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Eleven analysts and top management from sixty-one sector firms examine the technology & communications sector in this special 238-page U.S. Bancorp Piper Jaffray Technology & Communications Conference issue from The Wall Street Transcript, available at (212/952-7433) or http://www.twst.com/info/info396.htm

TWST: What companies define the communication services space?

Mr. Robinson: It’s anything that is transmitting voice or data, or manipulating that in some fashion. Exodus (Nasdaq:EXDS) is a hosting and managed services company and we include that in communication services, not in Internet infrastructure services. Internet infrastructure services is really a subset of telecom when they perform the functions of a data center.

TWST: What are the commonalties those seven share as far as market space or technology?

Mr. Robinson: Actually I don’t look for technological advantage as technological advantage is temporary. I look more for companies that are embracing new technologies to advance their cost structure for provisioning their end-user services. So while there are new technologies created every day by telecom equipment providers or by open communications companies that analyst Ted Jackson would follow, I really look for the companies that embrace those technologies and put them on their networks to drive their cost structures down. The main reason is that communication services, at the end of the day, is a commodity, and the way you win a commodity business is by having the lowest cost structure. Exodus is very similar to AboveNet and SiteSmith combined — co-location facilities and trying to get into managed services. They have a worldwide presence with co-location facilities.

TWST: What should investors be doing with these companies today? What strategy is appropriate for the next 12 to 18 months?

Mr. Robinson: Three caveats: Investors should decide whether or not they really believe that the technology spending is going to recover as a result of the economic stimulus that we’re seeing in the macroeconomic environment. I’m a believer, and we at U.S. Bancorp Piper Jaffray are believers, that you will see a recovery in technology spending. You’ve had 275 basis points of Fed rate reductions. That’s a significant liquidity injection that they had to do to drive rates down. I just got a letter in the mail the other day about the tax rebate that I’m getting, and the Secretary of the Treasury is encouraging me to spend it. So that’s going to be somewhat stimulative, and it should help the overall economic environment. If the economic environment improves, technology spending always improves with that. So that’s key number one. Then, if investors are willing to bet on that, you should start looking around for companies that have the ability to meet their debt payments and maintain financial stability. That’s the most important thing; we spend the majority of our time on that. Third, do the companies have the asset infrastructure in place to be able to generate significant revenue streams for growth? We can initiate coverage on whatever we want, and there are probably over 250 to 300 communication services companies. We are out there looking right now for those very characteristics. Our criteria are: does the company have the financial structure to survive; does it have the asset infrastructure to generate significant revenue streams; and does it have the management capable of executing on that plan?

This special conference issue includes:

1) Wireless Communications & Mobile Computing - In an in-depth (1,600 words) Analyst Interview, Samuel May, Managing Director of U.S. Bancorp Piper Jaffray Inc., examines the outlook for the sector and shares specific stock recommendations.

2) Mobile Computing Communications - In an in-depth (4,100 words) Analyst Interview, William Crawford, Vice President at U.S. Bancorp Piper Jaffray Inc., examines the outlook for the sector and shares specific stock recommendations.

3) Business Commerce & Software - In an in-depth (2,200 words) Analyst Interview, Jon Ekoniak, Vice President at U.S. Bancorp Piper Jaffray Inc., examines the outlook for the sector and shares specific stock recommendations.

4) Entertainment Software Stocks - In an in-depth (2,700 words) Analyst Interview, Anthony Gikas, Vice President of U.S. Bancorp Piper Jaffray Inc., examines the outlook for the sector and shares specific stock recommendations.

5) Collaborative Enterprise Commerce - In an in-depth (2,600 words) Analyst Interview, Timothy Klein, Research Analyst at U.S. Bancorp Piper Jaffray, examines the outlook for the sector and shares specific stock recommendations.

6) Outlook for Optical Components - In an in-depth (1,700 words) Analyst Interview, Conrad Leifur, Vice President of U.S. Bancorp Piper Jaffray, examines the outlook for the sector and shares specific stock recommendations.

7) Technology & Business Services - In an in-depth (2,800 words) Analyst Interview, Brett Manderfeld, Vice President of U.S. Bancorp Piper Jaffray, examines the outlook for the sector and shares specific stock recommendations.

8) Education & Learning Services - In an in-depth (2,300 words) Analyst Interview, Mark Marostica, Senior Research Analyst covering Learning Services at U.S. Bancorp Piper Jaffray, examines the outlook for the sector and shares specific stock recommendations.

9) Broadband Service Delivery - In an in-depth (3,600 words) Analyst Interview, Frank McEvoy, Vice President of U.S. Bancorp Piper Jaffray Inc., examines the outlook for the sector and shares specific stock recommendations.

10) Internet Media & Commerce - In an in-depth (4,200 words) Analyst Interview, Safa Rashtchy, Vice President of U.S. Bancorp Piper Jaffray, examines the outlook for the sector and shares specific stock recommendations.

11) Communication Services Companies - In an in-depth (4,000 words) Analyst Interview, Cary Robinson, Vice President of U.S. Bancorp Piper Jaffray Inc., examines the outlook for the sector and shares specific stock recommendations.

12) CEO and Sponsored interviews (average 2,500 words). Top management of sixty-one sector firms examine the outlook for their firm and the sector.