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To: Cary Salsberg who wrote (1277)	11/2/1997 12:14:00 PM
From: FJB	Respond to of 2946

Thank you very much Cary. Bob

To: Cary Salsberg who wrote (1277)	11/2/1997 1:06:00 PM
From: Mason Barge	Respond to of 2946

<<From the conference call, I definitely got the feeling that SVGI did not want to estimate their production capability or next years output.>> However, they have been pretty free about estimating their capability of producing 200 total units the following year, i.e. beginning Oct. '98.

To: Cary Salsberg who wrote (1277)	11/2/1997 3:51:00 PM
From: Ian@SI	Respond to of 2946

Cary, First, I very much appreciate the sharing of SVGI conference call info done by you and others. The MicraScan numbers just don't make sense to me. 1. I thought the run rate target was 200 after the first Connecticut addition. Am I mistaken? 2. Is the Wilton(?) building incremental capacity? I believe the answer is "yes". This is a new and additional facility. Thus, the run rate should be greater than 200 once this comes onstream. It may be more than a year out and not counted in run rate target mentioned in conference call. Just a WAG on my part. Does anybody have any specifics. 3. I would expect SVGI to be producing 50 MicraScans / qtr by or before the end of CY 98 i.e. - 25% MORE EACH QUARTER THAN THEIR ANNUAL CAPACITY LAST YEAR. +++++++++ The absence of a definitive statement by SVGI causes me to speculate: 1. Bullish: For competitive reasons, they don't want any one to know how many tools they'll ship or when, hoping to catch ASMLF, etc off guard as they ramp up their delivery capability. If the competitors think they're the only game in town, they will be less likely to grant customers favorable terms. 2. Bearish: There's an unstated bottleneck preventing rampup from progressing. e.g. - Shortage of skilled staff? Shortage of fused silica? Shortage of lensmaking capability / skills? I really don't know what to believe. I guess this will just have to remain one of life's unsolved mysteries for another 1 or 2 quarters. I'd appreciate anyone's thoughts. Ian.