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To: Jeff Fox who wrote (55677)	5/16/1998 11:30:00 AM
From: Jules B. Garfunkel	Read Replies (1) \| Respond to of 186894

Jeff, Your, "For instance Craig Barrett should publicly reinterate Intel's guidance on Monday. Kurlak had no new data - Barrett doesn't need new data either." This is exactly what I had in mind when I opined that Intel's management should solve our ML/TK problem. The only difference I have with your suggestion is that Barrett's statement should have been made yesterday, not on Monday. The statement should also be coupled with an additional statement, that since nothing has changed from Intel's previously provided forward looking guidance, Intel would be exercising its previously announced stock buy-back program on any "irrational weakness". Jules Mary, To add to the strength of your previously posted argument ....While it is true that Intel has stated during the last two years, that long term GPM would trend to a 50% +/- a few points level, they also stated during the most recent analyst's conference call, that GPM would bottom out in Q2 98 and climb again in H2 98. Nowhere have I ever seen Kurlak acknowledge this forward looking projection from Intel. By the way, I have also never seen any statement by Intel that margins could go as low as 40 %, as Paul K. would have us believe in his previously posted reply to you. He averred that Intel said its gross profit margins would range between 40 to 60 %. That quote is simply not true and I believe was made to be intentionally deceptive. (He must believe he has the same license to deceive as TK). Regards, Jules

To: Jeff Fox who wrote (55677)	5/16/1998 12:59:00 PM
From: Mary Cluney	Respond to of 186894

Jeff,>>>Unfortunately I think Kurlak well knows the true picture,<<< I agree with you - and what makes it worse is that he will knowingly let others fill in the blanks of a false picture. As an example, in the May 18th issue of Barron's, Eric Savitz writes in the technology section, this: >>>Kurlak observes that Intel already has enough capacity to make more chips than the market requires, and that the company's transition this year to chips with thinner line widths will boost its potential capacity about 50%. Include new capacity from Advanced Micro Devices and other clone makers, Kurlak adds, and the total goes even higher. Intel, he concludes, faces the prospect of either laying off workers or starting a price war.<<< The ball now is really in Intel's court. Mary