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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Jefferson Prescott Dewhurst who wrote (28531)	2/19/1998 11:38:00 PM
From: Yousef	Read Replies (1) \| Respond to of 1572120

Dewy, Re: "Why don't you do a reality check and work up the book value of a fully equipped ~90,000 sq.ft.,.25 micron semi fab facility." One benchmark that you could use to answer your question is the DEC Fab sale to Intel. The DEC Fab has a .35um and .25um process running ... the Fab sold for 700M$ INCLUDING all the personnel. Make It So, Yousef

To: Jefferson Prescott Dewhurst who wrote (28531)	2/19/1998 11:42:00 PM
From: Reginald Middleton	Read Replies (1) \| Respond to of 1572120

You could be more polite. <Why don't you do a reality check and work up the book value of a fully equipped ~90,000 sq.ft.,.25 micron semi fab facility, divide by the # shares outstanding and use that as the starting point for asset value of AMD> Assets are not sold by book value, they are sold according to market value which equates to the ability of those assets to produce future cash flows. Therefore the book value of the fab is meaningless unless you are selling to an accouning firm. You have also failed to take into account any risk, which tends to discount the values of the cash flows in question. In addition, you are rude.

To: Jefferson Prescott Dewhurst who wrote (28531)	2/19/1998 11:53:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 1572120

Jefferson - Re: "do a reality check and work up the book value of a fully equipped ~90,000 sq.ft.,.25 micron semi fab facility, divide by the # shares outstanding and use that as the starting point for asset value..." AMD claims to have spent about $1.2 Billion on MegaFLop 25. Ignoring depreciation of the assets - the Fab is over 3 years old - and dividing by 138,000,000 outstanding shares, the "book value" of MegaFlop 25 comes in at $8.75. That is an upper bound. Reginald may be real close. Paul