Calif¿s. info. tech. (IT) industry is both the state¿s leading manufacturing sector & its leading export sector. Exports from this sector grew rapidly between 1997 & 2000 but then declined for both the state & the U.S. through 2003 -- in Calif¿s. case, a decline of $25 billion, or 42%, from the 2000 peak. This report documents the changing pattern of Calif¿s. manufactured IT exports during the recent boom & bust period. Much of the drop between 2000 & 2003 stemmed from lower purchases of Calif. commodities worldwide, but declining prices for commodities exported from Calif. also contributed. The vast majority of the steep drop-off in California¿s share of the U.S. total stemmed from a redirection of purchases away from Calif. to other states. Illus.