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Silicon Times Report Issue 1203

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Silicon Times Report
 · 5 years ago

  


Silicon Times Report

The Original Independent OnLine Magazine"
(Since 1987)

January 19, 1996 No. 1203

Silicon Times Report International OnLine Magazine
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01/19/96 STR 1203 The Original Independent OnLine Magazine!

- CPU Industry Report - McAfee 229 - MS Wang Imager
- Luminous Announced - CompuAdd Layoff - Apple For Sale?
- Prodigy For Sale? - Delrina News - BBS Purges Porn
- Canada Pirate Chips - People Talking - Jaguar TidBits

Sony Denies Apple Rumor
Feds Drop PGP Case
Atari Denies "Its Over"


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From the Editor's Desk...

Its editorial time. and as I've had plenty to say elsewhere in this
issue, I'll keep this short. Intel has finally made better arrangements
relative to the distribution of the Triton Bus Mastering Drivers.
Thankfully, somebody is listening. Now, if only a fire can be lit under
Canon's posterior. The 32 bit scanner drivers are pitifully late. (more
than six months with lame excuses) It obvious they have many of their
valued customers thoroughly alienated.

Apple is seemingly on the "hard and bumpy road" to stay. Some of you
may remember it being noted here well over a year ago.. that if.. Apple
didn't wake up they too, would join the Amiga and the Atari in as little as
five years. They have yet to wake up in Cupertino. One can only wonder how
strong ego is or, how long it can last over hunger. Apple has deeper
pockets but they're blowing it big time. Watch the headlines over the next
few weeks . "you ain't seen nuthin' yet!"

Oh well, keep warm my northern friends.. Its been a rough winter so
far. On the southern end of the west coast they have summer like weather
and here we are seeing an early spring. It must be the work of those gray
skinned, big eyed guys out at Groome Lake. Talk at y'all later.

Ralph..


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Portable Computers & Entertainment Kid's Computing Corner
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STReport Headline News

LATE BREAKING INDUSTRY-WIDE NEWS

Weekly Happenings in the Computer World

Compiled by: Dana P. Jacobson


Feds Drop Zimmermann PGP Case
Federal prosecutors have dropped a 28-month investigation reportedly
into the possibility of prosecuting famed programmer Philip Zimmermann for
allowing distribution of his "Pretty Good Privacy" cryptography software on
the Internet. In San Francisco, U.S. Attorney Michael Yamaguchi said in a
statement his office declined to prosecute any individuals for posting the
PGP program on the Net, but did not identify any individuals targeted in the
probe. However, attorney Phil Dubois, representing the 41-year-old
Zimmermann, has the investigation had targeted his client. Authorities
originally were concerned the program violated U.S. export laws.

Writing in The Wall Street Journal this morning, reporter William M.
Bulkeley notes Zimmermann developed PGP in 1990 because he believed computer
users needed protection from government monitoring in order to communicate
freely. "After someone placed it on the Internet it was quickly disseminated
around the world," Bulkeley says. "Mr. Zimmermann, of Boulder, Colorado,
became a folk hero to electronic-freedom advocates, protest groups and so-
called cypher-phreaks." However, export of high-quality encryption is
illegal, "presumably because of government fears that it would prevent
monitoring of data communications," says the Journal. "The U.S. attorney's
office in San Jose, California, notified Mr. Zimmermann in September 1993
that he was a target of a grand jury investigation."

Late yesterday, William Keane, assistant U.S. attorney in San Jose,
declined to comment on reasons the government decided against pursuing the
case, telling the Journal, "This decision shouldn't be interpreted as
meaning anything. I caution people against concluding the Internet is now
free for export." Meanwhile, Zimmermann recently developed PGP Phone, a
software program that turns a computer equipped with a microphone into a
secure voice telephone. Zimmermann's situation aroused widespread interest,
with the PGP software becoming a prime example for critics of U.S. software
export policies. "Many experts on cryptography argued that the world-wide
availability of PGP rendered absurd the government restrictions on sending
encryption overseas," the Journal comments.

