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

To: Robert Cohen who wrote (20784)	8/2/2000 2:14:31 PM
From: mooter775	Read Replies (1) \| Respond to of 27311

Robert, My interpretation of the situation is as follows: (1) The company has been in discussions with several laptop OEMs for a number of weeks. They have not closed any deals yet due to (a) some concern by potential customers due to single sourcing, (b) some possible concern about the company's previous "going concern" financial opinion, and (c) some concerns about ability to supply in quantity. (2) Concern (a) might be lessened by licensing, which the company is working on, concern (b) has been eliminated due to the recent financing, and concern (c) might still prevail, at least until either the Fable machine finished its Navy contract for Alliant or the German machine is delivered later this calendar year. Lev indicated that the Klockner/David line and one Arcotronics line are currently producing for the Globalstar phone (20 bicells/minute for the Klockner and 35 bicells/minute from the Arco). The second Arcotronics lines is being tooled for the French order, which should start soon if it hasn't already. The FABLE line is being utilized currently for an Alliant/Navy order, and presumably will be concluded soon to be able to produce larger laptop cells. In addition, Lev indicated that one of the Arcotronics lines was also being retooled to be able to produce large batteries. I don't know where the Kyocera batteries will be produced - presumably on excess FABLE capacity or on the "French battery" Arco line. In addition, my guess is that the PDA contract, presumably also with Globalstar and utilizing a similar sized battery, would also be produced on the first Arco line along with the Globalstar batteries. Lev indicated at one point that he did not expect a volume laptop order until the German machine was installed, although I believe he left open the possibility that initial laptop orders could be accepted once the FABLE machine completed its higher priority Alliant/Navy orders. Finally, he might well be planning to allocate the Kyocera batteries to Hanil, and he might be awaiting full volume production of GEN III (170 wt hr/kg) batteries in the December - March period prior to committing to a large laptop/notebook order. For me, the timing may be elusive, but I do not harbor doubts that this will eventually come to pass. I expect the company eventually to succeed with the Compaq's Ipaq organizer as well as with other laptop/notebook and PDA accounts. I remain patiently long.