Sun Microsystems Sets `UltraSparc' Output, Mid-1995
  MOUNTAIN VIEW, Calif. -- Sun Microsystems Inc. said it will begin producing
 its next-generation "UltraSparc" chip in the middle of next year, about a
 year later than analysts had expected, The Wall Street Journal reported.
  The new chip, which will be used to power workstations and server
 computers, is expected to have an "integer" computing power of about 250,
 according to industry analyst Andrew Allison, of Carmel, Calif., compared
 with 150 for Intel Corp.'s Pentium chip, used in high-end personal
 computers. (The integer rate measures computing power for most tasks.) Sun's
 current chip is slightly less powerful than the Pentium, Mr. Allison said.
  But by the time UltraSparc begins shipping, the playing field will have
 changed. Hewlett-Packard Co., for instance, is expected to announce next
 month that next year, it will begin shipping a chip with computing power
 between 200 and 300, Mr. Allison said. H-P didn't immediately return phone
 calls seeking comment. And last month, Digital Equipment Corp. said its new
 version of its Alpha chip, to be introduced by the end of the year, will
 have a computing power of 330, Mr. Allison said.
  Chip power alone won't change a workstation maker's competitive position.
 Indeed, although Sun's chip is currently less powerful than the Pentium, the
 company is still the No. 1 workstation maker; in contrast, DEC, with the
 most powerful chip, has had trouble selling its workstations.
  But recently, Sun's has had to compensate for its lack of chip power by
 keeping prices especially low. If Sun can deliver the UltraSparc as
 promised, "they won't have as much pressure on price," said First Boston
 analyst Curt Rohrman.
  On the Nasdaq Stock Market yesterday, Sun shares closed at $28.25, up 37.5
 cents.


***********************************************
Robot `Alexbot' Hosts        Quiz Show On Internet
  Alex Trebeck, the silver-templed and silver-tongued host of "Jeopardy", has
 some stiff competition in cyberspace: "Alexbot," a highly emotional software
 robot who hosts an Internet version of the TV game show.
  Unlike his TV counterpart, Alexbot can be unpredictable, sometimes
 easy-going and other times belligerent. He greets players with a friendly,
 "Hola," but when taunted, he turns angry: "Get a clue," he says. Tell him
 you hate him, and he becomes a cybershrink: "How long have you been feeling
 this hatred?"
  "We all like Alexbot. He's much more fun" than the real Alex, says Vivek
 Sistla, a graduate student at the University of Tennessee.
  To play, users sign on to Internet Relay Chat, which allows many players to
 type messages simultaneously. Alexbot selects categories, poses questions
 and announces winners. With users' names next to each message they type, the
 chat looks like the script of a play, with the players' lines scrolling up
 the computer screen.
  Unlike the TV trivia game show, which usually airs once a day, the Internet
 version runs 24 hours a day, seven days a week. Winners get imaginary
 prizes: a La-Z-Boy recliner, a year's supply of Pampers or a trip to
 Amsterdam. There are virtual booby prizes, too: the opportunity to run 10
 miles, for example.
  The software robot is the brainchild of Kenrick J. Mock, a 26-year-old
 graduate student in artificial intelligence at the University of California,
 Davis. He programmed Alexbot to look for patterns of text and offer canned
 responses. "It doesn't actually do any understanding," he says, but the
 robot can seem "witty."
  "Sometimes he's nice and sometimes he's really sarcastic," says Mr. Mock.
  Unlike "Jeopardy" on television, where contestants respond with a question,
 on-line players respond with the answer. Example: Where does Pepe LePew
 always want to take his dates? Answer: Alex, the Casbah.
  But not everyone thinks it's all fun and games. Sony Corp., whose Columbia
 TriStar Television unit owns rights to the real "Jeopardy", says it intends
 to halt any unauthorized use of the game's copyright and trademark.
  Alexbot may get a nasty letter from Sony's lawyers. To which the robot
 might give one of his preferred responses: "Yeah, yeah, sure, sure."


**********************************************
Waiting For A Ride On Info   Highway Is Like Faith In Santa
  SCOTTSDALE, Ariz. -- The future will arrive late, if the government doesn't
 mess it up altogether.
  Such sentiments prevailed among 435 members of the digital elite who
 gathered at a posh resort this week to handicap the race to build an
 information highway. Agenda 95, this year's name for an annual conference
 that attracts high-tech's movers and shakers, suggests industry insiders are
 having second thoughts about some of the hype they helped generate.
  "It's unbelievable for something that doesn't exist," said Nathan Myhrvold
 , a Microsoft Corp. senior vice president who compares the situation to
 faith in Santa Claus. "The only problem is that this particular Christmas is
 five years away."
  Skepticism was quantified in a series of instant electronic polls, in which
 audience members pushed buttons on a tiny keypad to register their votes
 about industry directions. Asked to predict when Americans will have access
 to computerized movies on demand, for example, most Agenda participants
 picked 1997 or 1998.
  Agenda, produced by InfoWorld Editorial Events of San Mateo, Calif., also
 generated some unusual betting about future winners and losers. Though the
 audience was dominated by PC industry executives, AT&T Corp. was voted most
 likely to be leading supplier of home interactive technology with 35% of the
 vote. Most people think PCs or TV-set decoders will be the most important
 piece of home hardware.
  The audience directed several hostile questions toward a Clinton
 administration representative, who explained the administration's
 information policies while invoking a conference ground rule that
 participants may remain anonymous. In one sign of keeping up with the times,
 he said, the White House on Thursday will unveil a new direct link to the
 Internet that will provide an attractive way to find out about government
 services.
  But attendees attacked the administration for its Clipper technology, which
 scrambles communication, while preserving law enforcement's ability to
 conduct wire taps, as well as prospects that high-speed networking would be
 subject to new taxes and regulations. Other soar points included proposals
 that would guarantee poor and geographically isolated communities universal
 access to technology, which attendees argued could raise the cost and delay
 introduction of services.
  Rather than compel phone and cable companies to wire poor neighborhoods,
 the administration is considering ways to give financial subsidies for
 access to new communications technology, along the lines of food stamps, the
 official said.
  Among new technologies demonstrated at the event, most kudos went to a Palm
 Computing Inc. system for using a pen to enter text onto a computer.


