We're in the middle of the Fed's two day meeting and Tues.'s trading
reflected a degree of nervousness. Everyone is positive that the Fed isn't
going to raise - right? Buyers seemed to be following Prince Hal's adage -
"Discretion is the better part of valor". People sat on the sidelines and
watched Tech fall on it's own weight - there were some buyers - CVS (CVS
Drugstores), WMT (Wal Mart) and HD (Home Depot Inc) up over 5%; RDA (Readers
Digest), ETH (Ethan Allen) and GPS (Gap Inc) over 7% - not exactly cutting
edge names. But Tues trading seemed to scorn anything next generation - HLIT
(Harmonic) down over 40% (after neg pre-announce) AFCI (Advanced Fiber
Comm.) down 16%, WMB (Williams Communications) down 13%, RHAT (Red Hat Inc)
and NSM (National Semiconductor) down 7%, PAIR (Pairgain Technologies) and
ADCT (ADC Telecomm) down 6%, TXN (Texas Instruments) and IBM down 4%
(negative analyst comments on IBM), GLW (Corning Inc), HON (Honeywell
International), INTC (Intel Corp) and SUNW (Sun Microsystems) all down 2% or
more.... some of the laggards of late were in the green - YHOO (Yahoo) and
INKT (Inktomi)both up over 4% but the real feel of the day was reflected in
the Nasdaq (down 50), the Dow Industrials (down 38) and the S&P (down 4.55).
Down - not "panic" down but a "treading water" down. In the CEUT Universe -
AMZN* (Amazon) up over 7%, CTAC* (1800 Contacts) continuing its climb up
over 1, LLL* (L-3 Communications) up 3 (shaking off unfounded talk as
William Kidd said it should), GOAM* (Goamerica) up 8%, PROX* (Proxim) up
almost 2, JBL* (Jabil Circuit) up 1 3/4, BMCS* (BMC Software) up over 1 1/2
- but these were the bright spots in a overall down day - BWAY* (Breakaway
Solutions) down 1 7/8, ITWO* (I2 Technologies) down over 3 1/2, LU* (Lucent
Technologies) down 2, JDSU* (JDS Uniphase) down over 6, ANCR* (Ancor
Communications) down 3, PMCS* (PMC Sierra) down over 5, SSTI* (Silicon
Storage) down over 14, RIMM* (Research In Motion) down over 10 (following
Jason Tsai's downgrade), MUSE* (Micromuse) down over 6, VRTS* (Veritas
Software) down 4, TMPW* (TMP Worlwide) down over 3, ICIX (Intermedia
Communications) down over 2.......... In IPOland - BUSY (Busybox.com)
(images over net) up over 10%, EFDS broke issue bid but closed even, STLW
(Stratos (Lightwave) up over 60%, CKCM (Click Commerce) up over 75% and the
star of the day - MRVL (Marvell Technologies) up over 270% - a flashback to
the last century.  Coming Wed. - Genuity (GENU) - net infrast. to ISPs -
priced below range.

Justice Dept nixes FON, WCOM deal.

ORCL - hired Private Investigators to expose MSFT's "underhanded dealings".

IBM - $1 Billion behind new products boosting web efficientcy.

AOL - lic. InterTrust Tech for downloading music for a fee online.

COMS - narrower loss also acquires Kerbango (net radio developer).

Storage Networks - IPO coming this week - EMC (biggest supplier and major
customer) reveals that they're in a big fight over contract terms and
misrepresentations.

AOL, TWX  to Justice Dept  - AOL was right to keep IM system exclusive.

LEH issues top ten list - A, BEAS, CD, GMST, HWP, JNPR, LLY, MU, NT*, TLAB.

Flooz.com - using NetByTel's speech recong for phone activated net
transactions.

Deut T - $14.5 Billion debt deal will be biggest ever.

SNE - hires Credit Suisse vet as chief strategy exec. for SNE Broadband -
looking for dig. dist. deals.

LU* - Enterprise Network Group spin off will be called Avaya.

Nortel* - Charndran named COO - now solidly #2.

Softbank Europe - makes first investment - Scand. wireless incubator.

Telefonica - re-opening of insider trading controversy won't slow down
deal-making.

Conexant - acquires HotRail.

Brit Tel - layoffs and we're not interested in Freeserve at these levels.

Brazilian ISP and Portal Universo Online - partnered with co.s for travel
and tourism portal.

Stonebridge Tech. - net consulting firm - gets $55 million.

ERisks - risk managment - gets $14.5 million.

GS - re-thinking Zethus - online real-estate market.

SEC - tighten ability of accounting firms doing audits from making other
offering to the same client - question of credibility.

Germany - trying to control hate sites on net.

Liquid Audio and HMV.com - offering dig music downloads.

Idealab's Dot TV - domain names with .tv - giving names to stations hoping
it will catch on.

HSX - Hollywood Stock Exchange - national radio syndication deal - more to
us than the net.

Pop.com (Dreamworks and Imagine Ent. site) buys CountingDown.com (slick fan
site).

Media Metrix acquires Jupiter.

FleetBoston Fin. - financing YHOO's new headquarters in Sunnyvale CA.

NFB - extends Dime offer.

Nomura Research and EXDS - new web hosting service for online stock traders
in Japan.

WSJ Heard - Platinium Soft's Flip Filipowski's tale of getting interVentures
(net incubator) through IPO process - tough timing - firing Credit Suisse
hiring Robbie Stephens.

Expedia - MSFT and VC firm put in $60 million in private placement.

RightStart.com - online seller of children's ed and care products - nixes
IPO wants merger.

Doctors Co. offer malepractice discount to those who use iScribe (electronic
prescrib. PDA for docs) -

Pacific Health Systems and CPQ* - invest in service site for seniors -
Senior.com

There is talk: PCTL - more to come?/ Deut T or Q or Bell South for FON?/
CIEN for APAT?/

C.E. Unterberg Towbin - FutureLink roadshow in Denver/ Infovista New York
Lunch/ VINF - NY Lunch

The information contained herein is obtained from sources we believe to be
reliable but its accuracy and completeness, and that of the opinions based
thereon, are not guaranteed. C.E. Unterberg Towbin, or one or more of its
partners, may have a position in any of the securities discussed herein. All
rights reserved by C.E. Unterberg Towbin. May not be reproduced in whole or
in part without prior written authorization. This report is not an offer to
sell or solicitation of an offer to buy the securities mentioned herein.
*C.E. Unterberg Towbin makes a market in this security and/or has analyst
coverage.
+C.E. Unterberg Towbin makes a market in this security and has been involved
in a recent financing.
_____________________________
Bram Towbin
C.E. Unterberg Towbin
10 East 50th Street
New York NY 10022

Telephone: 212 572 8163
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www.unterberg.com




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