16th annual COMDEX/Fall opens in Las Vegas for  190,000 computer in
professionals
LAS VEGAS -Nov. 14, 1994 -- The 16th annual 
COMDEX/Fall, America's largest trade show conference and exposition, opened
here today for an estimated 190,000 computer professionals and 2, 200
exhibiting companies from the global computer-communications industry. 
The projected attendance figure includes more than 25,000 international 
delegates from more than 100 countries. 
In an SRO keynote session at the Aladdin Hotel Theater for the Performing Arts,
Microsoft Chairman and CEO Bill Gates spelled out his expansive vision for the
growing industry, whose global revenues now exceed $150 billion per year. 
Sheldon G. Adelson, COMDEX founder and chairman of the sponsoring Interface
Group, told today's keynote audience that "the personal computer revolution
has already changed the world, and it will continue to do so." 
Additional COMDEX Keynote sessions are slated for the Aladdin Hotel Theater on
Tuesday and Wednesday, with Novell President and CEO Robert Frankenberg and
Intel President and CEO Andrew S. Grove, respectively. "These industry leaders
bring unique concepts and strategic perspectives to the COMDEX Keynote podium,
" said Adelson. 
Exhibit halls across the city, at the Las Vegas Convention Center, Las Vegas
Hilton Hotel and the Sands Expo and Convention Center, were all crowded during
opening hours today, as tens of thousands of attendees examined an equivalent
number of new computer systems, products and services.  The 2,200 exhibitors
include more than 500 companies with multimedia systems and products, and more
than 300 companies with systems, products and services relating to network
computing.  Other COMDEX showcases include OEM Sources and, new this year, the
ISDN (Integrated Services Digital Network) and Desktop Publishing showcases. 
Also new this year is a major exhibit sponsored by the PowerPC Alliance --
Apple Computer, IBM and Motorola.  PowerPC systems, software and development
tools from 60-plus companies are being demonstrated. 
In addition to the three COMDEX Keynote sessions at the Aladdin, there will be
three "Power Panel" sessions, Monday through Wednesday at 3:30 p.m., in the
Sands Hotel Ballroom. The COMDEX Conference also includes more than 125
regular sessions in the new meeting room complex at the Sands Expo and
Convention Center. 
The Interface Group produces COMDEX marketing events for the global 
computer-communications industry in Brazil, Canada, Mexico, Singapore and the
United States.  The company also owns and operates the Sands Hotel Casino and
the Sands Expo and Convention Center in Las Vegas. 

=====================================
MICROSOFT UNVEILS ITS STRATEGY FOR A NEW INTERACTIVE ONLINE SERVICE
 The Microsoft Network Is Designed to Expand the Market for Customers 
                  and Content Providers 
     LAS VEGAS, Nov. 14 -- Microsoft Chairman and CEO Bill Gates
today outlined the company's strategy for its new interactive online service
called The Microsoft(R) Network.  Gates detailed the key elements of the
strategy, which include providing a compelling business model and platform for
content providers, easy and inexpensive access for users, and availability of
rich and powerful development tools.  The Microsoft Network, scheduled to go
into beta testing this month, is designed to provide easy, affordable access
to the rapidly expanding world of electronic information and communication for
users of the Windows 95(TM) operating system. 
"Microsoft has long believed in the promise of personal computers enabling new
ways of thinking and communicating.  We call this vision 'Information At Your
Fingertips,'" said Gates.  "The Microsoft Network online service will
represent a significant step toward the realization of this vision." 
The Microsoft Network's technology and business model is designed to help
content and service providers fully realize the potential of the online
market.  The Microsoft Network uses a platform model in which content and
service providers will have maximum flexibility in creating products and
pricing their services.  Microsoft anticipates that providers will offer
various pricing options, such as subscriptions, online transactions and
ticketed events.  Other services will be supported by advertising and commerce.
Content and service providers also will have control over the look of their
services.  To enable the easy creation of rich multimedia content and services,
Microsoft plans to provide a complete tool set and sponsor developer and
design conferences to educate providers on how to make best use of the online
medium. 
"We believe that the success of The Microsoft Network depends on our ability
to deliver a comprehensive platform that enables successful online businesses
for our providers," said Russ Siegelman, general manager of the online
services group at Microsoft.  "While 40 percent of users of Windows have
modems, only 10 percent of them, and only 4 percent of U.S. households overall,
subscribe to any online service. That's a huge opportunity for content
providers." 
Access to The Microsoft Network will be offered as a feature to users of 
Microsoft Windows 95.  The Microsoft Network is designed to fully harness the
power and ease of use of Windows 95. 
When The Microsoft Network becomes available in 1995, it will offer 
interactive online communities built around ideas, people, products and 
brands.  It is designed to bring customers affordable and easy-to-use access
to electronic mail, bulletin boards and "chat rooms" on a variety of topics,
file libraries, and Internet newsgroups.  Members will be able to access
online tips, add-ons, tools, product information and technical support
directly from the Microsoft area of the service. 
The Microsoft Network will be accessible in more than 35 countries, and its
client application will be localized in 20 languages.  In conjunction with
today's announcement, four of the world's leading telecommunications carriers
announced they are providing the worldwide network infrastructure to enable
access to The Microsoft Network. Members of The Microsoft Network will be able
to access the service with a local phone call and connect at speeds of up to
14.4 kilobits per second.  The data center for The Microsoft Network, located
in the Seattle area, uses scalable technology based on PCs running the 
Microsoft Windows NT Server operating system. 
Beta testing for The Microsoft Network will begin with the shipment of Windows
95 beta version M7, which is slated for mid-November. 
"We're excited about this first beta phase," said Siegelman.  "This is just
the first step in what we plan to be a long-term investment for Microsoft's
information-highway efforts." 

=====================================
Nintendo introduces video game players to  three-dimensional worlds
virtual reality video game system; 32-bit "Virtual Boy" shown at Shoshinkai
Software Exhibition in Japan
TOKYO -Nov. 14, 1994--Nintendo, the world's largest
manufacturer and marketer of video games, today announced the introduction of
"Virtual Boy"(TM), the first virtual reality system developed and produced for
the mass market.  The RISC-based, 32-bit system utilizes two high-resolution,
mirror-scanning LED (light emitting diode) displays to produce a 3-D
experience not possible on conventional television or LCD screens. 
Virtual Boy's unique design eliminates all external stimuli, totally immersing
players into their own private universe with high-resolution red images
against a deep black background.  The 3-D experience is enhanced through
stereophonic sound and a new specially designed, double-grip controller which
accommodates multidirectional spatial movement. 
Virtual Boy will be unveiled tomorrow at the Sixth Annual Shoshinkai Software
Exhibition in Tokyo.  The new product will be released in Japan in April of
1995 at a suggested retail price of 19,800 yen for the hardware system.  Three
cartridge-based software titles will be introduced at launch, followed by two
to three new titles each month. The manufacturer's suggested retail price for
the software will range from approximately 5,000 to 7,000 yen. Nintendo
projects Virtual Boy sales in Japan of 3 million hardware units and 14 million
software units by March of 1996. 
Virtual Boy combines 3-D image immersion technology developed by Nintendo with
proprietary display technology created by Reflection Technology Inc. of
Waltham, Mass., and licensed exclusively within the video game market to
Nintendo on a worldwide basis.  Reflection is a recognized leader in
miniaturized display products and holds exclusive worldwide patents for
technology that incorporates color matrix LED (light emitting diode) displays
which, when combined in the stereoscopic Virtual Boy, produce a complete 3-D
experience. 
"It has always been Nintendo's strategy to introduce new hardware systems only
when technological breakthroughs allow us to offer innovative entertainment at
a price that appeals to a worldwide audience, " said Nintendo Co. Ltd.
President Hiroshi Yamauchi.  "Virtual Boy delivers this and more.  It will
transport game players into a 'virtual utopia' with sights and sounds unlike
anything they've every experienced -- all at the price of a current home video
game system." 
Virtual Boy is a standalone, table-top unit which does not connect to a 
television screen.  It is powered by six AA batteries. Accessories will 
include an AC adaptor and a rechargeable battery adaptor, which will be sold
separately. 
Nintendo's U.S. subsidiary, Nintendo of America, will officially unveil 
Virtual Boy hardware and software at the Winter Consumer Electronics Show
(WCES) on Jan. 6, 1995, in Las Vegas.  The product will be released in the
Western Hemisphere in April of 1995. Manufacturer's suggested retail prices
will be announced at the WCES. 
"We are very confident of the market potential for Virtual Boy," said Nintendo
of America Chairman Howard Lincoln.  "Nintendo is extremely excited with the
tremendous opportunity which this exclusive technology affords." 
Reflection Technology Inc. is a world leader in virtual display technology and
mobile messaging.  Reflection develops and markets virtual displays and
products that incorporate these displays. Reflection's patented Scanned Linear
Array (SLA) displays are being used in a new generation of products that are
expanding the horizon of the telecommunications and consumer electronics
markets. 

==========================================
Dell Computer To Use Pentium Chips In More Desktops
  Dell Computer Corp. will introduce two new Pentium microprocessors into its
 lineup of desktop computers today, putting the latest-generation chip into a
 majority of Dell's desktops.
  With the additions of Intel Corp.'s 75-megahertz and 100 MHz Pentium
 versions, 22 of 42 Dell offerings will be built around Pentium chips. The
 rest have 486-class chips.
  "We have taken Pentium and driven it very deeply into the market," said
 Doug MacGregor, vice president for desktop computers for the Austin, Texas,
 computer vendor.
  List prices on the new machines will range from $1,869 for a 75 MHz
 Pentium-based Dimension XPS computer designed for small businesses, to
 $4,408 for an OmniPlex with a 100 MHz Pentium.

==========================================
Da Vinci Manuscript Is Sold  To Bill Gates For $30.8 Million
  NEW YORK -- A Leonardo da Vinci scientific manuscript that explains why
 skies are blue and waves curl sold for a stunning $30.8 million to software
 tycoon William Gates III at a packed auction in Christie's International
 PLC's New York salesroom.
  The 16th-century document, called the Codex Hammer, appears to predict
 modern-day innovations such as the steam engine. Although just one of about
 20 existing da Vinci manuscripts, it fetched almost triple the existing
 record for a book or manuscript and was the 10th-highest price ever paid at
 auction for any item or art or jewelry.
  A spokeswoman for Mr. Gates, considered the richest individual in the U.S.
 with an estimated fortune approaching $10 billion, said he hasn't been a
 collector of any dimension until now. "He has never done this before," the
 spokeswoman said. Mr. Gates is co-founder and chief executive officer of
 Microsoft Corp., the world's largest software concern. His private company,
 Continuum Corp., has bought nonexclusive rights to the electronic images of
 paintings and sculpture housed in museums, for use in multimedia works.
  Mr. Gates' bid "was a combination of things," the spokeswoman said. "It's
 unusual for this to become available, and Bill has always been a great
 admirer of the work. Da Vinci was a genius innovator and creative thinker."
  The spokeswoman said Mr. Gates plans to display the Codex on world-wide
 tours "at least 50% of the time." Mr. Gates wasn't available for comment,
 and his representatives said it hasn't yet been decided where to house the
 document the rest of the time, or whether the document would be renamed
 after its owner, as is the custom.
  The manuscript had been put on the block by the Armand Hammer Museum of Art
 and Cultural Center of Los Angeles. It was last sold in 1980 to Dr. Hammer,
 the deceased former chairman of Occidental Petroleum Corp., for $5.6
 million.
  Mr. Gates's bids were taken by telephone through Christie's general
 counsel, Patricia Hambrecht, against Sandro Molinari, chairman of Italy's
 largest savings bank, Milan-based Cassa di Risparmio delle Provincie
 Lombarde, or Cariplo. Mr. Molinari and directors of the bank and of the
 Cariplo Foundation had predicted prior to the sale that they would reclaim
 the manuscript for Italy, and bid fiercely up to almost triple the $10
 million it had been expected to bring.
  The Codex is one of 65 Leonardo da Vinci manuscripts, most of which are in
 the Louvre, the British Museum, or Italian museums. It is concerned
 primarily with the movement of water; it explains how lakes are formed,
 discusses the behavior of waves and brilliantly foresees the development of
 submarines and steam engines.
  Christie's "cut" of the blockbuster sale is, at minimum, the $2.8 million
 commission that Mr. Gates paid above the final $28 million bid. While
 auction houses usually charge the seller a 10% to 20% commission also, it is
 often waived for highly desirable auction property.
  The previous record price for a manuscript was the $11.8 million paid in
 1983 at Sotheby's Holdings Inc. for an illuminated work, "Henry the Lion."
 The world auction record for any item, set at Christie's, remains the $82.5
 million paid in May 1990 for Vincent van Gogh's "Portrait of Dr. Gachet."

==========================================
Mosaic, First Data In Move To Push Internet Credit Card Use
  NEW YORK -- Mosaic Communications Corp. and credit card processor First
 Data Corp. are teaming up to let on-line users make credit card purchases of
 goods on the Internet.
  Mosaic, which was started earlier this year by Silicon Graphics Inc.
 founder James Clark and the University of Illinois programmers who
 originally developed the Internet navigation software known by the Mosaic
 name, said it will provide the software that enables merchants and users to
 exchange credit card information safely on the global computer network.
  First Data, which processes credit card transactions for 700 financial
 institutions including Chemical Bank and Bank of New York, will handle the
 electronic transactions for Mosaic's on-line merchants. "It's really giving
 our banks the opportunity to go to merchants and say, `We can put you on the
 Internet,'" said Jeffrey Lipp, director of business development at First
 Data, Hackensack, N.J.
  The companies said they will launch the system by the end of this month,
 which would make it the one of the first payment programs that relies on
 encryption technology, which temporarily garbles information so it can't be
 filched by onlooking cybercrooks.
  The venture joins a number of other start-ups hoping to tackle security
 concerns over the Internet. First Virtual Corp., San Diego, last month
 announced a system for buying information on-line. Last week Microsoft Corp.
 and Visa International joined forces to offer a secure system for Internet
 payment. Other ventures in on-line payment include CyberCash Inc., Vienna,
 Va., and Open Market Inc., Cambridge, Mass.
  "Security is what everyone is so paranoid about on the Internet," said
 Mosaic's Mr. Clark, who compared the global network to a telephone party
 line. Once proper security measures are in place, he added, "one of the
 biggest opportunities is buying things on the 'net." Mr. Clark estimated
 that by next year on-line transactions could total as much as $500 million.
  The new system, which aims to cover all major credit cards, would require
 merchants to purchase Mosaic's "server" software for $5,000 to set up their
 own electronic storefront on the Internet's World Wide Web, a multimedia
 information retrieval system. Consumers who browse the Web with Mosaic's
 "client" version of the software would be able to key in credit card numbers
 to purchase goods and services.
  Separately, Mosaic Communications also is expected to announce today that
 it is changing its name to Netscape Communications Corp., under pressure
 from the University of Illinois. The university's National Center for
 Supercomputing Applications developed the original version of the Mosaic
 navigator and issued a warning to the newly formed company that its
 unlicensed use of the Mosaic trademark might violate trademark and
 intellectual property laws.
  Last month, Mosaic Communications, which had recruited members of the
 university programming team that had developed Mosaic software, released its
 end-user version freely over the Internet. The company hopes its Mosaic
 version becomes the standard for accessing the World Wide Web. The
 university responded by raising the specter of legal action to enforce its
 trademark rights.
  Mr. Clark said the naming of the company turned out to be a bad choice. "We
 made a bad choice actually because it turned out to yield too much confusion
 with the NCSA program," he said.

==========================================
Bill Gates Envisions Computing's Future At Comdex
  You can forget your wallet when you go to the store in the year 2005. But
 don't forget your Wallet PC.
  This hypothetical device, proposed by Microsoft Corp. Chairman William
 Gates, will store up digital money that can be zapped into next-generation
 cash registers, verify consumers' identity and even give directions to the
 store.
  The Wallet PC is one symbol for the computer industry's coming evolution,
 the focus of Mr. Gates's kickoff speech today at the big Comdex trade show
 in Las Vegas. His talk updates a concept called "information at your
 fingertips" that Mr. Gates has been promoting since his Comdex keynote four
 years ago.
  Mr. Gates then was crusading to make personal computer programs much easier
 to use, allowing desktop systems to draw information from any source at any
 time. According to a draft of his Comdex speech, Mr. Gates's vision now
 extends beyond the desktop to a broad collection of products that will allow
 consumers to work and communicate in more flexible ways.
  Instead of commuting to traditional offices, for example, workers will use
 wired and wireless data networks to collaborate from cars, homes or
 data-communication kiosks in public places. "The network becomes their
 virtual conference room," he says.
  Regional retailers will be able to market products globally through on-line
 services and computerized television, Mr. Gates notes. Paramedics will be
 able to pull up patient records and consult with medical specialists around
 the world, while speeding to the hospital in an ambulance.
  The Wallet PC, much more powerful than pocket-sized machines to date, will
 exchange computerized money with others' devices. It will communicate with
 location-finding satellites, receive messages, keep track of people's
 schedules and electronically pay for goods such as sports tickets. People
 will even include family photos on them, Mr. Gates says.
  Since Mr. Gates's 1990 speech, Microsoft has moved beyond its original DOS
 operating system to build a more powerful franchise based on its Windows
 system and related application programs. Now it is worrying competitors by
 expanding into entirely new businesses. For example, Microsoft is currently
 the top seller of encyclopedias, based on a CD-ROM program called Encarta.
  Mr. Gates today is scheduled to disclose details of the company's plans to
 enter the market for on-line services. Other new products to be introduced
 at Comdex include Microsoft Internet Assistant for Windows, which makes it
 easier for users of the company's Word program to use the collection of
 computer networks.
  The speech today will be illustrated by an elaborate video, in which
 futuristic technologies are used to solve a murder mystery.

