Haas NewsWire 
April 16, 2001

CONTENTS  

Sea Power & Associates Win Haas Social Venture Competition  
William Hambrecht to Receive Lester Center Lifetime Achievement Award  
Six Teams Advance to Final Round of UC Berkeley Business Plan Competition  
Goldman Sachs Economist on the Brave New Business Cycle: Where is the U.S. 
Economy Heading?  
Rose and Lyons Show Their True Colors at the Annual Faculty Debate  
Haas Celebrates Cal Day April 21  
Haas in the News  
Happening at Haas  
Haas Celebrations



SEA POWER & ASSOCIATES WIN HAAS SOCIAL VENTURE COMPETITION  Sea Power & 
Associates, which converts ocean wave energy into electricity, emerged as the 
grand-prize winner of the second annual Haas Social Venture Competition on 
Saturday, April 14. The nationwide competition is organized entirely by Haas 
MBA students.

To compete successfully, participating teams had to demonstrate sustainable 
profit potential, have a quantifiable social or environmental bottom line 
incorporated into its mission, and show a demonstrably greater impact of its 
social return on investment (SROI) than existing firms in the industry. 

Sea Power & Associates, which won the $10,000 first prize, aims to provide 
renewable energy for the emerging economies of the island communities in the 
Pacific as well as Hawaii, thus offering a cost-competitive non-polluting 
alternative to diesel generation. 

"Electricity generated from ocean wave energy will reduce the greenhouse gas 
emissions that contribute to global warming," said Mirko Previsic, CEO of Sea 
Power & Associates, whose patented system consists of a buoy driven by the 
up-and-down motion of the waves, which converts the ocean wave energy into 
electricity. "For each yard of coastline in Northern California we could 
power 20 American homes."

Aprotea Biochips, which has developed technology to provide a rapid and 
easy-to-use protein measurement system to enhance drug discovery, won a 
$2,000 prize for best management team. The team includes individuals with 
extensive experience in business, law, biology, biochemistry, and 
engineering, and has the winning combination of deep domain experience, 
passion for the business, and the wherewithal to execute. 

Prisma Microfinance, Inc., garnered a $2,000 prize for best SROI analysis. 
The venture provides micro loans to entrepreneurs in the developing world. 
Its business plan quantified a positive social impact in terms of job 
creation, income generation, and community development.

In addition to the cash prizes, all three winners will have their plans 
circulated in the Investors' Circle, a national network of 150 social 
investors. Business schools represented on this year's winning teams include 
Haas, University of Washington, and Thunderbird.

"The competition is a lens that broadens our view of the bottom line," said 
Jerome Engel, executive director of the Haas School's Lester Center for 
Entrepreneurship & Innovation, who advised the organizing committee of Haas 
MBA students. "It includes social and environmental values as well as 
shareholder value."

In its second year, the competition attracted 33 participating teams from 15 
business schools, including Cornell, Columbia, Kellogg, Michigan, Stanford, 
and Yale for its nationwide contest of social ventures. All teams were judged 
by a group of 17 leading social venture investors, venture capitalists, and 
social venture practitioners.

Several participants in last year's competition have made great strides 
toward becoming sustainable businesses. Ripple Effects and Xtracycle, who 
shared last year's second prize, are in business. Ripple Effects develops 
award-winning learning software, while Xtracycle sells super-cargo size 
sport-utility bicycles.

 WILLIAM HAMBRECHT TO RECEIVE LESTER CENTER LIFETIME ACHIEVEMENT AWARD 
William Hambrecht, the legendary investment banker who brought us Apple 
Computer, Genentech, and the OpenIPO, is the 2001 recipient of the Lester 
Center Lifetime Achievement Award at UC Berkeley's Haas School of Business. 

The award will be presented by the Lester Center for Entrepreneurship & 
Innovation at the UC Berkeley Entrepreneurs Forum on Thursday, April 26, in 
Arthur Andersen Auditorium.

