rr 12 13, 14 15 16 17 18 19 20 2 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 GOVERNMENT EXHIBIT DATE: May 2, 2008 524.T-R Tame ner TIME: 2:03 PM WIRETAP: OVER 917-907-2350 CALL FROM: RAJ RAJARATNAM (917-907-2350) CALL TO: KRISH PANU; KRIS CHELLAM (212-371-2335) OTHER PARTICIPANTS: UNIDENTIFIED FEMALE 1 UNIDENTIFIED FEMALE 2 GINA (LAST NAME UNKNOWN ~ “LNU”) KEY: Unintelligible: UL Inaudible: IA Phonetic Spelling: PH Voice Overlap: " * « * * [1 min 38 sec} UNIDENTIFIED FEMALE |: Raj? RAJ RAJARATNAM: Yeap? UNIDENTIFIED FEMALE |: All right// GINA, (LAST NAME UNKNOWN): (UD... UNIDENTIFIED FEMALE |: _.Gina’s on the line. RAJ RAJARATNAM: GINA LNU: ‘Yeap. Hi Kathy. Hi Raj, it's Gina, 1RAJ RAJARATNAM: GINA LNU: RAJ RAJARATNAM: GINA LNU: RAJ RAJARATNAM: GINA LNU: RAJ RAJARATNAM: GINA LNU: RAJ RAJARATNAM: GINA LNU: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: ‘Oh, Gina. Hi Gina, how ate you?// Hi, Good. How are you? Good. Is Krish or is either Kris in the office? Uh... oh, Kris is in the office. And the other one? ‘And the other one is here too. Which one do you want first? Uhm... Can you get them together and just uh... tell them that Pd love to chat with them? Okay, will do, Pll transfer you to Kris right now and I'll get Krish, okay? ‘Yeah, Okay, thank you, Hold on, (Tones) [Unintelligible conversation in the background] Hey boss. Hi Kris, how are you? Good man, Where are you? Uh... with your parents? (Telephone rings) No, no, ’'m in Washington; I’m going to be jumping on a flight, uhm... you know, around the time that we are supposed to have a conference call, so I thought maybe we can quickly chat Okay. Uhm... and [asked Gina to get... Uh... Kathy to get... G-... Gina to get the other Kris, 2SowrudsHsavone u 12 2B 14 15 16 7 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 4 42 43 KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: [2 min 36 sec] [3 min 54 sec] KRIS CHELLAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRIS CHELLAM: KRISH PANU: RAJ RAJARATNAM: ‘Yeah, she’s (UD..// Krish. .coming so um..!! ‘Yeah. Yeah, So... Oh yeah, Krish just joined us. Hey. Raj. // Okay How are you? Good. So, Kris, [just wanted to... 1... am traveling, I’m in Washington, I was here for a investor conference... Uh-huh. ..and then I’m going to Toronto, so I thought if we... if we have a quick chat about uh... you know our Friday meetings and catch up. ‘Yeah. Ifyou have the time right now. Yeah, ‘Yeah, Uh... number one, how did your meeting with uh... PeopleSupport go?Secor aneune Hu 12 13 14 15 16 7 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 4 42 43 KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: Uh... yes uhm... briefed KRIS and uh... you and me should spend some time on Tuesday... ’Il give you the ha, ha headlines uhm... Raj, Um-hum, Uh... the... the number he uh... last uh... guidance was given was 162 to 170. Uh... you had asked him to do it lower, right? Uh... Hold him to do 160 to..// Right ww62, And..// Right _.he went and did it. And then I had told the CFO to go into the ‘whole forecast and give me what she can sign up for this year... // Um-hum, ind uhm... uh... that I would like to review in the board meeting, and then put in some probability of other deals. So, that analysis was done and uhm... the CFO, who's probably uh... very honest, at least from a numbers perspective, she might not be a good IR person, she came back and said they can do only 151. Okay? Um-hum, With uh... uh... possibility of 13 million, with high degree of confidence and after peeling it down, I’m comfortable with seven, So, if. if had... given the forecast, the total is 158 maximum for the company, right?// Um-hum. Unless a blue bird hits. Right.KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJIARATNAM: KRISH PANU: RAJ RAJARATNAM KRISH PANU; KRIS CHELLAM: So, I... you know, we ar-... uh... we argued about it and uhm... uh... you know, Pve become a... really an asshole in the board right now, right? In. in..