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To: Patrick Slevin who wrote (12291)	2/22/1998 8:30:00 PM
From: Galirayo	Read Replies (1) \| Respond to of 17305

Want a faster News Source? www1.newsalert.com Ray

To: Patrick Slevin who wrote (12291)	2/23/1998 12:52:00 AM
From: Andrew Vance	Respond to of 17305

AV--they make a very interesting point relative to margins. ADPT's margins are superior to that of Symbios Logic's. However, the ability to fill up the Colorado Springs Fab, if the so choose, can have a double positive effect. First, they improve their own margins by not using a foundry for some of their products and Symbios' margins and earnings improve as a result of lower wafer costs for the now full fab. The other good guy here is pricing. Margins will improve in certain areas for ADPT as they no longer have to live iwth the aggressive undercutting of pricing by Symbios in order to get some business. Short term there could be some margin issues associated with the Symbios acquisition but in the long term, I see a vast improvement in margins and earnings. I also see some real good price increases coming down the road for existing customers as ADPT Marketing and Sales re-price Symbios products correctly. A good deal of devices Symbios abandoned to other companies when they exited a technology were immediately re-priced higher to more realistic pricing structures. This is the hidden jewel in all of this. Both ADPT and LSI have left Symbios in the dust over the past few years due to the archiac NCR Corporation conservative and poor management mentality. Once the corrections are made by a much more progressive and aggressive ADPT, this perceived sickly child will recover and reach the potential it should have reached years ago. This is a case of a rundown car being restored to a classic Corvette. All the pieces are there, they just need the right mechanics. ADPT not only has the mechanics but muh more to get the job done properly. I only hope they have the guts to assemble the firing squad to execute the plan correctly<all puns intended>. I do not see too much overlap between the two companies and many more synergies. From what I can glean from both sides, ADPT is now being given a opportunity to get rid of some of its own dirty laundry (if the choose) and replace it with some fine Irish Linen and tailored shirts.<GGG> It is unfortunate that it is being taken negatively and maybe it should. However, Symbios is not a public company and it is really very difficult to accurately assess its capabilities or values and to discount the some of the perceived negatives related to the less than satisfactory managmement of the company. Symbios has never been a risk taker and always wound up being me too after the fact. ADPT is the direct opposite and has prospered by its innovativeness and willingness to take chances. This attitude, if properly fostered at Symbios will reap huge rewards. Andrew