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To: DJBEINO who wrote (36357)	7/18/1998 9:56:00 PM
From: johnlea	Read Replies (2) \| Respond to of 53903

re: lehi opening postponement does anyone else find it interesting that mu is pumping out more chips that ever before and now they do not need to using their $600 million test facility. oh, they found a way of doing more testing in boise, what a surprise. i here somehow they have found a way of using potatoes in the testing process. these folks just can't say ANYTHING straight!

To: DJBEINO who wrote (36357)	7/19/1998 6:02:00 AM
From: Kathleen capps	Respond to of 53903

MU basically announced in the 10Q that all the previously hyped press releases about the "testing facility" in Lehi is now a moot point: Completion of the Company's semiconductor manufacturing facility in Lehi, Utah was suspended in February 1996, as a result of the decline in average selling prices for semiconductor memory products. As of May 28, 1998, the Company had invested approximately $700 million in the Lehi facility. The cost to complete the Lehi facility is estimated to approximate $1.6 billion. Completion of the Lehi production facilities is dependent upon market conditions. Test capacity previously expected to be provided by the Lehi facility in 1998 has been further delayed and the Company does not plan to complete the Lehi facility until market conditions warrant. Market conditions which the Company expects to evaluate include, but are not limited to, worldwide market supply and demand of semiconductor products and the Company's operations, cash flows and alternative uses of capital and production facilities. There can be no assurance that the Company will be able to fund the completion of the Lehi manufacturing facility. The failure by the Company to complete the facility would likely result in the Company being required to write off all or a portion of the facility's cost, which could have a material adverse effect on the Company's business and results of operations. In addition, in the event that market conditions improve, there can be no assurance that the Company can commence manufacturing at the Lehi facility in a timely, cost effective manner that enables it to take advantage of the improved market conditions. <---- Note: this last bit is a new warning in the latest 10Q. It makes interesting reading to look at the SEC documents from quarter to quarter and watching the subtle degrees of word shading as MU massages the wording from quarter to quarter. I would take this as MU's initial official warning that the don't plan to open Lehi even if miricle of miricles, the DRAM market improves. Watch out for the billion dollar writeoff. Kathleen