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To: Mario who wrote (9855)	6/2/1999 11:55:00 PM
From: gpphantom	Respond to of 13565

Foreign currency (FC) revenue translates into fewer USD's when divided by a strong dollar, i.e.,larger denominator. A weak dollar would result in more dollars of revenue per FC unit. Message 2958094

To: Mario who wrote (9855)	6/3/1999 1:37:00 PM
From: Tom Nguyen	Read Replies (1) \| Respond to of 13565

Mario, let me try to explain your question about currency in simple terms. Strong dollar can do two things negatively to US companies: 1) It makes US goods more expensive. Foreigners need more of their currencies to pay for the same US goods. It is not competive for the US companies this way. 2) US companies get less dollars when converting from foreign currencies. This is true when US companies sell abroad and collect in foreign currencies. Example: You have 100 Euros and you want to convert to dollars If exchange rate is $1.03/Euro You will get 100 Euro X $1.03/Euro = $103 If the dollar gets stronger, you get less dollar per Euro. If rate is $0.90/Euro You will get 100 Euro X $0.90/Euro = $90 Since US companies report their earnings in dollars, it does hurt them when the dollar gets too strong. Tom