The News and Observer from Raleigh, North Carolina • 46

THE NEWS OBSERVER Business WEDNESDAY DECEMBER 19 2001 I Stock prices propelled upward MARKETS ROUNDUP mn NYSE ACTIVES Imo um AMEX ACTIVES tom OM OTC ACTIVES me Solos Cl000 Chg I Soho eon Chg Chg Sales Close 48 Cisco 595181 1970 44 -271 142 -00 31 110 -AO -80 -85 -17 -AB Positive business outlooks and a report on November construction cheer investors Solectm 335571 1210 God leg 329782 3972 Lucent 247994 624 AM TW 199560 3275 Pfizer 183996 4064 Calpine 178314 1400 EMC Cp 174905 1465 Dynegy 169426 2090 MlmsCos 156489 2210 OwestCm 139833 1327 ATT WrIs 134706 1319 Compaq 129491 911 NortelNw 127924 740 Cingrp 126771 4810 NoNaCp 120009 2510 501339 3094 374 461487 1258 -04 400578 3378 -125 389038 1505 26 385602 3381 -16 248502 888 12 233873 5839 -119 230006 2326 217 229106 6927 29 216493 1602 -33 198735 2880 32 164568 2406 231 162217 564 109 161155 2863 -43 SlebelSys Sun Micro Cm Oracle Intel JDS LIMO Amgen Jnorkaw Microstt World Com De 11Cptr NeAvkAp SonusNet IMMUM 68 10 -42 24 110 06 50 210 19 -02 85 04 23 103 4126 114 98 2509 3203 4513 10040 785 2002 3510 3150 391 9655 125 13488 488 492673 135093 30610 19498 17206 14918 13077 11868 10769 9076 8951 8639 6165 5822 5602 Nast1100Tr SPDR SP Tech Nabors Semil-rft Dfth Dam IShJapan Nas Cp DevonE IShGSNet AbdAsPac (ShRs2000 EMedSft BsftechT AvanaPh increasing hopes that the economy will turn around next year The rallies have brought the market's major indicators well above their lows for the year which they hit Sept 21 after a precipitous drop that resulted from the Sept 11 terror attacks The Dow is 214 percent above its low of 823581 The Nasdaq is up nearly 41 percent from its low the 500 up 183 percent Advancing issues outnumbered decliners nearly 2 to 1 on the New York Stock Exchange Consolidated volume totaled 168 billion shares ahead of Monday's 157 billion The Russell 2000 index which tracks smaller company stocks rose 555 or 12 percent to 48549 Overseas markets were mixed Tuesday Japan's Nikkei stock average closed with a gain of 11 percent In Europe France's CAC-40 slipped 01 percent Germany's DAX index fell 06 percent and Britain's FT-SE 100 rose 03 percent Other winners included Best Buy which rose $355 to $7255 on fiscal third-quarter earnings that were 40 percent higher than the same period last year and beat analysts' expectations by a penny a share Competitor Circuit City which also posted better-than-expected profits inched up 16 cents to $2386 Also on the upside General Electric rose $142 to $3972 having reaffirmed late Monday its fourth-quarter and 2001 earnings expectations DuPont advanced $110 to $4322 following an upgrade by Merrill Lynch In technology IBM gained 86 cents to $12220 while Ciena rose 56 cents to $1547 Analysts said the buying also was attributable to the likelihood that companies will have an easy time posting improved profits over this year which marked the worst profit decline since 1991 Since late September investors have been buying up stocks on Throughout this month the Dow and Nasdaq have traded just above and below 10000 and 2000 respectively and until December had not risen above those marks since before the Sept 11 terror attacks Wall Street's broadest measure the Standard Poor's 500 index gained 856 or 08 percent to 114292 Investors who have been looking for evidence of an economic recovery welcomed the Commerce Department's report that housing construction rose 82 percent in November The increase was bigger than analysts were expecting and brought housing starts to their highest level since July as builders bet that low mortgage rates would continue to attract buyers Home builders posted healthy gains led