==========================================
The Hottest Movies : Costs For Special Effects Decline
  Effects houses say that costs for some special effects are declining.
 "There are certain so-called workaday effects, and those costs are coming
 down," says Mr. Ross. "But if you want leading edge, never-been-done-before
 effects, it's still going to be expensive." Universal spent an estimated $25
 million for the dinosaurs in "Jurassic Park." The effects in "Vampire" cost
 an estimated $2 million, and the effects in "Apollo 13" are expected to cost
 about $10 million.
  Industrial Light, which currently is working on "Casper," is still the
 industry leader by far and handled the summer's hits "The Mask" and "Forrest
 Gump." The company was born when founder George Lucas started making his
 "Star Wars" trilogy nearly 20 years ago. In Mr. Lucas's "Young Indiana Jones
 Chronicles" TV series, Industrial Light used computers to do such things as
 make a small group of extras look like a crowd of hundreds. Computers also
 were used to create elaborate period sets without actually building them.
  Among Digital Domain's effects in "Vampire" are shots of a wharf in New
 Orleans, complete with moving ships and burning buildings. Digital Domain
 built a miniature model of a short row of buildings and set the model on
 fire before letting the cameras roll. Then it scanned that footage into a
 computer and electronically multiplied the number of buildings so that it
 looked like several blocks were burning.
  Another sequence has the camera scanning bodies in a burned-out dungeon
 before settling on a view of Paris from the dungeon's windows. The dungeon
 was also a miniature. And the view out the windows of morning in Paris --
 complete with sun streaming in -- is a painting of the city.
  These kinds of effects illustrate the growing collaboration between a
 filmmaker's creative team and the graphic artists at visual-effects houses.
 Although Dante Ferretti, the film's production designer, designed the sets
 in the sequence, they weren't the typical full-size sets the film veteran
 was used to. And, perhaps more important, the movie's director of
 photography, Philippe Rousselot, didn't shoot the scene; it was filmed by
 Mr. Legato at Digital Domain.
  "I was most nervous about Philippe," Mr. Legato says. "He's very good and
 very finicky about what goes into his movies. For us to do something in the
 computer that looks like film that he shot was a tough task. But we did it
 and he really liked it."
  At one point in the new Warner Bros. movie "Interview With the Vampire,"
 Brad Pitt throws a gas lantern at the feet of Tom Cruise, who hops around
 wildly as flames engulf him.
  Of course, Mr. Cruise isn't really on fire. Director Neil Jordan first
 filmed Mr. Cruise jumping around. Then, special-effects wizards used a
 computer to painstakingly marry that footage with separate film of a
 burning, flailing model of Mr. Cruise's legs and torso.
  The market for computerized digital special effects is exploding. And one
 of the hottest companies is the 18-month-old Digital Domain, which did the
 effects for "Vampire." Sony Corp.'s TriStar Pictures unit recently chose
 Digital Domain to handle the lion's share of the effects work on its
 big-budget remake of "Godzilla."
  Business is booming at all of Hollywood's effects houses for a simple
 reason: Visual-effects movies are scoring at the box office, and studios are
 making more of them. This summer, all but one of the eight movies that
 grossed more than $100 million employed some special effects. "I call it the
 post-`Jurassic' period," says Scott Ross, chief executive of Digital Domain.
  "Godzilla," scheduled to be released in 1996, could be the biggest effects
 film to date, with plans for about 400 to 500 visual-effects sequences.
 "Jurassic Park," whose effects were handled by Lucasfilm Ltd.'s pioneering
 Industrial Light & Magic, had 61 such sequences. Digital Domain,
 50%-financed by International Business Machines Corp. and founded by movie
 director James Cameron, an effects guru named Stan Winston and Mr. Ross,
 formerly head of Industrial Light, is also creating about 140 different
 effects for Universal Pictures' "Apollo 13" starring Tom Hanks.
  Studios are increasingly hiring effects houses to create whole characters.
 The main character in "Godzilla," as well as in "Species" and "Casper" (both
 set for release next summer), will exist almost exclusively in computers,
 executives say.
  Like many recent movies, "Vampire," though visually lush, does not strike
 moviegoers as a "special effects" film. Its main attraction is not a
 computer-generated creature like "Godzilla," and it doesn't feature
 traditional effects like exploding buildings. Instead, many of the effects,
 as when Mr. Cruise appears to bleed after being slashed in the face with a
 pair of scissors, are far more subtle and are done to enhance the realistic
 look of the film.
  Filmmakers are discovering that the new technology is giving them all kinds
 of freedom. After shooting one outdoor scene at night, Mr. Jordan decided
 he'd prefer to have the scene set at dawn. No problem, said Digital Domain,
 and it inserted a computer-generated sunrise. "That's the kind of shot that
 you would never pick out as an effect," says Rob Legato, visual-effects
 supervisor at Digital Domain.
  Digital Domain started with a bang, in part because IBM and Mr. Cameron
 have so much credibility. Mr. Cameron gave Digital Domain its first project,
 this past summer's Arnold Schwarzenegger hit "True Lies." Yet Digital Domain
 has only a handful of IBM computers at its offices. Instead, it has more
 than a hundred workstation computers from Silicon Graphics Inc., the main
 competitor to IBM in highpowered visual computing systems. Digital Domain
 won the "Vampire" contract because of Mr. Winston, whose independent effects
 house had been hired to create the movie's live-action effects, including
 the vampire makeup.

==========================================
TECHNOLOGY: Virtual Company? Say Company-In-A-Box
  Want to bring a gleam to the eye of a computer-network fanatic or
 re-engineering guru? Just say: "company-in-a-box."
  It's a sort of street term for the ultimate cyberspace corporation, a
 virtually virtual company that farms out almost all functions through the
 computer-based networks that already are crucial to many industries. There
 are no companies-in-a-box yet. But as networks proliferate, many business
 tasks that rely on computer technology are in fact being turned into
 commodities and sold a la carte or packaged in industry-specific "boxes."
  So instead of buying computers and training staff to use them, a company
 can rent a function from a specialized provider, or vendor, over a computer
 network. This outsourcing, which used to apply strictly to data processing,
 now encompasses customer service, telemarketing, billing and collection,
 purchasing, employee training, accounting, publishing, legal administration
 and so on.
  "There is not a single function I haven't seen outsourced," says Howard
 Anderson, a consultant with Yankee Group in Boston.
  Let's take, for an example, an airline. A handful of strategists put their
 heads together to decide where to fly and what to charge. As with many
 airlines these days, they lease their aircraft and hire flight and ground
 crews on contract. But then they hit the networks to find vendors for just
 about all other operations -- passenger reservations, baggage tracking,
 accounting, aircraft loading, weather monitoring, route planning and
 seat-revenue maximizing. Almost overnight, they're flying.
  The scenario isn't too far from reality. Consider Reno Air Inc. Two years
 ago, the Reno, Nev., start-up turned to Electronic Data Systems Corp., the
 computer-services unit of General Motors Corp., to set up and run several
 operations, including reservations and baggage tracking, as well as a
 marketing-analysis tool. This approach not only gave the carrier flexibility
 and kept initial capital outlays down, but also helped trim its launch time
 -- from conception to first flight, excluding delays from regulatory
 approval -- to 90 days, about half the industry average.
  As more and more for-hire processes are added to computer-network menus,
 the rise of "radical outsourcing" -- and the decline of the modern,
 multipurpose corporation -- is inevitable, predicts Paul Saffo of the
 Institute for the Future, a think tank in Menlo Park, Calif. "In the '80s,
 we saw the flattening of organizations," Mr. Saffo says. "In the '90s, we're
 seeing the wholesale depopulation of the interior of companies." Everything
 must go, he says, except the "core" business.
  But don't expect to find any pure companies-in-a-box just yet. "It's a Holy
 Grail," says Earl Hall, former director of advanced manufacturing technology
 at Apple Computer Inc. and now a computer-industry consultant. Still, even
 he concedes that while no one company has succeeded in outsourcing all
 noncore operations, "a lot of companies are moving toward it."
  Wisconsin Energy Corp. is. Amid the tumult of deregulation, the
 Milwaukee-based utility is turning to outsiders to lift productivity and cut
 costs. So far, it has identified 16 areas for possible outsourcing. In each
 case, "where information technology plays a big role in a company, (vendors)
 are the best providers," says James Baillon, director of outsourcing at
 Wisconsin Energy.
  Computer-enabled outsourcing should trim up to 10% from Wisconsin Energy's
 nonfuel operating expenses, Mr. Baillon says. "Just like with the airlines,
 those of us who have good controls on cost structure are weathering the
 storm," he adds. "Those who don't have troubles."
  Cutting deeper, however, will mean taking a hard look at functions
 essential to what Wisconsin Energy does for a living, like customer service.
 Outsourcing such operations will require more thorough analysis because the
 company doesn't dare lose control of "heart and soul" capabilities that
 generate significant profit growth, Mr. Baillon says.
  Indeed, that's the grave risk of radical outsourcing, and it is the main
 reason the company-in-a-box phenomenon remains in the embryonic stage. "A
 lot of these are things people shouldn't be giving up," says William
 Davidow, a venture capitalist in Menlo Park, Calif., who wrote the 1992 book
 "The Virtual Corporation."
  "When people start saying, `I'm going to only stay with my core
 competence,' they have to really understand what that is," Mr. Davidow says.
 "In the information age, that core competence changes so quickly they may
 not understand it."
  In health care, for instance, the most efficient operators today are those
 that manage information technology well -- tracking physician performance,
 sifting through research databases and analyzing costs. If health-care
 providers assign these tasks to a data-services company that does only an
 average job, they may one day find themselves lagging behind rivals that
 have invested to develop superior systems in-house.
  That's why the successful company-in-a-box must maintain control of the
 "central resources sitting on the high end of its business," says Michael
 Treacy of Treacy & Co., a management consulting firm in Cambridge, Mass.
  Let's say you build a cable-TV home-shopping network with four "dream team"
 partners: Barry Diller, chairman of QVC Inc., does the merchandising and
 marketing; L.L. Bean Inc. oversees orders and fulfillment; Federal Express
 Corp. handles shipping; and Citicorp takes care of billing. All but the
 first have "almost generic capabilities," says Mr. Treacy. "If they walk,
 you're fine. If Diller walks, you're dead, because he understands something
 very special, the intersection between advertising and entertainment."
  Be that as it may, businesses will tend to go as far as they can to
 outsource. "Technology is lowering the cost of coordination, so you will see
 this coordination more through market mechanisms than through a hierarchy,"
 says Mr. Treacy. As giant, multifunction corporations hollow out,
 single-function enterprises may fill the void.
  The market mechanisms are in full swing at EDS, based in Plano, Texas,
 which operates perhaps the largest corporate data network in the world.
 Buried deep inside EDS is a fast-growing $350 million unit that has the
 potential to transform the $8.6 billion company by developing novel,
 information-intensive services that can be poured through EDS's high-speed
 networks.
  So far, telemarketing is the biggest hit among the services the unit
 offers. EDS now markets chemicals for Dow Chemical Co. and furnishes 24-hour
 customer support for owners of GM cars and for account holders at 16 small
 Midwestern banks, using specialists who plug into a trove of on-line
 databases. It also provides work-force training for global companies in 125
 satellite-linked classrooms for real-time, interactive instruction.
  Theodore Ryan, who runs the EDS unit, would like nothing better than to
 launch a company-in-a-box or two. "The rhetoric is easy," he says. "What's
 hard is learning how to package it and get a robust offering and organize it
 around an industry. But we are on the cusp of taking some of them to
 market."

==========================================
As Comdex Show Opens, Key    Exhibitors Grumble About Costs
  LAS VEGAS -- Early this month, the computer industry's most controversial
 impresario, Sheldon Adelson, faced a threat of mutiny by three of the most
 influential chief executive officers.
  The CEOs were to be keynote speakers at Mr. Adelson's show, Comdex Fall,
 which begins here today. Unbeknownst to them, Mr. Adelson had turned their
 unpaid appearances into a revenue source: After charging show-goers $75
 apiece for admission, his company sold $25 tickets to about 6,000 of them to
 hear the speeches, which in the past had been free to all attendees.
  It was yet another maneuver in Mr. Adelson's relentless, almost legendary
 campaign to squeeze profit out of the show. For the CEOs, it was a last
 straw.
  "Charging for it goes beyond what is right," says Intel Corp.'s Andrew
 Grove, one of the speakers. Another, Microsoft Corp.'s William Gates, "was
 very upset" when he found out about two weeks ago, a Microsoft spokeswoman
 says. Microsoft and Intel contacted the third speaker, Novell Inc.'s Robert
 Frankenberg. The CEOs and their aides agreed that all three should cancel
 their speeches unless Mr. Adelson refunded the $25 to attendees, according
 to officials familiar with the episode. He eventually agreed to a
 compromise, to donate the money to charity.
  That three such powerful leaders should have to compromise at all is a
 measure of Comdex's grip on the industry. It is the world's principal
 computer marketing forum, with 2,159 exhibitors, 172,898 attendees and 2,000
 journalists on hand last year. Many companies say they must come to make
 crucial business contacts. If they don't, says Mark Macgillivray, an
 industry consultant, they know "you will be noticeable by your absence."
  And Comdex's grip on the industry is a measure of the man who created the
 show. The 61-year-old Mr. Adelson, who started the annual show in 1979 and
 has kept tight control of it ever since, has turned nearly every activity or
 bit of geography associated with it into a source of revenue.
  During Comdex week every November, Interface Group, the Needham, Mass.,
 company Mr. Adelson controls, collects fees on convention floor space that
 are 273 times its own cost, charges hundreds of thousands of dollars more
 for convention advertising space, adds high fees for things such as
 electrical installations and gets a cut from 20% of Las Vegas hotel rooms.
 Mr. Adelson and his partners also own the Sands Hotel Casino here, where he
 has built a new hall that will house 60% of the Comdex exhibitors this year.
  "He knows he's got a captive audience, and he milks it," says Paul
 Christensen, chairman of the Las Vegas Convention and Visitors Authority, a
 local-government agency that runs the convention center and has feuded with
 Mr. Adelson over getting a cut of the revenue.
  Mr. Adelson isn't alone in doing some milking, however. During Comdex week,
 many Las Vegas hotels more than triple their room rates; a night in the Las
 Vegas Hilton is $249 this week and, in a Thanksgiving special, $29 next
 week.
  Moreover, Comdex is increasingly "an inward-looking show" that attracts too
 many vendors and not enough customers, Intel's Mr. Grove complains. "So why
 do I go? Good question."

==========================================
TECHNOLOGY: Corporate        America Loves The Internet
  Mary Kay Cosmetics and the National Football League have more in common
 than face paint. Like thousands of other companies, both are on the
 Internet.
  Corporate America has fallen in love with the global computer network,
 seeing it as a new way to reach employees and vendors and to find millions
 of potential customers. Companies use the network to send electronic mail,
 conduct research, get customer feedback, recruit staff and advertise their
 products and services.
  The pace at which companies have been linking up to the network is
 dizzying. In 1990, only 93 companies listed themselves with the Internet's
 central registry. Now more than 20,000 companies are on the computer
 network, according to Internet Info, a Falls Church, Va., market-research
 company. The Internet is becoming the "power lunch" of the digital
 dimension.
  "Companies are signing up in a frenzy," says Mike Walsh, Internet Info's
 president. "The Internet has become a central corporate resource," he adds,
 and "companies don't want to be left behind."
  The number of entertainment companies registered on the Internet has jumped
 to a dozen this year from two last year, Mr. Walsh says. The number of law
 firms has nearly tripled to 114. Venture-capital firms, financial-services
 companies, publishers and advertisers doubled in number.
  How much they get out of the Net, as it's known, varies widely. At NFL
 Properties Inc., the league's licensing and merchandising arm, using the Net
 is still mostly a hobby, says the company's computer director, Brian Davids.
 Similarly, at Mary Kay Cosmetics Inc., a unit of Mary Kay Corp., only a few
 technical people are on the Internet, and they mostly browse. But at Tor
 Books, a science-fiction unit of London-based Macmillan Publishing Ltd.,
 editors in New York recently used the computer network to do extensive
 editing of "Mageworlds," a science-fiction book trilogy, with its authors in
 New Hampshire.
  The hottest trend now for companies on the Internet is offering interactive
 electronic brochures to sell wares, or at least awareness, to potential
 customers. To do that, many businesses use software that gives them video
 and sound capabilities. Geffen Records Inc., a unit of Matsushita Electric
 Industrial Co. of Japan, offers an electronic storefront that tells browsers
 they can "score the freshest information from our publicity department, fill
 up on . . . artists, or sample an assortment of video, audio and graphics."
  What Geffen is actually providing on-line: press releases, sound clips,
 pictures and other information about its artists. For example, users can
 choose the category "Artist Information" for a band and hear audio clips
 from new songs, see graphics, and read current publicity material and
 biographical information about the group.
  Read Rite Corp., a Milpitas, Calif., computer-parts maker, also uses the
 Net to offer multimedia brochures describing its operations around the world
 and to give tips about local culture. For example, users can read about the
 company's Thailand facility and learn to speak such key Thai phrases as "mai
 pen rai," which means "never mind."
  How successful are these ventures? One example: The East Coast rock band
 God Street Wine was signed by Geffen Records after Geffen heard the group's
 audio clips from Internet Underground Music Archive, a start-up company in
 Santa Cruz, Calif., that makes new music available over the Internet.
  Companies aren't just trying to attract customers on the Net. They're also
 after new employees.