Hambrecht is best known as the co-founder of the firm Hambrecht & Quist whose 
west-coast style investment banking helped launch some of Silicon Valley's 
greatest success stories. In 1981, the firm managed the initial public 
offerings of Apple, Genentech, and People Express. By 1997, Hambrecht & Quist 
had worked with over 700 companies, including Adobe Systems, Advanced Fiber 
Communications, Apollo Computer, Convergent Technologies, Evans & Sutherland, 
Read-Rite, Sybase, VLSI Technologies, and Xilinx.? 

In 1996, Hambrecht & Quist managed the IPO of Boston Beer, maker of Samuel 
Adams Boston Lager, that inspired Hambrecht to brainstorm the possibility of 
IPOs that are open to the public. Boston Beer CEO Jim Koch insisted on making 
25 percent of the IPO shares available to his market, the people who drank 
his beer. The idea meant taking a significant portion of the shares away from 
institutional investors, the industry's mainstay. In addition, opening the 
IPO to individuals required shipping six-packs to the stores with little 
forms attached that allowed consumers to make a bid to buy a piece of Boston 
Beer.

However, the new approach demonstrated its business potential when the $10 
million IPO in 1996 was oversubscribed by $30 million - all from individual 
investors. The question was how to streamline the process. Answer: the 
Internet.

In 1997, Bill Hambrecht decided to start a new firm WR Hambrecht + Co. that 
uses the Internet to create an open system for all investors -- from 
individual consumers to the largest institutional investors -- to have equal 
opportunities to make bids for IPO stocks, thus the name OpenIPO. OpenIPOs 
are not only open to small investors but are built on a Dutch auction model 
where the investors, not the investment bank, set the price. 

WR Hambrecht + Co.'s most recent IPO included Peet's Coffee and Tea, a small 
Berkeley coffeehouse. Peet's was the 5th Internet-based public stock offering 
led by WR Hambrecht & Co. in the past 3 years.

In awarding the Lifetime Achievement Award, the Lester Center for 
Entrepreneurship and Innovation is able to bring outstanding innovators and 
entrepreneurs to the Berkeley campus. The Lester Center hopes that this kind 
of interaction among academics, students, and practitioners will foster 
entrepreneurial success for individuals and the community as a whole.

Previous winners of the Lester Center Lifetime Achievement Award include:  
+Gordon Moore, one of the original founders of Intel, in 2000; 

+Arthur Rock, the original venture capitalist behind Silicon Valley's very 
first semiconductor company, Fairchild Semiconductor, and Intel, in 1999; and 

+Dr. Alejandro Zaffaroni who founded Alza Corp. and a series of other biotech 
companies, in 1998.

 SIX TEAMS ADVANCE TO FINAL ROUND OF UC BERKELEY BUSINESS PLAN COMPETITION  
The Haas School of Business today announced the selection of six teams to 
compete in the final round of the UC Berkeley Business Plan Competition. The 
finalist teams have developed ideas ranging from biotech to medical devices 
to software and wireless technology. They will compete for more than? $90,000 
in cash and prizes, including a $50,000 first prize.

Over 65 venture capitalists, angel investors, and successful entrepreneurs 
served as judges and evaluated the submissions. Another 26 entrepreneurs, 
professors, and other professionals served as mentors to the teams that 
qualified for the first round and helped the teams develop their plans.

By bringing ventures led by UC Berkeley students and alumni in touch with 
Silicon Valley's community of entrepreneurs, VCs, and technology companies, 
the competition serves as a springboard for the university's most innovative 
ideas and technologies.

The following six teams were selected by more than 65 venture capitalists to 
advance to the final round of the competition: 

+Aproteav has developed a patent-pending biochip for parallel analysis of 100 
to 10,000 protein samples. The chip provides a rapid and easy-to-use protein 
measurement system to enhance drug discovery. 

+RAPT Industries developed Reactive Atom Plasma (RAP) processing, a 
proprietary technology for etching and polishing optical and semiconductor 
materials. 

+Windoscope plans to sell web-enabled image visualization and diagnostic 
software to HMOs and large integrated health systems and to provide software 
maintenance, training, and consulting services. 

+TruVideo intends to take advantage of the convergence of wireless technology 
and the Internet to become the video platform of choice for the emerging 
web-enabled wireless device market. 

+Solocom Inc. offers an Internet-based communications software service that 
can save customers time and resources in researching and procuring 
next-generation voice, video, and data services by matching them with the 
optimal service provider in the market. 

