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Technology Stocks : Tellium -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (34)	9/22/2000 11:22:20 AM
From: Glenn Petersen	Read Replies (1) \| Respond to of 55

TELM highly dependent on Cable & Wireless and Qwest: Our future prospects are dependent on our relationship with Cable & Wireless and Qwest. We recently entered into an agreement with Cable & Wireless under which Cable & Wireless has made a commitment to purchase a minimum of $350 million of our optical switches over the next five years. Our agreement with Cable & Wireless gives Cable & Wireless the right to reduce its minimum purchase commitment from $350 million to $200 million if we do not maintain a technological edge so that there exists in the marketplace superior technology that we have not matched. Our agreement with Cable & Wireless also permits Cable & Wireless to terminate the agreement upon breach of a variety of our obligations under the contract. The termination of our contract with Cable & Wireless would have a material adverse effect on our business. We also recently entered into an agreement with Qwest pursuant to which Qwest has made a commitment to purchase a minimum of $300 million of our optical switches over the next three years. Our agreement with Qwest allows Qwest, through binding arbitration, to terminate the agreement upon breach of a variety of our obligations under the contract. The termination of our contract with Qwest would have a material adverse effect on our business. We expect that substantially all of our revenues will be generated from a limited number of customers and that our revenues will not grow if we do not successfully sell products to these customers.