**********************************************
Computer Companies Try       Television Ads' Mass Appeal
  Television advertising for computers and software -- products that until
 recently appealed only to the technologically elite -- will soon become as
 ubiquitous as commercials for, say, Coke and Pepsi.
  International Business Machines, Intel and Microsoft are spending about
 $100 million each in an advertising blitz, most of it on television. It's
 more than any of the three has ever spent on TV advertising.
  The commercials are turning up on news programs like "20/20" on ABC and "48
 Hours" on CBS, and on situation comedies like "Seinfeld" and "Frasier" on
 General Electric's NBC.
  But with PCs costing $1,000 and up -- not including software and printers
 -- some marketing experts question the value of the bulging ad budgets.
 Television, they argue, is for mass marketers taking a "buckshot approach"
 with campaigns aimed at reaching sheer numbers. Computer advertising has
 been far more targeted, mainly in upscale publications and specialty
 magazines.
  Computer advertising is one reason network ad spending is breaking records.
 In the so-called upfront market -- when ad time is sold before the start of
 the season, which began last night -- the four networks recorded sales
 totaling $4.35 billion, up 18% from last season. The record was $4.26
 billion in the 1990-91 season.
  The surge in TV advertising by computer makers marks a "shift for the
 industry," says Sally Fundakowski, director of processor brand marketing at
 Intel, a chip manufacturer that recently began running TV ads. "The market
 for PCs is getting broader and broader. We would like to make it broader
 still. We want to hit people in their homes and encourage them to buy PCs
 for their home." IBM, Microsoft and Intel are laying out their TV ad budgets
 for the next 12 months; Compaq, meanwhile, is spending about $20 million in
 the fourth quarter alone. It declines further comment on its ad spending
 plans.
  According to industry figures, about one-third of the nation's 90 million
 households own some kind of personal computer. The situation approximates
 the one faced by the videocassette recorder market a decade ago, when VCRs
 were in a fraction of homes. Today more than 80% of U.S. homes have at least
 one VCR.
  But there is a difference. VCR sales were propelled by pricing, not product
 attributes. By contrast, "computers need to be explained," says David
 McGovern, director of marketing communications at IBM.
  IBM will blanket the airwaves "because there are a few things we want to
 make the public aware of in a very short period of time, and television is
 the way to do it," says Mr. McGovern. TV advertising can be effective in
 "counteracting" misperceptions, he adds, such as the belief that IBM
 hardware is too expensive when, Mr. McGovern insists, "we're quite
 affordable."
  The IBM campaign will launch in mid-October with commercials starring
 comedian Paul Reiser. It's the first major campaign from IBM's new worldwide
 agency, WPP Group's Ogilvy & Mather.


****************************************
Digital Equip Pact -2-: To Provide Alpha AXP Servers >DEC
  MAYNARD, Mass. Digital Equipment Corp. (DEC) said it received a
 contract from Hughes Aircraft, estimated at $20 million over the next two
 years, to provide its 64-bit Alpha AXP servers as the standard platform for
 Hughes's Enterprise Server Project. 
  In a press release, Digital Equipment said the contract calls for the use
 of Digital's Alpha AXP servers running the DEC OSF/1 operating system,
 Digital's implementation of the UNIX operating system. 
  The servers will support applications including manufacturing resource
 planning, product data management, database, data warehouse and
 communications applications, Digital Equipment said. 
  Hughes's Enterprise Server Program is part of a business re-engineering
 plan which includes development of flexible systems able to adapt with
 changing business needs through downsizing from centralized mainframe
 applications to distributed applications across an open client/server
 environment. 
  Digital Equipments's Alpha AXP servers, including the Digital 2100 Server,
 are already installed as part of the program in Hughes' Fullerton and Long
 Beach, Calif., locations, the company said. 
  Hughes Aircraft is a unit of General Motors Corp. (GM). 


**********************************
Plasmon breaks $3,000 barrier for  in-house CD recording           
NEW YORK Sept. 20, 1994--Plasmon Data Systems has
reinforced its commitment to become a major factor in the CD-recordable market
by slashing the suggested list price of its popular RF4100 CD-Recorder to
$2,995. 
The price reduction, which represents a savings of $2,000, follows close on
the heels of Plasmon's recent announcement that the system has been tested and
qualified by four of the industry's leading developers of CD-R (CD-Recording)
mastering software. 
Ideal for in-house recording of compact discs, the RF4100 2X CD-Recorder 
provides twice the read/write performance of conventional CD devices and 
includes disc update capabilities for adding files in up to 99 recording 
sessions.  Once recorded, the discs are like any standard CD-ROM or music CD
in that they offer users the security of knowing that their information cannot
be altered. 
Dave Kalstrom, Plasmon group vice president, credited the firm's success in
achieving the production volumes necessary to lower the manufacturing costs of
the recorders.  Since introducing the system six months ago, the company has
been ramping up production as rapidly as possible and working closely with
third-party CD recording software suppliers to ensure that resellers and their
customers have a wide choice of application solutions. 
"All of the pieces are now in place for firms to quickly and economically
produce limited quantities of their own CDs in-house," he commented. 
Applications for the RF4100 recorder include low-quantity distribution of
reference databases by firms in the medical, legal, financial, education,
manufacturing and service industries.  In addition, they can be used for
limited software distribution as well as database storage and maintenance. 
Plasmon CD-recorders can also be used to create master discs for CD authoring
as well as stereo audio demos and pre-production. 
"We're also seeing considerable interest in using recordable CDs among 
corporate users who want to distribute low volumes of data, image and 
reference databases within their organization and to business partners around
the world," Kalstrom added. 
"With the RF4100, companies and individual departments can produce their own
CDs at about 5 cents per megabyte -- a fraction of the cost of pressed disc
manufacturing or even disseminating the information on 20 to 50 floppies.  The
discs can then be read on any CD drive." 
The Plasmon RF4100 has been qualified with authoring software from leading
mastering firms such as Corel, incatsystems software, Elektroson, 
American InfoScience and CD-ROM Strategies. 
The system is provided with 128KB EEPROM which can be upgraded by a CD or SCSI
command and includes 1 MB of internal data buffer memory. Memory expansion to
32MB is available.  For increased flexibility, the RF4100 offers both 1X and
2X data transfer rates. Fully compliant with all industry standards, the
system has an average access time of 1,000ms and a maximum data transfer rate
of 5MB/s. 
Plasmon's RF4100 uses a standard SCSI interface for fast, easy integration and
is compatible with DOS, Macintosh, Windows and UNIX systems. 
The minimum system requirements for the RF4100 are:  a 386 PC with a hard
drive (drive capacity depends on the amount of data the user wants transferred
to the CD and the recording speed of the drive).  Formatting software is also
required, as well as a CD-R-compliant disc (such as Plasmon's PCD-R63 660MB
media or PCD-R74 780MB media), a SCSI interface card and appropriate cabling. 
Available now from authorized Plasmon resellers, the RF4100's new suggested
list price of just $2,995 is effective immediately. In addition to the RF4100
CD-Recorder and CD-R media, Plasmon provides VARs, 
dealers and system integrators with a complete line of optical disk storage
products including drives, subsystems, media and integration solutions. 


***********************************************
Leaders Get First Look at 3-D Medical Imaging Over Coast-To-Coast N
SAN FRANCISCO Sept. 20, 1994--Congress and 
Administration officials in Washington, D.C. were treated today to the 
unveiling of a breakthrough 3-D medical imaging application that takes full
advantage of the high-speed communications superhighway. 
A team of California organizations designed the futuristic application, led by
the University of Southern California (USC) Advanced Biotechnical Consortium
with support from Pacific Bell's California Research and Education Network
(CalREN) trust. 
The coast-to-coast live demonstration connected Washington, D.C. with the USC
School of Medicine and was conducted by the National Information 
Infrastructure Testbed (NIIT), a consortium of technology companies, 
universities and government agencies. 
Called Volumetric Visualization Imaging, the groundbreaking application uses a
supercomputer and the high-speed ATM/Cell Relay network to create detailed 3-D
representations of CT or MRI images -- all in real-time. Physicians can rotate,
magnify, and manipulate the images to provide remarkably precise diagnosis and
treatment, especially for diseases of the brain. 
The project is supported by an award of $840,000 from Pacific Bell's CalREN
trust for use of Pacific Bell's ATM/Cell Relay service. Pacific Bell
established CalREN last year to stimulate the development of new high-speed
applications for California's communications superhighway. 
The USC School of Medicine is consistently ranked among the nation's leading
academic medical institutions.  The USC School of Medicine affiliated
hospitals include the USC University Hospital, USC/Norris Comprehensive Cancer
Center, Doheny Eye Institute, Los Angeles County + USC Medical Center and
Childrens Hospital Los Angeles. 


