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To: Bernard Levy who wrote (8246)	9/14/1998 7:32:00 PM
From: SteveG	Respond to of 12468

NBMO recap of presentation: WinStar's Chairman and CEO, William Rouhana, gave a strong and upbeat presentation today at the NationsBanc Montgomery Securities 28th Annual Investment Conference. - Fiber/Copper Gap creates "sweet spot" in the market. WinStar's ability to address the 97% of America's office buildings not addressed by any direct fiber connection whose broadband communications needs exceed that which can be delivered by xDSL copper-based solutions create a sweet spot in the market for WinStar's Wireless Fiber solution. - Point-to-multipoint (PMP) Status: Washington D.C. trial continues good progress, On-schedule for year-end commercial deployment. Rouhana again confirmed that the Washington D.C. PMP is proceeding well with three major vendors, Siemens, Nortel and Hughes, each vying to exceed WinStar's expectations. Rouhana confirmed that WinStar would begin commercial deployment by year-end 1998 proceed to fully rollout PMP nationwide during the first half of 1999. - "Mature" markets demonstrating excellent on-net conversion progress. In WinStar's five most mature markets (on average, 15 months old), WinStar has 50% of access lines on-switch and 30% on-net. In WinStar's most mature market, New York City (18 months old), 80% of access lines are on-switch with more than 50% on-net. - New York City market to achieve EBITDA break-even after 21 months of operation. In 2Q98, WinStar collected over $4 million in revenue with a gross margin of 37% and an EBITDA loss of just $400,000. We believe that WinStar is on the cusp of piercing EBITDA break-even in New York City during the current quarter. We also believe that WinStar's New York City financial and operational performance is directly transferable to WinStar's other markets. - July and August sales were best sales months ever. July and August sales results were the best in WinStar's history. We believe that WinStar is poised to achieve 1998 revenue growth of 484% to $279 million, up from $80 million in 1997. - 65% of incremental sales in WinStar target buildings. Not only is WinStar's rate of sales improving but also its ability to target customers in potential on-net buildings. By focusing on target buildings, WinStar can have confidence that today's sales will be profitable once its Wireless Fiber network is built out. A high proportion of incremental sales in target buildings confirms WinStar's strategy of building customer accounts in markets ahead of network construction. - Direct sales force personnel ramped to 460 in addition to 1000 independent agents. WinStar's sales progress is the force behind its revenue growth. As an example, WinStar's direct sales force for large accounts, started just 6 months ago, now accounts for 20% of revenue. - Major court win announced today opens opportunity to bid on billions in Federal telecom contracts. The New York contract alone is worth an estimated $400 million. Across WinStar's 40 addressable markets by year-end 1999, we anticipate a multi-billion-dollar market opportunity. We believe WinStar is uniquely positioned to be the #2 provider behind the incumbent telephone company in each of these 40 markets. WinStar is currently the only CLEC authorized to bid on these Federal contracts. WinStar's superior business model allows buildings to be connected to the network rapidly. Only facilities-based providers are allowed to bid on Federal contracts. WinStar continues to be our number one choice in the telecommunications services sector. We anticipate a strong progression of major contract wins over the next several quarters, which will differentiate WinStar from the other CLECs. We reiterate our BUY recommendation and $97 price target for WinStar shares.

To: Bernard Levy who wrote (8246)	9/14/1998 8:20:00 PM
From: Steven Bowen	Read Replies (1) \| Respond to of 12468

* off topic - PCMS * "In case anyone here still follows PCMS, it has fallen now below $2 1/2, and does not show any sign of bottoming out." Hi Bernard, yep, still follow it every day and can't believe whats happening. Sure glad I listened to you when it was 4 or 5 and you suggested waiting til at least next quarter to buy. "since PCMS the stock is behaving like PCMS the company is in major trouble." Agree 100%. Kind of getting treated like ARTT, like there is no future. I thought it would be worth more than this just on takeover value and speculation. Isn't this company worth anything to the likes of a Lucent? Just like ARTT, you'd think somebody would be jumping to get them near these prices. Steve SteveG, thanks for all your reports and updates. Much appreciated.