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To: Jurgis Bekepuris who wrote (17070)	5/14/2003 5:18:06 PM
From: Rock	Respond to of 78526

Just as matter of detail on NTZ. The "Americas" make up just under 50% of their sales. Also, they have a 2nd brand called Italsofa that is made in China (I think). Italsofa makes up just short of 20% of overall sales with Natuzzi brand covering the rest. Sooooo... it seems reasonable to say that maybe 40% of their sales would be disadvantaged by Euro appreciation vs the $. On the positive side, the disadvantaged sales are for a premium brand that should, all things being equal, have less price sensitivity than a discount brand.

To: Jurgis Bekepuris who wrote (17070)	5/14/2003 6:29:14 PM
From: jeffbas	Read Replies (1) \| Respond to of 78526

"we can't really buy A when price difference (and currency exchange rate) is dropping and sell when the price difference is rising - this is just currency speculation, we assume that the exchange rate will stay the same or continue in the same direction in the future" Jurgis, I agree with that. However, that misses the point I made in the link I referenced. BECAUSE OF PAST CURRENCY CHANGES, the company I referenced is in much better competitive position and will be for some time to come REGARDLESS OF WHAT THE CURRENCY DOES IN THE NEAR TERM. It is an important investment fact to know that something has happened to make a company more competitive, whether it is currency changes, better products, or whatever.