FROM 10 ce ce DATE = TIME SUBJECT : ATTACHMENT BODY Geol Tate fengmgr@rambus.com, exect@rambus.com, adiepenb@rambus.com, barth@rambus.com, (asbarro@rambus.com, stark@rambus.com, dnguyeng@rambus.com, jriemang@rambus. Dbdmarket@rambus.com tateg@rambus com 0127/1908 13244 ‘avolsamsung semi US 1/2798 ‘avo kanadjan, vp memory marketing, samsung semi US came to meet me this, moming. (his phone fax number have changed to 408-544-4310, fax '408-544-4936) he had been requested to come meet with me by gs choi, head of samsung worldwide sales and marketing. avo said gs had met with him a \week oF 80 ago and has now a very different attitude towards rambus. i told avo that our view of samsung's strategy is a) do a great job in engineering so that f rambus sockets are created, samsung gets #1 market share, but b) try to kill rambus. i recounted the original deal with ‘Samsung being one of geting the best royalty terms in retum for samsung ‘bulding the market for rambus - but samsung has NEVER done ANYTHING for us to build the market for rambus. {avo said he is not aware of any kil-rambus strategy or any comdex pricing ‘quotes of 60%, etc. avo said he would like to know who at samsung intel ‘says quoted the 60% numbers on direct rdram at comdex. he showed me the budgetary pricing curve he said they did show at comdex on tambus which referred only to graphics memories: - ‘% premium price per bit vs 8M sgram-100mhz = 0% 2q98 3998 4998 16M sgram-1000% 5% -10% 16M erdram 15% 5% © 0% 16M ddr sgram 25% 15% 10% | asked avo what their budgetary pricing message is for direct rdram vs ‘sdram-100. he said they don't have one. i asked him to develop one and show us either by time or by volume (his suggestion} or both. ‘avo said he wanted to find a way to get the animosity eliminated and get ‘Fambus/samsung working together as rambus has done with toshiba (when avo ‘was there). | pointed out that everything we hear indicates that samsung wil NOT ‘positively sell rambus to an account in the design phase. so why should we fake samsung in? in fac, i noted that intel feels samsung is very ~anthrambus and is working to figure out how to get more rambus-positive ram partners in front of pc oems instead of samsung: s0 samsung's strategy 's starting to backfire on them. what we need to see from samsung is a POSITIVE, PROACTIVE MARKETING MESSAGE ‘ON RAMBUS including pricing, etc that is motivational to our customers. this does not mean dropping dr necessarily (our other partners have it RH 387882 too). | suggested to him that a rambus joint seminar series, ads on rambus, joint calls on major systems customers/major graphics chip ‘customers with a strong message on rambus support and competitive pricing ‘would all be viewed very positively by us. actions speak louder than words. R 235388 ‘OUTSIDE COUNSEL ONLY ‘cx0992-001BooY he mentioned partnering with chromatic and philips. (“°PHILIPS™ is something going on with them?). i mentioned to him that toshiba needs ‘someone to joint marketing concurrent rdrams with their m-2 controllers. he said his graphics guy is working on this through chromatic - but it ‘sounds like they are not talking directy to toshibaljordan yet. DOR - he said they have parts but are not actually sampling yet to customers. ‘on logic icense i said that we think samsung should get aggressive on ramus logic and be able to do deals ike nec did with nintendo. he said $$ is a real problem for them now. “IF there isa serious intent on ‘Samsung's side to aggressively do rambus logic, with penalties f they jerk Us around, i said we'd consider deferring the actual cash payments fo a later date, he asked about inte’s plans for the converter chip. ‘said inte's basic strategy is set but they haven't worked through the detais. i said we'd license samsung just to do the converter chip, possibly for a fraction of the license fee, but the royalty would have to be a lot higher for us to {get an ROI. he also asked if samsung could sel the converter chip to others - yes i sai, he asked if our incentive proposals from september were stil open. i said the warrant deal we've offered to everyone. what they are realy interested in is getting the initial 2% royalty reduced he said. i said we took that off the table at the december meeting. and that we are not interested in talking about ANY changes to our deal at this time with ‘Samsung's current position. now if samsung suddenly started doing things that were very helpful for us in market creation, we might reconsider some win-win deals re the intial 2% royally. but we'd never lower the 19% long term royalty, period. ‘avo asked me to keep an open mind and attitude with gs choi when we meet ‘again feb 7. i said il go in positive but itll be up to choi to make ‘the move and propose constructive plans for marketing rambus - if so, well respond positively. avo thinks that gs chol is ready to become aggressive on rambus based on his conversations. well see. fy. geo Geof Tate Rambus ‘Tel 650-903-3807 (NEW EXCHANGE STARTING MONDAY FEB.2: 650-944-7807) FAX 650-065-1528 (NEW EXCHANGE STARTING MONDAY FEB 2: 650-044-8080) “NOTE: THIS EMAIL MAY CONTAIN RAMBUS CONFIDENTIAL INFORMATION” RH 387883 R 235389 ‘OUTSIDE COUNSEL ONLY ‘cx0992-002