*********************************
AMERICA ONLINE FIRST TO OFFER INTERACTIVE FORUM FOR THE AMERICAN AS
OF RETIRED PERSONS
     Interactive Services Created for the Leading Organization 
                         of Older Americans 
VIENNA, Va., Sept. 20  -- America Online announced today that
it is the first online service to provide AARP Online. 
AARP Online will provide association members and AOL subscribers with access
to membership and benefit information, bulletin board discussions and
real-time conversation. Subscribers will also have access to the resource
library to read current, timely information and keep informed about the
policies and issues that effect older Americans including financial planning,
personal safety, and health care reform. 
In addition, AARP members will have access to America Online's wide array of
services including SeniorNet, the international community of computer-using
seniors, over 40 special interest publications,  more than 50 special interest
clubs, and many more services of value to seniors with topics ranging from
personal finance to travel to continuing education. 
"We are delighted AARP has chosen America Online as a new vehicle to inform
and communicate with its members," said Steve Case, President and CEO of
America Online.  "AARP Online is an excellent resource for subscribers to
access information about topics that affect senior Americans and share ideas
and experiences with older individuals." 
"Nearly two million AARP members are computer-friendly and have the equipment
they need for interactive communications," said AARP Executive Director Horace
B. Deets.  "In addition, we are pleased the information that will be available
on America Online will benefit Americans of all ages, such as those looking
for information to help a parent or grandparent." 
AARP is the nation's leading organization for people 50 and older. It serves
their needs and interests through legislative advocacy, research, informative
programs and community services provided by a network of local chapters and
experienced volunteers throughout the country.  The organization also offers
members a wide range of special benefits, including Modern Maturity and the
monthly Bulletin. 
America Online, Inc. (Nasdaq-NNM: AMER), based in Vienna, VA, is the nation's
fastest-growing provider of online services.  The Company offers its more than
1 million subscribers a wide variety of services, including electronic mail,
conferencing, software, computing support, interactive magazines and
newspapers, and online classes, as well as easy and affordable access to
services of the Internet.  Founded in 1985, 
the Company has established strategic alliances with dozens of companies
including Time Warner, Knight-Ridder, Tribune, Hachette, IBM, and Apple. 
Personal computer owners can obtain America Online software at major retailers
and bookstores, or by calling 800-827-6364. 



************************************
Newsweek In Pact With Prodigy To Publish Online Magazine >WPO
  NEW YORK  Washington Post Co.'s (WPO) Newsweek unit reached an
 agreement in principle with Prodigy Services Co. to publish a
 general-interest, multimedia magazine online as an adjunct to the print
 version of Newsweek. 
  In a press release, Newsweek said pricing, distribution and availability
 details for its Newsweek InterActive magazine would be released in late
 October. 
  A Newsweek spokeswoman said the target date for the debut of the magazine
 is November. 
  Newsweek InterActive is to include photographs, sound, graphics and text,
 and will be complemented by special issues on CD-ROM for Macintosh and
 Windows platforms, Newsweek said. 
  Prodigy is a joint venture of International Business Machines Corp. (IBM)
 and Sears, Roebuck & Co. (S). 


**************************************
Microsoft to Enter On-Line Market Next Year                        
PHOENIX--Sep. 21--Microsoft Corp. Chairman Bill Gates confirmed Tuesday his
company will enter the on-line service market next year with an offering 
code-named Marvel, again pitting the industry's 800-pound gorilla against a 
host of competitors. 
Gates indicated Marvel, whose existence has been the subject of intense 
speculation in the trade press, will be developed by the Redmond, Wash., 
company's new Microsoft Home division, which also produces CD-ROM information 
and entertainment titles. 
It will be linked with many of those titles, such as the company's baseball
CD-ROM, so that customers can dial the service from computers to obtain
statistics to use with programs on the CD-ROM. 
That Gates and his company plan an on-line service has caused a stir in the
growing circle of companies that already have or plan such systems. In 
addition to the ubiquitous Internet, there are three major entrenched national
competitors: Compuserve, the oldest on-line service; Prodigy, a partnership of
IBM and Sears that has stumbled of late; and America Online, 
probably the most successful of the trio and the service that carries Mercury 
Center, the on-line service offered by the Mercury News. 
Those mainstays have recently been joined by at least two other services. One
is from Ziff-Davis, the largest publisher of computer trade magazines in the
world. And Apple Computer Inc. now offers eWorld, although currently only to
users of its Macintosh. 
Gates sought to assuage some fears in the audience by insisting that Marvel
would not attempt to create significant amounts of information for sale on its
system. 
"We have no interest in doing an independent editorial content magazine on
computers," Gates said. "We are not going to write weekly newsmagazines or
make standard movies."  


***************************************
Microsoft Studying On-Line   Service, Wooing Data Publishers
  SCOTTSDALE, Ariz. -- Microsoft Corp. offered new details of its plans to
 exploit the Information Highway.
  William Gates, Microsoft's chairman and chief executive officer, confirmed
 at an industry conference that the software company is negotiating with
 information publishers about offering their wares on an on-line service it
 is considering. Mr. Gates stopped short of announcing such a service, widely
 rumored under the code name Marvel, but disclosed that his company hopes to
 woo publishers by offering a higher percentage of any potential revenue than
 they get with existing services.
  Mr. Gates also said that Microsoft plans to offer its own information on
 any on-line service it may deliver. Offerings are likely to emulate
 Microsoft's CD-ROM titles, which include multimedia encyclopedias and
 information about baseball and other topics, he said.
  Microsoft's plans for on-line services have been a hot topic among
 competing on-line services and information publishers, who fear that the
 software company's own information offerings might have an unfair advantage
 on any service Microsoft might operate. Robert Frankenberg, chairman of
 rival Novell Inc., pointedly announced at the conference that Novell would
 stay out of content, citing such concerns.
  "I can't take that pledge," Mr. Gates said. But he insisted that Microsoft
 would simply be another competitor in information publishing, resembling the
 existing software market; in that area, Microsoft and many other software
 companies compete to make application programs based on Microsoft's own
 operating system. "Our shadow is bigger than our body in this case," he
 said.
  At the Agenda 95 conference here, Microsoft, Novell, International Business
 Machines Corp. and others discussed plans to deliver simpler software to
 allow PC users to cruise the Internet. Mr. Gates said some of those
 capabilities will be built into Windows 95, the new operating system
 expected to be shipped next spring.
  Novell disclosed the broadest of those software systems yesterday, a new
 program that offers easy ways to find information on corporate networks as
 well as the Internet. The program is code-named Corsair, and works with
 Novell's widely used network operating system, NetWare, as well as Microsoft
 Windows and other programs, Mr. Frankenberg said.
  Demonstrating Corsair and a related program dubbed Ferret, users click a
 mouse pointing device on familiar symbols such as books or buildings in a
 simulated city to call up data from inside their own company or over
 external networks, avoiding complex commands that are now common. Corsair is
 designed to provide a set of tools so that customers could design new
 services, such as shopping options that would appear as malls to a PC user,
 and also arrange payment for items purchased on-line, Mr. Frankenberg said.
  He said the program would be available next year, but wouldn't give more
 specific details.



