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To: Dan B. who wrote (2081)	4/22/1999 5:50:00 PM
From: Ian@SI	Read Replies (2) \| Respond to of 2946

Dan, SVGI is selling at less than book value, something that not many Semi Equipment companies are currently trading at. It has had the leading edge equipment for advanced lithography permitting better productivity at smaller feature sizes than its competitors could. Those competitors (Canon, Nikon, ASM Lithography) may have caught up, or, at the very least are catching up. All the same, SVGI has more DUV Scanners in production than all the rest combined - a statement which may or may not remain true for the next year or so. It has a unique optics systems combining both lenses and mirrors which permit some efficiencies relative to its peers. It also manufactures other process equipment that would be used in conjunction with its Scanners - something not done by the competitors. Lithography has traditionally been a bottleneck in equiping fabs. Should the DRAM makers go on another capacity expansion, every supplier will sell all the tools they can make (at about $7M a pop for the most advanced tools). SVGI can make about 200 a year once they get the kinks out of their processes. Many believe that such a capacity expansion will get started before year end 1999. When that happens, SVGI could exceed $30 / share by a very wide margin. SVGI has lots of cash to continue developing leading edge products while waiting for the next spending spree. Try semiconductoronline.com for further research. Best wishes, Ian.