Attorney Shari Steele of the Electronic Frontier Foundation told the
paper, "We are so excited that the Justice Department has finally realized
they don't have any facts to pursue this witch hunt." And Curtis Karnow, a
San Francisco intellectual-property lawyer who worked with Zimmermann's
legal team, says, "It's very difficult to know what the government was
thinking," when it dropped the case. He says the prosecutor may have been
"affected by Phil Zimmermann's folk-hero status. Thousands of people see
Phil as a voice of conscience and someone who has dedicated his life to
protecting people's rights."

PGP enables computer users to encrypt their electronic mail to assure
that only the recipient is able to read it. It uses a method called public-
key encryption, in which someone wanting to receive encrypted electronic
mail puts a "public key" on the Internet. Anyone wanting to send a message
to that person can use the public key to convert it into code. But the
recipient has to have another key -- a "private key" -- to decode it. "I'm
just really pleased that the sword of Damocles is not over me anymore and I
wonder why it took so long," Zimmermann told Associated Press writer
Elizabeth Weise in a phone interview from his home in Boulder. "This is not
just for spies anymore. It's for the rest of us. The information age is
here. The rest of us need cryptography to conduct our business."

Simson Garfinkel, who wrote a book about the program, comments,
"Zimmermann never exported Pretty Good Privacy, so the U.S. Attorney seemed
to be missing the point. Unfortunately there still is no clear ruling from
our government as to whether or not making software available on the
Internet counts as exporting it." Marc Rotenberg of the Electronic Privacy
Information Center in Washington told AP, "The case was part of the
government effort to crack down on good technologies for privacy. We hope
the government's decision signals a rethinking of federal policy in this
very important area." For more on PGP, visit the Electronic Frontier
Foundation Forum (GO EFFSIG). Pretty Good Privacy is available on the
Internet's World Wide Web at Web address
http://www.epic.org/privacy/tools.html.

Sony Denies Apple Rumor
Sony Corp. says a message circulating on the Internet concerning the
company's purported offer to acquire Apple Computer Inc. isn't true. Sony
reports that the message, allegedly from Sony President Nobuyuki Idei to
Apple CEO Michael Spindler, is a hoax. The Tokyo-based consumer electronics
giant says it is investigating the situation and would consider legal action
against those responsible. Sony notes that its policy is not to comment on
any rumored or possible acquisition transactions. Apple, which is losing
both money and key executives, has been the rumored acquisition target of
Sony and several other companies for many months.

Apple Dropping Low-Cost Macs?
Rumors are circulating in California that, as part of its widely
anticipated restructuring, Apple Computer Inc. is considering a departure
from the low-cost Macintosh business. Reporting from San Francisco, Therese
Poletti of the Reuter News Service quotes industry sources as saying Apple
is expected to announce this week that it will stop producing low-cost Macs.
"Analysts are widely expecting Apple to announce its layoffs and a yet-to-be
determined restructuring charge Wednesday, after the close of the U.S.
stocks markets. Estimates for the layoffs are from 1,300 to up to 3,000."

Actually, the MacWeek trade publication is reporting Apple will hand
pink slips to 3,700 of its 14,000 employees, "but some said they believed
that number may be too high," says Poletti, adding, "Apple executives are
believed to be huddled in their offices working on the final details of
their plans." Said one industry analyst who asked not to be identified,
"They are going to have to focus on computers that have at least 20 points
in margin. What is under consideration is, do we want to be all things to
everybody? Or do we let some of the clone guys do it." The analyst added
this decision will involve all Macs that cost less than $1,500.

Reuters notes that currently the low-cost Macs make up about 15 percent
to 20 percent of Apple's total revenues, which were $11 billion in fiscal
1995. "If Apple embarks on this move," says the wire service, "it will
likely have to encourage more low-cost computer makers to license the
Macintosh operating system and therefore, become Mac clone makers.
Currently, there are only two Macintosh clone makers, Power Computing Corp.
of Austin, Texas, and UMAX of Taiwan."

