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To: Lizzie Tudor who wrote (57548)	5/20/1999 1:47:00 PM
From: Glenn D. Rudolph	Respond to of 164684

but anyway, with regards to leasing cisco equipment, I'm not sure what you can glean from that. Michelle, I really did not use the CSCO leasing as a reason for my opinion. I was basing a lot of my opinion on the expansion of the Kansas facility and the new equipment for use in the Nevada facility. There must be some sort of incentive for companies to lease beyond cash preservation because Cisco's leasing business is growing 100%/qtr and there are plenty of secure companies in there (such as the baby bells) that are choosing to lease. Not all, but some. The cost of this equipment is likely far higher than equipment I use. There may be tax incentives for firms making a profit. An outright buy only permits depreciation of the equipment against income. The full lease expense may be deducted. There is also the issue of how quickly this equipment becomes outdated. Any thoughts I have on the leasing are strictly guesses. Glenn

To: Lizzie Tudor who wrote (57548)	5/20/1999 3:46:00 PM
From: Bearded One	Read Replies (2) \| Respond to of 164684

Michelle, you're smart. I know this because of your investment in DCLK and other postings. The company is losing money. It publically says it is going to continue to lose money for years. It's in a price war. The valuation of Amazon is an asset which they have been extremely willing to leverage (that is, use up) in the past for acquisitions of minimal value. If they have spend hundreds of millions of dollars in stock for just a few million dollars in revenues, don't you think they'll jump at the change to spend two billion in stock for two billion in cash? CONNECT THE DOTS!