==========================================
TECHNOLOGY: The Future Is    Now, Interactive Multimedia
  RENTON, Wash. -- Pacing in front of a classroom in Boeing Co.'s new
 customer-training center here, Ronald Brown is explaining hydraulic pumps.
 He touches a button, and a three-dimensional picture of a pump in the right
 wheel well of one of Boeing's new 777 jets appears on the classroom's dozen
 computer screens. With another click, a schematic diagram of the plane's
 intricate landing-gear hydraulics joins the picture. Click: A graphic of the
 plane itself fills the rest of the screen. Mr. Brown, a 33-year-old
 engineer, pauses for effect, then clicks one more time. This time, a
 mechanic's face peeps through the cockpit window on the screen, grins and
 waves.
  It may look like Nintendo, but this is no child's play. Though much of the
 talk about building the information superhighway -- with its ability to send
 and receive video, sound and data -- is still just talk, Boeing and other
 companies have already built sophisticated computer networks the likes of
 which high-tech planners still only dream about creating for the general
 public.
  Take Lucas Digital Ltd., George Lucas's group of special-effects companies
 based in Northern California's Marin County. Using fiber optics and
 satellites, the company has hooked up its special-effects computers to
 filmmaker Steven Spielberg's production operations in Los Angeles, and to
 Mr. Spielberg himself, wherever the director happens to be. The result:
 Lucas Digital's Industrial Light & Magic unit was able to put the dinosaurs
 into "Jurassic Park" 400 miles from where the film was being edited.
  Dennis Muren, Industrial Light & Magic's visual-effects supervisor for
 "Jurassic Park," says the movie's background was transmitted from Mr.
 Spielberg's production offices to Industrial Light, where it was scanned
 into computers and the dinosaur images were inserted. Mr. Spielberg, then in
 Krakow, Poland, to film "Schindler's List," joined in on an interactive
 hookup to supervise the process.
  "We wanted to let him see what our dinosaurs were doing, so we'd go back
 and forth," Mr. Muren says. For example, when Mr. Spielberg wasn't happy
 with the doleful look on a tyrannosaurus at the film's end, he ordered a
 change. "He wanted the dinosaurs to end up proud," Mr. Muren says. "We
 didn't know that until he saw what we had done."
  Lucas Digital's special-effects people quickly altered the dinosaur's
 demeanor, making him rear back and roar instead of look at his feet in
 defeat. The technology saved "umpteen thousands of dollars" in time and
 effort, says Mr. Muren, who is now using it to produce the special effects
 on Mr. Spielberg's new movie, "Casper," based on the cartoon "Casper the
 Friendly Ghost."
  Silicon Graphics Inc., which supplies Mr. Lucas's workstations, has its own
 version of the information superhighway. Some 4,000 employees of the
 Mountain View, Calif., company can tap into its Atlas Server system. An
 internal, interactive, fiber-optic network, it contains everything from
 company press releases and video clips of executives' presentations to
 hundreds of ads and other animation snippets. Employees can call up
 information bits to make new ads and presentations. "We've been moving
 information back and forth like this inside the company for some time," he
 says.
  At Caterpillar Inc., engineers process hundreds of thousands of
 mathematical computations to create virtual-reality mock-ups for new
 wheel-loader and backhoe-loader designs.
  The high-tech simulations have allowed Caterpillar to cut the time needed
 to evaluate design changes on its new models to a month from as long as nine
 months.
  As it put together its huge network, however, Boeing discovered that the
 amount of data could be so vast that information could be hard for users to
 find, a problem that planners of the information superhighway will also
 face. "There was plenty of coordination in creating data," says Tim Scallon,
 the manager for the customer-service division's engineering data systems,
 "but no one was coordinating the access to it."
  Boeing has so much information -- more than 600 databases in all -- in so
 many computer languages that some company engineers need four kinds of
 computers on their desks to get what they need. Mr. Scallon calls the
 network an "electronic Tower of Babel," and a report by the company's
 computer experts warned that tapping data could become a major headache for
 Boeing over the next decade.
  That is changing, Mr. Scallon and others insist. Mr. Brown's split-screen
 images of the hydraulic pump, for example, blend engineering graphics,
 schematics and simulations into one interactive, multimedia presentation.
 Indeed, Boeing's instructors now have so much information at their
 fingertips that they have had to install blocks in their system to keep
 their students from calling up parts on their computers and questioning
 their design. "We're in the business of teaching the design, not defending
 it," says Jonathan Kniss, manager of the division's 777 avionics training.
  What comes next, as companies develop increasingly sophisticated internal
 networks, are hookups between company systems, predicts Joel Orr, a Virginia
 Beach, Va., consultant who advises companies on engineering and
 manufacturing automation. Mr. Orr says a number of large companies,
 including U S West Inc. of Denver and Fujitsu Ltd. of Japan are backing a
 project by the University of Washington's Human Interface Technical
 Laboratory that will link U.S. and Japanese engineers in virtual reality.
 "This will give people a taste of what the real information highway will be
 like," he says.
  Mr. Orr and others say companies are less than a decade away from
 developing systems that will permit workers to communicate in
 virtual-reality situations "untrammeled by the chains of computer operating
 systems."
  He adds: "The technology is there, and the cost has come way down from the
 ridiculous heights where it used to be. It's been a mystery to me why
 manufacturing companies haven't adopted more of this stuff."

==========================================
Ex-Rocker Guides Pearson PLC Onto The Information Highway
  Nick Alexander was hired to race headlong into the electronic age. But
 first he is taking a detour -- on a mountain bike.
  Recently given a blank check by London's Pearson PLC to take the old-line
 publisher into "new" media, Mr. Alexander promptly went out and spent $80
 million on a publisher of 34 magazines, including Mountain Biking UK.
  But what about CD-ROMs, on-line services, the information superhighway?
 "I'm a little cynical about how fast all this is going to happen," he says
 through a wide grin. "There's a tremendous amount of hype around this whole
 subject."
  So the indirect route to the future may actually be the best, argues Mr.
 Alexander, chief executive of Pearson New Entertainment Europe Ltd. The way
 Mr. Alexander sees it, the mountain-biking magazine might play a role with,
 say, bulletin-board chat lines where riders can swap stories about good
 trails. And PC Plus, another of the titles purchased last month, eventually
 might offer on-line product reviews or PC tutorials. What he doesn't want to
 see is a head-first jump into a technology world that is still unproven.
  Mr. Alexander concedes that his go-slow attitude is a bit odd, and some
 analysts question his strategy. Many had hoped his arrival would invigorate
 a United Kingdom high-tech market that so far has languished. British
 companies have shunned the high-tech deal making seen in the U.S., and
 nearly 85% of British consumers still don't have home computers. But instead
 of galvanizing the industry, Mr. Alexander has rattled it. "The whole
 Pearson thing now seems a bit hazy," says Louise Barton, an analyst at
 brokerage Henderson Crosthwaite in London.
  Indeed, Pearson's chief executive, Frank Barlow, only recently pronounced
 that the printed word is dying. In keeping with that view, Pearson -- best
 known for its Financial Times newspaper and Penguin books -- paid $462
 million earlier this year for Software Toolworks Inc., a once-struggling
 California computer-software concern.
  While Mr. Alexander says he is in sync with Mr. Barlow -- both executives,
 he says, see the same future for Pearson -- it's in the speed with which
 they are trying to get there that analysts have noted a difference. Mr.
 Alexander, for his part, is convinced that companies moving too fast in
 embracing new technologies -- including many U.S. companies -- will fail.
 "You're not going to lose anything by taking a measured view," he adds.
  Mr. Alexander works with a staff of five people out of a virtually barren
 office in London's Chelsea district. And if his approach to a multimedia
 empire seems unconventional, it fits with an unconventional career. A
 onetime spike-haired punk rocker with a penchant for leather jackets, the
 39-year-old executive came to Pearson via video-game maker Sega Enterprises
 Ltd., where he ran the European operations, and Richard Branson's Virgin
 Group, where he helped launch Virgin Atlantic Airways and started the
 company's computer-game business.
  While his three-year stint at Sega Europe ended in disappointment -- the
 operation had a loss of 100 million pounds ($160 million) in the latest
 fiscal year as a result of a European consumer-electronics slump -- Mr.
 Alexander is credited with building a powerful high-tech brand name.
  Mr. Alexander, who strengthened the Sega image with an aggressive print and
 TV ad campaign, plans to use the same approach in his multimedia job. The
 idea, he explains, is to assemble a stable of publishing and video
 properties that can later be turned into brand names.
  Instead of simply tossing nifty technology at consumers, he sees his job as
 building media brands that may translate to the on-line world. Customers, he
 says, will be looking for familiar signposts. Pearson's role, he says, will
 be providing the media brand names that people can trust.
  For now, Mr. Alexander is particularly interested in special-interest
 videos and sports and hobby magazines -- all of which would someday
 translate well into an on-line format. Other acquisition deals are expected
 in the next few months.
  Though his plan may seem a bit fuzzy, some analysts are willing to give Mr.
 Alexander growing room. "What you have to realize is that these are very
 reasonable, responsible people," says Chris Munro, an analyst at Hoare
 Govett in London. "I think Pearson is right in being careful."

==========================================
TECHNOLOGY: Eric Benhamou's  Aggressive Vision In Networks
  Eric Benhamou is a closet revolutionary. Just step into his closet and see.
  Under the stairs of his Saratoga, Calif., home, the chief executive officer
 of 3Com Corp. has installed an unassuming plastic box and several strands of
 cable to create a network for eight home computers.
  The setup lets his two teenage sons face off in simulated aerial dogfights
 while each is at a personal computer in his own room. And with their PC
 modems, the boys can call up homework assignments from school. For Mr.
 Benhamou, there's a hookup with what is currently the fastest home telephone
 service for data communications. The 39-year-old executive uses it to troll
 Internet discussion groups, tap into his Silicon Valley company's database
 and send messages to lieutenants around the world.
  This mini-network gives substance to Mr. Benhamou's vision of the course
 the information superhighway will take as the use of low-cost data
 communications spreads from large corporations to smaller businesses,
 schools and homes. The process, he contends, will be driven by businesses'
 need to achieve greater efficiency, not by consumers' desire for interactive
 TV and other information-age entertainments. And it will encompass broad
 social changes -- in attitudes toward work as the spread of networks lets
 ever-larger numbers of people take their jobs home.
  For 3Com -- a networking pioneer that appeared locked in a fatal spiral
 until Mr. Benhamou took charge in 1990 -- the vision suggests both challenge
 and opportunity. "By the year 2000, I think we'll sell more products (for
 use) in the home than in" businesses, he says. "The eventual web we are
 trying to create is to make the network as pervasive as the telephone."
  Dozens of companies share similar hopes. What sets Mr. Benhamou apart is
 his aggressive application of his vision to 3Com's strategy and operations.
 Under his leadership, 3Com has acquired a string of companies to create the
 broadest array of products in the crowded network-hardware market. At the
 same time, 3Com has become a living embodiment of its business vision, using
 electronic mail, internal bulletin boards and video conferences to weave
 together its far-flung operations: Foreign markets account for 52% of its
 revenue, compared with 30% to 40% for most of its rivals.
  "Eric's a genius at buying companies," says Paul Callahan, a senior analyst
 at Forrester Research in Cambridge, Mass. Adds L. William Krause, Mr.
 Benhamou's predecessor at 3Com and its chairman until 1993: "He's one of the
 best global managers there is."
  That role comes naturally. Mr. Benhamou was born in Algeria, raised in
 France and speaks several languages. In other respects, though, this slight,
 soft-spoken man with frizzy black hair and a mustache seems an unlikely star
 in Silicon Valley's entrepreneurial firmament.
  "There is not a lot of yelling and pounding on the table," adds Harry Saal,
 founder of software maker Network General Corp., Menlo Park, Calif., and now
 chief executive officer of Smart Valley Inc., a public-private consortium
 set up in Silicon Valley to promote the use of information technology at
 work, home and school. "For a company that is pushing $1 billion (in annual
 revenue), 3Com is highly responsive but very much in Eric's style, which is
 very underspoken."
  Mr. Benhamou has funneled 3Com money and time into projects to prepare
 businesses, students and just about anyone else who uses a PC for the
 changes in habits and lifestyles that networks make possible. Though these
 efforts could eventually help 3Com's bottom line, Mr. Benhamou says he is
 equally motivated by a desire to give something back to the entrepreneurial
 culture in which he has thrived.
  For instance, 3Com recently drafted a plan to start setting aside 1% of its
 quarterly pretax operating profit for charitable donations when its pretax
 margins are above 15%. Mr. Benhamou says the company reached that margin
 about a year ago and has been operating solidly above it since. "In most
 parts of the country, that is pretty well accepted," Mr. Benhamou says. "In
 the cowboy mentality of Silicon Valley, not everybody thinks this way."
  3Com also has pledged $2 million in equipment, cash and staff time to bring
 high-speed data connections to 335 schools in Santa Clara County, as part of
 a program involving Smart Valley and the San Jose Education Network, a
 public-private consortium started by that city's mayor to bring technology
 to local schools. To start, 500 teachers, administrators and even a few
 students this summer took a four-week course in networking. "The syndrome we
 wanted to avoid is when you import a technology into classrooms and teachers
 don't want it," Mr. Benhamou says.
  The project is now installing internal Ethernet networks and links to the
 Internet at 25 high schools, putting them in touch with students in other
 schools and even other countries. In the wired classroom, Mr. Saal says,
 students will rely on the Internet, for example, to gather information for
 research projects. A group of language instructors has come up with a plan
 for students to write books in, say, French, and then let pen pals in France
 edit them.
  Mr. Benhamou also has cast 3Com as one of Silicon Valley's most aggressive
 promoters of telecommuting, allowing employees to work at home on PCs. Smart
 Valley hopes that expanded use of telecommuting will reduce traffic snarls
 and help companies retain staff. Mr. Benhamou has co-written a Smart Valley
 guide to telecommuting, and 100 3Com workers are taking part in a pilot
 study to identify the benefits and the problems of telecommuting technology.
  "If we have some great engineers who want to work in the Santa Cruz
 Mountains, I'd like to be able to let them do that," Mr. Benhamou says.
  Mr. Benhamou himself telecommutes: His phone line communicates with 3Com's
 computers at the company's Santa Clara headquarters 10 miles away at speeds
 that allow him, for example, to assemble slide presentations while working
 on a Macintosh computer in his home, a rambling colonial-style structure
 fronted by columns and a small rotunda and decorated with touches of stained
 glass and Middle Eastern art.
  The scene is light years from the world into which Mr. Benhamou arrived
 nearly 40 years ago. He was born in Tlemcen, a village near Algeria's border
 with Morocco, to a Jewish couple who taught humanities at the high-school
 and college levels.
  After receiving a master's degree in engineering in France, he headed for
 Stanford University to begin work on a second engineering master's. There,
 he set up house with his wife, Illeana, whom he met when he was 13 and
 married a few days before his 20th birthday.
  He hadn't intended to stay on in the U.S., but the easygoing lifestyle and
 intellectual atmosphere of Palo Alto had a powerful appeal. His French
 accent faded, and he started picking up American interests, which now
 include in-line skating.
  In 1976, he took his first job, joining a team of engineers at Zilog Inc.,
 a semiconductor company that was working to develop local-area networking
 devices for PCs. When Zilog balked at marketing the devices, the team
 leaders left to form one of Silicon Valley's first network start-ups. But
 Mr. Benhamou stayed behind, fearing that a job change could jeopardize his
 pending application for permanent U.S. residency.
  After the green card came through, he left Zilog in 1981 to form Bridge
 Communications Inc. with a group led by the husband-and-wife team of William
 Carrico and Judith Estrin. The company developed a thriving business in
 bridges, devices that hook networks together. In 1987, the partners sold the
 company to 3Com for about $200 million in 3Com stock, gaining three seats on
 the merged company's seven-seat board.
  The merger was troubled from the start. 3Com, founded by Ethernet inventor
 Robert Metcalfe, had pioneered the market for adapter boards, which allow
 PCs to communicate using Ethernet technology. More recently, it had
 diversified into a line of PCs designed for use on networks and was slugging
 it out with Novell Inc. of Provo, Utah, in the market for network software.
  Mr. Benhamou recalls a 1987 meeting at which executives were to decide
 whether to concentrate on PCs and software or network hardware. CEO L.
 William Krause broke a tie in favor of PCs. In June 1988, Mr. Carrico and
 Ms. Estrin left 3Com.
  Soon enough, the PC and software strategy proved to be a costly flop.
 3Com's growth stopped. Its stock, which had peaked at $28.75 in May 1989,
 tumbled to $5.375 by October 1990.
  3Com's directors sought a change at the top. Mr. Metcalfe wanted the CEO
 job, but Mr. Krause lobbied other board members to pick the untested Mr.
 Benhamou, mainly for his technical expertise and calm, conciliatory manner.
 "One of the things I told the board was, `Notice that when Eric speaks, we
 listen,'" Mr. Krause recalls.
  In October 1990, Mr. Benhamou was named CEO. Mr. Metcalfe left the company.
 "I was a bit scared about the responsibility, mainly because of the fact I
 had no time to learn," Mr. Benhamou says. "I believed that we had about six
 months to get the company steering in a new direction."
  He quickly axed the company's PC line and, in a move known as Red October,
 canceled a software-development program linked to a partnership between
 Microsoft Corp. and International Business Machines Corp. that had recently
 collapsed. That move incurred heavy financial penalties. Microsoft "demanded
 as much money as they could without causing us to file Chapter 11," says Mr.
 Benhamou. He won't say how much, but hints at more than $10 million.
  In January 1991, Mr. Benhamou laid off 12% of 3Com's 1,953 employees. As a
 result, the company took a $67 million charge against earnings, leading to a
 loss of $20.5 million on sales of $419 million in the year ended May 31,
 1991.
  Morale sagged. "I had to take a lot of the blame on behalf of management,"
 Mr. Benhamou says. "I had to say that we really screwed up and we were
 sorry."
  But by slashing costs and refocusing the company on adapter cards and
 bridges, Mr. Benhamou soon returned 3Com to profitability. That gave him
 latitude to fill out 3Com's line of network hardware -- a strategy derived
 from his belief that as corporations expand their use of networks, suppliers
 with the most hardware to offer will benefit the most.
  To get a foothold in hubs -- devices that concentrate connections among PCs
 in a local network -- 3Com bought BICC Data Networks Ltd. in February 1992
 and Star-Tek Inc. in February 1993. Synernetics Inc., purchased in January
 1994, provided a new type of hub that uses switching technology to speed up
 Ethernet networks. Centrum Communications Inc., purchased in February, added
 devices used when PC users dial into corporate networks with a modem.
 Technology from Pacific Monolithics, bought the same month, is expected to
 let 3Com sell networks that communicate by radio links.
  For the year ended last May 31, 3Com reported earnings before acquisition
 charges of $86.9 million, more than doubling from $39.8 million a year
 earlier, on a 34% rise in sales to $827 million. However, a $134.5 million
 charge against earnings to account for acquisitions resulted in a net loss
 for the year of $28.7 million. In the quarter ended Sept. 1, net income more
 than doubled to $28.5 million, while sales increased 54% to $249.3 million.
 3Com's stock, which split 2-for-1 on Aug. 31, has been trading more recently
 at $40, up from $23.50, adjusted for the split, at the end of last year.
  Mr. Benhamou "has done a great job," says Mr. Metcalfe, who sold some of
 his holding of 3Com stock at a substantial profit after leaving the company.
 (He now works as a columnist for InfoWorld magazine.)
  3Com's competitors apparently agree. Many have begun buying smaller rivals
 and offering a smorgasbord of networking technologies. In October, for
 example, SynOptics Communications Inc. and Wellfleet Communications Inc.,
 leaders, respectively, in hubs and routing devices, merged in a stock swap
 valued at $1.01 billion to create Bay Networks Inc.
  Still, few find fault with Mr. Benhamou's overall hardware "supermarket"
 strategy or the management style that has helped him mesh many companies
 quickly. Besides ordinary electronic-mail messages, 3Com is a heavy user of
 Lotus Development Corp.'s Notes software, which allows PC users in any
 company office to track the status of key projects and read up on technical
 arguments that have gone into key decisions. Executives at companies
 acquired by 3Com say the system creates a sense of common purpose.
  As David Tolwinski, vice president of marketing at Synernetics, puts it,
 working for Mr. Benhamou gives him "firsthand experience about how to be an
 effective member of a company modeled for the 21st century. . . . Eric is
 practicing what he preaches."

