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Technology Stocks : VALENCE TECHNOLOGY (VLNC) -- Ignore unavailable to you. Want to Upgrade?

To: mooter775 who wrote (3660)	8/12/1998 11:43:00 AM
From: Mark Johnson	Read Replies (2) \| Respond to of 27311

Don't have much time for a lengthy post but what I found most encouraging was Lev's (consevative estimate) of turning a profit was 3000 laptop batteries per day. That is only one line working 10 hours. It looks like FMK's projections have been proven on target and probably way to conservative. We could be sitting on a gold mine here. Good luck!

To: mooter775 who wrote (3660)	8/12/1998 12:00:00 PM
From: kolo55	Respond to of 27311

Notes from the conference call- NI plant start-up. Disclaimer: These are my notes and interpretations the best I could do; they move pretty fast in these calls. Any errors are my fault and may not reflect the company's official position. Lev started by saying that he had just returned from a trip to several prospective customers and the NI plant. They have installed the coater they talked about in the last conference call. The NI plant is making good film ( my note: this was the part of the process that had the major technical glitch earlier this year). They expect to operate other machines as scheduled in the next several weeks. In response to a question about "scheduled to reach volume production in September, but about one and half weeks behind" comment from last conference call, Lev replied that "we have made that up". He's very optimistic about volume production, but since this is a new process and new equipment, they could run into technical problems and need a technical fix that might take 1-2 weeks to fix. They are moving some people from Henderson to NI to assist in the startup. There are now currently 95 full-time employees in NI, plus some temps for a total of 114 people. This doesn't include the people they moving from Henderson for startup. Asked a question about analyst visits: Lev expects to get the analysts out to NI in the next 4-5 weeks, and certainly before the next conference call. (Note: He sounded a bit frustrated and harried that they haven't done this before now... this statement is the same statement he made last call.) Asked a question on yields in NI: They haven't produced in NI to get a yield yet. He said they expect to get yields better than the 50% they have heard Li-ion cylindrical producers get. They have never gotten as bad as 50% in their current operations. Asked a question on Castle Creek due diligence: He said Castle Creek did extensive due diligence, in both Nevada and NI, hired a consultant to review the technology etc, over a period of two months, before completing the financing. He indicated the financing was a major effort during this time. More in my next post. Paul