Benjamin Reitzes Per Quotations

We believe second-quarter 2006 earnings per share over 40 cents could be considered a positive given the recent plunge in shares.

Xerox had ample opportunity in its release to comment on third-quarter results, but obviously opted not to do so. At present, we believe cost cutting is likely ahead of schedule and our estimate for third quarter 2003 remains a loss of 11 cents per share on a 15 percent revenue decline.

While we do not like to 'react' to information, given where Xerox has opened - we just do not believe there is much upside, ... ...We are also particularly concerned about an 'unexpected' receivables problem in Mexico that should hit EPS this quarter by up to 6 cents per share. This development calls into question management's systems and controls.

We believe that Sun clearly should be more profitable than it is. However, the mix shift to lower-end products and the continued pace of heavy investments may continue to pressure operating profits.

This plan to consolidate manufacturing, cut operating expenditures, and freeze pensions seems like a bold step, in-line with our optimistic views for possible savings.

We still expect significant Mac growth long-term with 29 per cent unit growth forecast for fiscal year 2007.