// Um-hum, ..the nice way. Uh... we changed wh... Lance’s comp to focus 40 percent on revenue, 40 percent on profitability and 20 percent on MBO’s and uhm... the board said, “What is wrong about that? This is good in the market? Uhm... we did 140, we're gonna do 151 this year.” I said, “That is not the issue. The issue here is that ‘we are not communicating with the Street and there was an opportunity Jast quarter to take all the bad news out and now...// Right ..even if you've met the consensus, stock is not gonna move.” Right? Right. Uhm... the good news Raj is, they’re gonna generate free cash flow of 30 million this year. On... Um-hum. ..a GAAP basis, the operating profit is gonna be okay, even at 153 in revenue; the challenge is gonna be, people are gonna be pissed off with this idiot, uh... saying flat to nothing in revenue growth, right? So they have... So, I’m putting all the (UD) I wont put it in writing but when KRIS is there with you on Tuesday, I'm gonna offer some options of what we should be thinking about, right? (UD../! Itseems to be that he should uh... Seems to me that he should uh... hire more people in sales and drive the sales process, right? ‘That is (UD) (UD out frustration, Krish, Krish gave him, you know, three or four, five strategie leads; the guy is not jumping on any of them.Sowa navn n 12 13, 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 4 42 43 KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: KRIS CHELLAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: KRIS CHELLAM: KRISH PANU: RAJ RAJARATNAM: They... they have doubled the sales foree Raj. I think Lance is not a leader, okay. Uh... we can... I can sense it, and he’s got the board members who are applauding him instead of really putting the pressure on him that he has to deliver revenue growth and deliver shareholder value. And uh... I've got one of two be-... bo-.. board members more thinking in my way. 1. L.// Um-hum, ..can think of one for sure; the other one is half way through, but then you've got four guys who bunch of idiots. So...// Um-hum. 1 don’t think Lanee can get us... // (UD. .to where we want (0 go. So we have to make a decision, but I'm... we've been running around like a chicken... I. Pm putting all the data together but we'll go through in a methodical way. ‘The cash flow is okay, the company uh... increased the cash position from last quarter to this quarter by 13 million dollars, right? And they bought back a million shares; so essentially, they have generated more cash hm... because sale of the land... ‘mean, Uh... converting the effective hedge. Next quarter the cash could go up. Uh... another uh... 10 million because the land sale LOL is complete and it'll be sold and the cash will go up again next quarter, uh... the June quarter, right? So, the..// Right. «cash is inereasing and the market cap will not increase. My estimate, the way it’s gonna go to the market and announced next week, uh... the stock will not go down that much, it’s gonna go down alittle bit, but it’s gonna hover between; nine and eleven dollars and do nothing for the rest of the year, Yeah, Right? Yes,KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: KRIS CHELLAM: KRISH PANU: KRIS CHELLAM: KRISH PANU: KRIS CHELLAM: KRISH PANU: So, that is the problem we have, right? We ean hire more sales guys and try to turn it around, He is going to India next week, next Friday, for one week, uh... to Uh... go talk to companies, Credit Suisse is taking him to meet with EXL, WNS ub... and other companies. Uh... his..!/ Um-hum. goal is to go market to sce if there’s an opportunity. He’s willing to sell, but the problem is, we will not make money if the market cap doesn’t go up, right? And he ean get a premium of 30, 40 percent from... // Yeah. _.premium of nine or ten bucks, doesn’t do us any good. So all the effort we're putting in...// Right. Ifthe stock goes up to 12, 13 and you get a 30, 40 percent premium. Yeah, ayes, now you're talking 16, 17, 18 dollats [CALL MINIMIZED] every quarter for the next two quarters for it to go up. So we're working on the plan and we're getting all the data together. The bottom line [CALL MINIMIZED]. ‘They didn’t want to put him on and as... as a bonus, they offered {o set up a strategic committee and, you know..