by Lennar which soared $275 to $44 Lennar said its fourth-quarter earnings estimates will exceed Wall Street's forecast by 25 percent THE ASSOCIATED PRESS NEW YORK The latest round of evidence to support a long-awaited economic recovery namely a strong jump in November housing construction sent stocks soaring Tuesday propelling the Dow Jones industrials up by triple digits Better-than-expected earnings from electronics retailers Best Buy and Circuit City also contributed to the market's advance Combined with the housing report the news improved investors' outlook for the economy two-thirds of which is comprised of consumer spending The Dow closed up 10642 or 11 percent at 999839 after gaining 80 points Monday The Nasdaq composite index rose 1731 or 09 percent to 200476 IMF lowers expectations for world economy lions carried out this year by the US Federal Reserve which brought the benchmark rate down to a 40-year low of 175 percent the report said Still the scaling back of the fund's forecasts during the past year shows how suddenly the global outlook has deteriorated The IMF said a year ago the world economy would expand 42 percent in 2001 after having grown 47 percent in 2000 its fastest rate in more than a decade The United States which drove last year's expansion is in the middle of its slowest two-year period of growth in a quarter-century The slowdown started before Sept 11 but the terrorism has cost the world's largest economy $21 billion the IMF said from capital markets among developing nations has a debt burden that is "not sustainable" given its peg of the peso to the dollar and Turkey is very vulnerable to the world slowdown the IMF said The IMF forecast the US economy would grow by 07 percent next year Germany by 08 percent France by 13 percent and the United Kingdom by 18 percent Developing countries will grow by 44 percent led by China at 68 percent and India at 52 percent Japan's economy probably contracted 04 percent this year and will shrink 1 percent in 2002 The fund predicted a turnaround in confidence and growth in the middle of 2002 The rebound will be driven in part by the 11 interest-rate reduc the financial watchdog projected three months ago before it took into account the economic fallout from the terrorist attacks in the United States that killed thousands "This is a period of greater-thanusual uncertainty" the IMF's chief economist Kenneth Rogoff told reporters in Washington "There are many sources of weakness in the world economy" To counteract the slowdown central bankers in the United States Europe and Japan need to be ready to reduce interest rates again and the richest nations should provide cheap credit to cash-strapped nations in Latin America Asia and Africa the IMF said Argentina the biggest borrower BY MARK DRAJEM BLOOMBERG NEWS WASHINGTON The world economy faces its worst slowdown in almost a decade dragged down by recessions in the United States Japan and Germany with every other major region headed for weaker growth the International Monetary Rind said The global economy will expand 24 percent this year and next its slowest two-year growth rate since 1992 and 1993 as the largest economies take a hit from the Sept 11 terrorist strikes the IMF said in a revision of its World Economic Outlook The new 2002 world forecast is down from a 35 percent expansion Glaxo expects FDA decision in 2002 'Wild Bill' Stealey 4 ----T'w'' We think I getting back In the saddle we can I 1 squeeze 2 more out of 1 our compa- I ny and put it back to where it really belongs: research and development' can 4- 1-- :1 squeeze Ti mnrt nul a a A 1 73 -24 The stock micas ot companies with stoniticent operations in the state 