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Technology Stocks : Cabletron Systems (CS: NYSE) -- Ignore unavailable to you. Want to Upgrade?

To: Greg Strzegowski who wrote (2819)	1/14/1998 7:16:00 PM
From: William Wang	Respond to of 8358

Yago, which was founded in September 1996, has about 50 employees. Cabletron Sees $6.5M, Or 2c/Shr, In Charges From Yago Buy Dow Jones Newswires NEW YORK -- Cabletron Systems Inc. (CS) expects its planned acquisition of Yago Systems Inc. to result in deal-related expenses of $6.5 million, or 2 cents a share, and in-process research and development costs of $133 million, or 40 cents a share, said Chief Financial Officer David Kirkpatrick. In a conference call, Cabletron officials said the company will experience some initial dilution from the Yago acquisition as it brings Yago's products to market. Yago has no sales right now. They added that the success of the deal depends on Cabletron's integrating Yago's products with its own technology as quickly as possible. Cabletron President and Chief Executive Donald Reed stressed that Yago's multi-layer switch router technology will be critical to meet the dramatic new demand that is being placed on the network infrastructure to support high-speed data and voice transmission, but not being met by traditional routers. Reed added Cabletron has several other acquisitions under consideration in both the enterprise and Internet service provider markets. Cabletron officials said the structure of the Yago deal is based on a value of $213 million. Cabletron already owns 25% of Yago on a fully diluted basis. They also said Yago will continue to operate as a separate business, but will provide more details about the acquisition at the Comnet trade show in Washington D.C. on Jan. 28. Yago, which was founded in September 1996, has about 50 employees. --------------------------------------------------------------------------------