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To: broken_cookie who wrote (16858)	6/26/1998 3:05:00 PM
From: Clint E.	Read Replies (1) \| Respond to of 69822

Thanks, Richard. AMZN and YHOO are two stocks that at this point I have no idea what they will do. If you or somebody else does, I would like to hear it. When does AMZN report earnings? Stocks like AMZN and YHOO are very earnings-sensitive. Clint

To: broken_cookie who wrote (16858)	7/22/1998 5:13:00 AM
From: Johnny Canuck	Respond to of 69822

Bay Still Plans To Be A Player In Networking Date: 7/22/98 Author: Michele Hostetler Bay Networks Inc. is being bought out, but the networking-gear maker still plans to remain prominent in the industry. Santa Clara, Calif.-based Bay is merging with Canada's Northern Telecom Ltd., also known as Nortel, in an estimated $7 billion deal. Shareholders are scheduled to vote on the deal in September. Bay Chief Executive David House says the company still will be an aggressive force. He points out Bay will take over Nortel's networking operations. House also will become Nortel president under CEO John Roth. House recently talked with IBD about the upcoming merger's effect on Bay and about how the Internet is changing. IBD: How will the Nortel merger change Bay? House: Bay will remain as an independent subsidiary of Nortel. We're going to do a reverse merger. We're merging the enterprise data network division of Nortel into Bay Networks. That's about 3,500 employees merging into our 7,000 - and about $1 billion worth of revenue merging into our $2.5 billion. IBD: How did the Bay-Nortel merger happen? Who approached whom? House: Actually, we sort of approached each other. I was in the process of dealing with the various (telephone company) equipment manufacturers because I realized I had superior technology for which there was a big market in the service-provider space, but I didn't have the sales contacts, the personal relationships and the channel. I approached Lucent, Nortel, Ericsson, Alcatel and Siemens about our ability to supply products to and through them that would meet their customer needs. It was out of those discussions that (Nortel CEO) John Roth first suggested to me that maybe we should consider a bigger idea (through a merger). In fact, what I found when I began these discussions about working together was that just about everybody had the same idea. I had six different companies probe me about acquiring Bay Networks during the first half of this year. We figured Nortel had the best product match, the best cultural match and the best strategic vision. IBD: What made the pieces click together to make Nortel the winner? House: It was probably John Roth: the way he and I hit it off. We found we had very common thinking and we have a very common background. We started out as development engineers. I grew up in Michigan. He grew up a little north of me . . . but always in the same basic area. We found we had shared ideas about how to manage and how to build a company. I really felt John got it more than anybody else in the business. John really understands the changes that are happening. IBD: What will happen to Bay's products that sell to Internet service providers and carriers? House: Suddenly we'll have a channel. Suddenly we'll have a way to get them sold. One of the frustrating things is, without having established relationships with some of these players and without knowing the people at the top, it was very difficult to make those sales. What we're seeing is intense interest now. IBD: When will the Internet and networks based on Internet Protocol become reliable enough to handle electronic commerce and voice? What has to happen? House: There's a range of reliability that is out there in the networks today. I think Cisco has made itself renowned in a couple of cases with some problems. But I think at the same time Bay Networks has been fortunate not to be in the news, despite the fact that we run the largest Frame Relay network (long-distance transmission line) in North America and some of the biggest and most mission- critical networks - like three of the top four airlines in the U.S. . . . and most of the stock exchanges in the world. The public Internet is sort of a hodgepodge of best-effort, student-class service. This offers both a problem and an opportunity for the service provider. For the service provider, this is an opportunity to add value, add a business-class Internet. By maintaining traffic within their own segment of the Internet, these companies with U.S.-based - and soon to be worldwide - backbones are able to go out and offer higher quality, higher reliability and lower latency times, and get paid for it because there's a real need for it. IBD: If you were to grade the Internet from one to 10 in terms of reliability, what stage is it at today? more like a two. I think you'll find that there are value- added service providers out there. Concentric Networks Corp. is an example of a company that is out there providing coast-to-coast backbone, full coverage of North America with overseas alliances to offer differentiated services. I think you'll find more and more of that happening. Of course, there are major investments being made in these data networking services, whether it be Sprint or AT&T. Everybody seems to be hellbent to add these new value-added (Internet Protocol) networks. (C) Copyright 1998 Investors Business Daily, Inc. Metadata: BAY NT LU ERICY ALA SMAWY CNCX FON T I/3574 I/4890 I/7392 I/4891 E/IBD E/SN1 E/TECH

To: broken_cookie who wrote (16858)	7/22/1998 5:20:00 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69822

Richard and Judy, This is my initial take on the Bay and NT conference calls. I will post a more detailed summary after I have written up my notes and had more of a chance to consider the matter. Bay and NT did not do too badly on their conference calls. BAY is still having transitioning problems to new products. Sales of Cable Modem are doing really well with Bay accounting for about 50 % of industry sales of this product. They are still deriving a big part of revenues from Shared Media Hubs which is a declining product line. Sales of new product accounted for about 55 % of revenues but they still have not kicking in a big way. There appears to be lot of interest just no shipped sales yet. NT looked very positive. 1 billion dollar backlog in 1 megabit modems from service providers. They continue to win wireless contracts around the world, most recently Mexico. Sales and General Administrative expense still look like a problem. I think management would still like to see them lower. R&D expenses are still higher than mangement likes. Positivie response from customers over the merger so far. Good sales by geographic regions except for Europe and Canada. They have never been strong in Europe. Canada is weak economically so this was expected for that region. Overall, there is not change in my fundmental view of the merged company. Harry