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To: Craig Richards who wrote (15539)	4/24/1998 8:19:00 AM
From: Alex Harrington	Respond to of 18056

Craig - this is true if the shares are not cancelled. Many buybacks indicate that the shares will be bought and cancelled. If they are not cancelled, they can be recycled internally.

To: Craig Richards who wrote (15539)	4/24/1998 8:26:00 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 18056

Craig, you need to separate these two issues, ask yourself if you were not going to give options to employees if there were no buybacks. There is a valid issue of how much compensation employees should receive and what portion should be in option and which portion in cash. By giving some of the compensation in the form of options, the immediate tax impact of cash compensation is also alleviated. In some companies these option packages are excessive, but it is a separate issue of the one I dealt with. After all, without the buy backs, the exercised options will simply cause dilution which with the buy backs is avoided. Zeev