==========================================
TECHNOLOGY: Picking Winners - Investors And The Network Mania
  For the average investor, making sense of the computer-network industry can
 be a frustrating exercise: a mind-boggling search through hubs, routers,
 frame relay, asynchronous transfer mode and other alien terms.
  What does it all mean? Well, if you strip away the high-tech gobbledygook
 and take a long-term view, you could be staring at one of the hottest
 investment opportunities of the next 10 years.
  The premise for spotting tomorrow's highfliers is simple: Many companies
 have already installed substantial networks that allow far-flung employees
 to talk to one another or exchange information, and many more are doing the
 same. Now they are about to add fancy new technologies that permit faster
 and more sophisticated communications, and the companies that supply the
 right bells and whistles stand to make a fortune.
  In the brave new technological world, for example, many employees will talk
 to each other over computer-based video networks, instead of merely trading
 e-mail messages. Similarly, it won't be unusual for users on different
 continents to work simultaneously on designing some new widget on their
 computer screens.
  So what players are poised to take advantage of the new trends? There are
 the established companies such as 3Com Corp., Cisco Systems Inc., Cabletron
 Systems Inc. and Bay Networks Inc., formed last month by the merger of
 Wellfleet Communications Inc. and SynOptics Communications Inc. They already
 rule the traditional market for routers and hubs, and are now attempting to
 diversify into more-sophisticated technology.
  But many smaller and more nimble companies are also racing to develop
 jazzier gear and applications for the future networks. They include such
 lesser-known lights as StrataCom Inc., Cascade Communications Corp.,
 Newbridge Networks Corp. and Fore Systems Inc.
  While some of these stocks and others in the industry have been trounced by
 investors lately -- reflecting a slowing in the industry's remarkably high
 growth rate -- analysts are bullish on the long-term outlook.
  "The overall industry is on a distinct growth curve," says James Meltzer of
 Yankee Group, a consulting firm in Boston. New developments, he adds, "give
 rise to opportunities for companies and investors."
  And companies are ready for change. Although demand for traditional
 router-hub networks -- which connect computers and permit them to exchange
 data -- remains strong, the technology has its shortcomings. Some early
 networking systems such as Ethernet and Token Ring suffer the same problems
 as telephone party lines: Communication quality deteriorates when more
 computers are added on. Moreover, companies increasingly want more powerful
 connections between far-flung local-area networks.
  To improve such "wide-area" links, some businesses are offering so-called
 frame-relay technology. Designed from the start for use with modern digital
 phone networks, frame relay is more efficient than older technologies at
 packaging data in separate "envelopes," addressing them, and reassembling
 them at the receiving end. Some analysts are particularly bullish on two
 frame-relay pure plays, StrataCom and Cascade Communications.
  StrataCom, based in San Jose, Calif., pioneered so-called fast-packet
 technology in the mid-1980s. AT&T Corp.'s frame-relay service, for example,
 is built around high-tech switches made by StrataCom. StrataCom also sells
 gear to CompuServe Inc. and Williams Cos.' WilTel long-distance unit, about
 to be acquired by LDDS Communications Inc. of Jackson, Miss.

==========================================
TECHNOLOGY:In Asia,Electronic Communications Is Growing
  TOKYO -- Send an electronic message in Korean to a company in South Korea,
 and your correspondent could receive a screenful of gibberish. Ask for an
 e-mail address from a worker in Japan, and likely as not you'll be met with
 a blank stare.
  By many accounts, rapidly expanding computer networks should soon create a
 wired global village whose citizens chat, strike business deals and exchange
 detailed information at the touch of a few computer keys. But that vision
 remains distant in Asia, where, despite breakneck economic and technological
 development, barriers to electronic communication range from practical and
 financial to linguistic and cultural.
  To be sure, there has been stunning growth in the number of Asian users of
 the Internet -- the chain of networks that is generally the easiest and
 cheapest way for businesses to communicate electronically with the outside
 world. Malaysia's state-owned Internet service, for instance, has nearly
 quadrupled its number of subscribers this year. China plans to open two
 Internet gateways soon, and wants to link as many as 250,000 computers to
 the Internet in coming years. Across Asia, the number of Internet "host
 computers" -- those with a direct connection to other Internet computers --
 soared 62% in the first seven months of this year.
  Yet the region still accounts for fewer than 4% of computers world-wide
 with access to the Internet. In many ways, the Internet remains accessible
 only to a small, well-educated and well-off Asian elite.
  "Most people don't really know about the Internet," says Srisakdi
 Charmonman, marketing manager of Internet Knowledge Service Center in
 Bangkapi, Thailand, which provides network connections for academics at a
 nearby university. "We really have to raise some awareness."
  Though familiarity with the Internet is growing among high-tech businesses,
 particularly in Singapore and Hong Kong, it remains low in Japan, where
 widespread acceptance of the Internet would be especially valuable to
 Westerners trying to make contacts and do business. Though Internet usage
 has begun to grow rapidly in Japan, it isn't catching on in crucial sectors
 such as government and business, and the pace remains far behind that in the
 U.S. Even high-tech Japanese organizations have lagged in adopting such
 simple services as e-mail.
  That's the case at Japan's Ministry of Posts and Telecommunications, where
 bureaucrats have hatched a big plan for a Japanese version of the
 information highway. Earlier this year, though, senior ministry officials at
 a news conference could only squirm in embarrassment when a reporter asked
 whether any of them used e-mail. (The ministry has since gone on-line,
 though many bureaucrats still don't know how to use the new equipment.)
  Computer communications face the most basic challenges, starting with the
 hardware itself. The Internet's infrastructure has been slow to develop in
 the region, and is expensive enough to discourage potential users. Since the
 U.S. remains the undisputed center of the Internet, most electronic traffic
 coming from Asia, regardless of where it is headed, gets routed through
 trans-Pacific cables or satellite links. Yet the "bandwidth," or data
 capacity, of those links hasn't been large enough to support heavy use.

==========================================
TECHNOLOGY: Computer Networks Are Changing The Workplace
  Networks have no secrets.
  It's a simple truth -- but it takes a lot of getting used to.
  Consider a man who was working for a small computer consulting firm. One
 winter's day, he turned on his computer to discover some electronic
 back-and-forth between two colleagues. Their backbiting conversation was all
 about him. He assumed the messages were sent to him by mistake, though it
 crossed his mind they were planted on purpose.
  Regardless, his suspicions that his colleagues and boss wanted him out were
 confirmed. He decided to look for another job.
  Office gossip is nothing new, but the proliferation of computer networks is
 rewriting the way business of all kinds is conducted in the workplace. At
 their best, networks that connect employees encourage workers to become
 efficient team players. They also eliminate dull and repetitious tasks,
 freeing up people for more creative thinking.
  But the impersonal nature of on-screen communication can foster
 ruthlessness. Computers may feel cool, detached and expressionless. What's
 more, networks let people indulge in cyberspace snooping and electronic
 eavesdropping, and encourage micromanagement, disloyalty and information
 hoarding.
  Companies that haven't anticipated the cultural revolution can be stymied
 by machine-induced dilemmas. "Technology is having a significant impact,"
 warns Susanna Opper, president of a consulting firm in Alford, Mass., that
 bears her name. "The change can be aligned with the direction of the
 company, if the company is aware of it. If not, it will be like a car
 without a driver and may not go where they want it to go."
  Nonetheless, businesses are finding the transition to ultraefficient
 computer communication well worth the risk. Networks have been especially
 welcomed at companies whose cultures already embrace openness. At Price
 Waterhouse, the Los Angeles accounting firm, 34,000 employees stay in touch
 with distant colleagues using Lotus Notes -- software, or "groupware," that
 lets them dial into the network from any telephone. Mark Lutchen, a partner
 who spends 70% of his time on the road, is glad he doesn't have to stand by
 a hotel fax machine waiting for memos.
  Some companies, in fact, see the impersonal nature of machines as a
 positive. Domecq Importers, a liquor importer in Old Greenwich, Conn., lets
 salespeople broach ideas for national promotions anonymously, without
 worrying higher-ups will shoot them down. Similarly, Cigna Corp. of
 Philadelphia, which has been experimenting with ways to use the network's
 anonymous approach, recently discussed reorganization in a cyberspace
 meeting designed to encourage a free exchange of ideas without concern about
 which "came from the boss," says Dennis Barham, a senior technical
 consultant for the insurance company.
  Sitting around a horseshoe-shaped table, eight Cigna employees typed
 simultaneously into their PCs. Nobody knew where any idea came from. People
 periodically checked in with a "mood meter," noting on a scale of one to 10
 how they felt about the meeting in the absence of conversation. A computer
 neatly printed out the minutes and tabulated the mood rating (it averaged
 eight). But the employees stopped short of making any decisions, feeling the
 need for human interchange, says analyst Karen Drago, one of the
 cyberparticipants.
  In fact, it's precisely this lack of human contact that makes networks so
 potentially disruptive in the workplace. When people stop talking,
 communication breaks down, says Terry Neill, a partner at Andersen
 Consulting in Chicago. With nothing but computer messages to sustain them,
 employees can become demoralized and inefficient. Loyalty to their employer
 suffers.
  Now, people spend less time in groups and more holed up in offices. "People
 still have to feel like they're part of the tribe," Mr. Neill says. "Where
 networks fail is when organizations assume that technology will take care"
 of all their problems.
  For example, Mr. Neill worked with a British utility that noticed
 inaccurate meter readings after the meter readers were equipped with
 hand-held terminals that let them do all their work in the field. Because
 they no longer had to go to an office to download their data, they had no
 reason to spend time together. As the workers felt increasingly alienated,
 some started working sporadic hours and taking imprecise readings. In the
 most extreme case, a worker stayed home and made numbers up.
  Companies must guard against such neglect, says Mr. Neill. At his own firm,
 which does technology consulting, nearly 90% of the 29,000 employees work at
 remote sites. They never need to visit headquarters. Some employees consult
 at big companies for as long as three years at a time and, when they finish
 the job, have switched loyalties from their employer to their client.
  So partners and staffers now gather regularly. "We have to be far more
 active to make sure there are physical relationships to come back to," Mr.
 Neill says.
  Companies must also be alert to changes in work relationships, since
 network communication can blur the line between managers and subordinates.
 Managers, especially, can find this hard to handle.
  Linda Applegate, a Harvard Business School professor, recalls conducting a
 computerized brainstorming session with a military organization. A
 high-ranking officer muttered his disapproval as suggestions poured in. Then
 he slammed his hand on the table and demanded to know where a particular
 comment came from. In a poll afterward, the employees said they had enjoyed
 themselves, but Ms. Applegate wasn't invited back.
  "It's like throwing a nuclear bomb into the middle of a company," Ms.
 Applegate says. "It totally disrupts the hierarchy. Anyone who has ever put
 in a system has had a revolution."
  Still, even among the underlings, sharing has its limits. Salespeople, who
 tend to be independent and competitive, are among the most reluctant to
 share. They worry that others will steal their information and they will
 eventually lose their value to the firm. But the problem is even more deeply
 rooted: Sharing runs counter to basic business instincts. And salespeople
 enjoy the accolades that come with pumping up quarterly sales figures at the
 last minute with a "surprise."
  "In America, people are taught to be individuals," says William Ryan,
 president of Systems Sales Support, an Alford, Mass., company that advises
 businesses on setting up networks for salespeople. "For reps, it's their
 magic. This is how they work."
  Michael Seifert, a network consultant for Concept Information Systems, a
 consulting firm in Stamford, Conn., knows about the problems of unimpeded
 access. Once, when he was selling computers for a previous employer, two
 departing colleagues printed out all the business's account information and
 took it with them to a competitor. A security system, giving salespeople
 access only to their own information, was installed.
  The availability of all that information brings up perhaps the biggest
 adjustment that networks force on the workplace: the Big Brother syndrome.
 With so much data at their fingertips, managers can dip into the network and
 monitor their employees uncomfortably closely. At Johnson & Higgins, an
 insurance broker in New York, on-screen margin markings show everyone
 whether employees are meeting deadlines. Those on time get a little smiley
 face; laggards get a frown.

==========================================
TECHNOLOGY: America :     Private Focus Groups
  Some companies are as interested in what they can grab off the Internet as
 they are in what they can send. In addition to offering merchandise and
 subscriptions on the Net, Playboy Enterprises Inc. reads messages posted to
 two Playboy electronic bulletin boards, known as "newsgroups," set up by
 Internet users. "It's like having your own private focus groups," says
 Eileen Kent, director of new media. Even Playboy's founder, Hugh Hefner,
 takes a peek to see what readers are saying. "Hef is nuts about the
 newsgroups," Ms. Kent says.
  Dozens of computer makers and other manufacturers have set up the
 cyberspace version of customer-support centers on the Internet, letting
 clients post questions on electronic bulletin boards, and sometimes
 responding there. USAnimation Inc., which has helped produce the cartoon
 characters Beavis and Butt-head, as well as the Keebler elf, uses the
 Internet to get customer support and software upgrades from Hewlett-Packard
 Co. and other vendors. Robert Collins, vice president of the Hollywood
 company, says the Internet is "a good place to get in touch" with his
 suppliers.
  The law firm Venable Baetjer also uses the Net to facilitate legal
 research. Firm lawyers subscribe to electronic "discussions" among experts,
 and librarians use the Net to investigate relevant resources. The firm gets
 Supreme Court decisions and the Federal Communication Commission's daily
 newsletter, searches patent information and downloads Securities and
 Exchange Commission filings, all by using the Internet.
  Ogilvy & Mather Direct takes advantage of some common features of the Net,
 such as using e-mail to communicate with clients. But the company is also
 very interested in keeping a close watch on the competition for clients and
 itself.
  "We all want to know what other people are doing," says Andrew Frank, a
 vice president at the New York direct-marketing concern, a unit of WPP
 Group. For the company's financial-services clients, for example,
 researchers scour the Internet to see what other financial-services
 companies are doing, and report back on interesting activity.
  Although Ogilvy & Mather Direct frequents the Net, it has yet to pull in
 new clients that way. But the company is investigating the possibilities.
 "We're probably still in the dating stage" with some potential clients, says
 Margaret Clerkin, vice president of strategic planning. But "we haven't
 gotten married yet."