*****************************
PHONE SEX ABOUT TO YIELD TO PICTUREPHONE SEX                       
 ROCHESTER, N.Y., Sept. 21 -- Live sex over the phone? It's not
just a possibility, it's an actuality, according to the president of a company
that normally specializes in sedate videoconferences. 
Jeremy Goldstein, who heads PicturePhone Direct of Rochester, New York, says
sending live sex over phone lines is just as easy as sending the face of a
corporate chief executive officer ("And considerably less severe," quips
Goldstein). 
The issue arose when Goldstein distributed copies of a PicturePhone Direct
catalog, prepared for the forthcoming Telecon Videoconferencing Trade Show
scheduled for Anaheim, California in October.  An inquiry as to whether
videoconferencing equipment could be used for live sex video phones brought
the reasonable answer, "Why not?" 
Goldstein neither endorses nor denounces live sex scenes transmitted over the
phones; he simply supplies the technology.  "Reality tells me we can expect
dozens of companies to switch from what has become a standard offering --
900-number sex phone calls -- to adult videoconferencing services," Goldstein
commented.  "It's a logical step for that kind of business, and live phone sex
is as easy as having a PicturePhone transmitter in one location and a receiver
in another. In fact, two transmitter/receiver units could come as close to
simulated sex as electronics can make possible." 
Goldstein admits to being nonplused about the future of adult 
videoconferencing.  "I'd welcome some governmental feedback," he says. "Right
now, we're handling all commercial inquiries the same way -- by simply quoting
prices for the equipment from our catalog.  PicturePhone Direct can't be the
policeman, any more than telephone companies can police existing phone sex
lines." 
The PicturePhone Direct catalog is a disappointment to anyone looking for
prurient illustrations.  Its 56 pages are filled with communications hardware
and software -- video cameras, exotic connectors, and computer programs that
let participants make notations on documents while they're being screened. 
What seems to have excited the sex-line merchants is a two-page spread with
the heading "Desktop 'Full-Motion' Videoconferencing Systems." Imaginative
sensuality-entrepreneurs single out this development as a doorway to a highly
profitable Information Superhighway (although Goldstein notes that critics
call it the Information Supergutter). 
"Obviously someone whose business is the exploitation of sex isn't interested
in our MicroMate that can blow up a human hair 4,377 times," Goldstein points
out, adding wryly, "In that magnification, anything sexual becomes just a
curiosity." 
While Goldstein doubts that any exhibitors at the Telecon Videoconferencing
Trade Show will demonstrate X-rated uses of his equipment, he forecasts that
the 1995 show will have some form of an adult equipment package for sale.  If
that happens, he predicts that censorship will be the next move for the show. 
"Look at what has happened to computer trade shows," says Goldstein.  "People
who attend -- and these are distributors and dealers -- spend far more time at
the CD-ROM adult section than at the CD-ROM encyclopedia section." 
The bottom line is obvious:  If money is to be made, that becomes the 
direction technological developments take.  In the case of PicturePhone the
direction is easy because no adaptations are necessary to modify existing
equipment. 
Sales of X-rated videos totaled more than $2 billion last year -- by far the
biggest segment of videocassette sales.  Sex is one of the most popular topics
on computer bulletin boards.  Sales of adult CD-ROMS are literally exploding. 
Most business commentators agree this type of commercial history makes a
900-number live video sex offering a sure bet. 
"Our equipment is available," concludes Goldstein.  "What they do with it is
up to them.  But only the most naive person would reject the notion that live
adult videoconferencing or live adult video-on-demand is the next natural
progression." 
The videoconferencing catalog is available without charge to interested 
parties, from PicturePhone Direct Inc., 200 Commerce Drive, Rochester, N.Y.
14623.  Phone is 716-334-9040; fax is 716-359-4999. Regrettably, for some, the
catalog has no X-rated content. 


*********************************
AT&T GLOBAL INFORMATION SOLUTIONS TO INCLUDE MICROSOFT BACKOFFICE O
INDUSTRY'S BROADEST LINE OF WINDOWS NT-BASED SERVERS
 DALLAS, Sept. 21  -- AT&T Global Information Solutions (GIS)
continued its leadership in the market for the Microsoft(R) Windows NT(TM)
operating system today by announcing with Microsoft Corporation (Nasdaq: MSFT)
that AT&T GIS will include Microsoft BackOffice on select models of its family
of scalable servers. 
Members of the AT&T System 3000 family of servers supporting Microsoft 
BackOffice range from deskside uniprocessor solutions to floor-standing 
16-processor symmetrical multiprocessing (SMP) solutions.  Based on open 
computing standards, AT&T servers provide data integrity and reliability for
applications that range from delivering seamless database access and 
application processing to workstation clients to online transaction processing
and decision support. 
"Microsoft BackOffice provides so much more to customers than simple 
file-and-print sharing," said Mark Hurd, vice president of worldwide server
marketing, AT&T Global Information Solutions' worldwide marketing.  "By
combining the highly integrated information system in Microsoft BackOffice for
building client-server applications with our comprehensive family of servers,
AT&T is able to offer an 'information network' to any size company, helping
customers integrate distributed corporate data to improve productivity and
streamline business processes at a reasonable cost." 
"AT&T provides a very broad range of Windows NT-based servers," said Steve
Ballmer, executive vice president, sales and support at Microsoft. 
"AT&T has a global infrastructure of trained experts, professional services
and support for Windows NT, and it has made a commitment to port its existing
high-level UNIX(R) functionality to Windows NT. Microsoft is delighted to see
AT&T as an innovative and active partner for implementing strategic customer
solutions based on Microsoft BackOffice." 
As announced today, Microsoft BackOffice provides the best software foundation
for the new generation of applications that makes it easier for companies to
improve decision making and streamline business processes, so companies can
deliver goods and services faster and reduce business costs.  Microsoft
BackOffice is based on Microsoft award-winning, best-of-breed server
applications, including the following: 
-- Windows NT Server 3.5.  Microsoft has optimized Windows NT Server 3.5 to
provide the best network foundation for the new generation of 32-bit business
applications; to be the easiest network to install and use, minimizing system
management and training costs; and to provide interoperability with all major
networks.  Its file-server performance is up to 200 percent faster than the
previous version, 3.1, and version 3.5 requires 4 to 8 MB less RAM. 
-- Microsoft SQL Server 4.21a relational database system.  The upgrade expands
on the multiple-award-winning product's database connectivity and
interoperability, builds on its proven performance, and includes new tools. 
-- Microsoft Systems Management Server.  Systems Management Server provides
the fastest and most cost-effective management of desktop hardware and
software throughout large-scale, enterprisewide computing systems, directly
solving what has been the most expensive and time-consuming aspect of
client-server computing.  It manages hardware and software inventory, software
distribution and installation, performance monitoring and analysis, and
trouble-shooting, and performs help-desk functions remotely. 
-- Microsoft SNA Server 2.1.  The major upgrade to Microsoft software for
IBM(R) connectivity adds significant enhancements to capacity, performance,
network interoperability, application and hardware support that make it far
more useful for IS managers and end users seeking IBM connectivity in their
mixed-vendor systems. 
-- Microsoft Mail and Exchange Server.  Microsoft BackOffice includes 
Microsoft Mail 3.2, the industry-leading LAN-based mail system. Microsoft Mail
provides an upgrade path to Microsoft Exchange, which evolves the best of
today's messaging and groupware products by offering users an integrated
in-box for e-mail, scheduling, electronic forms, faxes, voicemail and access
to online services.  The product will offer administrators an easy-to-manage,
reliable messaging infrastructure with a single-seat view of the enterprise. 
U.S. versions of AT&T servers with Microsoft BackOffice are scheduled to ship
by the end of November.  Customers can begin placing orders for these systems
in October. 
AT&T Global Information Solutions is dedicated to helping customers better
understand and serve their customers by more effectively getting, moving and
using information. 
Founded in 1975, Microsoft (Nasdaq "MSFT") is the worldwide leader in software
for personal computers.  The company offers a wide range of products and
services for business and personal use, each designed with the mission of
making it easier and more enjoyable for people to take advantage of the full
power of personal computing every day. 