Adds Poletti, "There are still many buyers of premium Macintosh systems
costing over $1,500, with the heftier profit margins of 20 percent of
revenues and above. And Apple would still get revenues, of approximately $40
per unit sold, from its licensing of the much-loved Macintosh operating
system." The unidentified analyst also comment, "The sense we are getting
is Apple will finally admit we can't be everything, we can't put out
machines that don't make money, and they will focus on the things they do
best."

Spindler May Leave Apple
A California newspaper reports Apple Computer Inc. CEO Michael Spindler
may be among the thousands of employees to leave the company when a
restructuring is announced this week. Quoting sources close to the company,
The Los Angeles Times reports the 53-year-old Spindler may decide to leave
partly because of health problems. The sources told the paper Spindler
suffers from high blood pressure and has often been under doctors' orders to
stay away from the office. Also Apple watchers say Spindler's health
problems could provide the board of directors with a simple way to ease him
out.

As reported earlier, analysts are widely expecting Apple to announce
layoffs, with estimates of affected employees ranging from 1,300 to up to
3,000. (Apple currently employs 13,000 workers). Also there are renewed
reports that Apple may soon be sold. United Press International comments
this morning, "Some analysts have been hesitant to blame Spindler, who
succeeded John Sculley two years ago, for all of Apple's problems since the
decisions that led to its current status were made long before he arrived --
specifically, the failure to license the Mac operating system enabled
Microsoft Corp. to set the standard on how PCs run."

Dorfman Says Apple May Be Sold
Financial correspondent Dan Dorfman of TV's CNBC says he has learned a
director at Apple Computer Inc. recently told a large shareholder it may be
time to sell the computer maker. According to the Dow Jones news service,
Dorfman said the director told the shareholder, a money manager with large
holdings, that Apple actively should solicit bona fide offers. It is
unclear, Dorfman said, whether such an offer has been discussed formally or
informally among the directors, but that possible suitors include IBM,
Oracle Corp. and Sun Microsystems Inc. Dorfman says observers estimate a
buyout at $50 a share or more than $6 billion. As reported earlier, since
the middle of last year Apple has been the subject of a number of takeover
rumors, possible, says Dow Jones, because some consider the stock
inexpensive. "Despite its declining share of the computer market," the wire
service adds, "it still has some attractive businesses, including its
computer software operations."

IBM, Sears Looking to Sell Prodigy?
After investing more than $1 billion over the past decade, IBM and
Sears, Roebuck & Co. reportedly are looking at whether to bail out of their
joint ownership of the Prodigy online service. Writing in The Wall Street
Journal this morning, reporters Bart Ziegler and Jared Sandberg, noting both
IBM and Sears are commenting, quote industry executives as saying:

ú Sears has retained investment bankers to explore selling its 50 percent
stake in Prodigy, seeking as much as $500 million, and is looking at whether
to sell the stake in a public offering.
ú IBM has hired an investment banking firm of its own to study what to do
with its half ownership.

The paper says its sources say AT&T last month approached IBM about
possibly buying Prodigy in its entirety with the cooperation of Sears, "but
IBM is believed to be leaning against an AT&T deal, in part because it views
the phone company as a competitor." "Moreover," adds the Journal, "AT&T may
be less interested now, having just decided to phase out its own commercial
online service in favor of an Internet-based service."

The 12-year-old Prodigy "has only flirted with profitability," the
Journal comments, "hampered by years of stodgy marketing, cartoonish
graphics and, more recently, infighting between its parents." Ziegler and
Sandberg say, "For IBM, Prodigy's plight poses a dilemma: Should it pour
more money into Prodigy to redouble its turnaround efforts? Or should IBM
cut its losses and sell out to focus on the Internet -- at the risk of
seeing a competitor snap up the service and build it into a powerhouse?
Sticking with the service could be expensive. By some estimates Prodigy
needs $100 million a year to revamp in the next few years."