                    Going to the Net

  Number of business registrations on the Internet

                       1990    1991   1992   1993    1994*

Financial services       3      17     46     125     281
Law                      0       4     10      38     114
Advertising              0       1      1       7      21
Publishing               1       8     27      96     212
Entertainment            0       1      2       4      16
Venture capital          0       0      1      11      23
Total**                 93   1,044  3,054   8,412  18,425

  *Through Aug. 15
  **Includes other categories

  Source: Internet Info
==========================================
As Comdex Show Opens :    Increase In Attendance Seen
  Not that Comdex is at risk just now. Interface expects a slight increase in
 exhibitors this year and about a 10% rise in attendance. And Comdex has a
 legacy not easily ignored. Once-little-known companies such as Compaq
 Computer Corp., Lotus Development Corp. and Borland International Inc. got
 their first big publicity at Comdex. It is also the venue of choice for
 launching industry battles. At last year's Comdex, for example,
 International Business Machines Corp., Motorola Inc. and Apple Computer Inc.
 began a big marketing push for their new PowerPC chip, and this week they
 plan to promote a jointly designed computer.
  "So far, the pros outweigh the cons" of exhibiting, says William Weber,
 vice chairman of Texas Instruments Inc.
  Mr. Adelson denies there is any groundswell of anger about the show or its
 costs, adding: "Comdex ain't broke. It don't need fixing; at least, that's
 what the industry seems to be saying."
  However, Gilbert Amelio, the CEO of National Semiconductor Corp., says that
 if Comdex "isn't careful, they're going to price themselves out of the
 market. I think sooner or later you will get a revolt."
  Already, two longtime exhibitors, AST Research Inc. and Seagate Technology
 Inc., say they aren't exhibiting this year, partly because of cost. "We
 weren't getting the bang for our buck," says Alan Shugart, Seagate's chief
 executive.
  Among defectors in years past that haven't sustained any apparent damage
 are the two fastest-growing personal-computer giants, Compaq and Packard
 Bell Electronics Inc. Another is Oracle Corp., a hugely successful database
 concern. Trade-show costs are out of line, says Lawrence Ellison, Oracle's
 chief executive, and "I think Comdex is probably the most egregious example
 of that."
  Among remaining exhibitors, Motorola has complaints: It must pay Comdex
 about $50,000 to have Interface's contract crews, which exhibitors have to
 use, unload four truckloads of booth equipment from the loading dock;
 trucking that equipment the 500 miles from San Francisco cost only about
 $40,000. Mr. Adelson says Comdex's so-called drayage fees match those at
 similar shows. Indeed, many shows in big cities do impose similar fees, but
 some exhibit builders say Comdex's are the highest of any here.
  At last year's show, an odd alliance was formed. Interface had just
 disclosed it would raise 1994 fees considerably. For example, it told Intel
 that the $100,000 fee it paid to display a 100-foot-wide banner in 1993
 would rise to $120,000 in 1994. (Mr. Adelson says the banner price is
 justified because of the huge exposure.)
  So, while their marketers waged battles against one another on the show
 floor, trade-show managers at Intel, Motorola and IBM met secretly in a
 nearby room and agreed to consider banding together to start an alternative
 show. But they deferred a decision until after this year's Comdex. Jim
 Venable, a Motorola marketing manager, says that during this week's
 negotiations with Interface over the 1995 show, "We will say: `Either cut
 the price or we won't come back.'"
  The Las Vegas authority says it gets more exhibitor complaints about
 Comdex's costs than about any other trade show, though it doesn't keep tabs
 on them. This year, Interface is charging $40.95 a square foot, up from
 $38.95 last year, for exhibit space that it rents for 15 cents a foot from
 the center. Interface, through its contractors, also charges for such
 services as carpet cleaning. By contrast, the nonprofit Electronic
 Industries Association charges $23 a square foot at its Consumer Electronics
 Show and offers free drayage and free carpet cleaning for small booths.
  Mr. Adelson says a comparison with the consumer show isn't fair because
 that show is nonprofit. He also notes that a new networking show put on here
 by SoftBanc Expositions & Conference Co. charges $43.95 a square foot.
 However, exhibitors say many of them need sophisticated network cables that
 drive up booth costs. (Union costs don't account for the increase in Comdex
 charges, exhibitors say, because some of the same contractors work at other
 shows.)
  Hewlett-Packard Co. calculates that a 400-square-foot booth it had rented
 doubled in price this year to $40,000. An Adelson aide denies that there has
 been such an increase.
  Everyone does agree on one thing: Mr. Adelson has done a superb job of
 riding the computer boom. The son of a poor salesman, he grew up in a Boston
 slum. He bought a small firm in 1971 and began sponsoring trade shows. In
 1979, he read about dealers and distributors for a new product, the personal
 computer. Finding no show for this industry, he launched Computer Dealers
 Exposition, or Comdex, that same year; some 4,000 people attended it. "It
 was like being in the right place at the right time," he says.
  Indeed. Comdex attendance jumped sixfold in two years and is expected to
 top 190,000 this week. People familiar with Interface, which also runs
 smaller shows in the U.S. and overseas, say it earns between $20 million and
 $45 million on $165 million to $225 million in revenue from Comdex Fall. Mr.
 Adelson won't give details but says Interface gets "a fraction" of those
 estimated profits. He also won't discuss his net worth, which some people
 put at $300 million.
  Though denying a revolt is looming, he allows, "We are concerned about the
 possible defection of even one company. We have teams out on the road
 visiting exhibitors, not to sell them banners or exhibit space but to sit
 down and ask them what it is we can do to help them reach their . . .
 strategic goals."
  One defector, AST, says it expects to do business this week in rooms off
 the main convention floor but still inside the convention center. Seagate
 will invite customers to another Las Vegas hotel. Interface tries to prevent
 such "piggybacking" by asking hotels to bar a company from exhibiting in a
 suite, says Jason Chudnofsky, Interface's trade-show president. But the
 hotels don't always stop the practice.
  Interface says that 482 companies increased space this year while 226
 reduced it. But sometimes there is no choice. Dell Computer Corp. more than
 doubled its booth size only because there wasn't another suitable block of
 space available, says John Honning, a Dell marketing manager. He adds that
 Dell's top executives are here this week to review "whether this market is
 worth our investment." He complains that Interface has "definitely got a
 monopoly. I would love to see Interface regulated."
  Last year the Justice Department began, and dropped, an antitrust
 investigation of Interface. The Electronic Industries Association had
 complained that the Sands' convention hall had refused to sell it space for
 its consumer show unless it agreed not to market the show as a computer
 event. Mr. Adelson says he sought to protect Comdex customers from the
 consumer show, which wants to "chip away at the market of Comdex."
  Mr. Adelson has incurred some enmity in the Las Vegas business community.
 He began a campaign to privatize the convention authority after a dispute
 over how big a cut it should get from some Comdex ad revenue at the
 convention center.
  He admits to being "a tenacious person" but nonetheless regards himself as
 "a pussycat." Associates say he takes good care of his own, and he donates
 millions to charity.
  Philippe Kahn, Borland's CEO and an Adelson admirer, says people who
 criticize Mr. Adelson "are jealous" of his success.

==========================================
  Yet for all its success in France, Minitel hasn't exported well, due mainly
 to "standards confusion in other markets," Mr. Phelan says. One of France
 Telecom's first attempts to develop videotex services in the U.S., a joint
 project with U S West Inc. of Denver, folded in February after a lackluster
 consumer response to a pilot program in the Minneapolis-St. Paul area. That
 and other attempts to win over Americans to Minitel's videotex system have
 generally flopped at least in part because, unlike in France, they haven't
 used subsidies to get subscribers hooked.
  At home, meanwhile, it isn't clear how Minitel will meet the multimedia
 age. "It is evident today that the (Minitel) system needs to evolve to meet
 the challenges of multimedia," says Mr. Merveille.
  The modem cards are the system's best bet. In addition, France Telecom at
 the end of September increased the Teletel network's information-processing
 capability eightfold to 9,600 bits a second from the current 1,200 bits.
 This speedier system is being made available first to business subscribers,
 Mr. Merveille says. Further, France Telecom will soon offer additional
 directories for research professionals and for international telephone
 numbers in a French-language format.
  Whatever Minitel's fate, its impact on France will be felt for years to
 come, having helped to produce a population conversant with information
 networks. "You have 13- and 14-year-old children discussing X.25 networks,"
 says Mr. Phelan, referring to the technical name for the networks on which
 the Teletel system is based. "In terms of spreading a certain sort of
 technical awareness through society," he adds, "Minitel is very important."

                   French Connections

Number of Minitel terminals installed, in millions

1987                   3.37
1988                   4.22
1989                   5.06
1990                   5.61
1991                   6.00
1992                   6.27
1993                   6.49

Number of calls on the Teletel network (excluding assessing telephone
 directory), in millions

1987                    514
1988                    626
1989                    759
1990                    862
1991                    937
1992                  1,014
1993                  1,094
  Source: France Telecom
==========================================
MOSAIC COMMUNICATIONS CHANGES NAME TO 'NETSCAPE COMMUNICATIONS CORP
ADOPTS NEW NAME TO UNDERSCORE UNIQUE IDENTITY
 MOUNTAIN VIEW, Calif., Nov. 14 - Mosaic Communications 
Corporation today announced that it is changing its name to Netscape 
Communications Corporation.  The company is making the name change to further
establish its unique identity in the industry and to accommodate concerns
expressed by the University of Illinois.  The company chose the new name
because "Netscape" has become widely recognized as the company's popular new
network navigation software for the Internet. 
The company believes its new name better represents the full nature of its
products and services, which are broader than the Mosaic name implies.  The
term "Mosaic" has become associated with Internet-based graphical interfaces
or browsers, a definition that captures only a small part of the company's
complete client/server software architecture for the Internet. 
Netscape Communications' founding team includes Marc Andreessen, who created
the NCSA Mosaic(TM) research prototype as an undergraduate student at the
University of Illinois, and five other former students and staff of the
university who were instrumental in NCSA Mosaic's design and development. 
"We are making this name change both as a gesture of good will to the 
University of Illinois and to more clearly differentiate our company from
other companies marketing World Wide Web browsers," said Jim Clark, chairman
and CEO of Netscape Communications.  "'Netscape Communications' more fully
conveys the nature and breadth of our business, which is much more
comprehensive than a simple browser for the Internet.  Our new name enables us
to underscore our unique identity as a premier provider of complete,
standards-based client/server solutions for communicating and conducting
commerce on the Net." 
The name Netscape has already achieved widespread popularity and association
with the company since the release of the Netscape(TM) network navigator on
the Internet last month for free downloading for individual, personal use.  In
addition to its Netscape navigator, Netscape Communications offers the
Netsite(TM) line of server software as well as custom applications, creating a
complete client/server software architecture for the Internet.  Netscape
navigators and Netsite servers bring secure communications, performance and
point-and-click simplicity to companies and individuals who want to create or
access information services on global networks. 
The company will begin to use the new name immediately. Netscape 
Communications Corporation is a premier provider of open software to enable
people and companies to exchange information and conduct commerce over the
Internet and other global networks.  The company was founded in April 1994 by
Dr. James H. Clark, founder of Silicon Graphics, Inc., a Fortune 500 computer
systems company; and Marc Andreessen, creator of the NCSA Mosaic research
prototype for the Internet.  Privately held, Netscape Communications
Corporation is based in Mountain View, California. 

==========================================
New lower-cost FM-enhanced wave table  sound chip from Yamaha; DRAM
difference in new, small die OPL4D chips -- Hear them at COMDEX booth M640
SAN JOSE, CALIF.  -Nov. 14, 1994--The new OPL4D from
Yamaha Systems Technology Division is a lower cost version of the OPL4
announced last year. 
Both chips provide FM-enhanced wave table for use in computers. The new OPL4D
allows the easy uploading of special sounds.  It has powerdown mode, needs
fewer supporting components and is pin compatible with the OPL4.  The
substitution of DRAM for SRAM is one of the changes that helps make it
possible to offer the OPL4D as a lower cost solution. 
"This new, updated OPL4D will put the versatility of FM, the fullness of wave
table and the rich diversity of custom sounds into the hands of every computer
user," said Tim Lavelle, multimedia sales manager, Yamaha Systems Technology
Division.  Versatile OPL4D Easily Uploads Special Sounds 
The OPL4D has been modified to allow special sounds such as unusual 
instruments, to be easily uploadable. In addition, the new OPL4D incorporates
the necessary ROM and RAM to provide the full range of wave table sound for
the sophisticated designer.  The advantage is better music quality, whether in
the creation of music or in providing added depth and dimension to games. 
This new chip is backward compatible with the OPL4. 
By using DRAM instead of SRAM to upload user-defined wave tables to supplement
the standard wave table ROM, the OPL4D makes FM-enhanced wave table sounds
more affordable, hence more universal.  Low Voltage, Power Down 
The demand for low power consumption is growing everywhere.  For this reason,
Yamaha offers readable registers and powerdown functions in the OPL4D.  These
features make the OPL4D sound chips more attractive to designers.  Slim
Version in Panasonic PCMCIA 
The OPL4D is available in two packages -- the standard 80-pin plastic quad
flat pack which is backward compatible with the OPL4, and a new slim 100-pin
SQFP especially suitable for PCMCIA applications.  The OPL4S, the slim version
of the OPL4 has been designed into Panasonic's new PCMCIA card.  This
Panasonic PCMCIA card is an excellent example of the versatility of the OPL4
family and will be shown in Yamaha's booth at Fall COMDEX.  The Yamaha OPL4
Sound Family 
In all, the current Yamaha OPL4 family now numbers three members: the OPL4,
Yamaha's original FM-enhanced wave table chip; the OPL4D for importing
user-defined wave table sounds at lower cost; and the OPL4S, the slim version.
Each of the family members is designed to solve specific design problems and
to encourage the use of rich and varied sound in all computer-based products. 

==========================================
Apple Power Mac, Dos Systems : To Launch In 1Q 1995 >AAPL
  LAS VEGAS  Apple Computer Inc. (AAPL) unveiled Power Macintosh 6100 DOS
 Compatible system and DOS Compatibility Card for Power Macintosh 6100 and
 Macintosh Performa 6100 Series. 
  In a press release, Apple said these new products combine the
 price/performance value of Apple's RISC-based Power Macintosh with the
 capabilities of a Windows- and DOS-based personal computer. The products
 offer customers the ability to integrate Macintosh into mixed computing
 environments as well as allow x86 PC users to bring their DOS/Windows
 applications with them as they move to the Macintosh platform. 
  Apple plans to begin shipments of the Power Macintosh 6100 DOS Compatible
 system and DOS Compatibility Card in the first calendar quarter of 1995. 
  The Power Macintosh 6100 DOS Compatible system is anticipated to be priced
 at $2,499. 
  The DOS Compatibility Card is expected to be priced at $699. 