11mulawnr-- merstlir ocE NET gimpsgm NEI 111111n ds lorNISII44CRiroKIOSPP016 478 3345 250 512 352 1684 578 3856 350 3878 290 1245 875 4094 240 740 5130 440 535 494 3035 700 4689 530 4290 326 1616 2293 5624 790 1678 100 2192 134 2550 1970 1840 84 1789 383 4000 710 625 3975 3330 4273 3152 620 5423 1380 819 1502 ATV 15 101636 Alcatel 43e 10581 Alitel 1361 23 7639 BEAT Cp 104 17 8100 IN of Am 2401 18 43752 BellSouth 76 25 24259 BrMySti 1121 20 83820 CapBNC 18 8 ChrisCivrd 137 Cisco 505181 ClosMed 64 Cooper 140 12 4035 Corning 121 97642 Cree Inc 99 31350 DigilRec 48 1 DuPont 140 68 39233 DukeEgy 110 14 48801 EMC Co 1241 174905 EDS 60 25 26123 Embrey 18 118 EricsnTe1115e 71722 ECtzBA 100 12 34 GenElec 721 30 329782 GlavoSKIn 85e 8747 Disney's 4143 HtghwdP 234 12 792 IncaraPh 32 InsoPhar 2960 IBM 56 27 54813 InvTill 12 9 12 JefIPilOt 110 13 2044 Konover 251 282 KrsoKrm 4098 LabCp 34 3338 Lance 64 20 512 Level 8 3228 Lowes 08 38 38263 MartMM 56 22 1638 2146 6831 6869 3884 6554 4588 7488 1375 275 5575 3681 6045 7975 4150 304 4988 4774 9125 7245 1855 1356 11316 5619 5888 600 2678 325 3013 12321 1744 5058 500 4350 9150 01550 825 4714 5160 1240 1053 4943 3024 4081 3626 4658 819 80 1104 1403 3161 692 1221 156 3264 3222 1001 5090 1106 305 7250 2850 4715 53 1665 1761 6360 3552 6300 3891 5119 1090 125 1970 2005 36 00 855 2885 240 4322 3630 1465 6775 1678 546 9875 3972 4987 143 -37 -31 -25 30 -17 -07 104 25 04 44 -45 50 04 266 09 110 125 -10 -183 13 -15 105 142 52 11 -17 -06 175 86 10 25 08 02 106 46 14 -013 98 NorterNw 041 127924 Nucor 68 19 5026 Oakwood 465 Pantry PrdgmGn 160 PhrmPdt 34 7950 Pharmanet 121 PhilMor 2321 12 77906 Pozen 186 ProgrssEn 2181 15 4182 Pmid 12 1 54909 Ouintiles 13227 RE MED 53850 Reyn 350 3 5140 RedHat 27420 Ruddick 36 1135 Sapiens 497 SaraLee 609 8 18209 ScrOst 3804 SpecSite 4988 SpeedM 21 374 SprotFON 50 9 38969 Striem 20 8 188 TangEnt 123 Tekelec 7174 TriglePh 1352 Trimeris 2339 Uniti 1171 us Airway 7651 VE Cp 96f 18 2597 VectorGp 160b 26 1848 Viacom 3973 Wachovia 96 21 29866 WasteHold 12 2 Weyerh 160 21 8179 WinDix 102 33 4367 WinstonH 60m 22 332 WoddCom 720 23 216493 4588 5650 1400 1150 1238 3636 1381 5388 2188 4938 6406 2605 3750 6270 1063 1720 188 2506 450 1844 3020 2931 2115 155 3800 875 7038 1008 4800 4270 4646 5969 3660 955 6350 3312 1077 2350 1 52 19 15 52 -26 24 85 04 -26 40 -1 06 05 08 -01 07 -AO 02 62 14 40 -05 -82 23 49 -14 AO 106 -99 43 40 -10 112 40 08 -33 961 56 1826 53 203 1830 1850 456 31 1150 225 2300 550 395 2815 1315 2862 2425 445 4277 1022 676 1150 2225 2623 105 166 588 1400 8008 12220 1188 1475 3800 4434 117 128 1513 4000 4975 7873 1000 1595 120 191 1838 4577 3475 4541 NEW YORK Money rates for Tuesday as reported by Moneyline Prime Rate: 475 Discount Rale: 125 Broker call loan rate: 350 Federal funds market rate: High 1 8125 Low 175 Last 18125 Dealers commercial paper 30-180 days: 188-186 Commercial paper by finance company: 30-270 days: 207-205 Bankers acceptances dealer indications: 30 days 190 60 days 188 90 days 184 120 days 189 150 days 192 180 days 193 Certificates of Deposit Primary: 30 days 166 90 days 149 180 days 161 Certificates of Deposit by dealer: 30 days 188 60 days 186 90 days 182 120 days 187 150 days 190 180 days 192 Eurodollar rates: Overnight 175-182 1 month 181-194 3 months 181-194 6 months 188-200 1 year 231-244 London Inter Offered Rate: 3 months 1 91 6 months 200 1 year 242 Treasury Bill auction results: average discount rate: 3-month as ot Dec 17: 1730 6-month as ot Dec 17: 1 840 Treasury Bill annualized rate On weekly average oasis went adjusted or constant maturity 1-year as of Dec 17: 217 Treas Billmarket rate 6 Mos: 178-176 Treas Notemarket rate 10- year as of dpm :512 Fannie Mae 30 year