The paper notes Sears for several months has had Goldman, Sachs & Co.
trying to round up potential buyers, "but apparently sought too high a
price. It also has been hindered by concern among potential buyers that IBM
wanted to run the show." Under the terms of the Prodigy alliance, IBM can
reject any potential purchaser of Sears's stake, and "IBM executives have
said privately they want the upper hand in managing the company," the
Journal says.)

CompuAdd Lays Off Workers
Financially troubled CompuAdd Corp., once one of the nation's largest
personal computer makers, has laid off most of its 225 employees. Reporting
from Austin, Texas, the Associated Press says managers told workers Monday
the company would be turned over to its bankers. The wire service notes the
action came a few days after a creditor lawsuit became public. 1st Tech, an
Austin-based maker of computer memory modules, sued CompuAdd for $93,000 in
unpaid debts. Also, CompuAdd said last week it had fired a "high-ranking
company officer" after an audit last fall raised questions about financial
practices. The company didn't identify the officer.

Founded in 1982 by entrepreneur Bill Hayden, CompuAdd's growth for
years matched that of crosstown rival Dell Computer Corp., reaching $500
million in sales in 1992. "But," notes AP, "its focus on retail sales began
to unravel in 1993. The company's decision to close 110 stores that year
prompted a Chapter 11 bankruptcy restructuring to settle the claims of
landlords. CompuAdd has since focused on built-to-order PCs for companies
and government agencies. The privately-held company also produced customized
computers that serve as cash registers."

Software Giants Settle BBS Case
Microsoft Corp. and Novell Inc. say they have settled a major computer
bulletin board system (BBS) piracy case. The software giants report they
have reached a settlement with Scott W. Morris, who was doing business as
the Assassins' Guild Bulletin Board Service, in what is believed to be the
largest settlement ever with the operator of a pirate electronic BBS. The
settlement concludes litigation filed by Microsoft and Novell in the U.S.
District Court for the Eastern District of Kentucky. According to Microsoft
and Novell, the agreement calls for Morris to pay $70,300 in cash and
forfeit computer hardware valued at more than $40,000. Morris has also
agreed to assist Microsoft and Novell in their continuing BBS
investigations, say the firms.

The Assassin's Guild billed itself as the worldwide headquarters for
two large pirate groups, Pirates with an Attitude (PWA) and Razor 1911. U.S.
Marshals raided Morris' residence last April. The BBS had been offering
access to hundreds of pirated software products, including those published
by Microsoft and Novell, to users throughout the United States and around
the world over its state-of-the-art system. Marshals seized 13 computers, 11
modems, a satellite dish, 9GB of online data and more than 40GB of offline
data storage dating back to 1992.

"This case sets an important precedent for this industry," says Bob
Kruger, enforcement director for the Business Software Alliance. "It sends a
clear message to operators of bulletin boards who are illegally distributing
copyright-protected software that they will be investigated and sued, or
criminally prosecuted. It also sends a message to our industry that, large
or small, no software publisher is immune from bulletin board piracy."
While software publishers have scored several successes against the
operators of pirate BBSes, the companies have had far less success catching
individuals who distribute bootleg products via the Internet, where
identities can be easily hidden.

Exec-PC BBS Removes Erotica
One of the nation's largest computer bulletin board systems has removed
all its erotica files. Operators of Exec-PC of suburban New Berlin,
Michigan, near Milwaukee indicate they feared a government crackdown. The
BBS notified subscribers last week it had eliminated about 50,000 files of
adult material, including pictures of porno stars and nude photos. The
system has 700,000 electronic files offering everything from spreadsheet
programs to X-rated graphics.

Speaking with the Associated Press, founder Bob Mahoney said of the X-
rated material, "Since it is only 7 percent of our service and it could
result in the 100 percent loss of our business, the risk is not worth it."
AP comments, "The move comes as authorities are cracking down on the use of
computer networks to transmit child pornography and arrange sex with
children, and as Congress considers legislation to ban online porn.
Possession or transmission of pictures of children engaging in sexual
activity is a federal offense."

