Hello all,
The following article regarding Microsoft's investment into Apple can be 
found on the CNN web site at the following web address.
http://cnnfn.com/digitaljam/9708/06/apple_a/
Jim Vaglia
email:
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   Shares soar nearly 7 points after Jobs announces changes at company
   
   
   August 6, 1997: 4:29 p.m. ET
   
   
   [IMAGE] 
   [IMAGE] 
   
   
   Apple director resigns - July 25, 1997
   
   Amelio out at Apple - July 9, 1997
   
   
   [IMAGE]
   
   Apple
   
   Microsoft
   
   Oracle
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   NEW YORK (CNNfn) - A powerful new board and an infusion of $150
   million in cash by Microsoft Corp. buoyed Apple Computer's stock price
   Wednesday, but some analysts warned against overreacting to what will
   be a long-term convalescence.
   [IMAGE] Apple stock rose nearly seven points after co-founder Steve
   Jobs announced four new board members and apartnership with archrival
   Microsoft to help steer the beleaguered computer maker back into the
   black.
   [IMAGE] By Wednesday's close, Apple stock (AAPL) was 6-9/16 higher at
   26-5/16 on the Nasdaq market.
   [IMAGE] However, investors might see their Apple shares stall when the
   industry realizes the problems at the company won't be solved
   overnight, some analysts said.
   [IMAGE] "What we are not paying attention to is that Apple continues
   to lose market share, it continues to bleed red ink," said Robert
   Walberg, an analyst with Briefing.com, on CNNfn's "Digital Jam."
   [IMAGE] Apple's sales have dropped from $11.1 billion in 1995, to $9.5
   billion in 1996 and roughly $7 billion expected for this year. The
   company reported losses of $56 million for the third quarter ending in
   June.
   [IMAGE] Jobs will join the board along with Larry Ellison, chief
   executive of Oracle Corp.; Jerry York, a former chief financial
   officer at IBM and Chrysler Corp.; and Bill Campbell, chief executive
   of Intuit.
   [IMAGE] "Apple had a very decent group of people as their board of
   directors, but it was time for a change," Jobs said. The company needs
   to focus on priorities, he said. (201K WAV) or (201K AIFF)
   [IMAGE] The board will wait to name a chairman after the company picks
   a new chief executive. Former chief executive Gil Amelio was ousted in
   July.
   [IMAGE] Gene Glazer, an analyst with Fortis Advisors, said the naming
   of the chief executive will be bigger news. (181K WAV) or (181K
   AIFF)"The critical direction that will be set by Apple will be by the
   new CEO and chairman," he told CNNfn.
   [IMAGE] But David Wu, an analyst with the Chicago Corp., said
   Wednesday's announcement is an important start. "If you don't have a
   good board, how on earth can you attract a good CEO?" he said. "Can
   the company turn around by just having a new board? No. But you have
   to start somewhere."
   [IMAGE] Jobs made the announcement during his scheduled keynote
   address at the MacWorld Expo trade show in Boston. The audience hooted
   and cheered during his speech. (193K WAV) or (193K AIFF)
   [IMAGE] "This will add a tremendous amount of expertise," said Jobs.
   [IMAGE] Ellison would contribute valuable software expertise to the
   board while York has a proven record turning around Chrysler and IBM,
   Jobs said, and Campbell is a former vice president of sales and
   marketing at Apple during the company's heyday.
   [IMAGE] Two other board members - Ed Woolard, chairman and former
   chief executive at Dupont, and Gareth Chang, president of Hughes
   International - will hang onto their board seats, Jobs said. But board
   members Mike Markkula, Katherine Hudson and Bernard Goldstein will
   step down. Delano Lewis, president and chief executive of National
   Public Radio previously resigned following Amelio's ouster.
   [IMAGE] As part of the pact with Microsoft, Apple will put Microsoft's
   Internet Explorer browser on its operating system. In turn, Microsoft
   will buy $150 million of non-voting shares of Apple stock at market
   price, hold the issues for at least three years and continue to
   develop versions of Microsoft Office for the Macintosh.
   [IMAGE] "It's a package announcement today," Jobs said. "We're very
   excited about it."
   [IMAGE] The deal could allay one big fear of investors that software
   makers won't continue to design products for Apple. For Microsoft,
   with some $9 billion in cash on hand, it represents a small but
   potentially good long-term investment, said Walberg. (236K WAV) or
   (236K AIFF)
   [IMAGE] The audience booed and hissed as Jobs introduced Microsoft
   chairman Bill Gates, who spoke to the audience via a video feed.
   [IMAGE] "It's very exciting to renew our commitment to the Macintosh,"
   Gates said. "We're very pleased to be supporting Apple. We think Apple
   makes a huge contribution to the computer industry."
   [IMAGE] Wu said it's common in the technology industry to find
   companies that are customers, competitors and partners at the same
   time. "Microsoft and Apple have always had a love-hate relationship,"
   he said.
   [IMAGE] New board member Ellison said during videotaped remarks that
   Apple shouldn't worry about competing with Microsoft. "Apple needs to
   worry about doing something different. It's back to innovation and
   creativity."
   [IMAGE] Some analysts said what Apple needs to do is concentrate on
   areas where it has remained strong, such as education and desktop
   publishing.
   [IMAGE] "Apple is now a niche player and the key is what can you do in
   that niche," said Glazer. "You focus on where you're strong." Link to
   top 
   [IMAGE] -- Martine Costello
   
   
   
   
   
   
   [IMAGE] jobs photo
   Expo audience cheered jobs about the news…
   
   
   
   
   
   
   
   
   
   
   [IMAGE] gates photo
   …but booed and hissed at Gates.
   
   
   Copyright © 1997 Cable News Network, Inc.
   ALL RIGHTS RESERVED.