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Technology Stocks : WDC/Sandisk Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (15268)	10/2/2000 9:56:36 PM
From: Ausdauer	Respond to of 60323

Can they make up the $4 million royalty profit decrease from Q2 with increased shipments in Q3? John, I hope so. It would be even better to have the gap filled by new licensees with the increased product shipments giving us the added boost. Aus

To: Road Walker who wrote (15268)	10/3/2000 10:03:10 AM
From: Art Bechhoefer	Respond to of 60323

John, there is a risk to Lexar of going to trial. The risk is that a finding against Lexar, and specifically a finding that Lexar intentionally infringed SanDisk patents, might lead to a judgment with treble damages (for intent). Therefore, it is in Lexar's best interest to attempt a settlement before the trial begins. If Lexar recognizes the risk, coupled with the cost of a trial (probably running into seven figures), it should be motivated to come to some reasonable settlement that would (a) cover all SNDK legal fees, (b) provide at least some compensation for lost profits, (c) give SanDisk a claim on future revenues of Lexar in the form of royalties, and (d) possibly result in sharing of Lexar's intellectual property in regard to read/write speeds. Art