Advanced Micro Devices' surprise acquisition of graphics chipmaker ATI Technologies was a critical event for the Credit Suisse Disruptive Technology Portfolio last week, but it treated the acquired company very differently than it did the acquirer. The $5.4 billion transaction was a boon for portfolio stock ATI, as it rocketed 26% on the news. AMD, not part of the portfolio, was less fortunate. Concern about integration risks and the $2.5 billion in debt AMD will absorb to finance the deal hurt it.

Given the fierce competition between Intel and AMD, there's fear that Intel could preclude ATI's chips from working with its processors. In addition, distributors such as Dell may be less inclined to bundle ATI's chips with Intel-powered PCs. ATI generates around $90 million in annual sales with Intel PCs, and concerns about losing this revenue contributed to AMD falling about 5% following merger news. (For more on AMD's acquisition, see "AMD Chases Intel's Graphics Ability With ATI Deal".)

Last week was a tough one for the Disruptive Technology Portfolio, which fell 1.3% as the S&P 500 rose 0.7%.

Disruptive Technology Portfolio
		Stock Price 7/26/06	% Change Weekly	% Change Year To Date
AAPL	Apple Computer	$63.87	18.1%	-11.2%
ATYT	ATI Technologies	$19.83	25.9%	16.7%
BIDU	Baidu.com, Inc.	$91.97	0.4%	46.2%
BBBB	Blackboard	$28.13	3.3%	-2.9%
BRCM	Broadcom	$22.02	-18.4%	-29.9%
CNQR	Concur Technologies	$13.16	-3.9%	2.1%
CRM	salesforce.com	$24.48	6.7%	-23.6%
CTSH	Cognizant Technology	$62.80	-2.9%	24.9%
DRIV	Digital River	$41.46	3.6%	39.4%
EBAY	Ebay	$24.43	-5.8%	-43.5%
GOOG	Google Inc.	$385.50	-3.4%	-7.1%
INFY	Infosys	$40.30	-0.7%	-50.2%
KNXA	Kenexa	$23.43	-20.3%	11.0%
MFE	McAfee	$23.94	0.6%	-11.8%
MRVL	Marvell	$17.34	-7.1%	-69.1%
NOVL	Novell	$6.47	3.5%	-26.7%
NSR	Neustar	$30.15	-2.9%	-1.1%
NVDA	Nvidia Corp.	$20.25	3.3%	10.8%
RHAT	Red Hat	$23.77	-1.7%	-12.8%
RIMM	Research in Motion	$65.37	1.5%	-1.0%
RNOW	RightNow Tech	$12.09	-21.8%	-34.5%
TLEO	Taleo	$7.91	-29.2%	-40.4%
TIBX	TIBCO, Inc.	$7.68	4.8%	2.8%
TXN	Texas Instruments	$29.46	4.5%	-8.1%
ULTI	Ultimate Software	$20.80	8.8%	9.1%
VRSN	Verisign	$18.49	-12.0%	-15.6%
WEBX	WebEx Communications	$32.45	-1.2%	50.0%
WIND	Wind River	$8.14	-3.9%	-44.9%
WIT	Wipro	$12.29	2.4%	2.8%
YHOO	Yahoo! Inc.	$27.08	7.5%	-30.9%
	DTP Index Value	199.89	-1.3%	-9.5%
SPX	S&P 500	1,268.40	0.7%	1.6%

© 2006 Credit Suisse. Important disclosure information about potential conflicts of interest regarding the companies referenced above may be obtained at csfb.com/researchdisclosures, or by E-mailing equity.research@csfb.com or calling 1-877-291-2683.

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