**************************************
Hard-to-find videos: the problem grows                             
Last week a woman called to ask where she could find the 1949 Cary Grant 
comedy, ''I Was a Male War Bride,'' which had been listed as a new release in
this column. A clerk at her video store told her it wasn't available. 
A few hours later, another woman called to ask where she could locate Jacques
Tati's 1971 comedy, ''Traffic,'' which had also been listed here. Again, she'd
been told it couldn't be found. 
''Good morning ... and Help!'' began a letter from a new Seattle resident
looking for ''a good video store.'' He went on to describe dozens of stores
that offer ''very little beyond the 'currently popular-and-most-rented.'
They've got incredible displays of microwave popcorn, overly priced boxes of
candy, and a smattering of 'foreign' films (made 20 years ago) that are
permanently unavailable. It's depressing!'' 
It's also fairly typical. It may be hard to believe that a heavily promoted
tape such as ''I Was a Male War Bride,'' distributed by a major company
(FoxVideo) and advertised in several national magazines, would stump the folks
at your local store. 
But that letter-writer had a point. When most stores are interested primarily
in handling the ''currently popular-and-most-rented'' movies, there's not a
lot of room for customer service for those who want something else. Even
brand-new theatrical films that aren't blockbusters don't have much of a
chance in the current marketplace. 
One local video clerk recently told me that his store was ordering 10 
cassettes of ''The Fugitive'' and none of another new release, ''King of the
Hill,'' which was no money-spinner but did win rave reviews and played
theaters for several months. It's not exactly an obscure film, nor is its
distributor (MCA Home Video) hard to deal with, yet in many stores it doesn't
appear on shelves at all. 
Next week, last year's popular Oscar nominee for best foreign-language film,
''The Wedding Banquet,'' will be released on cassette. One of the most
profitable movies produced in 1993, it will nevertheless be unavailable in
some stores because subtitles limit its American audience. No wonder it's
difficult to track down an old Cary Grant comedy or a Tati classic. 
There are, of course, many wonderful exceptions, usually located near 
universities, urban centers and theater-oriented communities, and if you live
close to them you're in luck. 
If you don't, you may have fewer resources. That's where catalogs come in
handy. Among the best are Movies Unlimited, a Philadelphia company with a
remarkable variety of tapes for sale at reasonable prices (1-800-523-0823) and
Facets Video, a Chicago organization that specializes in foreign and
hard-to-find videos (1-800-331-6197). 
If you're not interesting in buying a tape, some companies are set up to rent
by mail. One of the most successful is the 10-year-old Home Film Festival,
which is based in Scranton, Pa., and includes everything from Kon Ichikawa's
''Being Two Isn't Easy'' to Robert Altman's ''Brewster McCloud'' to Ross
McElwee's ''Time Indefinite.'' According to a recent survey of members,
Stanley Kubrick's 30-year-old ''Dr. Strangelove'' is the No. 1 renter in the
catalog. Information: 1-800-258-3456. 
If you can't find that certain title in any of these catalogues, you may want
to try Video Oyster, a New York store that stocks 10,000 out-of-print videos.
Information: 212-480-2400. 
A new Georgia company, A Million and One World-Wide Videos, also specializes
in locating cassettes that may be on moratorium or sold out. The company's
''video detectives'' claim to be connected to a worldwide network of
collectors who have access to movies that are no longer available on the
market. If you can't remember the title of the film, they'll even try to help
you identify it. Information: 404-227-7309. 


********************************
Gene-Mapping `Superchip'     Is Developed By Scientists
  CHICAGO  -- Scientists said they have developed a biological
 "superchip" that can rapidly decode human genes and revolutionize a
 gene-mapping project designed to find hereditary clues to defects and
 diseases, The Wall Street Journal reported.
  The "superchip," developed by scientists at the Argonne National Laboratory
 near Chicago, will be able to decipher the human genome "a thousand times
 faster than conventional means."
  "This could increase the speed of mapping by orders of magnitude," Argonne
 spokesman Dave Baurac said.
  The Human Genome Project is a global agreement among scientists to "map"
 the 100,000 or more genes found in a human cell that contain all the
 information necessary for the body to grow and function.
  By determining each gene's role, scientists hope eventually to pinpoint and
 possibly alter the hereditary factors governing birth defects, such as
 cystic fibrosis, and diseases, including cancer.
  The technology involving the superchip is to be developed by Hyseq Inc., a
 biotechnology company based in California. The company has scheduled a news
 conference for today.


