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To: Carl Held who wrote (41634)	12/23/1998 9:26:00 PM
From: Carl R.	Read Replies (1) \| Respond to of 53903

I am a bit under the weather so I probably won't get to post a more detailed message, but my initial reactions are that the earnings were about on target. MU reduced costs significantly in Boise, enough in fact to offset the high cost TI fabs. Does anyone recall how much TI was losing on DRAM per quarter? It seems to me it was above $100 million/quarter, so that would imply that MU not including the TI fabs did make money. The only disappointment so far is that I hope hoping for a 10% improvement in chip prices and they only got 8%, presumably because they sold mostly under contract. I presume that this quarter there will be some further cost reductions, though not dramatic, and some erosion in per chip price, resulting in a similar loss next quarter. By Q3 99 we should start seeing some significant cost reductions at the TI fabs, and MU should be in an excellent position for profits. I will try to more closely examine the financials and listen to the conference call in the morning, if I can, and post my thoughts. Does anyone have the conference call number and ID? Carl