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To: Ram Seetharaman who wrote (4486)	1/11/1999 11:55:00 PM
From: DJBEINO	Respond to of 9582

Fujitsu To Halt Multipurpose DRAM Output Tuesday, January 12, 1999 TOKYO (Nikkei)--Fujitsu Ltd. (6702) plans to withdraw from production of unprofitable multipurpose DRAMs to concentrate on more promising high-performance chips, company sources said Monday. The move is expected to lift Fujitsu's earnings capability. The firm intends to specialize in new DRAMs capable of transmitting much larger amounts of data as well as fast-cycle RAMs, which offer high access speeds and low energy consumption. Both products are intended for use in high-performance computers like servers. Fujitsu is the production leader among the few firms worldwide who make such chips. The shift in production strategy is expected to allow the company to secure stable profits, offsetting the fall in multipurpose chip sales. The plan to reduce multipurpose DRAM production to near zero levels was announced by Fujitsu executives in an October explanatory session held for securities market analysts. The plan was well received, as withdrawal from the unpromising business is expected to improve Fujitsu's profit outlook substantially from fiscal 2000.