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Technology Stocks : CheckFree (CKFR) -- Ignore unavailable to you. Want to Upgrade?

To: Charlie Smith who wrote (706)	10/29/1997 10:43:00 AM
From: Brooks Jackson	Read Replies (1) \| Respond to of 8545

Thanks, Charlie. I won't be able to listen to a replay of the conference call until this evening. I would be very interested in your analysis. I also hope the performance targets are very aggressive. The release may contain a hint: "With the commitment from Integrion and adoption of electronic commerce in non-Integrion financial institutions, management believes that 12 to 15% of U.S. households will be using online, banking and electronic billing and payment services before the warrants fully vest." That sounds VERY aggressive. But, on what does management base that belief? I also wonder if Integrion got any pricing concessions. Altogether, however, great news.

To: Charlie Smith who wrote (706)	10/29/1997 3:07:00 PM
From: TLindt	Read Replies (1) \| Respond to of 8545

>> To: Brooks Jackson (702 ) From: Charlie Smith Wednesday, Oct 29 1997 8:35AM EST Reply #706 of 728 Brooks: Your question on dilution is the right one. As for "giving away too much" I'll know more after the conference call. The warrants which vest in 60 days have a current value of $15 million, so this is the immediate cost to CKFR of doing this deal. Obviously Kite sees the market opportunity as worth far more than that. I hope the performance targets linked to vesting of the other 7 million shares are very aggressive. << Charlie so I'm on target here.... Checkfree has 54.7MM shares outstanding..per Yahoo. Now Checkfree has offered 3 Million shares up front to Integrion at $20.94ea. And up to 7 Million more....based on performance tragets. So within 60 day Integrion is gonna cut a check to Checkfree for $62,820,000....thereby picking up a little over 5% of the Corporation Checkfree.....which in effect dilutes us all as current owners by a factor of 0.948. At todays price of $29....Integrion is getting a $24 Million discount...in exchange Checkfree get Integrions' back-end business. What are the other vesting targets....for Integrion to get the additional 7 Million shares? Is it 15% of US households?