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To: wily who wrote (39207)	9/28/1998 9:49:00 AM
From: Carl R.	Read Replies (1) \| Respond to of 53903

I have no comments on the allegations of "cooking the books" except to state that the bears have been making the same complaint for two years. Every earnings report they predict a disaster, and then if the report is better than anticipated, or if the stock rises following earnings the complaints are the same: management is lying about the future, management is lying about the present, and management is lying about the past. When it comes right down to it, MU's business is pretty simple as they make only one product line, memory. And it doesn't strike me that there can really be that many places you could hide the multi-billion dollar losses that the bears have been predicting. I am much more concerned about the huge outstanding in-the-money call position. If earnings or the conference call aren't a blow out, these calls could be a definite negative factor until expiration. Carl

To: wily who wrote (39207)	9/28/1998 9:05:00 PM
From: Carl R.	Read Replies (3) \| Respond to of 53903

Back to the accounting question. From my recollection the primary "accounting issues" have been the fact that MU has conveniently sold off divisions such as their contract manufacturing division, or shares of MUEI, at a profit, and then used the profits from these to reduce operating losses. Of course this is completely legal and proper, but could be misleading if you aren't aware of it. The most serious allegation I have heard was a couple years ago by MB where he was claiming that MU was depreciating equipment over too long of a time period. After all, semiconductor manufacturing equipment gets obsolete in a hurry. The only allegations have been that the statements are misleading, not that they are fraudulent. Carl