// Now, I went on... Yeah, I went on record uh... with the general counsel lawyers saying that that I disagree with the plan (UD) [CALL MINIMIZED]... all verticals and grade them and the pipeline is over two hundred million dollars, It is really an execution problem with this guy to go get it done and uhm... we [CALL MINIMIZED] put the guy to turn it around or we have to do something more dramatic, And I need to sitdown over the weekend and get my thoughts clear on that, and I wanna put theSeer ds Hawn nH 12 13 4 15 16 7 18 19 20 21 2 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAI RAJARATNAM: KRISH PANU RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: KRIS CHELLAM: RAJ RAJARATNAM: KRISH PANU: numbers together, which, I’ll be ready to talk Tuesday. [CALL MINIMIZED] Um-hum, He's uhm... Uh... he and Shriram (PH) met last week and they wanted to call me, it seems, and finally somehow uh... we connected. So I’m meeting, PV (UD. He’s showed willingness to go do a deal, but I don’t know his data yet, so I'm ‘meeting with PV on Tuesday. Okay, Good. All right, ubm../ ‘And ubm.., $o, what you need to be thinking about for the next two days Raj, is. Um-hum. . take a different approach. What I've done is on records I put..// Um-hum. ..8 dissatisfaction and disagreed with the board, right? So..// Right. «if Thave to get out, I have a good re-.... CALL MINIMIZED] ind it’s open and I’m helping to recruit another guy. Uhm... see if Took into it, the fact, though he speaks very well, he’s a nice guy, Raj, the guy is absolutely in Lance’s pocket, okay. Who's that? Frank?// Uh... uh... Frank, Okay? “The chairman, Um-hum. // ‘When I come out and say, you know we, “The bandwidth, he’s limited, we need to help him” he says, “No. He's working very hard, he’s covering,” I mean, for every step of the way, I’m trying to help ina positive way. Then there is another guy, Larry, who’s 8Seonudv pene u 12 13 14 15 16 7 18 19 20 2 2 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 4t 42 43 RAJ RAJARATNAM: KRISH PANU: KRIS CHELLAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAI RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: on the nomination committee and he says, “KRISH, you're saying that... you're not adding sh-... you're not adding sharcholder value, but Pm a very happy shareholder because the balance sheet is getting stronger, we're putting cash on the balance sheet.” I said, “Larry. You're a happy shareholder because you didn’t buy the stock at 15 or 17 bucks, okay2/ Um-hum. And putting your cash on the balance sheet...” [CALL MINIMIZED] We're supporting him and saying, they did a good job of putting cash on the balance sheet. And uhm... so, if look at this... [CALL MINIMIZED) ...and next few weeks.// Yeah, I mean, it'll be good to uh... iP Il be good to get the company sold or, you know, get some performance out of this in our portfolio this year, we need it, you know. ‘Yeah. Also... // Yeah, I mean, I think that even we get 15 dollars or 12, 13 dollars, 14 dotlars, right?// Yeah, Yeah. I... I don’t think Lance is..// Better. nis going to do it for us Raj. Unless... I think the position of the company is good, Free cash flow 30 million, strong balance ..// UD. «sheet, a pipeline of 200 million dollars... [CALL MINIMIZED] Philippines for..// Right utumber one situation, and that is not..// Okay. _.very good, right?SewrudsHvse.ne rt 12 13 4 15 16 wv 18 19 20 21 22 23 24 25 26 21 28 29 30 31 32 33 34 35 36 37 38 39 40 al [11 min $4 sec} . [13 min 32 sec} RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHI LAM RAJ RAJARATNAM: KRISH PANU: KRIS CHELLAM: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: So we are, I think, we're up to a million uhm... Sirf, a million Aruba and a million ubm... Atmel. woAtmel, right2/ Yeah, Uhm... so that we have something in the game, Yeah. No, L will spend 60, 70 percent of my time on this one, dedicated to the ones that we have in the portfolio because that’s where the money is, right? Yes.// Right. Right. (UD look at other things so, uhm... that’s uh... ome. And then uhm... uh... uh... So Aruba... How about Sirf? Anything new there? On... on Sirf uh... uhm... I got a data point that uh... ub... Brian Modoff talked to Sanjay at Qualcomm... Uh-huh, _and uh... Sanjay indicated they’re very wh... forgot to mention this to you..