mortgage commitments: 30 days 695 60 days 704 Fed Home Loan 1101District Cost of Fonds: As of Nov 30: 3628 Money market fund: Merrill Lynch Heady Assets: 30 day average yield: 203 not available revised a- holiday low FOREIGN EXCHANGEmt Selected world gold prices Tuesday Hong Kong late: $27855 up $080 London morning liking: $27885 up $115 London afternoon fixing: 827885 up $115 London ate: $27920 up $150 Paris afternoon fixing: $27806 up $167 Zuhch late afternoon: $27905 up $150 NY Handy Harman: 827885 up $110 NY Handy Harman fabricated: $30116 up $119 NY Engelhard: $27997 up $110 NY Engelhard fabricated: $29397 up $116 NY Mem gold spot month Tue: $28040 up $270 NY HSBC Bank USA 4 pm Tue: $28050 up $250 New York price: Fa feign curFency in dollars Dollar In Foreign correnty Current Piot Current hen Australia Britain Canada Euro France Germany Greece Hong Kong India Ireland Israel Italy Japan Mexico Zealand Spain Sweden Switzer Ind Taiwan Venzuel 3157 14560 A356 A0210 376 4613 A02646 A 282 A209 11450 2361 A00466 A07828 A 09760 A175 A05420 A954 6115 A288 A013 5172 14593 6386 A0200 1376 4614 MO2659 1282 0209 11506 2367 M00466 M07842 109951 A182 A05446 M956 61113 0289 0013 19391 6868 15734 11085 72698 21676 37708 77991 47825 8734 42350 214593 12775 91108 23952 18451 104855 16352 3471 7510625 19335 6853 15660 11086 72682 21672 376 04 77996 47825 8691 42240 214557 12752 90950 23912 18362 104613 16346 34 58 7535000 NEW YORK Handy Harman silver Tuesday $4440 up 0045 fabricated $5106 up $0052 The morning bullion puce for silver in London 54440 up $0055 London late silver $4440 up $060 Engelhard $4450 up $0045 Engelhard fabricated $5118 up $0052 NY Merc silver spot month Tuesday $4415 up $0055 DIVIDENDS mmligliMalm111 Period Aute al retold Noble IRREGULAR AMerBalancedFund 404 12-14 12-17 x- includes $0264 capital gains Canon Inc 0819 12-28 x- pay dale unannounced Cohen SteersSpecEo 73 12-27 12-28 ENOESA SA 2385 12-31 a- pay dale unannounced Gerdau SA 4474 12-31 3-1 iShs DJ EngySect 1503 12-18 12-26 iShs DJ US BasicMat 1069 12-18 12-26 iShs DJ US Cons 0218 12-18 12-26 iShs DJ Consumer 1103 12-18 12-26 iShs al US FiniSvcs 2711 12-14 12-26 Sits DJ US Hither 0628 12-18 12-26 iShs al US RI Est 11838 12-18 12-26 iShs DJ USTotalMkt 1430 12-18 12-26 iShs DJ US thiSec 4298 12-18 12-26 iShs DJ USAM 3083 12-18 12-26 iShs DJ USTelecom 0515 12-18 12-26 iShs MidCap400 2875 12-19 12-27 iShs Russell 3000 3134 12-19 12-27 iShs DJ EngySect 1503 12-18 12-26 iShs DJ US BasicMat 1069 12-18 12-26 iShs DJ US Cons 0218 12-18 12-26 iShs DJ Consumer 1103 12-18 12-26 iShs DJ US FinISvcs 2711 12-14 12-26 iShs DJ US Hither 0628 12-18 12-26 iShs DJ US Al Est 11038 12-18 12-26 iShs DJ USTotalMkt 1430 12-18 12-26 iShs DJ US UNSec 4298 12-18 12-26 iShs DJ USFinci 3083 12-18 12-26 iShsDJ USTelecom 0515 12-18 12-26 iShs MitiCap400 2875 12-19 12-27 iShs Aussell3000 3134 12-18 12-26 iShs Auss2000Grw 0328 12-18 12-26 IShs Rus2000Val 6543 12-18 12-26 iShs Russ3000Grw 0396 12-18 12-26 Payable Period Redo Silt al mod Payable iShs 600 0218 12-19 1227 12-17 iShs SAP Smallcap 1553 12-19 12-27 iShs DJ USChem 1520 12-18 12-26 iShs DJ IndusSec 0651 12-18 12-26 iShs GoldmanSachs 3730 12-19 12-27 12-28 iShs Rus1000Inda 1563 12-18 12-26 iShs Russll 1000V 2375 12-18 12-26 iShs RusMidcapGrt 0091 12-18 12-26 3-1 iShs RusMtdcpinclx 1916 12-18 12-26 12-26 iShs RusMtdcapVaL 3681 12-18 12-26 12-26 IShs Russell 3000 ll 2000 1799 12-18 12-26 12-26 iShs Russe 2700 12-18 12-26 12-26 iShs SP400 2012 12-19 12-27 12-26 iS6s SP500Gr 1114 12-19 12-27 12-26 IShs SP500 1971 12-19 12-27 12-26 iShs SAP Mcap 0289 12-19 12-27 12-26 iShs SAP500Ind 12-26 iShs SP600 12-26 iShs :31439908 1122199 1122:2277 12205 12-19 12-27 12-26 