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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: Robert Cohen who wrote (24773)	8/23/2001 10:58:09 PM
From: I. N. Vester	Read Replies (1) \| Respond to of 27311

Robert, I don't think this call contained any surprises for the professional money that is long Valence now. I think it's been quite clear that there simply have not been any significant orders on the books. As for potential lawsuits, the announced contracts did not for the most part give any revenue amounts, except for the Alcatel and G* contracts (as well as i can recall), so no grounds to sue for misrepresentation or lying about the business there. The lack of follow thru on Alcatel has been addressed by Lev if not clear and aggressively, at least well enough to let you know it was not expected to contribute revenues. I'm sure that the other contracts were real as announced. None had any $ tags attached: they were all clearly labeled as 'pilot' or 'initial' orders as far as i can recall. If the company could not actually produce batteries yet continued to insist that they could, not revealing serious mfg problems would be legal grounds, but Stephan insists that mfg capacity is not the problem, as we also heard from Lev and other execs. They just never succeeded in any major design wins. The did claim to be very close on many occasions, but do you really think they can be sued for failing to close deals? I think the investment community expects the Dell connection to pay off. God now has a full management team most of whom are really well known and obviously well respected at Dell. I have to wonder if all these managers and engineers would have left their jobs especially in this economic climate without a firm view of the first major design win. Senior management at Dell knows these people as their "go to" guys. This kind of personal trust is what makes or breaks many, many business deals. After all the disappointments I would be the first to admit this is still a risky proposition, but I'll be quite surprised if that design win does not materialize and I'll also be very surprised if it's not Dell. The technology has never been a mirage, but winning the first big contract that proves you can produce was beyond Lev, probably beyond anybody who does not have the personal connection that Stephan and his "Dell mafia" have. The competition is vertically integrated, we aren't. We would have been really screwed without Stephan, but now I'm sticking with this bet and see a reasonable chance of this ending up the big success story we've been expecting for so long.

To: Robert Cohen who wrote (24773)	8/23/2001 11:26:37 PM
From: Jacques Tenzel	Read Replies (3) \| Respond to of 27311

Rob: I have not yet had access to the actual conference call so all my information comes from Ram's notes. I certainly have been disappointed in the discrepancy between what Lev said and implied was happening and the actual achievements of Valence. I do not think any of that is actually actionable in terms of class action suits etc. Because of this credibility gap I too was hoping for at least one more large licensee (Panasonic) before the conference. That didn't happen so doubts do remain as to exactly what proprietary stuff Valence has and what it is worth in the market place. Until Panasonic converts from a Belcore to a Valence licensee I guess I will remain skeptical. I also find the excuse of focusing on licensees as a reason for the lack of production at N.I. disingenuous at the very least. I also find the news that Hanil is not doing anything disturbing and the denial of exactly what is going on there hard to believe. I do not like the fact that "God" is now throwing out huge multibillion dollar figures to describe the potential market as a means of keeping the faithful excited about the potential rather than actually state what has been achieved (or not) in terms of production capabilities, market penetration etc. Continued secrecy in the name of necessity is wearing a little thin. On the positive side I am impressed with the personnel that has come aboard and the obvious stronger ties to Dell are a hopeful sign. We have apparently again been given some landmarks to measure over the next couple of quarters so again we are asked to wait and see. Also it will be of extreme importance at what share price the 30 million shelf registration gets activated since that will be a new floor of stock support. Incidentally I will also be interested to see if any of these new members of the team actually purchase shares on the open market. I have not seen any new insider activity in a long time. Just some random thoughts as we wait to see what tomorrow will bring. .............Jacques