*******************************************
Sega, Nintendo Ready To Fight Over Holiday Season Sales
  Nobody ever said they had to like each other.
  As the nation's two largest video-game makers brace for the critical
 Christmas season, their rivalry has become so intense that Sega of America
 is kicking off a $35 million advertising campaign with a commercial set in a
 morgue. On a cold metal table, under a sheet, is a machine that appears
 suspiciously to resemble one from archrival Nintendo.
  "The point is that a kid identifies it with a dead-end system," says Jeff
 Goodby, chairman and creative director for Goodby, Berlin & Silverstein,
 Sega's advertising agency. "By contrast, we've got a product that will make
 the 15 million Sega Genesis machines now in place 40 times as fast."
  The commercial, which will begin airing Oct. 3 on General Electric's NBC
 and News Corp.'s Fox Network, plugs Sega's new 32X adapter. The device
 attaches to Sega's Genesis video-game player and transforms it from a 16-bit
 machine into a 32-bit unit. For hardcore players, the faster the system, the
 more exciting the game.
  Nintendo has a different strategy. Rather than upgrade its 16-bit Super
 Nintendo Entertainment System, company executives say they will offer a more
 exciting array of software titles. "We're going to spend $15 million alone
 to promote our new Donkey Kong Country game," says Peter Main, a vice
 president of marketing at Nintendo of America, a unit of Nintendo in Kyoto,
 Japan. "Our campaign will stress that you don't have to buy yet more
 hardware in order to have a great entertainment experience."
  The tussle between Sega and Nintendo comes at a time when hardware sales
 are weakening. Consumer sales world-wide are expected to slip to $2.8
 billion this year from $3 billion in 1993, according to Michael Wallace, an
 analyst with UBS Securities.
  "The market is saturated, because almost everyone who wants a video game
 has one," Mr. Wallace says, noting that by year end there will be about 35
 million 16-bit players in the U.S.
  Even as sales weaken, the field is becoming more crowded. Last Christmas,
 Matsushita Electric Industrial, in Osaka, Japan, introduced a new machine
 based on technology created by 3DO in Redwood City, Calif. And next year,
 Tokyo-based Sony will enter the fray with a compact-disk-based player dubbed
 the Play Station. Furthermore, both Sega and Nintendo will be marketing much
 faster machines in the U.S.
  Still, Sega executives believe that Nintendo has blundered by not allowing
 customers to upgrade their 16-bit players. "We're going to win this
 Christmas hands down," boasts William White Jr., vice president of marketing
 at Sega of America, a unit of Tokyo-based Sega Enterprises.


*******************************************
Motorola To Port PowerPC With Microsoft's Windows NT 3.5 >MOT
  DALLAS  Motorola Inc.'s (MOT) RISC Microprocessor division said it will
 port the PowerPC platforms with Microsoft Corp.'s (MSFT) new Windows NT 3.5
 operating system. 
  In a press release, Motorola said the introduction of the new port is in
 conjunction with Microsoft's release of Windows NT version 3.5 formerly
 known by the code name Daytona. 
  Motorola has several development tools for Windows NT 3.5 to run on the
 PowerPC architecture, including the Motorola PowerPC Software Developer Kit,
 Firmware Kits and Hardware Abstraction Layer Kits. 
  Motorola said it and Microsoft will provide general availability of Windows
 NT 3.5 for PowerPC microprocessors in the fourth quarter. 
  Motorola, International Business Machines Corp. (IBM) and Apple Computer
 Inc. (AAPL) agreed to jointly develop the PowerPC platforms in 1991. 


**************************************
Genl Instrument Says Brazil Launches Digital TV System >GIC
  CHICAGO  General Instrument Corp. (GIC) said TVA, a Brazilian
 pay-television operator, successfully launched Brazil's first complete
 digital television service using a General Instrument DigiCipher digital
 compression system. 
  As reported, General Instrument received an order from TVA for a DigiCipher
 system in March. 
  In a press release, General Instrument said, with the DigiCipher system now
 operating, TVA is poised to initiate digital service to Brazil's potential
 direct-to-home market of 1,300,000 homes. 



************************
Compaq Line to Offer a Mixed Bag of Chips                          
Sep. 22--When corporate buyers unpack one of Compaq Computer Corp.'s new 
ProLinea machines, they won't know whether they're getting Intel or Advanced 
Micro Devices inside. 
The ProLinea 4/66 and 4/50 MT minitower models could have a main processor
from either chip maker, said Compaq spokesman John Sweney. 
"There is absolutely no difference between the AMD and Intel chips," Sweney
said. "If I sent you two of them, and one had an Intel processor and the other
had an AMD processor, you could turn them on and see absolutely no difference
in performance." 
Compaq earlier this year announced it would begin using clones, made by AMD,
of Intel's 80486 processors. Compaq has been using AMD chips in its consumer
Presario line, and has been clear about whose processor is used. 
But with the ProLinea MT line - and one ProLinea desktop model that uses a
50-megahertz processor - the processor used will depend on whose supply is in
stock in Compaq's factory. 
"But, frankly, most of them will have AMD chips," Sweney said. Intel is in the
midst of an aggressive marketing campaign, built around the slogan "Intel
Inside," that tries to convince computer buyers that a genuine Intel chip is
important. 
Compaq chief executive Eckhard Pfeiffer earlier this month took Intel to task
for its campaign, saying it made a commodity out of PCs and hurt Compaq's
efforts to sell consumers on its design and engineering. 
Compaq, which was the top seller of personal computers in the first half of
1994, is also Intel's biggest customer.  "On most things, we and Compaq agree,
" said Intel spokesman John Thompson. "On a few things, we don't." 


*********************************
Battered Digital Shares Luring Investors Once Again                
Sep. 22--After four straight disastrous quarters, after $4 billion in losses,
after breaking hearts several times over - finally, Wall Street is ready again
to bet on Digital Equipment Corp. 
The troubled computer company, in fact, has staged a bona fide rally, jumping
55 percent since late July. 
Yesterday, Digital shares climbed again, rising 1 1/8 to close at 29. They
were the most actively traded issue on the New York Stock Exchange. In the
last four trading days alone, Digital shares have jumped 16 percent, even 
while the Dow Jones industrial average dove 102 points. 
And yet many analysts say there is little news from the Maynard-based company
to support a rally. The story of this stock, they say, is as much about
different styles of investing as it is about Digital. 
Betting on Digital these days are "technical analysts" and "momentum players,"
who study stock market forces, the movement of stock prices and other factors
external to a company itself. At the same time, doubt about Digital's
prospects remains heavy among "fundamental analysts," who pay attention to the
company's operations: who is buying its products, whether profit margins are
rising, and what its plan to lay off 20,000 workers and sell some business
units means for future earnings. 
"There is absolutely no evidence of improving fundamentals in this company,"
said William J. Milton, an analyst at the New York brokerage Brown Brothers
Harriman. But after diving in April to its lowest price in at least 14 years,
Digital seemed like a good buy to some investors. 
Those buyers "build momentum, and the momentum feeds on itself, at least for
awhile, as more analysts feel pressure to issue 'buy' recommendations so as
not to miss out on the rest of the move," Milton said. 
For both technical and fundamental analysts, the defining moment in Digital's
recent history came on April 15. Digital shares had already dropped steeply
from the 199 1-2 high they reached in 1987. But then the bottom fell out. 
On April 15, the company announced a larger-than-expected loss for its third
quarter. Investors fled. Digital shares lost one-fifth of their value, 
then continued to fall. The selloff was so bad that chief executive Robert 
Palmer's job was rumored to be in jeopardy. 
To technical analysts, Digital's severe dive meant that the queasiest 
investors had gotten out. With few jittery stockholders left looking to sell, 
new investors felt they could buy Digital shares without fears of another 
selloff. 
Further, Digital has dipped twice since July to about 19 - but no further.
Some technical analysts figured that Digital shares have a well- established
floor, which gave them more confidence in the stock. 
"There's a known basement level," said Shao Wang, a Smith Barney analyst in
New York. But he warns that there is no guarantee that the basement floor will
hold. 
Another external factor has influenced Digital stock: the resurrection of 
International Business Machines Corp. IBM shares have risen from 41 to 70 in 
13 months. If one troubled computer giant can cost-cut its way to success, 
some investors figure, Digital can do it as well. 
But to some fundamental analysts, like Milton, Digital has yet to redeem 
itself after issuing the bad earnings news on April 15. 
The company lost $183 million that quarter, and it reported a $1.7 billion
loss for the following quarter in July. That included a restructuring charge
to pay for the 20,000 layoffs. 
Many analysts say the layoffs will help the company become profitable again,
but they doubt that Palmer will do it by the end of this year, as he intends.
"There is no way on earth it's going to be profitable this year, 
barring a miracle," said SG Warburg & Co. analyst David Wu in a recent 
interview. 
Further, many fundamental analysts are waiting for Digital to show both 
revenue growth and deeper cost-cutting. Revenues grew slightly in the June 
quarter over the same period a year ago, "but it was only one quarter," Milton
said. "A company cannot cost-cut its way to lasting prosperity. As a 
fundamental analyst, I believe for a company to grow earnings there will have 
to be some revenue growth." 
Analysts also offer differing readings on whether Digital's new Alpha computer
chip can eventually support the company. In August, investor Joseph Harrosh
took a 1.4 percent position in Digital partly because of the prospects for
Alpha, according to CNBC cable television correspondent Dan Dorfman. Earlier
this week, Cowen & Co. cited the potential for Alpha when it raised its
recommendation on Digital to "strong buy" from "neutral." 
Yet other analysts note that Digital is still contending with a falloff in
sales of its VAX minicomputers, which carry higher profit margins than Alpha.
Put another way, Digital must sell more than $1 worth of Alpha machines to
make up for every dollar lost in VAX sales. 
The VAX slump, in fact, helped push Milton to slash his earnings forecast last
week. He now expects Digital to lose $2.65 this fiscal year, more than the
$1.10 in his previous estimate. Milton cited higher than expected 
administrative and research costs and "what appears to be double-digit 
declines in sales of the VAX." 
To the investors who stood fast, or who bought shares in July, Milton's 
estimates may mean little. After all, Digital shares have risen. And an 
investor who put down $100 on July 25, when they hit their low of 18 3/4, is 
now $55 richer.  



