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

To: Ed Frye who wrote (8449)	12/10/1998 4:50:00 PM
From: Glenn McDougall	Read Replies (2) \| Respond to of 18016

<< My concern about the Cambrian sale relates to my gut instinct that you NEVER help a major competitor become stronger. Moreover, this is the little guy helping the big guy. Maybe this sale is a precondition to LU buying 15% of NN, but I would think LU would prefer NRTL didn't have Cambrian either. Current market pull back seems related to consolidation and warning season, neither of which should affect NN. Here's hoping Lutz generates some renewed enthusiasm among big investors tonight. >> Ed I fully understand your point of view and agree with a number of points you made. I would just suggest that as you have that the Cambrian move would not have been done unless it was part of a larger overall strategy. Sometimes it is hard to read the company. I for one added big time to Newbridge today with the expectations that the company with Terry and Alan will not leave us in limbo to long after a move like Cambrian. I wonder what time this meeting is at? Does anyone know? Regards Glenn

To: Ed Frye who wrote (8449)	12/11/1998 12:50:00 AM
From: pat mudge	Read Replies (2) \| Respond to of 18016

My concern about the Cambrian sale relates to my gut instinct that you NEVER help a major competitor become stronger. Moreover, this is the little guy helping the big guy. Maybe this sale is a precondition to LU buying 15% of NN, but I would think LU would prefer NRTL didn't have Cambrian either. Ed --- I was in a meeting today with Sun Microsystems' CTO, Norman Koo, and he would disagree with you 100%. He has to be one of the most brilliant men I've ever met, and certainly one of the wisest, and he said that approaching the world as if you have to protect your technology from competitors is old thinking. We're moving into a new world. One with open standards, open interfaces, open protocols. If by cooperating you can bring your products to a wider market, then everyone wins. Nortel has the channels for optical fiber and by using Cambrian's DWDM, NN will have direct interfaces for all their 36170s. Could NN/Cambrian compete against Nortel or Lucent in this arena? It's doubtful. Could Cambrian IPO and compete alone? If you think so, look at Ciena. What were the options? Buy Cambrian outright or sell it off. Does it matter that Nortel competes against Lucent? Not really. Cambrian and Lucent have demonstrated their systems are interoperable, so anywhere Nortel goes, Lucent's products will be on speaking terms. Again, a win-win. If you'd been to NGN'98 in Washington, D.C., you'd realize the entire world is going to need DWDM. The demand boggles the mind. No one company can do it all. Not even in McGinn's wildest dreams. At any rate, I'm seeing more evidence of Koo's vision of the 21st century --- and I like it. Pat