----- Original Message -----

From: John Slade

To: Rotary motors in aircraft

Sent: Tuesday, August 31, 2004 2:12 PM

Subject: [FlyRotary] Re: Mistral Engines for sale

 > Still think the "strength" of the dollar doesn't have much to do with the price of foreign goods? 

I didn't say that. I said it doesn't have much to do with setting a price for a new product. Mistral's material cost for each engine is probably < $10k. What they've tried to do is decide on a sale price that'll amortize their R&D costs over a reasonable period of time and get them into positive cash flow. Intelligent price setting has little to do with variables like the price of the Euro against the dollar.

John