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To: Road Walker who wrote (46970)	2/2/1998 5:49:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

John - Re: ", I would suggest that they raise their prices to profitable levels and compete on performance and service and the fact that they are an alternative. " Why don't you contact AMD's "Bored" of Directors and let them know about your strategy. Maybe they will toss out Jeremiah and give you a shot at the helm. Paul

To: Road Walker who wrote (46970)	2/2/1998 6:55:00 PM
From: Jim McMannis	Read Replies (2) \| Respond to of 186894

John, I'm not including Cyrix/NSM but it's clear that AMD is just going full speed ahead with the hope they will eventually increase their yields to profitable levels before they go broke. It's a page from the Japanese business plan...market share at all costs. I call it the kamakzie approach. Jim

To: Road Walker who wrote (46970)	2/3/1998 2:34:00 PM
From: Reginald Middleton	Read Replies (1) \| Respond to of 186894

From a professional investor's perspective, you are correct, but forma business manager's perspective, I think market share is paramount for the smaller manufacturers. Without risk being accounted for, AMD lags INTC's operations considerably: AMD 1996 1997 Pre-Tax ROIC 10.36% 6.37% After-Tax ROIC 2.37% 1.13% After-Tax ROIC (Incl. Goodwill) 2.37% 1.13% INTC 1996 1997 Pre-Tax ROIC 22.51% 23.61% After-Tax ROIC 8.14% 8.71% After-Tax ROIC (Incl. Goodwill) 8.14% 8.71% With risk taken into consideration (the cost of capital) AMD is driven deep into the negatives. The only way out of this dilemma in the tornado environment is the high risk market share capture strategy. Remember, that high rewards are often achieved only by assuming high risks. RCM Figures from rcmfinancial.com