// Right. 10WW 12 13 4 15 16 7 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 KRISH PANU: RAJ RAJARATNAM: KRISH PANU: KRIS CHELLAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM! KRISH PANU: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: wutihm.,. they're very interested in doing the deal and they've looked at IP portfolio and it’s very, very compelling for Qualcomm...// Right. «but one of the things he is talking to Sirf uh... is to do a head count reduetion because he does not want to buy the company and do ahead count, (UD... reduction, because that’s not Qualcomm’s style. So what is interesting is, they’re thinking through the next step, which means that is positive and uh...// Yeah. the Qualeomm is trying to move, And there are.../ So I should keep on buying... --(UN) of Intel’s move too. Intel wants to put this technology in every laptop. Right. So that’s what uh..// wwaand uh... (UD. sony friend, Rajiv Goel, told me..// What? My friend, Rajiv Goel at Inte. Yeah. «told me that uh... Intel has a task force looking at Sirf as well, right? So I think we should continue to, you know, buy Sirf and build a nice position, right? agree. MLSocou ssn n 12 13 M4 15 16 7 18 19 20 a 2 23 24 25 26 27 28 29 30 31 32 33 4 35 36 37 38 39 40 4 42 3 KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAI RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRIS CHELLAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: KRIS CHELLAM: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: (UD. And... you know... we... We are... We're gonna get the memorandum and documentation; Langley (PH) will be here in a week Raj, so we'll! Right «put our thoughts together. Right. But we can do that, we're like a start up. Right now we're gathering as much data we... KRIS and myself will put a format together where we can capture the rational pieces we're doing and... // Right _keep updating it on a regular basis with the data we get in the next four weeks.// ‘Yeah, Just make sure that anything that we get in terms of acquisitions and this and that...// Yeah, yeah, yeah, (UD) ‘We won't put that. .-(UD) Couch it, couch it in the sense that... ‘That’s why we wenna have a call every week. // Yeah. ‘Yeah. But that is clearly ub... uh... Brian’s input and uh... Weeu// And I... so I will confirm that with uh... Rajiv as well, right? 12KRISH PANU: [15 min 51 sec} RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHI “AM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: Okay Now, I met with uh... this guy from uhm... Intel pension, uh, Stuart O°Dell (PH). had dinner with him, you know, at the Lehman conference... Uh-huh, «and uh... $0 [think they’re gonna do something, you know, with us, right? Okay. So../f And his boss... «». Lwas planning to uh... try and do something uh... the uh... the last week in May... Right. sect. Hd ‘And what he fold me was that... that he’s in the pension side, right? Yeah. And it’s difficult for him and that they have certain rules and regulations as fo what he can invest. Like he can invest in Hedge Funds, right? Yeah, But, uhm... in terms of doing Cross... uh... uhm... like uh... a distressed um technology fund... Yeah. she said Arvind (PH) is the guy because he’s Intel Capital... Yeah, Bu 12 13 14 15 16 7 18 19 20 21 22 23 24 25 26 21 28 29 30 31 32 33 34 35 36 37 38 39 40 aL 42 43 RAJ RAIARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: [17 min 40 see} RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: «wand he says Arvind (PH) has Otellini’s ear, right? Yeah, And if Arvind (PH) goes and... You know, so if you go to Arvind (PH) and say, “Look, why don’t you be an anchor investor with us?” Right? Yeah, Put 100 million dollars and we'll do this type of uh... thing, right? Yeah. Strategic partnership, then maybe that’s one thing that we should talk about, right? So what I'l try to do is uh... PL. Pl check his availability uh... ina week... uh... week of the 19” and week of the 26" uh... // Okay. .and,,. and maybe uh... 0-.. uh... organize a trip for you around that. Allright, good. Now, uh... regarding Mark, I got an e-mail from Mark asking whether I can introduce him to somebody at Reliance, right? Yeah, So, now, there are two brothers at Reliance; one is Mukesh and one is Anil, right? Yeah, Uh... Anil is my classmate. | tried to call Mark and he was somewhere but I... If you do talk to Mark, let him know, 4u 12 13 14 15 16 7 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM! KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: Yeah. Mukesh is a guy... So, Reliance uh... generates about do-... Reliance uh... Industries, which is Mukesh; Anil is the one who’s doing Reliance Comm, right? 