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Technology Stocks : Comverse Technology -- Ignore unavailable to you. Want to Upgrade?

To: Mark Ambrose who wrote (400)	3/19/1998 7:51:00 PM
From: Eve Edelson	Read Replies (1) \| Respond to of 1331

Nice move Well it's nice to see something I own going up! I did not find anything about the latest results (tho' I might have plumbed harder). Has ol' reliable come through once again? cheers

To: Mark Ambrose who wrote (400)	4/9/1998 5:52:00 PM
From: Mark Ambrose	Respond to of 1331

Without Continued R&D Support High-Tech Cos Will Collapse in 3 Weeks I found this by searching for Comverse, here's the URL: globes.co.il ---------------------------------------------------------------------- High Tech News Manufacturers: Without Continued R&D Support High-Tech Cos Will Collapse in 3 Weeks By Ora Koren Almost all Israeli high-tech companies trading in Israel and overseas, especially in foreign markets, will rapidly collapse, if an immediate addition to the Chief Scientist's budget is not forthcoming. Moreover, many Israeli companies, particularly those which have recently issued, will be exposed to claims. "Globes" heard this statement today from Manufacturers' Association economic committee chairman Shuki Abramowitz. "A substantial number of companies can expect a dramatic fall in company value, in addition to the anticipated damage to companies about to issue," added Abramowitz. "If the Chief Scientist does not publish a statement within two weeks announcing the continuation of support, within three weeks companies will start to collapse, due to the due diligence item in the quarterly reports." Abramowitz clarified that many companies, including both large and startup companies, notified the Association of their particularly heavy fears, just before publication of quarterly financial reports at the end of the month. This is due to the non-receipt of planned support by the Chief Scientist's Office for '98. These companies had included income from the Chief Scientist in their reports and prospectuses, based on the criteria anchored by law, and policy which prevailed for many years. Chief Scientist Orna Berry announced a general halt in support as a result of budget cuts at the Chief Scientist's Office for '98. Following a meeting with manufacturers' representatives, it was decided to completely halt support of either large companies or startups as a result of the cut, until government policy was clarified. There was a tendency to halt support of large companies, but their representatives emphasized that, as a counter measure, they would halt the transfer of royalties to the Chief Scientist's Office, despite the fact that it contravened the law. They claimed that some sort of balance could be maintained at least in the short term, and that government legal steps against them would drag on for years. Executives from high-tech companies, among them from LanOptics and Comverse, confirmed <======= to "Globes" that a halt in support would force the companies to change their quarterly reports and reduce the revenue item in such a way as to generate a lack of confidence on the part of investors. "The minute successful high-tech companies on Wall Street announce that the Chief Scientist has stopped supporting them, investors' expectations will drop, the market value will drop, company engineers who hold options will leave for overseas, and investors in startups and funds will no longer arrive in Israel," said the executives. Abramowitz added that the confidence crisis among foreign investors would not end with the companies, but would spread to the entire economy. "There are multi-national companies which invested in Israel, based on expected R&D support. From their point of view, backtracking by the Chief Scientist would create a total breakdown in trust." Published by Israel's Business Arena April 7, 1998