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To: George T. Santamaria who wrote (193)	2/9/1999 8:09:00 AM
From: Frank A. Coluccio	Respond to of 626

Hi George, >By that, I mean that they are into something that a company such as Lucent should be doing and could be doing beneficially.< Perhaps it obfuscates their estalished plans for scheduled obsolescence? <s> I agree that it seems a bit aggressive for them as a small company. I would think that funding their R&D would leave little left over for SG&A and other expenses associated with infrastructure expansion. Then again, in the absence of full reporting, can't really say.

To: George T. Santamaria who wrote (193)	2/16/1999 3:29:00 AM
From: ahhaha	Read Replies (1) \| Respond to of 626

Just a note. LUMM is taking an approach to what they have in a different way than is SR. SR has something that is extraordinary, but it has to find how to get into the commercial game. You have to be able to fit your innovation into the existing infrastructure, because a quantum leap takes you right off the planet. The commercial game requires backward compatibility. Finding the way into that backwardness is often more difficult than the breakthrough was. LUMM is not as far along. They only have primitive prototypes which may not be practical in manufacturing scale. They also have chosen to go public and that almost always means the technology lacks true added value originality. Sophisticated investors won't provide seed capital. Having to go to the public for capital implies the possible optimicrocomponent products will have relatively low margins and can be easily imitated. This is in contrast to the patentable fabrication technique recently discovered at Sandia Labs. Also in contrast is SR's attempt to privately introduce products into industry and if they can find the niche, then go public. The latter approach is more credible.