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Technology Stocks : THREE FIVE SYSTEM (TFS) - up from here? -- Ignore unavailable to you. Want to Upgrade?

To: michael c. dodge who wrote (1574)	5/30/1998 3:32:00 PM
From: Maurice S. Green	Read Replies (1) \| Respond to of 3247

All--We need less PR-- In my opinion this last release sure is oddly worded. Even worse Sat. AZ Republic Business page one, left hand column reference to TFS has made it sound worse, and had it closing at 6 13/16 Friday. Did we lose another 10 points ?? It almost looks like there is a concerted effort to bring the price down so some entity can steal it from us just before this flower blossoms. WE NEED CLEAR CUT UNAMBIGUOUS INFO and less b.s.

To: michael c. dodge who wrote (1574)	5/30/1998 4:30:00 PM
From: Noblesse Oblige	Read Replies (1) \| Respond to of 3247

Hi Michael... Of course you are right, 50% of our business is simply too much concentration. However, what gives us the MOT business is our technology and responsiveness, and maintaining that is what presupposes the investment decision in the first place. Having said that, we should (of course!) be striving to get other cellphone manufacturers to utilize our output. To paraphrase a car company ad of some note: At TFS...that is job one. This company's detractors (of which, and at some prices, I have been part) always point out the dependency on Motorola (Raefon is guilty of this, too!), and all of us stress diversification with great fervor. That the company needs to reduce reliance on this cellphone manufacturer is so obvious as to be a tautology. In my judgement, that is one of the primary reasons that the shares do not generate substantial momentum even when the company is moving in the right direction. Markets have long memories, and it is clear that TFS will never be forgiven for the Motorola debacle of a couple of years ago. At the time, MOT was about 75% of TFS's business, and although that has been whittled down by a third, it is still far too much. Conditions are far from the same, however, as MOT had only two TFS programs at the time of the cancellation, and to the best of my recollection we are currently involved in over a dozen. So, we do have some additional diversification among products, if not among customers. All in all, you are right, and we have no control over that relationship. But, this isn't something that just became noticeable today....it has been priced into the stock for years. The stock will have a much different look and feel if they bag another cellphone customer. I am hopeful that the Ericson sightings in Tempe are an indication that we are moving in that direction. (As well, I might add Michael, of your "notice" that NSM indicated it would have a cellphone customer for the NSM/TFS partnership by yearend, 1998.) All the naysayers would need to run for cover if either one comes to pass. We can only hope. Enjoy what is left of your weekend.