+iMeda Solutions develops and implements process management and collaborative 
solutions that allow companies to make better marketing decisions by focusing 
on creating efficiency in their media, product design, and management of 
information processes. 

This year's team are already well on their way to success. Aprotea has 
already won a prize for best management team in the Haas Social Venture 
Business Plan Competition. Two more teams also made the MBA Jungle contest 
finals, one as an alternate and one as a competitor. Finally, one team, which 
has asked to remain anonymous, was forced to drop out of the contest after 
the Executive Summary round after receiving substantial funding for its plan.

Access to top venture capitalists and business leaders through the 
competition may result in additional financing; to date, seven of last year's 
teams have secured more than $95 million in funding.

The competition will culminate on Wednesday, April 25, 2001, with a final 
public presentation of pitches from the six finalists and the announcement of 
the first, second, and third place winners, as well as the People's Choice 
award.

For more information, visit http://bplan.berkeley.edu/.

 GOLDMAN SACHS ECONOMIST ON THE BRAVE NEW BUSINESS CYCLE: WHERE IS THE U.S. 
ECONOMY HEADING?  William Dudley, managing director of Economic Research at 
Goldman Sachs and one of the nation's leading economic forecasters, will 
speak at Haas on Tuesday, April 24, from 5:00 p.m. to 6:30 p.m. in Cheit 
Hall, room C230. 

This event is free and open to the entire UC Berkeley community. Seating is 
first-come, first-served. 

In his talk, Dudley will discuss the outlook for the U.S. and global 
economies and offer his assessment of whether the U.S. economy is likely to 
fall into recession now that the investment boom has gone bust. 

"Bill Dudley is an extraordinarily perceptive analyst of the global economic 
scene," says Professor Janet Yellen who will host the lecture. "He was one of 
the first forecasters to see that structural changes associated with the new 
economy had altered the nature of the business cycle.? He also recognized 
that the U.S. investment boom could go bust--that the 'Brave New Business 
Cycle' could have a dark side."

Director of the U.S. Economic Research Group at Goldman, Sachs & Co. since 
October 1995, Dudley was named Managing Director in 1996.? He is responsible 
for the economic and interest rate forecasts for the US and also oversees the 
Canadian economic research effort.? He has briefed the Federal Reserve Board 
on several occasions and is a member of the technical consultants board to 
the Congressional Budget Office.

Dudley has frequently appeared on television programs such as CNN and the 
Nightly Business Report (PBS) and is often quoted in business periodicals 
such as the Economist, The New York Times, The Wall Street Journal, The 
Washington Post, and the Financial Times. Dudley received his Ph.D. from the 
University of California, Berkeley in 1982.

ROSE AND LYONS SHOW THEIR TRUE COLORS AT THE ANNUAL FACULTY DEBATE  Don't 
miss the chance to find out what two of the Haas School's most distinguished 
faculty, Andrew Rose and Richard Lyons, really think of each other's 
professional accomplishments at the upcoming annual faculty debate. 

Come to the Arthur Andersen Auditorium at 4:00 p.m. on Friday, April 27, and 
bear witness to the carnage as Rose and Lyons debate, "Currency Unions in the 
new Millennium: After Europe, are Asia and Latin America next? Should they 
be?" Past debates have had Rose and Lyons pounding on one another, 
mercilessly. The contenders will be controlled only by the verbal barbs of 
the moderator, Prof. Janet Yellen. 

In preparation of the fierce debate, the contenders submitted the following 
statements.  ?"Some people believe that the earth is flat. Others believe 
that there is no link between smoking and lung cancer," says Rose, who is 
arguing in favor, "I'm not suggesting that Professor Lyons is an ivory-tower 
theorist who's out of contact with reality ... but then again I'm not 
suggesting that he isn't."

To this, Prof. Lyons countered: "Professor Rose has really lost his moorings 
on this one. It's just impossible to follow his logic on the topic. Fuzzy 
thinking. Very fuzzy." He added, "I'm not suggesting that Professor Rose's 
thinking is always fuzzy. Occasionally a clear-minded thought does arise. 
This is not one of those occasions."