Mahoney told the wire service he feared that keeping the X-rated
materials could result in his equipment being seized, even if no charges
were filed. However, attorney Mike Godwin of the Electronic Frontier
Foundation cyber-rights group observed, "He has a perfect right to choose
what to carry, but it's a shame that he feels he has to exercise the right
out of fear of what government might do. That's what constitutional lawyers
call a chilling effect."

Sculley Heads Software Firm
Former Apple Computer Inc. chief John Sculley has taken an equity stake
in a small California photo software firm called Live Picture Inc. of
Soquel, where he also is serving as a "part-time" CEO. Reporting from San
Francisco, the Reuter News Service quotes Sculley as saying he joined the
firm in early 1995 and had bought a piece of the company, although he would
not detail his holding. He says he continues to have a venture capital
business in New York.

The wire service notes Sculley was introduced by Live executives at a
low-key press party earlier this week during the MacWorld Expo. The company
was unveiling its 2.5 photo and imaging software that permits photographers
and graphic artists to manipulate photos and other images -- through shape,
color, shade, and resolution -- and allows them to be completed more quickly
for clients, such as advertising agencies.

Sculley told the wire service he believes the company's technology,
which had been licensed by Eastman Kodak Co., could spread to the broader
consumer market. He adds that a consumer could use the technology for a
variety of "fun" ways to manipulate photographs, especially on the Internet.
He says, too, the technology's wider use could come by next Christmas, when
he expects such consumer products as digital cameras and low-cost color
printers could hit the retail market and be used in conjunction with the
Internet. Reuters says Kodak also owns a stake in Live, but that Sculley
declined to elaborate or to detail the private firm's financial results.

Kofax Finalizes Acquisition
Kofax Image Products of Irvine, California, says it has finalized its
acquisition of Tyngsboro, Massachusetts-based LaserData. The acquisition,
which was originally announced late last year, includes all of LaserData's
assets, which will now bear the Kofax name. The deal's terms weren't
disclosed. LaserData's flagship product line is OS/N, a high-volume storage
management solution for Windows NT and Novell NetWare environments. OS/N
will be incorporated into Kofax's Ascent family of imaging applications.

"In purchasing LaserData, we have acquired some excellent engineering
and sales resources to help propel our Ascent line of production document
imaging components into the next phase of the company's growth," says David
Silver, Kofax's president. "Our primary focus is to ensure that our three
document imaging components -- capture, viewing and storage -- are always
the best of breed and are compatible with as many other imaging components
as possible, using existing programming standards." LaserData's
engineering team will remain based in Tyngsboro, Mass. Former LaserData CEO
Paul J. Rusconi will serve as a consultant during the transition.

Amquest Unveils Faster Modem
Amquest Corp. says it has developed an internal V.34 modem that
delivers compressed data speeds of up to 230.4K bps -- twice the maximum
compressed speed of conventional 28.8K bps modems. The company, based in
Lancaster, Pennsylvania, notes that its HyperModem is the first modem to
offer enhanced throughput using Rockwell International's controller/data
pump chipset.

According to Amquest, the $199 HyperModem is capable of data
throughputs of up to 230.4K bps when linked to a remote HyperModem and up to
115K bps with ordinary 28.8K bps modems. The HyperModem supports V34/V.Fast
Class 28.8K bps data transmission, plus slower standards such as 14.4K bps
Group 3 send/receive fax. The modem is compatible with Windows 95, Windows
3.1 and most leading Windows and DOS communications packages. The
HyperModem, which is scheduled to become available later this month, will be
bundled with data/fax software from Cheyenne Communications.

Multimedia Norton Utilities Ships
Symantec Corp. has released the first multimedia version of its Norton
Utilities software. Norton Utilities for Windows 95 on CD-ROM adds
multimedia resources, such as video, animations and sound, to its software
for protecting and improving Windows 95 computers. New to the product are
three companion programs: Disk Companion, Memory Companion, and Norton
Utilities Companion. The Disk Companion is a multimedia tutorial that
explains how the Windows 95 file system works. The Memory Companion explains
how Windows 95 manages memory. The Norton Utilities Companion shows users
how to get the most out of Norton Utilities through multimedia
demonstrations and interviews with the developers.

