InterDigital Inc (IDCC)

[The Count]

HeavyDuty

I appreciate your analysis, but I think you should update the amounts you're using for free cash flow. While $400MM is reasonable for 2003 based on company guidance, this includes NEC money, payments for items earned before 2003 and prepayments for 2004. Therefore to use that as a base and project growth from that base does not give a reasonable projection of the future. I think it would be more useful to look at projections of recurring earning streams for 2003 forward, and make the assumption that the cash flow will equal the earnings. Also start with $5 a share in cash, which should be added to your ending balance because that is the cash we would have if all we collected was for pre 2003 licensing, which would not be included in the recurring revenue projection.