This event is sponsored by the Clausen Center for International Business and 
Policy.

 HAAS CELEBRATES CAL DAY APRIL 21  Every year UC Berkeley opens its doors to 
the community for a behind-the-scenes look at the nation's premier public 
university. This day of lectures, tours, open labs and exhibitions, sports, 
performances, museums, and events is free and open to the public. Last year 
over 400 people visited the Haas School on Cal Day.? 

During Cal Day, the Haas Undergraduate Office will be holding information 
sessions on the program at Haas. The Haas School building will be open for 
all to tour the computer center, career center, library, and other 
facilities. 

Haas School of Business activities include:  9:00 a.m. to 4:00 p.m.  
Self-guided tours of the school, including the computer center, career 
center, library, MBA office, Evening MBA office, and Undergraduate office.

9:00 a.m. to 4:00 p.m.  Meet representatives from a variety of student clubs 
and the Alumni Relations staff in the BankAmerica Forum and the courtyard.

9:00 a.m. to 4:00 p.m.  Information and advising on the Undergraduate Program 
for new and prospective students and their parents in Undergraduate Program 
Office, Student Services Wing, level 4, S450.

11:00 a.m. to 12:00 p.m.??????  Meet Undergraduate Program Director for 
information on the academic program for this nationally acclaimed program in 
the Arthur Andersen Auditorium, courtyard level, Faculty Wing, F295

1:00 p.m. to 2:00 p.m.????????  Meet Undergraduate Program Director for 
information on the academic program for this nationally acclaimed program in 
the Arthur Andersen Auditorium, courtyard level, Faculty Wing, F295.

12:00 p.m. to 4:00 p.m.???????  Self-guided tour of the Thomas J. Long 
Business & Economics Library with access the university's electronic services 
including business and industry databases, Dow Jones Interactive and 
corporate annual reports on laser disc. Gather in the Student Services 
Building, level 3, S350, Haas School of Business.

 HAAS IN THE NEWS  The Haas School was featured prominently in the Industry 
Standard on April 16 in a special report called "The New MBA."? The school 
was named one of the "Ten Business Schools That Get It."? "It" being the New 
Economy and the role it plays in the school's curriculum, research, and 
student life and activities. Within the special report,? Leslie Davis, MBA 
01, was featured in an article called, "The Money Maven" and Jay Stowsky, 
associate dean for School Affairs and Initiatives, was quoted on the upswing 
in applications in "A Whole New B-School." Once again, a national magazine 
recognized that Haas is on the leading edge of understanding the impact of 
new technology on the future of business and management. Read the entire 
special report at http://www.thestandard.com/article/0,1902,23346,00.html.

John Freeman, Helzel Professor of Entrepreneurship and Innovation and faculty 
director of the Lester Center for Entrepreneurship and Innovation, was quoted 
in BusinessWeek on April 16 in an article titled, "The Last Days of Net 
Mania" on the change in business climate for initial public offerings. Read 
the full text at  
http://www.businessweek.com/magazine/content/01_16/b3728096.htm.

The Haas School was mentioned in BusinessWeek on April 16 in a sidebar 
titled, "Are Startups Nonstarters?" about which sort of jobs graduates have 
chosen in the last three years. 

Janet Yellen, the Eugene E. and Catherine M. Trefethen Professor of Business 
Administration, was mentioned in the New York Times on April 15. Read the 
article, "The 'D' Word: Suddenly, Deficits Regain Their Luster," at 
http://www.nytimes.com/2001/04/15/weekinreview/15UCHI.html?searchpv=site01.

Severin Borenstein, E.T. Grether Professor in Public Policy and Business 
Administration and director of the UC Energy Institute, was quoted in the Los 
Angeles Times on April 13 on power prices in the Pacific Northwest.? 
"Northwest's Power Supply Dries Up," can be read at 
http://www.latimes.com/news/state/20010413/t000031436.html.

The Social Venture Competition was written up in the East Bay Business Times 
on April 13. "Power Venture Tries for Big Splash" focused on Sea Power & 
Associates, which has two Haas MBAs on its team, but also interviewed Heidi 
Gilman, MBA 01, on her company, WiseToad. Read the full article at 
http://eastbay.bcentral.com/eastbay/stories/2001/04/16/story8.html. 