"Symantec was the first company to offer utilities to enhance Windows
95, and this release of Norton Utilities on CD-ROM takes the program a step
further by making our expertise available to the average user," says Karen
Black, vice president of advanced utilities for the Cupertino, California-
based company. "The Companions make it easy for anyone to become a power
user of Windows 95." Norton Utilities for Windows 95 on CD-ROM sells for
$129. Users of previous Norton Utilities versions, or PCTools, can upgrade
for $69.95.

Intuit Ships Business Tax Software
Intuit Inc. has released the final 1995 tax year versions of TurboTax
for Business and MacInTax for Business, its annually updated income tax
return preparation programs. The San Diego-based software publisher notes
that the programs are designed for use by all types of companies. Links to
the Internet's World Wide Web are built into the products. The software is
available on a $69.95 CD-ROM and in Sole Proprietorship, Corporation, S-
Corporation and Partnership versions on floppy disk. The products provide
business tax advice and tax planning suggestions. Also included is the
full text of Tax Savvy for Small Business, a year-round tax guide by tax
attorney Fred Daily, as well as complete IRS instructions and support text.
"Small business owners say the single biggest problem they face is taxes,"
says Scott Cook, Intuit's chairman. "The 1995 TurboTax for Business program
is a great way for small- business people to handle their taxes."

Toy Favorites to Go High-Tech
Mr. Potato Head, Tonka and Play-Doh are set to go high-tech as Hasbro
Interactive gets ready to announce later this month a new line of
edutainment CD-ROM titles based on the Playskool product line. Trade
journal Computer Retail Week reports that the Hasbro division is expected to
ship four titles in February -- Mr. Potato Head Saves Veggie Valley, Tonka
Construction, Candy Land Adventure and Play-Doh Creations -- each with an
expected retail price of $39.95. Two more titles based on other Playskool
toys are expected to be released later this year, according to Tom
Dusenberry, vice president of Hasbro Interactive.

"Next year, Hasbro Interactive will begin to develop original
edutainment titles for the retail market," Dusenberry told Computer Retail
Week. Among the options being considered for these titles are characters
based on other entertainment licenses. Hasbro launched its interactive
division last October. Most recently, the division released an interactive,
3-D version of Monopoly that can also be played over the Internet. This
year, Hasbro will release more interactive board games, including Risk,
Battleship, Scrabble and a version of Clue with live action video,
Dusenberry told Computer Retail Week.

Amiga OS Headed to TV Land
The Amiga operating system will live again, but not inside a desktop
computer. Viscorp., an interactive TV developer headquartered in Chicago,
and Escom AG, a computer manufacturer headquartered in Bersheim, Germany,
have finalized a licensing agreement to add the Amiga operating system to
Viscorp's new set-top TV appliance -- Electronic Device (ED). The deal's
terms weren't disclosed. In 1995, Escom AG acquired all Commodore and Amiga
licenses, patents and trademarks.

Viscorp says that adding the Amiga operating system to ED will allow
users to access any online service, local bulletin board service and any
address on the Internet at speeds thousands of times faster than a
conventional telephone modem. Access will be allowed through a TV remote
control, a computer keyboard, a touch-sensitive pen or the microphone that's
into ED. "By utilizing our unique set-top appliance and incorporating the
Amiga technology, Viscorp is able to provide ... the ability to access the
Internet through a standard TV set with pricing that makes sense for the
average TV viewer," says Jerome Greenberg, Viscorp's chairman.

Ohio University Eyes Virtual Campus
A "virtual university" to help cut costs and increase access to college-
level courses is being proposed by Ohio University President Robert Glidden
to the board of regents, and the presidents of 12 other state universities.
Reporting from Athens, Ohio, United Press International says Glidden
envisions a service that would not replace residential campuses or compete
with them, but would be a collaborative effort led by OU and include the
best teaching that other Ohio universities can offer.