Income Fd Amenca 356 12-14 12-17 12-27 x- includes $0156 capital gains 12-27 Invest Co Amer a 48 12-17 12-18 12-26 x- includes $035 capital gains 12-26 WIFSEmergMktsDelfd A 8609 12-17 12-17 12-26 MFSEmergMatDegd I 8609 12-17 12-17 12-26 FAFSEuroadyFd A 40 2 12-26 MFSEuroEdlyFd I :004099 112:7 117 112217 7 12-26 MFSGemirgCaplISH A 0293 12-17 12-17 12-26 PAFSGemtiand A 12 12-17 12-17 12-26 PAFSGIoAstAlloFnd A 0701 12-17 12-17 12-26 MFSGIoAstAlloFnd 0541 12-17 12-17 12-26 MESGIoAstAlland 0540 12-17 12-17 12-26 MFSGMAstAlland 0872 12-17 12-17 12-27 MFSGIoConsvEcpyFrid A 045 12-17 12-17 12-26 MFSGIoTotRInFd A 0342 12-17 12-17 12-26 MFSGIoTotRInFd I 0586 12-17 12-17 12-26 FAFSIntIADBFd A 041 12-17 12-17 12-26 FAFSintiCoreEdlyEd A 0184 12-17 12-17 COMMODITIES mmoOMMINMMOkt GRAINS Futures trading on Chicago Board 01 Trade LIVESTOCK Futures trading on Chicago Mercantile Exchange WHEAT 5000 bu cents per bushel CATTLE 40000 lb- cents per lb Mar 02 May 02 Jul 02 Sep 02 Dec 02 Jul 03 28534 289 28712 28944 28612 289 29112 29212 30012 302V2 296 297 285 288 28512 2902 30012 29512 28534 28612 28614 29012 301 297 42 Dec 01 Feb 02 Apr 02 Jun 02 Aug 02 Oct 02 Dec 02 6335 6795 7090 6780 6785 7012 7070 6497 6957 7250 6932 6942 7130 7170 6310 6765 7067 6760 6775 7012 7070 6497 6955 7247 6907 6915 7130 7170 150 148 147 125 123 118 100 -14 111 CORN 5000 bu minimum- cents per bushel FEEDER CATTLE 50000 lbs- cents per lb Jan 02 8220 8380 8190 Mar 02 8135 8285 8102 Apr 02 8120 8275 8105 May 02 8120 8282 8100 Aug 02 8250 13430 8250 Sep 02 8265 8435 8265 Oct 02 8260 8425 8260 Nov 02 HOGS-Lean 40000 lbs- cents per lb Feb 02 5345 5350 5262 Apr 02 5690 5725 5660 May 02 6287 6300 6277 Jun 02 6380 6440 6360 Jul 02 6145 6190 6130 Aug 02 Oct 02 5240 5245 5232 Dec 02 PORK BELLIES 40000 lbs- cents per lb 8380 8285 8275 8282 8430 8435 8425 8410 150 150 150 150 150 150 145 78 Jan 02 Mar 02 May 02 Jul 02 Sep 02 Dec 02 Mar 03 Jul 03 Dec 03 209V2 2152 222 22r2 23112 23rn 24532 251 251 20912 216-ik 22314 220 2302 23034 246V4 251V2 252 206 21314 220 22512 23014 236V2 24434 25012 250 206V2 214 22012 22612 23012 23712 245 25012 251 -112 -112 -112 -112 14 5332 -20 5715 05 6290 -25 6427 12 6160 -05 OATS 5000 bu minimum- cents per bushel Mar 02 196 196 19114 19112 -512 May 02 17512 -5 Sep 02 140 -3 SOYBEANS 5000 bu minimum- cents per bushel 6025 -30 5232 02 5072 -03 Jan 02 43614 43912 43112 432 -4314 Mar 02 43839 442 433 43349 May 02 44314 44519 43712 438 -5 Jul 02 449 450 44112 44139 -5314 Aug 02 448 448 44139 441314 -539 Nov 02 452 45239 44612 44812 -539 Nov 03 480 -12 Feb 02 Mar 02 May 02 Jul 02 Aug 02 7495 7500 7650 7750 7595 7525 7695 7800 7425 7440 7650 7750 7575 7450 7695 7755 7755 -20 -95 -25 95 -85 COT1ON SOYBEAN OIL 60000 cents per lb Jan 02 1557 1563 1545 1550 -14 Mar 02 578 1584 1566 1569 -17 May 02 1597 1604 1590 1591 -19 Ju102 1823 1624 1609 1612 -18 Aug 02 1634 1636 1621 1622 -15 Sep 02 1641 1647 1630 1631 -16 0c102 1655 1658 1643 1643 -15 Dec 02 1660 1680 1665 1665 -13 Jul 03 1735 -10 50000 cents per lb Mar 02 May 02 Jul 02 Oct 02 Dec 02 Mar 03 May 03 3730 38 65 39 80 4170 4270 4410 3740 3875 4000 4175 4280 4410 3675 3815 3945 4135 4245 4410 36 81 3820 39 45 4135 4257 4410 4625 -64 -69 -75 -65 -39 -30 -35 SOYBEAN HEAL 100 donors per ton WMBER BLOOMBERG NEWS LONDON GlaxoSmithIcline Chief Executive Officer Jean-Pierre Garnier said he expects US regulators will decide whether to approve the extended-release version of the antibiotic Augmentin in the next year Friday the company said the US Food and Drug Administration is asking for more data on Augmentin XR a new version of an antibiotic already on the market Analysts say introduction of the XR version might be delayed for a year