Borenstein was also quoted in the San Jose Mercury News on April 12 on the 
possibility of blackouts this summer. Read the article at  
http://www0.mercurycenter.com/premium/front/docs/nuprices12.htm.  Borenstein 
was quoted in the Los Angeles Times on April 12 and 11 on the California 
energy crisis. Read the articles at 
http://www.latimes.com/print/asection/20010411/t000030820.html and 
http://www.latimes.com/news/state/20010412/t000031137.html.  Borenstein was 
also quoted in USA Today on April 11. Read the text at  
http://www.usatoday.com/usatonline/20010410/3218800s.htm.

Borenstein also appeared on NPR's Morning Edition on April 10; KQED's 
California report on April 9; KCRW on "Which Way LA" on April 12; and on CNN 
on April 7. 

Janet Yellen was quoted in the Industry Standard on April 9 in an article 
titled, "The D,j. vu Downturn." Yellen commented that she expected to see 
more reduction in the interest rates. 

Ken Rosen, the California State Professor of Real Estate and Urban Economics 
and Chairman of the Fisher Center for Real Estate and Urban Economics, was 
quoted in the San Francisco Business Times on April 6. The article was about 
his recent report that predicted that 80% of dot-coms would be out of 
business by year-end.

HAPPENING AT HAAS  Haas Biotech Speaker Series  Joyce Lonergan, VP Investor 
Relations and Corporate Development, Chiron  Monday, April 16, 2001  7:30 
p.m.  Wells Fargo Room  For more information, see 
http://groups.haas.berkeley.edu/haasbio/.

 Digital Music and Copyright Issues  Boalt Hall/MOT Conference on Digital 
Music  Wednesday, April 18, 2001  4:00 p.m. to 7:00 p.m.  Reception 7:00 p.m. 
to 8:00 p.m.  Arthur Anderson Auditorium

Energy, Business and the Environment Day at UC Berkeley  Second Annual Haas 
Earth Day Lecture on Business and the Environment  "Natural Capitalism: The 
Next Industrial Revolution" by Amory Lovins, CEO (Research), Rocky Mountain 
Institute  April 19  12:45 p.m. to 2:00 p.m.  Wells Fargo Room 

Amory Lovins, co-author of Natural Capitalism, will discuss how changes in 
natural capital (the natural environment and ecosystems that support all 
human and economic activity) are already affecting the way we do business, 
and how leading corporations are gaining competitive advantage through 
superior environmental performance. He will talk about how corporations can 
employ advanced resource productivity strategies to move toward becoming 
ecologically sustainable, reduce environmental impact, and improve the bottom 
line. Net Impact at Haas sponsors this event. For more information, contact 
Eric Strand at strand@haas.berkeley.edu.

 Corporate Social Responsibility  ERG Energy Forum and Annual Lecture  
Thursday, April 19, 2001  Sibley Auditorium, Bechtel Engineering Center  
Energy Forum, 3:00 p.m. to 5:00 p.m.  "Re-Deregulation: Planning, Learning, 
Blundering and the Future of Electricity in California," by Dr. Severin 
Borenstein, UC Energy Institute & Professor Richard Norgaard, Energy and 
Resources Group  Ninth Annual Lecture on Energy, 6:00 p.m.  Dr. Arthur 
Rosenfield, California Energy Commission 

The Haas Biotech Speaker Series  Martha Amram, Managing Director of the Real 
Options Center for Excellence, Navigant Consulting  Tuesday, April 24, 2001  
6:30 p.m.  Wells Fargo Room  For more information, see 
http://groups.haas.berkeley.edu/haasbio/

 Management of Technology Spring Lecture  "Corporate Technology Ventures," by 
Max Schroech, Managing Director, Agilent Ventures  Wednesday, April 25, 2001  
3:45 p.m. to 5:00 p.m.  Wells Fargo Room

NINTH ANNUAL YOUTH VENTURE CAPITAL COMPETITION AT HAAS  Saturday, April 28, 
2001  8:00 a.m. to 1:00 p.m.  Wells Fargo Room  For more information on YEAH, 
visit www.haas.berkeley.edu/yeah. Please contact Ajuah Helton at 510-643-0923 
for more information.  SEMINARS  OBIR SEMINAR  "Labor Market Discrimination," 
by David Neumark, Public Policy Institute of California, SF  Wednesday, April 
18, 2001  4:00 p.m. to 5:30 p.m.  Room F318, Haas School of Business  For 
more information, contact Charles Montague at montague@haas.berkeley.edu.

