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

To: Dennis R. Duke who wrote (8414)	12/9/1998 2:08:00 PM
From: Ed Frye	Read Replies (1) \| Respond to of 18016

Lutz seems to be enamored with building up his cash reserves. Must be he wants to buy something. Any ideas of what? ed

To: Dennis R. Duke who wrote (8414)	12/9/1998 2:18:00 PM
From: pat mudge	Respond to of 18016

Dennis -- I've learned a little more about the background to the Cambrian sale and while it doesn't preclude NN's working with LU, we would be wrong to assume it's directly connected. According to my source, Cambrian had reached a point where TM's position combined with NN's were more a hindrance than a benefit. NN would have to take them over and pursue a DWDM strategy themselves or spin them off. As my source pointed out, "NN gets the added benefit from the integrated interfaces for the 36170 - it is to their advantage to see the OPTera as widely adopted as possible. NT can accomplish this a lot better than NN or Cambrian on its own." Most shareholders know the affiliate strategy has benefits and drawbacks. While start-ups, these companies benefit from NN's financial support and industry clout. However, once they outgrow short pants, they find out some companies won't deal with them because of their ties to the mother ship. This could have been the case with Cambrian. Clearly, OPTera will have a much wider market through NT, and NN's advantages haven't been lessened in the least. I hooked into the Siemens/COMS conference and the connection was so abysmal, I couldn't hear a word. I tried a second time and it was just as bad, so I gave up. I'll have to rely on the press for their reports. Sorry. Pat