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To: Jdaasoc who wrote (5493)	7/25/2001 12:18:27 AM
From: r.edwards	Respond to of 10714

Jd, I thought they just printed some stock and traded it for Ultra RF patents and actual cash revenues.( did not really pay anything except the value of their paper) There was no cash outflow paid for ultra RF. On a cash flow statement, they would be receiving real cash from sales of UltraRF products, there is some net. What would RF Micro or a Qcom pay for Ultra Rf and associated assets say a year from now ?? 50M, 75M $ 100M ? (it might be smart to buy cash generating assets that grow,, for no money down)

To: Jdaasoc who wrote (5493)	7/25/2001 11:13:01 AM
From: Paul Hackett	Read Replies (1) \| Respond to of 10714

If CREE paid $110 million for Ultra RF in stock and Ultra RF just had approx. $10 million in revs. for the latest quarter (and profitable ops.), then I would say that the early indications are that CREE got a pretty good deal. Consider the projections: Ultra RF should generate revs. of approx. $40+ million and they went from losing $17 million in the last 12 months to earning $221,000 for the last quarter. That's quite an improvement in a short period of time. Bottom line is that CREE paid about 2.5 times revs. for Ultra RF, and CREE is currently trading at about 9 times revs.