***************************************************
Dishing Up Another Way to Watch TV Pays Off for Digital Satellite S
Sep. 22--Frank Erdeljac is a suburban pioneer. The Ross resident is among the
first in Western Pennsylvania to buy a new, satellite-delivered digital
television service that is the hottest consumer electronics product in the
country. 
More than 100,000 units of the Digital Satellite System, which delivers up to
150 channels of crystal clear television programming, have been sold since its
introduction two months ago. 
"I love it," says Erdeljac, who makes braces and artificial limbs at Medical
Center Brace on the South Side. 
With prices starting at just under $700, DSS sales are projected to top 
400,000 units by year's end, analysts say. That easily outpaces the 209,000 
videocassette recorders that were sold in the VCR's first year, in 1977. 
Locally, Sun Television & Appliances has sold several hundred DSS units since
they made their debut two weeks ago, says regional manager Al Falcione. He
says supplies are adequate at Sun's nine Pittsburgh-area locations. Sears is
also stocking the units. 
Before you run out and buy a dish, however, customers should be forewarned:
DSS is not a way to circumvent monthly cable bills. Programming for the
satellite service must be purchased at fees comparable to cable's, 
although you get a lot more channels for your money. And you'll need a pair of
rabbit ears to pick up the local channels that satellite doesn't offer. 
Satellite-delivered television has been around for 15 years, but heretofore
its appeal has been limited primarily to rural areas where cable television
service is not available. Suburban and urban dwellers didn't have the yard
space, or were prohibited by zoning ordinances, from installing the 7- to
10-foot antenna dishes needed for satellite reception. 
DSS represents a technological breakthrough: It captures satellite- delivered
signals with a compact, 18-inch antenna dish, about the diameter of a large
pizza, that can be placed unobtrusively on the roof or in the backyard. 
The smaller dish is expected to make satellite TV more practical for suburban
and urban residents, fueling a sales boom that is expected to carry into the
next century. 
The National Association of Broadcasters says that DSS's growing popularity
will push the number of satellite television subscribers from 2 million now to
5.6 million by 2000. 
That would make satellite TV larger than all but the largest cable operators.
Tele-Communications Inc., the nation's largest cable operator with about 25
percent of the market, has about 10 million customers today. 
DSS "is the first credible multi-channel competition for cable television,"
says Peter D. Shapiro, a cable and telecommunications analyst with Arthur D.
Little & Co., a management consultant firm based in Cambridge, 
Mass. 
In spite of the early sales boom, equipment costs and programming fees make it
unclear just how much of a threat DSS will pose to cable in the near future. 
That is especially true in Western Pennsylvania, a conservative market whose
cable penetration rate of 70 percent is among the highest in any top-20 
metropolitan market. 
"I don't think it's clear yet that the impact of satellite-delivered 
entertainment will be what its providers are projecting in urban and suburban 
areas," says Evan Pattak, a spokesman for TCI of Pennsylvania. 
DSS was developed by Thomson Consumer Electronics-Americas of Indianapolis
(which sells the hardware under the RCA label), United States Satellite
Broadcasting and DirecTV, a subsidiary of General Motor Corp.'s Hughes
aerospace division. Thomson is owned by the French company of the same name,
which in 1987 acquired the RCA consumer electronics business from General
Electric Co. 
Sun TV sells a basic unit - which includes the 18-inch antenna dish, a 
receiver that transforms the digital signal into analog waves, and a remote 
control - for $697. A multiple-set system that permits two TVs to plug in is 
available for $897; however, it requires the purchase of a second receiver, 
for an additional $697. 
Surprisingly, many customers are choosing the premium unit. They're even 
buying wide-screen TVs to take full advantage of the sharper picture, although
Falcione says that DSS works fine with any set. 
"The reception is very clear," Erdeljac says. "I had cable before and I'm
finding that this is far superior." 
Many homeowners are installing DSS themselves; professional installers charge
about $150. Erdeljac says the gray dish, which weighs about 10 pounds, 
attached easily to the roof of his one-story ranch home. 
For proper reception, homeowners must make sure their dish has a clear line of
sight to the southern skies, where the broadcasting satellites are located. 
DSS's edge is that its deluxe plans offer more programming options than the
top-shelf cable packages do. For instance, USSB's Entertainment Plus package,
which costs $34.95, offers five channels of HBO, three channels of Cinemax and
three channels of Showtime in addition to such basic cable offerings as MTV,
Lifetime and Nickelodeon. 
DirecTV, a GM Hughes Electronics subsidiary, says it will offer more than 150
channels, including ESPN, USA and TNT, by next month. A package of 25- plus
basic cable channels, including the Disney Channel but excluding premium 
offerings like HBO, costs $21.95 a month. Those who desire premium channels 
like HBO must purchase USSB's package. 
Pay-per-view movies are more plentiful and cost $2.99 each, compared with 
$3.99 by most cable operators. 
The RCA system can pick up either service's programming. DSS's biggest
drawback is that it won't carry local stations. Buyers must use old-fashioned
rabbit ears or rely on cable to get local news, sports and weather. 
DSS reception has been known to fade in heavy rainstorms or electrical storms,
says George Bryant, publisher of Satellite Choice magazine. 
Bryant says DSS "is a step-and-a-half above what's being offered on cable
now." But he points out that the larger, old-fashioned satellite systems,
which cost about $2,500, offer more programming options at lower rates. 
Falcione says that DSS will appeal most to movie buffs who crave more and 
cheaper options. 
''People who like movies will like this programming," he says. END!B2?PG-DSS 


