To: Sam who wrote (14072 ) 8/21/2000 9:37:16 PM From: Ausdauer Read Replies (3) | Respond to of 60323 Statements made by our chief executive officer in interviews could lead to liability to public investors in our company. _____________________________________________________________________________"Our business is growing by leaps and bounds..." "It's a massive market. Photography in total has gone from about eighty-five billion dollars to a hundred and twenty-five billion over the last couple of years, and nearly all of this growth is coming from digital photography. So we figure that's a large enough market for us to be a multibillion-dollar company in the not too distant future." I think Lexar's legal team was getting out the hook right as these words were leaving his mouth. "A MULTIBILLION DOLLAR COMPANY IN THE NOT-TOO-DISTANT FUTURE." I think that is a pretty bold statement to be making the day of the IPO. _____________________________________________________________________________"We do have line-of-sight to profitability and expect that to occur in the fourth quarter of next year." Robust growth, but not profitable for another six quarters??? I thought he said "leaps and bounds"?!? _____________________________________________________________________________ "Well, we basically see, you know, digital cameras themselves going from about six or seven million units, eight million units perhaps, on the outside, to well over forty million units in just the next three years...and so we expect our growth will pretty much mirror the growth of the digital photography camera sales themselves." That is a projection that implies total revenues will increase 6 fold over the next three years. _____________________________________________________________________________"We think our competitive advantage in this business is the rapid market share that we're actually gaining in the digital film market...we had about twenty-five percent market share in the after-market flash business." Thank You. I am sure the SanDisk accountants will love to calculate the back-revenues due when the time comes. _____________________________________________________________________________"Although I understand that some investors are concerned about our risk/reward profile, I think our shares at $8 represent a terrific opportunity for investors."This statement accurately reflects our chief executive officer's view, but should not be taken as a recommendation by us or the underwriters. Does this mean the underwriters feel it is worth less than $8.00/share? _____________________________________________________________________________ NOW I CAN BELIEVE THE COURT TESTIMONY THAT STATES THAT THIS GUY ADMITTED LEXAR MEDIA USING SANDISK TECHNOLOGY DURING THE LICENSING TALKS. Ausdauer