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To: unclewest who wrote (54965)	9/25/2000 12:52:24 AM
From: Dan3	Read Replies (1) \| Respond to of 93625

Re: AMD's Dresden FAB i heard that fab cost $2 billion when done. do you know how it is funded? AMD has been using its depreciation cash flow to fund the FAB expansion for the last few years. They are continuing to use cash flow to fund the expansion. There is also a low interest loan from the German government - about $500 million. There were other loans, but those have now been paid off. AMD has considerably more cash on hand at this point than would be necessary to pay off the German loan, but the terms of the loan are such that they are better off investing the cash or using it for other purposes. It was discussed in the CC when they detailed why they sold off the analog devices part of the comm division. Paying the costs of setting up the new FAB before it was generating any income is one of the reasons AMD wasn't profitable last year - and has been minting money this year. Dan