and the existing medicine might face cheaper generic rivals by mid-2003 "We wish we had XR now" Gar-flier said said "I'm not going to tell you otherwise because I think XR is a superior product XR would help fight generic competition" GlaxoSmithEline was created in a $68 billion merger of two of the largest UK clrugmakers Although Gamier has kept profit growing by reducing costs investors say the company needs new products Garnier shook up Glaxo's labs this year and bought rights to the Bayer BLOOMBERG NEWS LONDON GlaxoSmithKline Chief Officer Jean-Pierre Gar- tier said he expects US regulators vill decide whether to approve the xtended-release version of the "We think we can squeeze more out of our company and put it back to where it really belongs: research and development" he said Glaxo has had some disappointments recently In October the company stopped work on a diabetes treatment in the last of three stages of testing generally needed for regulatory approvallt also withdrew the irritable-bowel syndrome drug Lotronex which was linked to intestinal problems and in some cases death The chief executive said the company's plan to change its research and development operations has been altered slightly It is keeping so-called "centers of excellence" concentrating on six different disease areas but it split cardiology from oncology The study of cancer treatments will be grouped with anti-infective medicines he said "It's not a big adjustment" he said "The proof in the pudding will be in 2004 to 2005 That's when we'll know if we were successful in reshaping research" "We think we can squeeze more out of our company and put it back to where it really belongs: research and development" he said Glaxo has had some disappoint ments recently In October the com- JEAN-PIERRE GARNIER CEO GlaxoSmithKline impotence treatment vardenafil The year-old company will start marketing vardenafil in late 2002 Gamier said Gamier said the company will find more ways to save money in manufacturing and purchasing The company already expected more than $580 million in cuts this year MIDWAY AIRLINES MIDWAY CONTINUED FROM PAGE 1 TODAY 250 9 6 5 planes Boeing 737s (5) EMPLOYEES DAILY DEPARTURES FROM RDU DESTINATIONS FROM RDU FLEET SIZE AUG 1 2700 115 28 40 planes Jetliners Fokker FlOOs (4) Conadoir Regional Jets (24) Boeing 737s (12) BY CHRISTINA DYRNESS STAFF WRITER MORRISVILLE Wild Bill is back After stepping down as chief executive officer of the company he founded under the name Interactive Magic in 1999 JW "Wild Bill" It TP 4 Stealey was lay- ing low working on his own small game company and spending 4 lots of time in Florida Stealey has But this mom- big plans ing iEntertain- bring the ment Network company to formerly profitability known as iMagic will announce the return of Stealey to the position of CEO and chairman of the struggling publicly traded Internet game company "I believe iENT is a survivor" Stealey said "You can take a break-even company and do a few things to it to make it a profitable company" Stealey replaces Mike Pearce who took the job as iEntertainment's CEO in late 1999 Pearce is taking a job with an investment firm "We held it together but there's still work to do" Pearce said "There's still work to do" iEntertainment a 19-employee company that runs online games including Bingo and the popular WarBirds flight simulator was hurt by the steep decline in Internet advertising After selling stock to the public in 1998 at $8 per share its shares have been in a steady decline and were delisted from Nasdaq in April lEntertainment shares closed at 34 cents Tuesday Stealey whose outspoken nature makes him a well-known figure in the gaming world said he