[3] Robertson Stephens Rotating Back into Selected Computer Hardware Related Companies

Business Wire, Jan 10, 2000

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 10, 2000

Robertson Stephens Managing Director and Senior Electronics Analyst Daniel T. Niles, a 1999 Wall Street Journal Analyst and a 1999 member of the Institutional Investor All-America Research Team, today upgraded or raised estimates on a group of computer hardware related companies including Sun Microsystems, Intel and Advanced Micro Devices.

This follows the downgrade on April 12th of a wide group of computer hardware related companies based on concerns over falling average selling prices for personal computers and concerns over spending slowdowns at year end related to Y2K. Dan now believes it is time to start rotating back into some selected computer hardware stocks as 1) corporations start to increase computer hardware spending

following the Y2K induced slowdown at year-end, 2) Windows 2000K drives another PC hardware upgrade cycle and 3) traditional brick and mortar companies try to .com themselves in

the new millennium.

In a first step, Dan today is upgrading Intel and Sun to Buy while increasing estimates on AMD by 50 percent.

"We are upgrading Intel to Buy rating with a $100 price target," said Niles. "We expect Intel to finally have good quarter after missing either revenue, earnings-per-share or both in prior three quarters. We believe the fourth quarter will show both solid revenues of just over $8 billion and earnings-per-share of at least $0.63. We believe that the outlook will also be good with a slight quarter-to-quarter decline in first quarter revenues with a flattish gross margin."

"We believe multiple factors will drive future demand: 1) the PC recovery from a Y2K induced slowdown, 2) a Win2K upgrade cycle and 3) the explosive growth of servers in a net centric economy," said Niles.

"Intel since our downgrade on April 12th has greatly under performed the NASDAQ with 25 percent appreciation versus 50 percent for the index," said Niles. "In our view, this was driven by a year long decline in both revenue and earnings-per-share growth rates year-over-year for Intel. We believe that growth can reaccelerate in 2000 driving stock performance that finally outperforms the market."

Clients interested in receiving more information should contact their salesperson at (415) 781-9700.

Robertson Stephens (www.rsco.com) is the leading full-services investment bank focused exclusively on growth companies. In 1999, the firm completed over 230 public offerings and over 40 private offerings, raising more than $40 billion in capital for clients. In addition, the firm advised on over 80 M&A transactions in 1999 with an aggregate value in excess of $50 billion. The firm's 47 equity research analysts cover nearly 700 companies. Founded in 1978, Robertson Stephens (Legal name: FleetBoston Robertson Stephens Inc.) is a section 20 subsidiary of FleetBoston Financial Corporation (NYSE:FBF) and a member of the NASD and all major exchanges. Together, Robertson Stephens, Fleetboston Robertson Stephens International Ltd., and Robertson Stephens Evergreen Securities Ltd. employ over 1,000 employees worldwide with offices in Boston, San Francisco, New York, Menlo Park, Chicago, London, and Tel Aviv.

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