******************************************
Microsoft's Gates says his company will enter on-line service mark
PHOENIX _ Microsoft Corp. Chairman Bill Gates confirmed Tuesday his company
will enter the on-line service market next year with an offering code-named
Marvel, again pitting the industry's 800-pound gorilla against a host of
competitors. 
Gates indicated Marvel, whose existence has been the subject of intense 
speculation in the trade press, will be developed by the Redmond, Wash., 
company's new Microsoft Home division, which also produces CD-ROM information
and entertainment titles. 
Marvel will be linked with many of those titles, such as the company's 
baseball CD-ROM, so that customers can dial the service from computers to
obtain statistics to use with programs on the CD-ROM. 
That Gates and his company plan an on-line service has caused a stir in the
growing circle of companies that already have or plan such systems. In
addition to the ubiquitous Internet, there are three major entrenched national
competitors: Compuserve, the oldest on-line service; Prodigy, a partnership of
IBM and Sears that has stumbled of late; and America Online, probably the most
successful of the trio and the service that carries Mercury Center, the
on-line service offered by the Mercury News. 
Those mainstays have recently been joined by at least two other services. One
is from Ziff-Davis, the largest publisher of computer trade magazines in the
world. And Apple Computer Inc. now offers eWorld, although currently only to
users of its Macintosh. 
Gates sought to assuage some fears in the audience by insisting that Marvel
would not attempt to create significant amounts of information for sale on its
system. 
''We have no interest in doing an independent editorial content magazine on
computers,'' Gates said. ''We are not going to write weekly newsmagazines or
make standard movies.'' 


***********************************
Three Magazines Put Everyday Perspective On Computers
  It has taken me years of fiddling with computers to get to the point where
 I can understand most, though certainly not all, of the articles in the
 leading computer magazines. If you haven't put in all those years, wading
 through a typical 300-page computer magazine packed with technobabble is
 about as inviting an experience as having a hernia repaired (a procedure you
 may need after carrying a few of these tomes around).
  In the past few months, though, three slick computer magazines have been
 launched with a mission to cover the topic in plain English for nontechnical
 people at home, who constitute a juicy advertising target for computer
 companies. The three monthlies are Family PC, Home PC and Computer Life.
 After poring over their initial issues, I think they are generally off to a
 good start, but each has a different approach, with its own strengths and
 weaknesses.
  Family PC is the most visually inviting. It's designed to put parents at
 ease and help them figure out what their kids can get out of computers, not
 merely to tell them what to buy. Thus, the premiere issue featured articles
 on getting and using computerized weather information, finding homework help
 on line and writing a family newsletter. Family PC also reviews PC hardware
 and software, but it doesn't use techies and test labs to evaluate the
 products. Instead, it uses panels of real kids and parents. I thought their
 reviews in the first issue were clear and generally on the mark, based on my
 own evaluation of the same products.
  But in many cases, I thought Family PC stretched to find topics combining
 computers and families. Several articles seemed to be about drawing things
 on computers and then printing them out to use as decorations -- a rather
 obvious idea that doesn't require multiple pages to explain. The magazine
 completely ignores families without children and in which the children are
 grown and gone. And it is focused way too heavily on very young kids.
  Perhaps that's why the magazine seems to assume that kids can learn from
 parents how to use the computer, and that kids want their parents sitting
 with them when they're at the computer. In my experience, kids over the age
 of five or six zoom past their parents in computer proficiency and don't
 want adults joining them at the keyboard.
  Home PC, now in its fourth issue, looks and feels more like a traditional
 computer magazine and is more product-oriented than Family PC. But I like
 the fact that it's aimed at every kind of home, whether children live there
 or not. In addition to articles on kids' software, Home PC's October issue
 covered software on investment, art and wine.
  Home PC also seemed more gender-neutral than Family PC. There was an
 article on software specifically for girls and an unusual and interesting
 piece on furnishing and decorating your computer room that had the look and
 feel of a traditional woman's magazine article.


********************************************
Nextel now with California's first  integrated digital wireless com
system; major California commitment seen as significant vote of confidence in
state's future
LOS ANGELES (Sept. 22)  -Sept. 22, 1994--Nextel Communications
Inc. (a) officially launched California's first 100 percent digital integrated
wireless communications service Thursday with communications conducted
concurrently among the mayors of Los Angeles, Oakland and Sacramento. 
California is Nextel's first regional market in what is planned to become the
nation's largest digital wireless network. 
Sacramento Mayor Joseph Serna kicked off the event using Nextel's NexNote
alphanumeric text messaging service to simultaneously notify Los Angeles Mayor
Richard Riordan and Oakland Mayor Elihu Harris that the Nextel system was
ready.  Each mayor responded with the combination of Nextel digital cellular
(b) and digital dispatch communications to demonstrate the unique integrated
functions available only through the Nextel system. 
"Our statewide launch in California clearly demonstrates that our vision of
becoming the preferred provider of communications services in North America is
truly becoming a reality," said Nextel Chairman Morgan O'Brien. 
"We selected California as our launch site because this state is in the 
forefront of adopting the latest in wireless communications technology, and it
is perhaps the most competitive market in the country," said Nextel's
President Brian McAuley. 
"Our success here will show that Nextel is prepared to compete with anyone in
this industry.  Our company also has tremendous confidence in the economy of
California." 
McAuley added that Nextel's total investment in California would total more
than $400 million and create more than 1,000 new jobs by year end. 
The Nextel system is based upon Motorola's MIRS technology that integrates
digital cellular, digital private network dispatch, and a paging and messaging
service capable of receiving and storing up to 140-character alphanumeric text
messages all in one handset, initially manufactured by both Motorola and
Panasonic. 
Because Nextel customers have the built-in option of using digital cellular,
digital private network radio or text messaging to communicate, 
the system affords significant cost savings and increased productivity vs.
current standalone cellular or dispatch services. 
In addition, the 100 percent digital system ensures consistent static-free
sound quality, increased system access and, importantly, secure anti-fraud
protection systemwide, not just in limited digital areas currently offered by
some cellular carriers.  "Just the Beginning" 
"This launch represents just the beginning for Nextel," added O'Brien. "Over
the past year, we have achieved major milestones. Through strategic
acquisition and merger agreements with key companies such as Motorola, DisCom,
OneComm and Dial Page, we have achieved a unique spectrum position on which we
will build the nation's leading wireless network. 
"We can look forward to our next steps, which are launching Nextel in Chicago
and New York, where our system installation is already nearing completion." 
With headquarters in Rutherford, N.J., at 201 Route 17 North, Nextel expects
its fully digital, integrated wireless communications system to be available
throughout virtually all of the United States by 1996.  (a) Nextel
Communications Inc.  
