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To: Mark Adams who wrote (10610)	12/5/1997 9:30:00 AM
From: Dave Chanoux	Respond to of 12298

The MR wafer is just the first step in the process. The wafer goes to the far east for assembly to heads. The sweet spot in the product line is the head stack assembly, assembled from heads in the far east. The investments in MR wafer fab in California are necessary and positive. Good to see them. Investments in the far east are also required. Would like to hear about them also. Regards, Dave Chanoux

To: Mark Adams who wrote (10610)	12/5/1997 11:18:00 AM
From: EyeDrMike	Read Replies (2) \| Respond to of 12298

<< But APM has invested and continues to invest in making MR capacity available, while RDRT announces charges due to WDC program cuts & eliminations.>> what charges are you referring to with WDC? as far as eliminations, RDRT has contract announcements with IOM, Samsung, and WDC recently; what eliminations? Mike

To: Mark Adams who wrote (10610)	12/5/1997 12:34:00 PM
From: Rational	Read Replies (2) \| Respond to of 12298

Mark: The CEO (I think a WS finance guy) knew that TFIs were much more profitable than MRs. Thus, (in the best interest of shareholders) he continued to produce the TFI as long as he could, while simultaneusly developing MR for volume production. This is a very solid and shrewd strategy. If the WS analysts are suspicious that APM has the capability to mass produce, they must be mistaken as the 10Q very clearly states that APM has mass produced MRs. [The mix of TFI:MR at 94:6 this year was obviously the best, given the unit profits; anyone who has studied and practiced production planning and control should know this!] I think the CEO knows how to make hay while it shines, while getting prepared (with a strong cash position) to transition into the MR technology, while RDRT has taken charges. This suspicion may have created a buying opportunity for many at these levels. The balance sheet is strong, cash position is strong and they are ready to mass-produce MR heads. Sankar