1... [think he’s ub... I think his interest would be more in th the Mukesh thing because uhm...// Right. sutth,., you know, because they... they... they want... ‘Cause Mark is basically trying to peddle semi-conductor companies, right? Right. So, what uhm... what I understood is this, that uhm... they've hired an ex AMD guy called Amit (PH) something or other. Uh-huh, auto be their semi-conductor guy, right? Uh-huh, And they're looking at two deals. One is..// Spansion deat .-the uh... Spansion.. Yeah, «and the second one is the AMD Fab, Okay. Right? Because Charter didn’t want to do the AMD fab Right. But Reliance is and the Arabs are looking at it. Yeah.ul 12 13 14 15 16 7 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 4a 42 43 RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM KRIS CHEELAM: RAJ RAJARATNAM: KRIS CHELLAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: So, I.. you know, | think the right guy for him to talk to ‘Amit (PH)... Mukesh, Not Mukesh, but ulm... // Uh... the... the guy... + Mukesh is (UD. «the guy he hired from AMD.// Yeah, I mean... No, uh... look, uh... Reliance has uh... a market cap of 110 billion, right? Yeah. Yeah. So] uh... ran into Mukesh at the AIF gala; he was a key note speaker two days ago... Uh-huh. ..and uh... the... there is a guy called Amit (PH) something or the other. ‘The guy who uhm... who I know well... (UD) you know Anil Kumar? Yeah, yeah. ‘AK at MeKinsey? [think they're doing some uh... He knows this guy who's heading up Reliances efforts in semi-conductor. This is aex AMD guy. Okay?/! iH Okay, we'll contact Anil and get the information. Yeah So Anil uh... ff (uD. 16u 12 13 14 15 16 7 18 19 20 a 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 3 RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: ..80 I called Anil just now.. Yeah, «and I said ub... “Would you uh...? Do you know Mark Edelsione and would you uh... meet with ... Do you uh... can you uh... meet with Mark and fell him who this guy is and introduce them to each other? Because J.P. Morgan is looking either to peddle semi-conduetor companies or do financing.” Yeah, So he said, “Please tell uhm... uhm...” Mark to contact him? Mark to call him and Anil’s mobile number is 408... I... P've got his numbers, I’ve... // wp. sP’ve got all that information. So uh... 0-... one thing we know, this very confidential, is that uhm... somebody is gonna put a term sheet for Spansion, But Spansion is a three dollar stock, right? Right, So Anil will... May 3"*is the deadline, which is I think tomorrow, right? Yeah Uhm... Or they're supposed to start. So../! Have you bought any? 1 think... I... [haven't bought any, I am going to... I. asked him should I buy it, ight? 7KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHE AM: RAJ RAJARATNAM: KRIS CHELLAM: KRISH PANU: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: KRISH PANU: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: KRISH PANU: RAI RAJARATNAM KRIS CHELLAM: ‘Yeah. He said (UD. You know, between the term sheet and negotiations, all will be a month we can buy, you know? Yeah, yeah, yeah. But this is the one that we also have to make sure that we keep our conversations just privileged to the three of us. Understand, Yes. Because, you know, I just don’t want, you know, other people uhm... Yeah, yeah, understand, You know, you just have to be careful, right? Yeah, Yeah. ‘And we need to... the best way to do these things is to say, you know uhm... “I sent and e-mail to you saying, you know, have you {guys thought of Spansion? ‘The stock looks cheap” right? Yeah. And you send by saying, “'ll get Langly (PH) to do some work or something like that.” You know?