April 16, 1998

To:     The University Community

From:   Benjamin F. Quillian
        Vice President for Administration

Chancellor Reed has issued the following statement today concerning CETI:

CHANCELLOR REED STATEMENT:

"On March 17, 1998, I said it was 50/50 the CETI negotiations would be
successfully completed  -- and that's where we remain today.  Our
negotiating team has worked seven days a week over the past several months
trying to put together the best possible agreement for the CSU, its faculty
and students.  This team, lead by Maynard Robinson and Tom West, has
successfully negotiated most of the key points, but some of the heavy
lifting remains.  It may be well into the next academic year before we know
for certain whether a CETI agreement can be reached with GTE and Fujitsu.
Microsoft and Hughes will not be CETI partners.  The CSU is continuing to
work with Microsoft on an appropriate relationship.  If necessary we may
seek new partners who are interested in joining this effort which is vital
to maintaining  CSU's academic quality and safeguarding its future.

"Let me also reiterate there is little doubt in my mind that the State is
unable to provide the $300 million needed to build this technology
infrastructure.  Therefore, CETI -- or a similar public-private partnership
carefully negotiated to be in the best academic and financial interests of
the CSU, its faculty staff and students -- is still the way to go.  The
Board of Trustees, the Presidents and I have consistently reaffirmed that
no partnership would be consummated which does not meet this criteria and
which has not undergone the agreed-upon 45-day review and response period.

"As someone who joined the CSU after CETI negotiations were well underway,
I feel comfortable expressing my great pride at the vision, the foresight
and the entrepreneurial courage of those who began this project more than
two years ago.  CETI is not only an innovative and workable concept which,
if successfully negotiated, will benefit all concerned, but it may well
serve as a public-private  model for universities around the country.

"Finally, we look forward to working with everyone to make sure the CSU has
the best technology available for the 21st century."