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Biotech / Medical : New Brunswick Scientific Co., Inc. (NBSC) -- Ignore unavailable to you. Want to Upgrade?

To: quidditch who wrote (402)	2/13/2002 8:25:05 PM
From: BulbaMan	Read Replies (1) \| Respond to of 724

The "carrying value" of an asset does not reflect its actual value. It's an accounting number which in NBSC's case was relevant to the amount of DGI write-off they took. So, going forward, there will be no further DGI write-offs. But, obviously, DGI is worth much more than $0 and NBSC's holding in DGI could be worth many millions if DGI ever does an IPO. (I'll leave it to Rick to guess how many millions.) I agree the PR's phrasing was poor. But, I doubt it will be misunderstood by Wall Street pros. NBSC jumped above $7 in after-hours trading.

To: quidditch who wrote (402)	2/13/2002 8:38:04 PM
From: scaram(o)uche	Read Replies (1) \| Respond to of 724

I don't really understand what you're asking, but does this help?......... This transaction reduced the Company's ownership interest in DGI to 47%. Accordingly, effective June 14, 2001, as required by generally accepted accounting principles, the Company no longer exercises control and ceased consolidating the operations of DGI but reports its percentage of income or loss in DGI's operations on the equity method of accounting based upon its continued ability to exercise significant influence over DGI. The Company is not required to, and will not record losses from its share of DGI's operations beyond the carrying value of its investment since it has no further obligations to fund the DGI operations. As of June 30, 2001, the Company's investment in DGI amounted to $410,000 and is included in Other Assets in the Company's consolidated balance sheet. They were both writing off the value of the original investment in DGI and expensing DGI operations. They were minority owners at the beginning of this quarter, so no more DGI R&D costs. And they only had 34K left to write down. As for the plant and property, DGI is now carried at cost as an asset. I think that's correct. Not certain that I've used correct wording.