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To: Softechie who wrote (1475)	7/12/2001 4:10:42 PM
From: Softechie	Respond to of 2155

DJ Marconi/Financing -2: Explains Shr Suspension Decision 12 Jul 02:47 LONDON (Dow Jones)--Beleaguered U.K. telecommunications technology maker Marconi PLC (MONI) reiterated Thursday that it is confident in its medium-term outlook, as its chairman tried to explain the reasons behind its recent actions in a letter to shareholders. Marconi Chairman Roger Hurn asserted that the company's financing is strong with committed banking facilities through to March 2003 of approximately GBP4.5 billion in addition to its long-term bond funding. Hurn said that the decision on July 4 to suspend its shares on the London Stock Exchange before releasing a devastating trading update regarding the slowdown in the placing of orders by some of its customers was taken on the advice of its brokers. He said the decision was made after the company entered into an agreement with Royal Philips Electronics NV (PHG) regarding the $1.1 billion sale of its Medical Systems business, which Marconi was obliged to announce without delay. By that stage, the company hadn't been able to complete its review of the trading position of the group and to prevent a false market in its shares on the basis of its disposal, it took the advice of its brokers and applied to have its shares suspended pending the trading statement. Marconi said on July 4 that is was cutting 4,000 jobs given a severe slump in sales which would result in its operating profit before exceptional items for the financial year falling 50% on year while sales would drop 15% on the previous year's level. The telecoms equipment maker subsequently lost half of its market value on July 5 in response to the day-long share suspension and the profit warning. The stock, which was trading at 1250 pence in August 2000, finished trading Wednesday at 106.5 pence. -By Nic Fildes, Dow Jones Newswires; 44-20-7842-9307; nicolas.fildes@dowjones.com -0- 12/07/01 06-47G (END) DOW JONES NEWS 07-12-01 02:47 AM