And, says Glidden, it would offer a college education to people who
otherwise would not get one because they can't afford the time or tuition
for classes at a residential campus. Says UPI, "It's an advanced version of
what OU has been doing for years through its correspondence course that is
being taken by about 1,100 students this year ... But OU couldn't handle
500,000 students, Glidden said, which is how many could participate in a
full-scale 'virtual university.' That's why he hopes other universities will
get involved."

A master plan for higher education in the years ahead will address how
to develop such "virtual universities," among other proposals. It is
expected to be completed this year. Poll: 4 Percent of U.S. on the Net A
new survey suggests about 4 percent of the U.S. population now surfs the
Internet, that half of them got started just last year, and most spend an
average of 6.6 hours a week on the Net. Thomas E. Miller, who directed The
American Internet User Survey, told business writer Karen Schwartz of the
Associated Press the research found 9.5 million Americans, or 3.6 percent of
the population, use the Internet, including 1.1 million children under 18
and that 51 percent said they first tapped in last year.

AP says the Emerging Technologies Research Group randomly surveyed
1,000 U.S. adult Internet users by phone in November and December. Only
people age 18 and older were interviewed, but those with children were asked
about their youngsters' habits. The survey was sponsored by 30 corporations
with interests in the Internet and has a margin of error of 3 percentage
points.

Among the findings are:
ú The average Internet user is 36 years old, and use of the Internet
closely follows college education. The average household income of an
Internet user is $62,000. (Some 31 percent of Internet users were under age
30; 27 percent were age 30 to 39, 26 percent were 40 to 49, and 13 percent
were 50 or older.)
ú Thirty-five percent of all Internet users are women, and women online
are more likely than men to use it at work and academic locations. Also
women are twice as likely as men to use Internet exclusively for business.
ú Nearly a third of Internet users said they spent less time watching TV,
while a fourth said they spent less time on long-distance phone calls.
Fifteen percent said they spent less time watching videos and 10 percent
said they spent less time listening to the radio.
ú Twelve percent and 13 percent said they decreased the time they spent
reading newspapers and magazines respectively, "but," says AP, "a similar
number, 9 percent and 11 percent, said they increased the time they spent
reading, primarily because they were trying to learn more about the
Internet."
ú Nearly two-thirds of the respondents visited fewer than 50 Web sites in
any depth. Only 23 percent had visited more than 100 Web sites in any depth.
"In addition," writes Schwartz, "the interviewers found that Web users often
had little recall about the sites they had seen, remembering a truck, for
instance, rather than a brand name."
ú Personal use of the World Wide Web far outpaced business use, with 52
percent of all Web sites visited for personal reasons, 35 percent for
business and 13 percent for academic reasons.

When asked what information they were retrieving from the Internet, the
respondents said: news and general information, 80 percent; hobbies and
leisure, 67 percent; special interest groups, 66 percent; downloading
software, 61 percent; education and training, 60 percent; music and
entertainment, 57 percent; and product information, 47 percent.

When asked what the Internet allows them to do that they could not have
done before, the most common response was "communicate with people that I
never would have met." Only 16 percent of the people surveyed said they
were very satisfied with the ability to find information on the Internet,
and 26 percent said they were very satisfied in their ability to return to a
site.

Meanwhile, the Reuter News Service notes the survey's finding of 9.5
million Americans using the Net differs "sharply from a study released in
October by CommerceNet and Nielsen Media Research, which said that 24
million people in the United States and Canada use the Internet."

"We stick by our numbers," said a spokesman for Nielsen Media, which is
unit of Dun & Bradstreet Corp. "If you do different surveys, they will
produce different results," said Jack Loftus of Nielsen Media. As reported
earlier, the Nielsen Media study was based on more than 4,200 telephone
interviews of randomly selected households in the United States and Canada.



