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To: Charles R who wrote (15669)	10/23/2000 11:48:35 PM
From: kash johal	Read Replies (1) \| Respond to of 275872

Charles, Some ole friends are doin good:Monday October 23, 9:40 pm Eastern Time CORRECTED - Raza Foundries raises $125 mln in funding In the SAN FRANCISCO story headlined ``Raza Foundries raises $125 mln in funding'' please make the 10th paragraph read ``Raza often encourages its companies with a strong technological component -- a microchip, for instance -- to develop an actual product around it, because doing so can make a company more attractive...'' Adds word ``often'' at start of sentence and deletes reference to takeover target. A corrected story follows: By Eric Lai SAN FRANCISCO, Oct 23 (Reuters) - Raza Foundries, a privately-held incubator of broadband networking and communications startups, has received $125 million from a group of networking companies, led by Cisco Systems Inc. (NasdaqNM:CSCO - news). Investors in Raza's third round of raising capital, which brings its total funding up to $170 million, include top names in technology like Applied Micro Circuits Corp. (NasdaqNM:AMCC - news), Broadcom Corp. (NasdaqNM:BRCM - news) and Infineon Technologies AG (NYSE:IFX - news). The group also received funding from LSI Logic (NYSE:LSI - news), PMC-Sierra (NasdaqNM:PMCS - news), Siemens AG , Virata (NasdaqNM:VRTA - news) Corp. and Xilinx (NasdaqNM:XLNX - news). Formed in October last year, Raza is headed by president and chief executive officer, S. Atiq Raza, formerly president and chief operating officer of chipmaker, Advanced Micro Devices Inc. (NYSE:AMD - news) . Raza has developed fourteen companies to date, all in the hot area of broadband networking where tech stock prices have not collapsed in recent months. Raza executives claim that its ability to help find funds for companies, offer management advice and bring in technical expertise, can accelerate startups' development faster than conventional tech incubators. It has already sold or spun off two companies: YuniNetworks, which only three months after forming was sold to Applied Micro in a stock deal worth over $400 million, and Maple Optic Systems, which received second-round funding of $50 million earlier this month. Of the remaining twelve startup companies, most are hardware equipment makers whose chief advantage is a component -- a chip, for instance - that grants it increased speed or bandwidth compared to other products. The demand for faster bandwidth has fuelled rapid advances in networking technology. That has led many of the top networking hardware makers to virtually ``outsource'' their research and development efforts by buying up early-stage startups with promising technology. Raza often encourages its companies with a strong technological component -- a microchip, for instance -- to develop an actual product around it, because doing so can make a company more attractive, said Dana Krelle, vice president of market development at Raza. ``Equipment companies are valued at a higher level'' than chipmakers, Krelle said. ``So that is a conscious decision.'' Raza hopes to sell stock in a public offering within a year, Krelle said.