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Technology Stocks : DII Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: rich evans who wrote (1803)	3/24/1999 12:06:00 PM
From: rich evans	Read Replies (1) \| Respond to of 1845

DIIG deal in China gives them right of first refusal to make set top boxes using smart cards or direct satellite boxes and they and their partners will have exclusive distribution rights in China. They are guaranteed a 7 year deal with 80% of PCBA and 70% Box build for 3 years with this decreasing percentage rights down to 50% for last 4 years. There are margin protections in the contract. They anticipate outsourcing to other ECMs also as business grows(maybe FLEX?) They describe deal as huge with low risk. DIIG will actually be acting like quasi OEM as business grows by outsourcing and they fill up their huge China operation. Hope this starts pushing company into growth rate similar to JBIL ,slr and flex and corresponding multiples. This info from a cc they had. Customers will be cable operators as well as theaters and education so little financial risk on payment.Q4 will start shipment awaiting for cable operators to get content for boxes. Taax rate is 0 in China.Also they have complete vertical business with the PCB, PCBA, BOX build etc. Rich