==========================================
CyberSource announces software.net; software.net  is the first chan
electronic distribution of software over the Internet
MENLO PARK, CALIF. -Nov. 14, 1994--Internet users can
now browse, purchase and retrieve software electronically through software.net,
the world's first Internet-based electronic software channel, CyberSource
Corp. announced Monday. 
Building on the capabilities of the Internet's World Wide Web (WWW), 
software.net (pronounced "software dot net") allows users to easily maneuver
through product information by pointing and clicking their mouse.  To access
software.net customers can use standard browsing software that allows them to
navigate the WWW, such as the popular Mosaic browsers
(URL-http://software.net). 
Once there, customers will be greeted with an array of easily retrievable
information.  From product reviews to software marketing materials, each piece
of information is linked by key words to ensure easy point and click access. 
Complementing these features, software.net provides a customer support staff
to assist users in accessing the service, and purchasing and downloading
products. 
When customers have decided on a product, they can enter their credit card
information electronically or call software.net's toll free number to provide
billing information.  Customers can choose from over 6,500 shrink-wrapped
products for Windows, DOS, Macintosh and UNIX platforms and software.net will
overnight any of these to the customer. 
In addition, software.net offers a growing selection of electronically 
deliverable titles from vendors including FTP Software Inc., Gupta Corp., 
ON Technology Corp., and Symantec Corp. CyberSource is working with other
publishers to convert their products for electronic distribution and plans to
expand these offerings rapidly. 
"The Internet provides an infrastructure to allow for the electronic 
distribution of virtually all software," said Bill McKiernan, president of
CyberSource Corp. 
"Our goal is to leverage this infrastructure to provide our customers with a
rich environment in which to purchase software.  By providing valuable
electronic content and instant gratification via electronic fulfillment, we
believe we can significantly enhance the customer's buying experience." 
"The Internet has the potential to be one of the fastest growing markets today,
" said Mark Bailey, vice president of business development for Symantec Corp. 
"software.net offers us a venue for entering this exciting new market through
electronic distribution of our software.  We see this as an excellent way of
expanding and complementing our existing channels, giving our customers
another avenue for buying our products." 
-0- Finding & evaluating software 
software.net will offer customers a variety of different tools to help them
make purchasing decisions.  These tools include:  -- Software title sorting
that allows users to easily find the specific products they want;  -- On-line
product information that will be available from publishers including
specification sheets and marketing materials to help customers determine which
product is the best choice for their individual needs;  -- softwire, a
software.net "wire" service where customers will be able to view recent
product and service announcements from participating software publishers;  --
Downloadable demonstration versions of products to help users assess usability
issues. 
-0-  Purchasing and retrieving software 
software.net today offers over 6,500 shrink-wrap titles, and a growing 
selection of titles via electronic delivery.  CyberSource is actively working
with other software publishers to add more titles to the list of 
electronically deliverable products. 
Once CyberSource has an electronic distribution agreement in place with the
publisher, customers can decide how they would like their order 
fulfilled--electronically or with a shrink-wrapped box.  Product support 
Customers can access the software.net support team by calling software.net's
toll free number.  Representatives can answer questions and help customers
with accessing, ordering and downloading products from software.net. 
CyberSource is also implementing a telesales organization to service corporate,
government and university accounts.  These representatives will be specially
trained to help enterprise accounts manage their software investment with
tools to assist in: software metering, asset management, internal electronic
distribution, and site license options. How to start shopping at software.net 
In order to use software.net customers need access to the Internet. Typical
access methods include SLIP/PPP accounts, or direct connection through ISDN,
T1 or T3 lines.  Customers also need to use an Internet browser such as NCSA
Mosaic, Netscape, or Mac/Win Web.  Once an Internet connection is established,
the Uniform Resource Locator (URL) address for software.net is:
http://software.net.  CyberSource Corp. 
CyberSource Corp. is a privately held company specializing in the electronic
distribution of software over the Internet. CyberSource offers software.net,
the first Internet-based software superstore offering products for electronic
fulfillment. 
Through software.net, customers can browse, purchase and retrieve software
over the Internet, providing them with a one-stop shopping solution to their
software needs.  Founded in 1994, CyberSource is headquartered in Menlo Park,
Calif. 

==========================================
VMARK Software announces Windows NT version of uniVerse; provides N
with access to more than 1,300 32-bit applications
FRAMINGHAM, MASS. Nov. 14, 1994--VMARK Software Inc.
(NASDAQ:VMRK) today announced the worldwide availability of uniVerse for the
Microsoft Windows NT operating systems providing Windows NT users with
immediate access to over 1,300 proven commercial applications that currently
run on a large range of UNIX platforms. 
Based on a multidimensional structure, VMARK's uniVerse takes the typical
relational data model and improves upon it to increase the usability of the
database.  Applications designed employing this technology deliver faster
response to user queries, greater flexibility in how data is structured within
the database, and more efficient storage of information when compared with
traditional relational database management systems. The result of these
advantages is the ability to run the same application on more efficient and
cost-effective computer systems or to connect more users to the same system,
the company said. 
The announcement of uniVerse for the Windows NT market signifies VMARK's 
expansion from its successful presence in the UNIX environment into the 
rapidly-expanding market for Windows NT by offering postrelational database
management system (RDBMS) optimized for the growing needs of line-of-business
applications. 
Packaging is designed to meet the requirements of the entire enterprise 
providing end-users the flexibility they require.  The product is available in
three versions including:  o uniVerse for Windows NT/Server Edition -- for
those applications with a high number of concurrent users and workload.  From
four to 64 concurrent users priced at $435 per user for 65 or more concurrent
users, priced at $365 per user.  Service is available as part of VMARK's
Vantage Services Program which includes updates at no charge;  o uniVerse for
Windows NT/Workgroup Edition -- for applications residing on departmental or
workgroup servers.  From 1-24 concurrent users priced at $295 per user.
Optional technical support is available under VMARK's Vantage Services
program. Upgrades are purchased separately; and  o  uniVerse for Windows
NT/Developers Toolkit -- for developers originating new applications on VMARK's
postrelational database management systems.  Priced at $395 for a two user
license, and includes a Basic compiler, a client/server development library
and a full documentation set. 
uniVerse for Windows NT is available on all supported Microsoft Windows NT
platforms including those based on Intel chip technology, for example Compaq
and Dell systems, as well as Digital's Alpha, Siemens Nixdorf 
Informationsystem (SNI) and Silicon Graphics (MIPS) systems.  The company also
announced plans to beta test its products on the Power PC chip available from
Motorola and IBM.  A database for business-oriented applications 
"Independent application providers have long understood that postrelational
database management systems are ideally suited as the delivery platform for
business-oriented applications," said James J. Capeless, VMARK president and
chief executive officer. "We have been making this technology available for
years, and now with the addition of uniVerse for Windows NT, VMARK brings a
wealth of industrial-strength 32-bit business applications to the Windows NT
world.  uniVerse for Windows NT is also an ideal platform for new applications
as VARs and ISVs search for ways to re-engineer their existing solutions or
look to create complementary applications for On Line Analytical Processing 
(OLAP) needs," Capeless continued. 
Capeless also said that uniVerse for Windows NT takes advantage of Windows
user-interface and development tools, noting that VMARK provides its
Application Programming Interface (API) for Microsoft Visual Basic, interCALL,
bundled with the product. 
"VMARK's uniVerse product is an excellent choice for Windows NT users," said
Pieter Knook, general manager, Enterprise Sales and Solutions Marketing of
Microsoft Corp.  "Their experience in the commercial marketplace is a
significant benefit to NT users who are looking for a flexible, cost-effective
database as well as a wealth of applications optimized for business needs," he
concluded. 
"We have been testing the Windows NT version of uniVerse for four months and
are extremely pleased with the results," said Bud Wood, manager of testing
service, Brigham Young University, Provo, Utah, and one of over 70 sites in
VMARK's extensive beta program. "uniVerse for Windows NT enables users to
access data fast and efficiently and the Windows interface provides a familiar
environment, increasing users' productivity," he said. Wood and his team are
running an on-line test administration and scoring system for the University's
testing service department and plan to go into full-scale production by the
end of the year. 

==========================================
New CD-ROM drive from Toshiba  offers the ultimate in price/perform
LAS VEGAS  -Nov. 14, 1994--Toshiba America Information
Systems Inc., Disk Products Division (TAIS, DPD) Monday at COMDEX/Fall (Booth
No. 1682) introduced the XM-5201 Series CD-ROM drives that offer high
performance at a very attractive price. 
The new XM-5201 Series drive, with a 3.4-times rotational speed, offers a fast
150ms random seek and a 510KB/sec sustained transfer rate. "We're offering a
high performance drive without typical high performance price," said Jerry
Higgins, vice president, CD-ROM marketing, 
TAIS, DPD.  The XM-5201B internal drive has a suggested list price of only
$200 and the TXM-5201D external drive has a suggested list price of only $275. 
Toshiba's new XM-5201 drive employs a new variable speed playback system and
digital servo control.  Through the variable speed playback system, the drive
can read data even before the disk reaches an optimum rotational speed.  As a
result, the CD-ROM drive can read data once the disc rotaional speed reaches a
range of +/- 50 percent of each speed, up to a maximum of 5 times rotational
speed; other drives can only read data when the disc speed is 1, 2 or 4 times
rotation. 
The new digital servo control feature also contributes to greater precision in
tracking and head positioning.  This, combined with the new variable speed
playback system and 64KB buffer enables the drive to read data stably. 
The XM-5201 Series drives feature an 80,000 hour MTBF and have a convenient,
tray-loading mechanism. 
The XM-5201 Series drives feature a SCSI-2 interface and are available with
connecting kits to IBM PC AT/XT, PS/2 and Macintosh computers.  The drives,
with a low power consumption of only 2.8 watts average, are also MPC-2
compliant and support Kodak multisession Photo CD. 
The new XM-5201B internal drive measures only 1.6(h) x 5.7(w) x 7.5 (d) inches
and weighs only 2 pounds.  The TXM-5201D measures 1.7(h) x 5.9(w) x 9.7(d) and
weighs three pounds.  The XM-5201 Series drives are available now. 

==========================================
Midisoft To Develop Series of Multimedia  Self-Improvement CD-ROMS;
Simulation Technology Will Take Desktop Training To New Levels of Interactivity
LAS VEGAS -Nov. 14, 1994--Midisoft Corp. 
(NASDAQ:MIDI), in a move to further diversify its multimedia software product
line, announced that it is developing and will market a series of Windows
multimedia training software based on the Self Directed Learning System
Programs from Crisp Publications. 
Midisoft obtained a worldwide, non-exclusive license to the Self Directed
Learning System Programs (SLDS) which Crisp developed for the business
training market.  From the content contained in SLDS, Midisoft is building an
innovative series of self-improvement multimedia programs incorporating
proprietary simulation technology developed by Midisoft. 
Five titles are planned for initial release in early 1995 covering topics such
as stress, time management, attitude, communications, and organization. 
"These new Midisoft titles will redefine self-directed training on the 
desktop.  They are an important part of our business products strategy in 1995
and beyond," said Raymond Bily, Midisoft chief executive officer. 
Under terms of the agreement both companies will distribute the 
self-improvement CD-ROMs in a way which leverages their respective strengths. 
Midisoft obtained the rights to develop and market the series within software
distribution channels and to OEMs.  Crisp will market the multimedia series to
its established network of corporate and government accounts. 
Crisp Publications, based in Menlo Park, Calif., develops and markets 
prepackaged and custom training and empowerment products for individuals and
businesses. 
Midisoft Corp., headquartered in Redmond, Wash., designs, develops and markets
interactive multimedia software for a variety of purposes, including original
music composition, entertainment, music education, and business productivity. 

==========================================
McCaw Messaging Division introduces first  new product under AT&T W
Services brand name
LAS VEGAS  -Nov. 14, 1994--McCaw Cellular 
Communications Inc.'s Messaging Division, soon to be known nationwide as AT&T
Wireless Services, introduces the FlashPoint(TM) wireless data receiver. 
The innovative new unit is the smallest full-display alphanumeric device in
the United States and the only receiver of its kind in the world capable of
displaying graphics. 
"The Next Generation" 
"FlashPoint represents the next generation in alphanumeric technology," notes
John Chapple, president of AT&T Wireless Services' Messaging Division.  "It is
unique because it combines personal messaging with the ability to access
extensive information services and interactive networks, as well as interface
with computers and PDAs. 
"In this way, FlashPoint functions as a small, on-line wireless database, " 
he adds. 
Many FlashPoint features are enhanced by the unit's remarkable 128K bytes of
dynamic memory -- more storage capacity than most alphanumeric paging units on
the market. 
For example, in addition to its personal messaging and graphics capabilities,
FlashPoint provides access to over 128 different categories of news and
information services.  Customers can wirelessly select available categories
(up to 27 at a time) to suit their work demands and daily interests.  This
will include the latest news stories, flight information, sports results,
traffic updates, weather reports, stock market reports, full-text e-mail, and
more. 
Continuous Message Capability 
FlashPoint also has the ability to receive, process and display a message of
any size (limited only by available memory) as one continuous message -- the
way it would appear on an office computer. Up to now, most alphanumeric
receivers have been limited to about 230 characters per message. 
Additionally, FlashPoint establishes a new benchmark in programming 
flexibility.  Virtually all FlashPoint features and service options can be
transmitted over the wireless network directly to the FlashPoint receiver. 
Thus, customers can change or delete information services and their menu
descriptions, interface menus, select various alert tones and other
programmable functions without ever visiting a service center. 
Other Key Features 
Other key features that will make FlashPoint a hit with retailers, consumers
and mobile professionals include the following: 
Services Selection -- FlashPoint offers two types of information services --
basic and premium.  Basic services include national news headlines, sports,
national weather, and others.  Premium services include interactive user-group
networks, on-line access systems, and interactive "chat" forums. 
Electronic Registration -- Services can be selected electronically, through a
computer equipped with AT&T's MailFlash(TM) or MessageFlash(TM) text messaging
software.  Customers automatically receive regular updates on new network
services and new FlashPoint features and benefits, as they become available. 
(Customers also will be able to select services by calling an 800 phone number
from a touch tone phone.) 
Computer Interface -- Information contained within the FlashPoint receiver can
be downloaded to PCs, PDAs (like the Newton(TM)) or notebook computers using
an optional RS-232 connection and appropriate software. 
Multi-Tone Alert -- Using a set of pre-determined tones, customers can assign
specific tones to various menu items in order to quickly determine what type
of incoming message is being received -- weather, news, personal message, etc. 
Vibrate Mode -- While its vibrate mode operates similar to other alphanumeric
receivers, with FlashPoint you can turn off both the tone alert and vibrate
modes, and still receive messages without being disturbed. 
"Leading Edge" of Innovation 
"FlashPoint and other exciting products and services underscore our commitment
to providing our customers with the highest quality available, " says John
Chapple. 
"Additionally, our merger with AT&T -- a major milestone in the wireless 
communications industry -- will enhance our ability to stay on the leading
edge of technological innovation in the years ahead," he adds. 
McCaw Cellular Communications Inc.'s Messaging Division (soon to be known
nationwide as AT&T Wireless Services) is the nation's fifth largest paging
service (RCC) provider.  The company owns and operates messaging (paging)
operations throughout the United States.  In 1994, McCaw's Messaging Division
purchased two 50/50 kHz paired nationwide Narrowband PCS licenses, allowing
McCaw to provide advanced messaging services, such as two-way acknowledgement
messaging, in the near future. 
Recently, McCaw merged with AT&T Corp., becoming AT&T's Wireless Services
Division. 

===================================
With Packard Bell's "Kidspace," young computer  users now have a sp
"place" of their own
WESTLAKE VILLAGE, CALIF. -Nov. 14, 1994--With the 
rapid expansion of the home PC market, youngsters across the nation are 
eagerly embracing the personal computer as a learning and entertainment tool. 
Consumer-savvy Packard Bell, the nation's third largest PC manufacturer, is
extending its reach into this growing market segment by offering "Kidspace,"
the first computer environment designed especially for children available to
run on any PC.  "Kidspace" was developed by ARK Interface, a subsidiary of
Packard Bell.  ARK created Navigator, the graphical interface bundled on all
Packard Bell PCs.  The retail version of "Kidspace" has been extended to
include other software titles within the package. 
"Our considerable experience in the retail marketplace has shown us that 
children have a great affinity for computers," said Mal Ransom, vice president
of marketing for Packard Bell.  "Packard Bell is excited to offer a program
like 'Kidspace' to fuel this enthusiasm and help facilitate fun and learning
on the PC." 
"Kidspace" is a unique graphic interface that employs high-end multimedia
technology, including three-dimensional color images, animation and sound
effects.  The program is set in a secure playroom environment -- passwords can
be used to allow access only to selected files and applications -- where young
users can choose whether they want to operate from a space station or a club
treehouse overlooking a tropical jungle or beach locale. 
In either setting, users are presented with discovery opportunities which
include interaction with animated objects, such as a bird, boat and space ship
and exploring various graphic elements of the program for unexpected
animation.  Multimedia versions include sound. 
In addition, "Kidspace" helps youngsters learn how to manage and work with
personalized files, which they store and access through an on-screen
chest-of-drawers.  From the playroom, they also can access any software loaded
into the program by clicking on titles displayed on special bookshelves. 
Previously available only as part of the Navigator software package pre-loaded
on all Packard Bell desktop computers, "Kidspace" is being released in both
floppy disc and CD-ROM versions for the PC.  Both are being bundled with other
engaging children's titles. 
Included with the floppy disc version of "Kidspace" are ARK Interface's 
"Kidsplat," a colorful paint and sound program that includes such special
effects as a lawn mower and vacuum cleaner, and Sierra's "Slater and Charlie,"
a reading and learning tool built around the antics of two animated dinosaurs.
Valued at $104.95, this special package is expected to have a street price of
about $39.95. 
The "Kidspace" CD-ROM title comes with even more companion software.  In 
addition to the "Kidspace," "Kidsplat" and "Slater and Charlie" programs 
featured in the disc version, the package includes Sierra's "EcoQuest: the
Search for Cetus," an undersea learning adventure and game, and Software
Toolmark's "Oceans Below," which takes users on diving expeditions around the
world utilizing games, digitized sound and movies.  The street price for this
package, which is valued at $174.95, is estimated at $49.95. "We are moving
the software market to accommodate the average consumer's pocketbook," said
Ransom.  "Our goal is to make multimedia a part of everyone's life." 
The "Kidspace" floppy disc and CD-ROM software bundles will be available 
through Packard Bell's extensive distribution network, including mass 
retailers, department stores, warehouse stores, consumer electronic outlets,
office and computer superstores and catalogue merchandising. Both versions are
expected to be on store shelves before Thanksgiving. 