/ Yeah. Perfect, Yeah. Or Pll send something like, you know, “There’s a basket of semi- conductor companies like Lattice, Spansion and Atmel..// Right.RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: [21 min 47 sec} [24 min 6 sec] KRISH PANU: RAJ RAJARATNAM:! KRISH PANU: RAJ RAJARATNAM: .8ee What you think.” And you should say, “Atmel and Spansion Took good.” You know, so that we just protect oursetves..// Have a corporate record. ‘Yeah, we just have a e-mail trail, right, that ub... I brought it up and, you know, something like that. Oh that’s good. But anyhow, uh... I feel that this is the right strategy right now for us because, you now, you buy these stocks at three and four and it goes to five or six, that’s 20, 30, 40 percent return, right? Yeah, Right Yeah Sol ‘You know, this is very much... Uh... Raj, [think once your starting to do this, a lot of information coming in and we are focused on re-... generating revenue, right? So that’s why we're jumping in... But uh... Raj, we need to really think about the next two days uhm... // Right. On a move because I’ve set the stage to move any direction. I'm still helping him, but I'm... // ‘Yeah, I think you know... I think —... my feeling is that we should be patient for one more quarter, right? And (UD) get the other guy on the... [Unintelligible conversation in the background] [Aside: Hold on, Imight have dropped my ticket. Ub... just one minute. Uh... 'm sorry. Pll be back in a second, huh,] Uh... ub... what do 19SeowrudsHvsone i 12 13 14 15 16 7 18 19 20 2 2 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRIS CHELLAM: KRISH PANU: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRIS CHELLAM: ‘you call it? I think we should be patient for one more quarter. See... get the other guy on the board, right? Yeah. And uh... Rather than you know just go crazy right now. I don’t. Yeah. We'll talk about the facts, right? ‘Yeah, yeah, We just need...// When I (UN). .to make sure that we play in a way..// (UD... wuthat gives uh... you know, two different paths out.. Yeah. Right. And not send any signals. Right, Exactly.// But we really, we are trying to get him customers and we're doing. everything, but, the board needs fo be shaken up and 1 think we did wake them up a little bitin a positive way last ub... few days ago. And uhm...// Right. oth. If Because you know, the thing is, this is going to be... Since he put out the ub... uh... the release when they got the offer, right? Yeah. 20u 12 13 14 15 16 7 18 19. 20 2 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 4 42 43 RAJ RAJARATNAM: KRISH PANU: KRIS CHELLAM: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAT RAJARATNAM: KRISH KRIS CHELLAM: KRISH PANU: Uh... it’s the second time that uh... they have reduced numbers, right? YeahJ// Yeah, (UI) so one of the things, and you might want to ask ina very nic way, is, do we have any legel liabilities, right? We had an offer for 17, right? You put out 175 to 200. Now every single time you report your.,. Ask the general counsel, do you think we have any liability. You know? And uhm../ (wD ..one other thing is, Raj, isto see if there are any other partners, You're going to own uh... you're already up to 27 % percent; Galleon is because..// Right (UI) buy back, right? Right, right, right, ‘When they completely buy back, you'll be closer to 31 percent and uh,.// Right. the stock is gonna come down, so they have to buy. Within a quarter, you're gonna be close t0 30 to 31 percent. Right, Ifonly find two more. ‘Two more. ‘Two more guys who can buy under ten percent... 21u 12 2B 14 15 16 7 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRISH PANU: RAJ RAJARATNAM: KRIS CHELLAM: KRISH PANU: RAJ RAJARATNAM: KRIS CHELLAM: RAJ RAJARATNAM [26 min 38 see] Right. Life will be very different, okay? At that time, we can make.../! ‘That's why I think... «(UD think we have only 30 percent, they’ still controlling us, right? (UD)..// But that’s where Shriram or PV Kannan... right? Yeah Can buy 9.9 percent, you know? Yeah. And uh... we can take it from there, I gotta jump into a taxi..// Okay. (UD trip! Okay (UD). PIL. Airport .'ll see you Monday. Okay, Pll see you Monday. [END OF CALL] 22