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

To: John Curtis who wrote (4836)	11/11/1998 1:42:00 PM
From: Larry Brew	Read Replies (1) \| Respond to of 27311

John, << I'm not James >> Assuming the battery process goes through re-tooling similar to semi- conductors, it could be a very short cycle time. I don't know what you stated, but for a simple process flow, and depending where in the flow the change occurs, results could easily be evaluated in 2 weeks. We did it in 6 weeks from changes in the early stages of processing with greater than 100 processing steps. Any vlnc employees out there? Larry

To: John Curtis who wrote (4836)	11/11/1998 1:59:00 PM
From: mooter775	Read Replies (1) \| Respond to of 27311

I am pretty confident that Lev said 1,800 batteries per day. Fred knows the calculations, but as I recall, at $ 2.50 per watt hour one can justify north of $ 80 per laptop battery. Using $ 75 per laptop battery, then 1,800 per day implies annual revenue of > $ 40 mm. And given a 60% gross margin, one can reasonably justify cash flow breakeven.

To: John Curtis who wrote (4836)	11/11/1998 2:23:00 PM
From: Greg Smith	Read Replies (2) \| Respond to of 27311

You did an excellent job on CC synopsis. I would just note these 2 questions/answers that probably rushed by as you took notes: Q: I had assumed 2 lines would be going in Sept., 3 other lines before year-end. Wasn't that right? LD: No, that's not correct. One line is installed (4x4) and we're operating it. Batteries look OK. Small line is on test next week, delayed from 9/23. There's another line for Korea. Then our 3rd, 4th and 5th lines are scheduled to be delivered (and here I think Lev gave some dates, but I missed them as I was scribbling -- did any one else catch them?). Q: On last CC, each piece of line was working but not yet tested together. What's status now? LD: I have to choose my words carefully. I am satisfied and fairly excited by our progress. Every part of the process is running at some meaningful percentage of capacity. And I am satisfied with our tests. I think you got everything else.