of 60323

KY, I always thought that losing the Lexar case would be a major event... ...then Eli stated, "We remain confident that we will prevail..." or something to that effect. Well, he beliefs were well founded. We won the suit, but the stock dropped $50.00 within the week. I am mostly concerned about the political situation in Taiwan and with earthquakes, both of which we have no control over. I am also worried about Hitachi flooding the market with flash and CF controllers unless it bears a direct relationship with royalties paid to SNDK. There are many other potential pitfalls (see the annual report for more details). The FlashVision outfitting and qualification is also vital. As Eli stated, execution is perhaps the biggest risk to investors in the near-term. Sorry to hear you got "KY'd" by GMST. (A joke only other MD's will probably understand.) Ausdauer

To: KY who wrote (12102)	6/20/2000 2:47:00 PM
From: Tumbleweed	Respond to of 60323

"What news event within the industry would make you sweat immediately, keep you up at night, and begin to question SNDK's potential dominance?" There are two possibilities for me. 1) We lose the Lexar case. Not fatal but definitely unpleasant. Short term hit. 2) Sony win a design in for the next generation <insert big name digi cam vendor here>. Most serious. I believe that both of these are unlikely, but all things are possible. Maybe Sony could 'bribe' another low end digi cam vendor to go for stick, on the other hand looks as if they are targetting high end cameras with CDR storage to replace floppy, so maybe stick for Sony digicams wont be around too long. If I was such a potential vendor being courted by Sony I'd think twice about switching to a format that may soon become obsolete. Not to mention the lockin than CF and MMC already have. Once you have 2 or 3 of these cards you wont want to swap to a camera with a different format in a hurry. And I suppose there is also (3), [as misreported today], that the IBM 1GB drive really retails for $99! Joe