plans to build iEntertainment through acquisitions and bring the company to profitability in the next three months iEntertainment reported $400000 in revenue for the three months that ended Sept 30 down 74 percent from the year-ago most of the major carriers faltered after the terrorist attacks Heavy bookings on the initial flights show that low prices can still attract passengers The first day after Midway's schedule was announced the airline had 8600 bookings for seats Prices on most seats go up after Jan 6 but they will remain lower than most competitors' fares That will attract passengers but also will make earning a profit more difficult analysts said Aviation consultant Michael Boyd predicted that Midway will have a tough time because nationally ridership is down 20 percent from pre-attack levels "Filling the planes today out of RDU will be very difficult" said Boyd president of the Evergreen Colo-based The Boyd Group "I hope they do and I hope they make a lot of money I just don't think that will be really easy to do "There's never a good time to start an airline and after Sept 11 it's worse" Boyd said But Ferguson said "They seats1 are filling up We're happy with 50-seat Canadair Regional Jets Ferguson said Midway still faces competition from Southwest Airlines which flies from RDU to Tampa and Orlando and from American Eagle which has moved into many of Midway's most lucrative former markets including Fort Lauderdale Newark Boston and LaGuardia Ferguson said he hopes to win passengers from Southwest the nation's most successful low-fare carrier by offering low fares and amenities such as assigned seating mints and inflight hot towels As for American Eagle Ferguson thinks passengers will prefer lower fares and Midway's more spacious 737s over the 37-seat Embraer regional jets that American Eagle uses exclusively on its routes from RDU "If you've got anything bigger than a briefcase you'll be hard-pressed to take it on" Ferguson said referring to American Eagle's jets where we are We're pleased obviously we're going to be full" Before bankruptcy Midway offered nonstop flights to 28 cities from RDU The new Midway will remain much smaller and today is returning 14 of the 19 gates in Terminal which it subleases from American Airlines Midway is betting that its six destinations will be enough to attract passengers Besides the three Florida cities Midway is resuming service to Boston New York LaGuardia and Newark NJ all popular destinations for Mangle travelers Those flights aren't full for Wednesday's run but are filling up closer to Christmas Ferguson said Midway also is counting on its Boeing 737-700 jetliners to reduce operating costs The airline has leased back five of the 7375 that it was using before stopping flights in September The 128-seat planes are about six months old and are much more efficient than the other aircraft Midway had in its fleet Each 737 costs about 25 percent less to operate than the 98-seat Fokker F100s do and about 50 percent less than the IIISIYOUltELATa ROOF EAKING? al LH 4 1 ROOF EAKING? kr: SS 4 I a Jan 02 15110 15180 14760 14780 -310 Mar 02 14840 14940 14520 14540 -280 May 02 14740 14800 14500 14520 -180 Jui 02 14800 14890 14600 14630 -160 Aug 02 14860 14890 146 30 14650 -160 Sap 02 148 90 14930 14700 14710 -140 Oct 02 14850 149 20 14630 14630 -140 Dec 02 150 80 11080 14910 14920 -120 Staff writer Dudley Price can be reached at 829-4525 or dpricenewsobservercom 110000 bd IL- poi 1000 bdfL kr 100 100 83 80 4 0 Jan 02 Mar 02 May 02 Jul 02 Sep 02 Nov 02 2429 2520 2600 289 8 250 3 259 7 2670 2701 2415 252 0 2600 2698 2503 259 7 2667 2701 2681 260 1 Staff writer Christina Dyrness can be reached at 819-4619 or 4.