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To: Euel Bishop who wrote (853)	6/28/1998 7:46:00 AM
From: w2j2	Read Replies (1) \| Respond to of 10714

Euel, I am still here, but do not post unless I have something worthwhile to contribute. I hope Cree continues to post increased earnings! Hoping for news about a green diode, more wafer sales, and improving blue laser. Need more customers and a partner in the laser development. What is going on with C3? wj

To: Euel Bishop who wrote (853)	6/28/1998 2:05:00 PM
From: Leslie S. Feinberg	Respond to of 10714

To All; I found one particular chain of jewelry retailers from Florida who are C3 moissanite dealers on an internet search. I called and had a long conversation with a couple of the jewelers, one who told me that C3 had recently interviewed him on video for a shareholder meeting presentation. He said that as far as he was concerned diamonds were and always would be the gem of choice; but he saw a definite market niche for moissanite. He said he was particularly impressed with C3's marketing strategy. He said that he was amazed at how C3 had scrutinized his company before signing him up as a retailer, sending representatives down on 4 occasions to qualify him. He said C3 could have made a deal with someone like QVC and moved a ton of the product right away; but they are being very careful to pick the right sellers, they are creating among sellers a sense of mystique; not for a new diamond substitute, but for a unique new gemstone. He thinks the strategy of going into the southeast is very good as there is a mix of economic ranges of the population which should be a good demonstration of overall acceptance of the product. He told me that the product which is being delivered is .5 to .9 carats and that his company orders what C3 calls VG grade moissanite, comparable to SI1 to S grade diamond. It is perfect to the naked eye and has small inclusions visible with a loupe. The color is J-L range. He said that he doesn't think either the color or quality need be any better for the product to be in big demand. That seems pretty good for a company so early into the volume production phase of its development. He said as a dealer the company doesn't tell him much about production, they are very tight lipped which he thinks is actually a good approach for them to take with customers, again maximizing the mystique factor important to a product like jewelry. I asked this fellow what he thought of Mr. Hunter's estimates that C3 would be able to make and sell 20-50,000 carats a month within the year. He said that he doesn't have any idea if they can meet that production level; but that for worldwide distribution, 50,000 carats/mo is "nothing". That "nothing" figure translates into 60 million dollars a year revenue at $100/ carat. Not bad for a company a year out from its IPO. If that demand level is small worldwide, where will revenue levels be in 3-5 years as the distribution system ramps up world wide and production efficiency, volumes, and quality improve? Some posts on the C3 thread have been critical of Mr. Hunter for supposedly spending so much time on setting up the distribution system instead of stirring pots of silicon carbide, trying to perfect the recipe. From what I heard from this Florida jeweler, Hunter is doing just what he needs to do. He needs to frame public perception of the moissanite gem. He also needs to carefully select quality retailers to move he product. How the product is introduced is critical. First impressions can't be undone easily. Although some retailers are receiving product, the retail launch of the product has not yet begun and is approaching quickly. As I spoke to the jeweler I overheard a saleswoman in the background tell him a customer was waiting to talk to him about some moissanite jewelry. "I better get off the phone so we can both make some money", he said. Yes, I thought that was a good idea. The only thing that would make me happier about being a C3 investor is if I had waited to buy until last week. I don't think it will be long before C3 stockholders are making some big profits, whether they bought at $15 or $7.50 Les