===================================
McCaw's AirData Network Gets Wheels; Showcases First  CDPD-enabled 
Office Van From the Streets of Las Vegas at COMDEX/Fall '94
LAS VEGAS -Nov. 14, 1994--The Wireless Data Division
of McCaw Cellular Communications Inc. will launch a new era in mobile
computing this week when a functional, completely wireless, CDPD-enabled
mobile office takes to the streets of Las Vegas, during COMDEX/Fall '94. 
Using its AirDataSM cellular digital packet data (CDPD) network, McCaw will
use its first truly mobile office to demonstrate wireless voice and data
applications for such industries as real-estate, transportation and fleet
management, and office "road warriors." 
Two CDPD-enabled mobile office vans, built by Mobile Office Vehicle Inc. and
featuring Airdata service will participate in the demonstrations: one from the
streets of Las Vegas and one in McCaw's COMDEX booth L4616. 
Equipped with the conveniences of a conventional office but stationed on the
wheels of a van, the mobile work environment includes a fax, laptop, cellular
phone, and printer. 
Unlike previous mobile offices, the van enables users of McCaw's CDPD service,
AirData, to conduct functions usually accomplished in a stationary workplace
-- plus many more, including making phone calls, operating remote database,
and news service inquiries, and sending e-mail and faxes.  In addition, the
vehicle can be tracked using CDPD, and drivers can use the wireless service to
navigate themselves while on the road.  Wireless credit-card verification and
package tracking are solutions also being explored for the vehicle. 
As shown during COMDEX/Fall '94, CDPD technology provides the following: 
Gives mobile office workers the ability to send and receive e-mail and faxes,
file reports from the field, and stay in complete contact with the home office.
Allows fleet managers, police departments, hospitals, transportation companies
and others to track moving vehicle with wireless signals. 
Helps mobile workers navigate with the use of computerized directions supplied
through a real time location database. 
With its demonstrations at COMDEX, McCaw's AirData network officially brings
the mobile office to life.  CDPD, a proven wireless data technology, was the
ingredient necessary to enable workers to become truly mobile.  "Mobile
offices have only been made possible by the rapid development of wireless data
technology, and especially CDPD,"  said Chuck Lippert, president of Mobile
Office Vehicle Inc. "Now with the help of McCaw and its AirData network, we
have all the ingredients necessary to put fully operational mobile offices on
the streets of America for many corporations,"  Lippert said. 
Ultimately, McCaw executives believe the company's CDPD technology will shape
the future of a completely wireless society. The demonstrations shown this
week are a few of the possible CDPD applications that McCaw expects will
revolutionize mobile computing. According to the division's vice president and
general manager, Kendra VanderMeulen, "Providing the mobile worker with a
CDPD-enabled mobile office environment is another significant step forward. 
CDPD will help the mobile office concept reach its true potential."  In recent
years, there has been a lot of corporate interest in the concept of a mobile
office.  McCaw's COMDEX/Fall '94 demonstrations will answer this need. 
"McCaw's mobile office is the first such vehicle to incorporate CDPD 
technology, thereby enabling mobile workers to be more productive than ever
before.  CDPD's ability to use the existing cellular infrastructure and
transmit data in packets makes it more efficient than other wireless data
technologies.  McCaw's AirData network offers mobile workers a broader
coverage area and more extensive user applications. 
McCaw's AirData service, based on the CDPD open standard, is superior in terms
of its versatility, transmission speed, reliability, openness and robust
security, among other things.  Its ability to send both voice and data
messages from the same device, as well as send both packet and 
circuit-switched data, sets CDPD apart. With a data rate of 19.2K bits per
second, CDPD is the fastest wide-area wireless network.  Rapid deployment of
AirData's CDPD technology is possible because it leverages the existing
cellular infrastructure.  Finally, CDPD is based on an open, 
non-proprietary design, which promotes broad availability of CDPD-related
products and services. 
The Wireless Data Division of McCaw Cellular Communications Inc. develops and
provides nationwide wireless data services to many companies, including United
Parcel Service, American Airlines, Price Waterhouse and Federal Express. 

===================================
AT&T ANNOUNCES APPLICATION DEVELOPER PROGRAM FOR PUBLIC DATA NETWOR
 LAS VEGAS  -Nov. 14, 1994--In another major step 
toward bringing its new public data network to market, AT&T announced a 
comprehensive Application Developer Program that will support independent
software developers in building business applications for AT&T's new public
data network. The program includes programming guidelines, technical expertise,
training and marketing resources.  Two services already announced for AT&T's
new public data network are AT&T Netware Connect Services and AT&T Network
Notes. A key feature of the program will be the Application Development
Centers, a resource to help developers create and test applications and
certify performance.  The centers will offer software testing, an applications
showcase for customers, network simulations and remote 24-hour access. AT&T's
public data network will be a broad-based network environment that provides 
TCP/IP and IPX-based connectivity.  It will provide applications hosting, 
messaging capabilities and information distribution.  For application 
developers, the connectivity of AT&T's data platform can be a vehicle for
attracting new customers, improving applications and increasing customer
service because the use of applications won't be limited to a single
enterprise.  The open data platform will extend the reach of applica tions
across company boundaries to include customers, suppliers and other business
partners. The new public data network will offer a wide range of benefits to
businesses and their customers: security, reliability, a rich feature set and
the flexibility to create applications that stimulate electronic commerce. 
AT&T's data network can be used for inter-enterprise applications, information
distribution, workgroup collaboration, or to deploy processes that make the
electronic marketplace more robust.  How Developers Will Benefit 
Because AT&T will handle the networking, administration and maintenance 
normally done by the developer, application support for developers is greatly
simplified.  This reduces the sales cycle and creates new opportunities to
market to small and mid-size companies that often have been too costly for
developers to serve. AT&T network capabilities -- such as "white pages/yellow
pages" directory listings, security features and messaging gateways -- will be
available to enhance applications. AT&T also will provide help desk and
customer service features. Components of the Developer Program 
AT&T will have criteria for network integration and network compliance 
testing to ensure that applications offered through AT&T's public data network
are technically rigorous and deliver added value. There will be four levels,
each defined by the degree to which applications use the capabilities of the
data network.  Each level of service will have a commensurate level of support
and product certification. AT&T will provide application programming
interfaces (APIs) so that developers can easily create sophisticated
applications with the knowledge that applications are fully compatible with
AT&T's public data network. Additional developers' support will be provided
through a Developers' Voice Hotline, AT&T Faxback of development documentation,
AT&T Network Notes (sm), the Data Services Developers Database and access to
the Application Development Centers.  The centers will be operational in the 
first quarter of 1995. Direct marketing support will include catalog and 
"yellow pages" listings, sales and marketing seminars, cooperative advertising
and lead referrals.  Also, there will be newsletters and service-enhancement
updates.  The program complements the Novell and Lotus applications developers
programs. "Application developers now have an unparalleled opportunity to
enter into a whole new way of doing business, with AT&T there to help them
every step of the way," said Kathleen Earley, vice president for AT&T Business
Multimedia Groupware Services.  "When application developers succeed using
AT&T public data services, we succeed.  It's as simple as that." To give
further impetus to the deployment of AT&T's new public data network in the
market, AT&T will provide details in the first half of 1995 of its Business
Partners Program for value-added resellers (VARs), system integrators, and 
information providers. AT&T announced its new public data network on May 2,
1994.  AT&T NetWare Connect Services will be the backbone of the high 
performance, secure and reliable data network infrastructure.  AT&T is 
building the applications hosting environment with its business partners, 
Novell, Inc.  and Lotus Development Corporation.  AT&T Network Notes allows
businesses to create new applications to extend collaboration with marketing
partners, customers and suppliers without the cost of supporting and staffing
a private ne twork. Application developers interested in knowing more about
the AT&T Application Developer Program can call 1-800-204-2764 dept.  2323.
For more information on the Novell Professional Developers Program call
1-800-RED-WORD (1-800-733-9673.) For more information on the Lotus
Professional Developers Program call 1-800-DEV-RELS, Option 5
(1-800-338-7357). AT&T is the world's networking leader, providing
communications services and products, as well as network equipment and
computer systems, to businesses, consumers, 
telecommunications services providers and government agencies. 

===================================
Comdex New Products: DELL CNR CS NSCO CPQ INGR NSM

  The following is a list of product introductions at the Comdex trade show
 in Las Vegas, Nev.: 
 
Dell Computer Corp.      Pentium processor-based 
(DELL)                   desktop systems for its 
                         Optiplex OmniPlex and 
                         Dimension lines. 
- - 
Conner Peripherals Inc.  Conner 4586XP, an 
(CNR)                    external tape 
                         autoloader. 
- - 
Cabletron Systems Inc.   Four new 
(CS)                     token ring networking 
                         products for branch 
                         office applications 
- - 
Network Systems Corp.    New Security 
(NSCO)                   Router that uses 
                         company's Data Privacy 
                         Facility software 
- - 
Compaq Computer Corp.    ProSignia 500 
(CPQ)                    Server and ProSignia VS 
                         Rack Mounting Kit for 
                         servers. 
- - 
Intergraph Corp.         Video Engine 
(INGR)                   500 System, a desktop 
                         video production system. 
 -  - 
National Semiconductor   PersonaCard 100 
(NSM)                    Data Security 
                         Token. 


AT&T (T),             Announce launch of four market 
Lotus (LOTS)          trials for AT&T Network Notes in 
                      North America. 
- - 
Minnesota Mining      Announces FlashDisk, Hard Drive 
(MMM)                 PCMCIA storage cards; 3M Standard, 
                      Premium data/fax modem cards. 
- - 
Exabyte Corp.         EXB-8505XL, an 8mm tape cartridge 
(EXBT)                tape subsystem; EXB-1500 quarter- 
                      inch cartridge tape subsystem. 
                      Also announced volume shipping of 
                      EXB-480, EDB-440 8mmm tape 
                      libraries. 
- - 
Conner Peripherals    Annouces partnership with Advanced 
(CNR)                 Telecommunications Modules Ltd. and 
                      Olivetti to develop, market storage 
                      devices for ATM networks; introduces 
                      CTM-4000I-A, minicartridge tape 
                      drive. 
- - 
Packard Bell          To launch eight new software titles 
                      for holiday season, including six 
                      for children. 
- - 
Xilinx Inc.           The XC3100A field programmable gate 
(XLNX)                 arrays, XC340 HardWire device 
                      family. 


Motorola Inc.       The Cellular Positioning and Emergency 
(MOT)               Messaging Unit will allow users to 
                    talk to a service provider while 
                    signaling their position, emergency 
                    status and other information to auto 
                    clubs, security services and other 
                    services. 
- - 
Creative Tech       Announces agreement with RenderMorphics 
(CREAF)             Ltd. to develop advanced 3D graphics 
                    acceleration products; Introduced 
                    Digital Edge CD-R, a compact disc 
                    recordable product. 
- - 
U.S. Robotics Inc.  Total Control MP/8 and Total Control 
(USRX)              MP/16,  modem connection products. 
- - 
Toshiba Corp.       AM-5302 and XM-5201 series of CD-ROM 
                    drives. 
- - 
Multi Soft Inc.     Multi Soft's Windows Communications 
(MSOF)              Library, a product being marketed as 
                    the IBM Personal Communications 
                    Toolkit for Visual Basic, is available 
                    for shipment 
- - 
Midisoft Corp.      Company to develop and market a series 
(MIDI)              of Windows multimedia training software. 



Digital Equipment    GIGAswitch/ATM systems and ATMworks 
(DEC)                750 network interface adapter, two ATM 
                     (Asynchronous Transfer Mode) 
                     products. 
- - 
Motorola Inc.        Motorola plans to develop computers 
(MOT)                based on new PowerPC microprocessor 
                     hardware reference platform 
                     announced by Motorola, Apple Computer 
                     (AAPL) and International Business 
                     Machines Corp. (IBM). 
- - 
Novell Inc.          Announced partnerships with TI News 
(NOVL)               Media and Judson Rosenbush Co. to 
                     publish several interactive multimedia 
                     titles for inclusion in the family 
                     entertainment group within WordPerfect 
                     Main Street consumer software line. 
- - 
Texas Instruments    Previewing TravelMate 5000 Notebook; 
(TXN)                microLaser 600 laser printer and 
                     printer for Windows. 


=====================================
For Two Florida Entrepreneurs, Fingertip is Ultimate ID            
Nov. 14--Here's what Luis Sanchez and Bernal Quiros envision: Traveling to
Europe without a wallet, without credit cards. Leaving home without a house
key. Even cruising across the country without a driver's license. 
How? With Dactylometric Pattern Recognition by Statistical Fuzzy Logic 
Inference. It's a technology that their company, Logica Inc., in Coral Gables,
patented last year. 
If you're unfamiliar with biometric devices, just think of it as FingerPass. A
device about the size of a jewelry box, it identifies a person by
electronically examining 3,072 configurations of the fingertip, then recording
the data. 
The initial insertion of a finger gives the machine the information it needs
to create an ID file. After that, FingerPass will, for example, deny entry to
a building or reject a credit card if someone's finger doesn't match what's in
the computer memory. 
The original idea was to create a security device that could be used with 
things like door locks. FingerPass can be connected to a mechanism that 
automatically opens a door when it recognizes a homeowner or turn on a fax 
machine for an authorized user. 
But Quiros said a recent Las Vegas trade show - of the American Society for
Industrial Security, the largest of its kind - created an unexpectedly 
enthusiastic response to the product. 
Soon, the two businessmen were dealing with the likes of Honeywell, IBM and
companies that supply automatic teller machines. They had other ideas for the
device. No deals have materialized, but talks with such companies made Logica
realize its device could be used as a security measure for computers and fax
machines. 
Sanchez and Quiros also see FingerPass replacing credit cards. And police 
could use it to quickly identify suspects. The possibilities are endless, 
they say. 
Still about eight months from putting the $500 machine on the market, the 
entrepreneurs haven't decided whether it makes more sense to sell the patent 
or market the device themselves. 
Money isn't a problem, they say. Besides being financially comfortable, Quiros
says, they have plenty of investors waiting in the wings. 
The two met at a cocktail party in 1988, when Sanchez's wife, Cathy, was 
Quiros' administrative assistant. 
Quiros, about eight months from retirement and the president of Costa Cruise
Lines at the time, noticed Sanchez standing alone; after some idle 
conversation, he learned Sanchez was an inventor. 
"Oh boy, an inventor," Quiros said to himself. But as the conversation
unfolded, Quiros became "mesmerized," he says. The Costa executive, who also
has served as president of the British conglomerate Geest, heard Sanchez's
idea for FingerPass. He also learned that in 1980, Sanchez and a group of
partners had created video-game hardware they eventually sold to Bally's - one
of the nation's largest video-game suppliers - for $4 million. 
Sanchez worked until early 1993 fine-tuning his invention; he then called 
Quiros and "we shook hands and had a 50-50 deal," Quiros says. They won't say
who invested what, but they did say FingerPass was developed with their own
money. 
Quiros, the businessman, represented the company at the Las Vegas convention
in September. Sanchez, the electronics wizard, has three other projects - all
security related - in the works. 
"As far back as I can remember," Sanchez says, "I was disassembling everything
in our house, grandfather clocks, it didn't matter. I just wanted to know how
it worked."  

=====================================
Romeo Multimedia startup launched at COMDEX                        
LAS VEGAS -Nov. 14, 1994--Romeo Inc., a multimedia
program publisher, has been launched to specialize in the creation and
marketing of interactive titles in video and CD-ROM formats. 
The company will showcase its initial offerings at COMDEX 1994 in Las Vegas,
introducing three children's entertainment titles: "A Whale of a Tale,"
starring William Shatner; "A Touch of Magic in Closeup" and "Adventures in the
Wizard Forest." 
In addition, in what is seen by the trade as a canny move to hedge its bets
the company will also unveil "Strip Blackjack" for the games market and
"Spanish Made Simple," an easy, effective system for building Spanish
vocabulary, for the education market. Product demonstrations will take place
in Romeo's booth M8058 at the Sands Convention Center and in the company's
hospitality suite at the MGM Grand. 
At the same time, the company has announced an ambitious production slate for
1995, which comprises 28 titles.  (See separate story.) 
Company founder and President Roger M. Reese brings 25 years of experience in
the motion picture industry to the multimedia world. As vice president and
general manager of Billy Jack Enterprises in the '70s, 
he was responsible for the release of three Billy Jack films, which grossed
in excess of $200 million. 
"Romeo brings expertise developed in the picture business to the multimedia
marketplace," said Reese.  "Our mission is to create a product that fulfills
the entertainment needs of its customers and to respond quickly to the
feedback we receive from our distributors, retailers and end users." 
Joining Romeo as co-founder and chairman of the board is Harold Neiman, who
brings substantial experience in corporate operations to the enterprise. 

=====================================

  AMSTERDAM -DJ- Philips Electronics NV of the Netherlands said it is working
 with Sony Corp. (SNE) to reach a uniform format definition of some types of
 prerecorded compact discs. 
  In a joint press release, Philips and Sony said they will consult with U.S.
 record and computer companies ''to attempt to achieve compatibility'' of a
 new CD combining normal audio tracks with additional CD-ROM information for
 use with both existing CD players and with multimedia personal computers. 
  Philips Electronics and Sony Corp. are aiming at creating a disc from which
 the audio tracks ''will be playable from track one on all existing CD audio
 players and when used in a multimedia computer will play normal audio as
 well as CD-ROM information,'' Philips said. 
  The standard definition would outline specifications for ''a multisession
 type of prestamped CD disc format as already defined for data
 applications,'' such as is used for photo CD's, Philips said. 
  A specification proposal for this part will be available before the end of
 1994, Philips said. 
  Philips officials weren't immediately available for further comment. 

