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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: zbyslaw owczarczyk who wrote (7064)	10/21/1998 10:09:00 AM
From: Glenn McDougall	Read Replies (1) \| Respond to of 18016

Zbyslaw, their is no question that NN has good technology. Moves that have been made in the last 6 months can only improve the prospects for the company. Todays news of DT using Siemens/NN equipment is the start of what I think will be the entire Global One (DT, France T and Sprint) ATM contracts. One can only guess if and when Terry Matthews will sell but indications are that he may. Now who would buy NN is another question. Siemens, LU, NT&T to mention a few. I agree that the "old boys network" at NN needs to be shook up however Scott Marshal was one of the better EVPs the company had. Alan is making changes and I would expect more to come and they are needed. In closing we can only hope that we get enough time to see the share price of NN increase enough to get what clearly is fair value for a company of this quality. Regards Glenn

To: zbyslaw owczarczyk who wrote (7064)	10/21/1998 1:06:00 PM
From: Glenn McDougall	Read Replies (2) \| Respond to of 18016

News from Pat at Interop N+I To: Frank Ferrari (305 ) From: pat mudge Wednesday, Oct 21 1998 11:26AM ET Reply # of 306 Frank -- I'm here at Networld+InterOp and just had the full CrossKeys/ Newbridge demo at the AT&T booth. I talked to both NN and AT&T engineers and both confirmed the strength of the different products and what the benefits are to end-users. I asked who the competition had been for the T contract and they threw out a list that included all the big names. They couldn't be specific. . . only that it could have included any or all. Richard McGinn, LU's CEO, spoke earlier this morning and while he didn't make any exciting announcements, he did reiterate the importance of the ATM network both now and in the future. The goal is to create a network of networks with a "common currency" to connect them. They need QoS, bandwidth, advanced software platforms, all with scaleability and at lower costs. He said the future will have optical fiber at the core running converged ATM/IP networks The development in photonics is outpacing Moore's law, including development of micro lasers for metropolitan area networks. [Cambrian Systems.] Need intelligent QoS. These IP VPNs will need protocol agnostic routing. Wireless will allow seamless roaming. "If we don't use the ground, we'll use the air." Integration of both. Several times he spoke of the need for "advanced software platforms delivering rich services with open interfacing" and "merged IP/ATM networks." Discrete ATM will be the building block of these converged networks. "Reliability has its roots in ATM." In the Q&A, he said XDSL will take off in mid '99. Not all ISPs putting in DSLAMs yet. When digital modems are sold to consumers, providers will have impetus to upgrade. He said 1.5 mbps will come out first, followed over the next 3 to 6 years with 3 and 6 mbps. During this time they'll be incorporated into standard PCs. A few statistics: telecommunications/data industry will be $650 billion by 2001. Lucent is the largest provider in the world with 7% of total. Overall growth is 14% with many subsegments much higher. Growth has been bigger than anything ever seen in the last century. "It's nothing less than a revolution." There are 200 million wireless subscribers. 700 million telephone lines. By 2001 there'll be 700m more telephone lines and 700 million more wireless subscribers. In that time there'll be 1000 new ISPs. Lucent alone spends $1 billion a year on network and IT costs. The Internet is tripling every year. In 3 to 4 years it'll bypass voice traffic. For years voice and data networks will have to co-exist. They must work together. McGinn will be interviewed on CNBC tomorrow at 8:00 EDT. Earnings cc at 11:00. BAsed on McGinn's view of the future and on AT&T's demonstration of NN's 46020 and CrossKey's different software management tools, I have to conclude my stocks are considerably undervalued. I also had an interesting conversation last night with a NY sell-side analyst. He's anxious to upgrade NN but is waiting for the GlobalOne announcement. But that's another story. . . Later -- Pat