ET GRETHER MARKETING SEMINAR  Alice Tybout, Northwestern Univ.  Thursday, 
April 19, 2001  3:30 p.m. to 5:00 p.m.  Room C250, Cheit Hall  For more 
information, contact Laura Gardner at lgardner@haas.berkeley.edu.

IDS 270 INSTITUTIONAL ANALYSIS WORKSHOP  "Why Law, Economics and 
Organization," by Oliver Williamson, UC Berkeley  Thursday, April 19, 2001  
4:00 p.m. to 6:00 p.m.  Room C325, Cheit Hall  For more information, contact 
Serena Joe at joe@haas.berkeley.edu.

FINANCE SEMINAR  "Money as Stock: Price Level Determination with no Money 
Demand," by John Cochrane, Chicago & visiting UCLA  Thursday, April 19, 2001  
4:15 p.m. to 5:45 p.m.  Room C210, Cheit Hall  For more information contact 
June Wong at june@haas.berkeley.edu. 

OBIR SEMINAR  Alicia Boisnier & Didier Guillot, Ph.D. Candidates at the Haas 
School  Wednesday, April 25, 2001  4:00 p.m. to 5:30 p.m.  Room F318, Haas 
School of Business  For more information, contact Charles Montague at 
montague@haas.berkeley.edu.

E.T. GRETHER MARKETING SEMINAR  Berkeley-David-Santa Clara-Stanford 
Colloquium  Thursday, April 26, 2001  2:00 p.m. to 7:00 p.m.  Room S480  For 
more information, contact Laura Gardner at lgardner@haas.berkeley.edu.

IDS 270 INSTITUTIONAL ANALYSIS WORKSHOP  "Do Property Rights Facilitate 
Intellectual Property Sales?," Dennis Yao, Wharton  Thursday, April 26, 2001  
4:00 p.m. to 6:00 p.m.  Room C325, Cheit Hall  For more information, contact 
Serena Joe at joe@haas.berkeley.edu.

FINANCE SEMINAR  "Risks for the Long Run: A Potential Resolution of Asset 
Pricing Puzzles," by Amir Yaron, Univ. of Pennsylvania  Thursday, April 26, 
2001  4:15 p.m. to 5:45 p.m.  Room C210, Cheit Hall  For more information, 
contact June Wong at june@haas.berkeley.edu.

REAL ESTATE SEMINAR  "Dr. Gary Painter, Univ. of Southern California  Friday, 
April 27, 2001  11:00 a.m.  Room C250, Cheit Hall  For more information, 
contact Lynn Lobner at lyoung@haas.berkeley.edu.

ACCOUNTING SEMINAR  Thomas Hemmer  Friday, April 27, 2001  4:00 p.m.  Room 
C325, Cheit Hall  For more information, contact Lorraine Seiji at 
seiji@haas.berkeley.edu. ALUMNI EVENTS  East Bay Chapter Event  Homebuyer and 
Seller Workshop  Saturday, April 28, 2001  10:00 a.m. to 1:00 p.m.  Arthur 
Anderson Auditorium, Haas School of Business  Cost: $7.50 pre-registration  
$10 late/on-site registration  Register by April 23 at 
http://www.acteva.com/go/eb-alumni  Or send a check payable to HAN East Bay 
to: Eliot Minor, 112 Shadowood Dr., Pleasant Hill, CA 94523.  For more 
information, contact Eliot Minor at eliotminor@mindspring.com or 925-685-3487 

 HAAS CELEBRATIONS  Birthdays  Diana Burke, April 20  Hannah Yoshi, April 23

The Haas NewsWire respects the wishes of staff and faculty who would not like 
their birthdays announced. Please e-mail a request to have your birthday 
marked "do not announce" on the central birthday list to 
Haasnews@haas.berkeley.edu. 

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