=====================================
Optibase adds two new MPEG-1  encoding solutions; move will open ne
for MPEG-1
LAS VEGAS  -Nov. 14, 1994--Optibase announced today
that it is expanding its MPEG-1 encoder board product line to include board
sets in three price ranges.  Optibase MPEG-1 encoder boards are now be
available in low-end, middle, and high-end price ranges, in a move that will
help attract new users and open additional markets for MPEG-1 applications. 
The new MPEG ELS, priced at $4,995 is the first full-featured, real-time 
encoding board aimed at the low-end of the MPEG-1 encoding market.  The MPEG
ELS is a real time, single-chip encoder that generates square pixel ISO
standard MPEG-1 video at 24 frames per second. 
The MPEG ELS' square-pixel encoding is ideal for creating MPEG-1 content for
use in the development of interactive training, games, point-of-information
(kiosk), presentations and multimedia titles. The company claims the new MPEG
ELS is the lowest priced, real-time MPEG-1 encoding board on the market. 
Included with the MPEG ELS is Windows-based software that gives the user with
a straight-forward encoding management solution in a familiar point and click
format.  MPEG files created by the MPEG ELS can be played on most of the new
low-cost MPEG consumer playback boards. 
Award-winning MPEG-1 technology at a lower price 
In the middle price range of Optibase's MPEG-1 encoding line-up is the 
award-winning MPEG Lab(TM) Pro.  Originally priced at $19,500, the price of
the MPEG Lab(TM) Pro has been reduced to $14,995.  The MPEG Lab(TM) Pro
incorporates two VideoRISC processing chips and a high-speed DSP to perform
SIF resolution encoding at a full 30 frames per second. 
The MPEG Lab(TM) Pro's features include real-time creation of MPEG-1 & 
Video-CD files, composite & S-Video inputs, and capture bit rates up to 500
kilobytes per second (4 megabits/second).  The board has encoding capabilities
at full SIF resolution (30 frames per second/NTSC and 25 frames per
second/PAL), and includes the easy-to-use Windows-based interface for speed
and simplicity. 
The new top-of-the-line standard 
At the high-end of the product line-up is the MPEG Lab(TM) Suite, based on
Optibase's new MPG-5000 video encoder board, the MPEG Lab(TM) Suite is the
most advanced encoder Optibase has produced to date. New features include
analog component input (y, R-y, B-y), on-board video filtering, single-frame
capture & re-compression, optional digital video/audio input, and a video
decode-while-encode function. 
Included with MPEG Lab(TM) Suite is the PCMotion(TM) Pro playback board, MPEG
Lab(TM) Studio encoding management software, and SoftVTR device control
software and hardware.  The MPEG Lab(TM) Studio takes full advantage of the
Optibase MDI-5000 digital serial interface board ($4995 list) giving users the
ability to encode directly from almost any digital source (D1, Digital BetaCam,
etc.). 
The target markets for the MPEG Lab(TM) Suite and the MPEG Lab(TM) Pro include
the cable television, CD authoring (Video-CD), pro-sumer video service bureau,
post production, training, point-of-information (kiosk) and presentation
markets. 
An optional Video CD bundle 
The MPEG Lab(TM) Suite and MPEG Lab(TM) Pro are also available with an 
optional VCD creation package that allows users to author and burn Video-CDs
disks right on their desktop.  The VCD option includes the MPEG Lab(TM) Suite
or the MPEG Lab(TM) Pro bundled with CeQuadrat Video-CD authoring software for
an additional $2,495 charge. 
The list price for the new MPEG Lab(TM) Suite is $17,995 and will ship at the
end of the year.  However, Optibase is offering a BUY-NOW, UPGRADE-LATER
incentive.  Customers can buy the MPEG Lab(TM) Pro with an automatic-upgrade
option for only $1,495.  This reflects a $2,500 savings off the normal $3,995
upgrade price.  This special offer is available only until December 31st, 1994.
Optibase, the leading developer of MPEG products, shipped their first MPEG
CODEC system for full-motion video compression and decompression in 1992. 
With the addition of this multi-tier MPEG-1 encoder product family, Optibase
claims to have the most extensive line of MPEG-1 encoding products for the
PC/AT.  The company operates through a network of Authorized Video Resellers
(AVRs), OEM's, and System Integrators. 

=====================================
SHARP DEVELOPS WORLD'S LARGEST FULL-COLOR TFT LCD DISPLAY; 21-INCH 
MULTIMEDIA-COMPATIBLE UNIT FEATURES 16.7 MILLION COLORS
 LAS VEGAS, Nov. 14  -- Sharp Corporation, of Osaka, Japan, has
developed a prototype of a world-record 21-inch (diagonal) TFT color LCD
display that is being displayed at the Comdex trade show opening today.  Up to
this point, the world's largest LCD display has been a 17-inch (diagonal)
high-resolution TFT color LCD developed by Sharp in 1992. 
In comparison, this new display features an effective screen area 1.5 times
larger, and with a thickness of a mere 1.06-inch, it promises to open new
possibilities for direct-view wall-mount color-TVs and large-screen,
space-saving desk-top color TVs with screen sizes exceeding 20-inches. 
Sharp's proprietary TFT LCD technologies yield displays with natural color and
are free from flicker, color distortion and blotching.  As a result, video
images can be rendered with breathtaking beauty.  In addition, the fact that
it is a flat screen with no horizontal or vertical distortion means it can
handle demanding multimedia applications where high-definition reproduction of
computer-generated images is a must.  This new LCD marks the advent of the
next generation of flat-panel displays that are destined to open up the
multimedia era. 
This new 21-inch TFT color LCD was developed through innovations in materials,
design and manufacturing based on proprietary key technologies used in
fabricating 17-inch panels designed for engineering work stations.  These
include techniques to form uniform films over large surface ahead, new
bus-line materials suitable for large screen formats and high-definition
displays, technologies to improve the characteristics of the TFTs themselves,
and device simulation design techniques. 
This development marks a turning point in LCD design and development, and will
dramatically increase the potential for new application products and expanded
use of TFT color LCDs, such as direct- view, large-screen, thin-profile TVs
(wall-mount TVs), multimedia- compatible personal computers and workstations,
public displays, etc. 
In 1973, Sharp developed the world's first electronic calculator that used a
liquid-crystal display, and in the 21 years since, has become the world's
leading LCD manufacturer.  Sharp developed the world's first 14-inch display
in 1988, and the world's first 18.5-inch wide format display and first 17-inch
model designed for engineering workstations in 1992.  Sharp has continually
strived to develop LCD displays that make an impact on people and to expand
the range of products that use LCDs. 

=====================================
Global Internet shopping will reach $600B of product and service pu
the year 2000
PALO ALTO, CALIF.  -Nov. 14, 1994--A new study from
Killen & Associates, "Purchasing and Payment on the Internet: Digital Money
Takes Off," forecasts that shoppers around the world -- at home and in
businesses -- will use the Internet to purchase $600 billion of goods and
services in the year 2000.  This will account for nearly 8% of the $8 trillion
of goods and services purchased that year. 
The shift to using the Internet to purchase goods and services will have a
significant impact on all industry sectors, including banking, financial
services, wholesale and retail trade, and manufacturing. Layers in the
purchase and payment hierarchy -- some wholesalers and distributors -- and
some financial payment and settlement services will be eliminated. 
Traditional broadcast and paper-based media -- i.e., catalog, yellow pages and
other print advertising -- will also be severely impacted as the traditional
hierarchy becomes much flatter. The study forecasts that purchasing and
payment transactions on the Internet will grow to 17 billion by the year 2005.
In that same year, credit card transactions are expected to top 30 billion. 
The 17 billion in Internet purchasing and payment transactions will create a
$50 billion market worldwide, for processing alone. 
The study provides insight into the development of the Internet purchasing and
payment infrastructure.  It puts numbers on the business opportunities that
Internet commerce will create for banks, financial institutions, retailers,
manufacturers, wholesalers, mail order firms, telephone companies, software
companies, and on-line computer services. 
The study is scheduled for release in December '94. 
Killen & Associates Inc. produces studies and seminars that enable high level
executives and their teams to identify business opportunities created by
advances in computer and telecommunications technology, changes in public
policy, and dynamic forces in industry. 
Studies:  The company's focus includes studies on on-line information services,
commerce via the Internet, and personal communications services and product. 
Titles produced in 1994 include "The Internet: Impact on Commercial
Transactions," "PCS Equipment Markets," and "AT&T's Financial Services
Strategy: Transactions Anytime, Anywhere." 
Seminars: Killen & Associates' seminars are delivered via satellite television,
cable or video tape.  Programs produced in 1994 include "Wireless
Technologies: Access Anytime, Anywhere"  and "The National Information
Infrastructure: A Platform for Transformation." The company also produces an
information technology/business talk show -- "The Killen Report" -- that is
seen each week on cable television in Silicon Valley.  Guests have included
the Chairman of the FCC; the Minister of Post and Telecommunications, Germany;
the Director General, Oftel, United Kingdom; and others, including the top
executives of AT&T, Digital Equipment, Hewlett-Packard, and Silicon Graphics. 

=====================================
Gates At Comdex  New Techs Will Bring People Online
  NEW YORK  New online and interactive technologies will fuel the future
 growth of the computer and software industries, Microsoft Corp. (MSFT) Chief
 Executive Bill Gates said. 
  They also will likely change the world - the way people communicate, do
 business, learn at school and enjoy themselves, Gates said. 
  Addressing the fall 1994 Comdex computer show in Las Vegas, Nev., the
 Microsoft visionary said the new technologies more closely linking people
 and information will be a magnet, when they appear, bringing people online.
 He avoided, however, talking about Microsoft's widely anticipated online
 service, Marvel, despite widespread belief he would. 
  Instead, Gates used a video presentation to demonstrate how advanced
 computer communications will alter society in the next decade. 
  Today's personal computer revolution is ''nothing compared to what's going
 to happen here,'' he said. ''This is where the PC industry will find its
 growth.'' 
  But challenges will center on making the technology easy for consumers to
 use and ensuring universal access to the rich and poor alike, and to those
 living in rural areas. 
  In his hour-long address, which was broadcast on the Dow Jones Investor
 Network, Gates sketched an ambitious portrait of these expected
 technologies. He said pocket-sized, wallet computers will allow consumers to
 pay at restaurants and coffee stands electronically. 
  Interactive television systems will allow viewers to choose the progams
 they want without the constraints of scheduling. Viewers also will interact
 with shows, such as news broadcasts, by clicking an icon for immediate
 information, such as weather reports, he added. 
  Police and emergency medical workers will also have online databases to
 draw from, with maps, databanks and video conferencing tying them to doctors
 and superiors, Gates said. Similarly, computers at home and school will
 readily tap into information sources, such as libraries and museums. Graphic
 displays will be common. 
  But along with innovative hardware and software, these technologies will
 require high speed networks, he said. 
  The result is that the present annual selling rate of 40 million personal
 computers is likely to continue, he added. 

=====================================
Microsoft Word, Internet : Available By End Of Year >MSFT
  LAS VEGAS  Microsoft Corp. (MSFT) unveiled Microsoft Internet Assistant
 for Microsoft Word version 6.0 for the Windows operating system, at
 Comdex/Fall '94 here. 
  Microsoft said it expects Internet Assistant to be available by the end of
 the fourth quarter of 1994. 
  In a press release, the company said the free add-on gives Word users
 access to Internet by automatically generating hypertext markup language,
 the standard Internet file format. 
  Microsoft said its Microsoft Office software will work in tandem with
 Internet Assistant as well, allowing assembly of compound documents using
 Office applications through OLE technology. 

=====================================
Microsoft Network : Will Be Accessible In 35 Countries>MSFT
  LAS VEGAS  Microsoft Corp. (MSFT) unveiled its interactive online
 Microsoft Network service. 
  In a press release, the company said the service, scheduled for beta
 testing this month, is designed to provide easy, affordable access to
 electronic information and communication for users of the Windows 95
 operating system. 
  The Microsoft Network's technology and business model are designed to help
 content and service providers ''fully realize'' the potential of the online
 market, the company said. 
  Microsoft said the network uses a platform model in which content and
 service providers will have maximum flexibility in creating products and
 pricing their services. 
  The company expects providers will offer various pricing options, such as
 subscriptions, online transactions and ticketed events. Other services will
 be supported by advertising and commerce. 
  Microsoft plans to provide a complete ''tool set'' and sponsor developer
 and design conferences to educate program providers on how to make best use
 of the online medium. 
  Microsoft expects the Network to become available in 1995. 
  The Network will be accessible in more than 35 countries, and its client
 application will be localized in 20 languages. 
  Beta testing for The Microsoft Network will begin with the shipment of
 Windows 95 beta version M7, which is slated for mid-November. 


=====================================
UPS Logs On to Information Highway Traffic World 
Nov. 14--United Parcel Service will become the first package delivery company
to tap the on-line market when it offers its services on PRODIGY and 
CompuServe this month. Subscribers to the two electronic information services 
will be able to arrange UPS pickups, track orders, send messages, order 
shipping supplies and inquire about other UPS services. 
The service is possible through UPS's new Windows customer automation system.
The system electronically handles billing, auditing, labeling and tracking
operations, and reduces the number of errors stemming from handwritten
documents. Shipping information is transferred automatically from the
customer's computer to UPS data centers. 
The system's shipping database will be combined with the on-line package 
tracking service so customers can keep tabs on their packages using purchase 
order or invoice numbers, product types, destinations or the name of the 
consignee. 
UPS plans to use the system as a platform for its future information- based
services.  

=====================================
Electronics Makers Prepare to Profit by Providing Supplies on Super
CHICAGO--Nov. 12--The biggest winners in the stampede by telephone and cable
TV companies into each other's business actually may be the firms that sell
technology needed to deliver new services. 
As executives from the telecommunications and cable TV industries make and
unmake alliances, nervously trying to find new business and protect turf, 
electronics firms are queuing up to vend equipment for the information 
superhighway. 
For example, a request for proposals to provide technology enabling cable TV
systems to offer telephone service has drawn 45 responses from 80 companies,
said Richard Green, president and chief executive of Cablelab, the cable
industry's research consortium based in the Denver area. 
"All the big players, from AT&T to Siemens, Ericsson and Northern Telecom,
responded with proposals. 
Even some big software providers, including Microsoft, responded," Green said.
"We're evaluating their proposals now. 
"We're very impressed with the quantity and quality of proposals." Others
hoping that telecommunications upheaval will yield new business include
General Instrument Corp., the Chicago-based provider of cable boxes for TV
sets and signal-processing equipment. 
Working with DSC Communications Corp., a Plano, Texas, 
telecommunications-equipment firm, General Instrument is developing voice 
telephone capabilities for cable systems as well as high-speed data 
transmission and interactive video, said Charles Dougherty, marketing manager 
of the firm's communications division. 
"We have platforms available for video transmission," said Dougherty, "and
we'll have a voice platform ready in 1996. We'll be doing field testing in
1995." 
Another company poised to exploit the trend is Motorola Inc., the 
Schaumburg-based electronics giant, which will provide equipment for a test in
Arlington Heights next year that will provide phone service over the cable 
system operated by Tele-Communications Inc. 
Indeed, Motorola's cable TV telephone system, developed at its campus in 
Arlington Heights, is already hooked into the TCI system there for on-campus 
testing. And Motorola engineers use the system for much more than making plain
old telephone calls. 
On a recent afternoon, for example, William A. Johnson, engineering manager at
Motorola's communications systems office, dialed up a colleague in another
building and put his picture on a television set using ordinary video cameras
purchased from a nearby electronics store. 
Johnson and his colleague also linked their computers over the same cable 
connection to play electronic games. He then scanned the Internet at high 
speed to pull up information from databases from Washington to Japan. 
There was little of the usual waiting involved in on-line computer use because
Johnson's connection ran 40 times faster than that of a good home computer
connected to telephone lines. 
"Our only speed limits come from the lines used by the computers where the
databases are stored," Johnson said. "We've eliminated the bottleneck on our
end." 
Motorola's equipment to convert a cable system into a futuristic telephone
network is intended to be a pay-as-you-go moneymaker for a cable system rather
than a huge upfront investment, Johnson said. The equipment is modular, so a
cable operator can buy a small amount of phone capacity to get started and buy
more as he adds customers. 
Each cable TV subscriber who opts for phone service from his cable operator
will get a box of electronics in his home that will cost the cable providers a
few hundred dollars apiece, said James Phillips, Motorola's vice president for
personal communications systems. 
"Cable operators are used to getting $30 or $40 a month to provide a range of
services," Phillips said. "If they can get your phone business as well,
they'll double the revenue generated by their system." 
Motorola's early relationship with TCI, the biggest cable company, may be a
good sign for its hopes to become a major provider of phone electronics to the
industry, said Carl Weinschenk, New York bureau chief of Cable World magazine. 
"The only major problem for the industry right now is the failure of Congress
to pass a national law updating telecommunications regulation," thereby
opening the gates for full nationwide competition between phone companies and
cable TV providers, Weinschenck said. 
"Without a federal law, this will happen on a state-by-state basis with 
progressive states like Illinois and New York leading the way. It will slow 
the rollout of new equipment to do it this way."  

=====================================

