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To: ms.smartest.person who wrote (157)	8/20/2000 6:25:21 AM
From: ms.smartest.person	Respond to of 307

PHUSF PARTHUS TECHNOLOGIES ORD - UK [UK:PRH] BLUETOOTH PartII quote: quote.bloomberg.com Bluetooth’s big wireless bite Part II: Semiconductor companies could benefit By Anthony Gambacorta , FTMarketWatch.com Last Update: 5:38 AM ET Aug 17, 2000 LONDON (FTMW) -- If Bluetooth’s technology lives up to expectations, radio wave-enhanced semiconductors may well change the way we use and integrate technology in our lives. Bluetooth is a technology standard that has been adopted by 2,000 leading tech firms, including Lucent, (LU) Microsoft, (MSFT) Motorola, Nokia (NOK) and Ericsson. Ericcson of Sweden owns the trademark for Bluetooth, which is named after a 10th century Viking king. The vision of the Bluetooth special interest group is to allow devices such as cell-phones to wirelessly communicate with PCs, the Internet, vending machines or almost any other device. How does it work? Bluetooth is enabled by radio-enhanced chips and software allowing devices to communicate over distances of 30 feet to 300 feet. Potential applications are almost limitless. For example, you can use your cell-phone to wirelessly synchronize data with a personal computer, purchase items via the Internet or pay for groceries at a “smart terminal.” According to IDC Research, 450 million devices will incorporate the technology by 2004. Given the need for specialized semiconductors, companies that manufacture Bluetooth-compatible chips are best positioned to profit from this trend. Ericsson (ERICY) , Motorola (MOT) and Cypress Semiconductor (CY) should be core portfolio holdings in this area. Motorola is in the midst of a restructuring of its cell-phone business. The New York Stock Exchange-traded stock is down 41 percent from its peak of $60 in March. However, the semiconductor business is strong, and the company is positioned to be a leading supplier of Bluetooth-enabled devices. The company is trading at only 24 times 2001 consensus estimates, and some professionals on Wall Street believe the stock can trade up to $45 per share during the next 12 months. Ericsson’s NYSE-traded ADRs have declined 30 percent from a recent high in the wake of concerns about the cost of buying a piece of the third-generation, government-owned wireless spectrum in Europe. Ericsson is the leading provider of wireless infrastructure in the world. The company provides technology and services to phone companies to build next-generation wireless networks. The company’s shares trades at a multiple of 45 times 2001 earnings, but some say a 27 percent growth projection during the next five years can support this multiple. Among smaller companies, Cypress Semiconductor is compelling value. The NYSE stock is down 31 percent from its peak, along with other semiconductor companies. In April, the company announced the acquisition of privately held Alation systems, a wireless systems company with Bluetooth capability, as well as RadioCom, which manufactures semiconductor radio-frequency circuits. Both of these acquisitions position the company favorably as a supplier of Bluetooth-enabled chips. Despite a solid market position, the stock trades at only 14 times 2001 estimates. This is a particularly low valuation given a projected growth rate of 30 percent per year over the next five years. The stock could trade up to $60 per share in the next 12 months, some Wall Street professionals believe. ftmarketwatch.com{4384DE8E-76A7-4F49-8682-0896B07256FA}