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Technology Stocks : CheckFree (CKFR) -- Ignore unavailable to you. Want to Upgrade?

To: TLindt who wrote (2798)	3/23/1998 3:31:00 PM
From: Kurt Peterson	Respond to of 8545

T: Here is my understanding of the Integrion warrants. Integrion got a total of 10M warrants. 3M are fully vested now with the signing of the outsourcing agreement for the former VI platform, in Herndon. They will pay $20 15/16 for those shares, and CKFR's shares outstanding will increase. The remaining 7M shares vest as milestones for consumer usage are met. The milestones are something like 3M shares when 5M consumers are coming through Integrion to CKFR, and another 4M shares when Integrion hits the 10M consumer target. These additional shares will be dilutive. However, if you do a little math you can estimate what CKFR's incremental revenue would be if that many consumers were coming through Integrion to CKFR, so the effect of all of this on EPS would be positive. Also, Integrion has its own data center in Schaumburg, IL. It is part of IBM. They will support most of the FI's out of it, and it will connect to Genesis.