Symantec/Delrina NewsBits STR Infofile


Symantec Announces Operation Snow Storm

Symantec's Delrina Group Provides Relief to Companies Affected by the
Blizzard of the Century; Donates Copies of Remote Computing Software for
Windows

LONG ISLAND, NEW YORK -- January 15, 1996 -- Symantec's Delrina Group, world
leader in PC communications software, today announced Operation Snow Storm,
a relief effort that will make 500 copies of its award-winning pcANYWHERE
for Windows Remote computing software available to corporations free of
charge to assist workers unable to reach their offices. With over 2
million active users, pcANYWHERE is the best-selling remote control and file
transfer software and normally retails for $129-$149.

The pcANYWHERE for Windows Remote Control product allows users to work from
home, using their home PC to access the office. Required to run the
software is a PC equipped with either Microsoft's Windows 3.1 or Windows 95.
With the excessive amounts of snow we have experienced, it is becoming
increasingly difficult to get to the office. This product enables workers
to stay at home and work as if they were sitting at their desk," said
Christopher Calisi, general manager of the Communications Business Unit.

The pcANYWHERE family of award winning remote computing software solutions
are developed on Long Island. "The Long Island branch of Symantec's,
Delrina Group has a commitment to the community," said Calisi. "We are very
concerned with the risks individuals are facing this winter, in light of the
hazards of travel under such extreme conditions."

This software will allow employees to dial into their office PC. Once
connected, the user can log into the network, access documents and remotely
operate both DOS and Windows-based applications. In addition, pcANYWHERE
further increases productivity by enabling users to remotely access devices
on their PCs and networks, such as printers, CD ROMs. "This enables people
to remain productive from the comfort and safety of their own home," added
Calisi.

To take advantage of this offer, companies simply need to contact Symantec
directly at 1-800-511-4994. A small charge for shipping/handling will be
applied and the product will be shipped via Federal Express 2nd Day Service.
Limit five copies per company.

Symantec Corporation develops, markets and supports a complete line of
application and system software products designed to enhance individual and
workgroup productivity as well as manage networked computing environments.
Platforms supported include IBM personal computers and compatibles, Apple
Macintosh computers and all major network operating systems. Founded in
1982, the company has offices in the United States, Canada, Australia, Japan
and throughout Europe. Information on the company and its products can be
obtained by calling 1-800-441-7234 toll free or (541) 334-6054 or through
the Internet at www.symantec.com.

Brands and products referenced herein are the trademark or registered
trademark of their respective holders.

Press Contacts:
Josef Zankowicz, Symantec Corp., Delrina Group (416) 441-4658
Shelly Sofer, Symantec Corp., Delrina Group (416) 441-4702




Luminous Announced STR Infofile


Former Adobe Product Group Spins Out With Focus On Print Production Market
New Luminous Corporation With Equity Interest By Adobe

Seattle, Wash., (Jan. 11, 1996) ­ Capitalizing on the commercial printing
industry's dramatic shift toward digital print production, a new Seattle-
based company called Luminous Corporation today announced that it has
finalized its arrangements as a spin-out company of Adobe Systems,
Incorporated (Nasdaq:ADBE) of Mountain View, Calif. Formerly the Adobe
prepress group, Luminous is now a privately held company with James Betlyon,
previously vice president of the Production Imaging Products Group at Adobe,
as president and chief executive officer.

Under the agreement, Luminous acquired or licensed worldwide development,
marketing and distribution rights to the industry leading Adobe prepress
software solutions for high-end print production professionals. These
products include TrapWise, the advanced color trapping software; the
PressWise electronic page imposition program; Color Central image server
software; the OPEN production environment; the Adobe Virtual Network
telecommunications application for the printing industry; the PrePrint Pro
production preview, or "preflighting," program; and Print Central print
server software. Luminous will also handle customer and technical support
for these products.

Luminous also has certain rights to the Open Prepress Interface (OPI) and
imposition technologies along with full ownership of the OPEN workflow
technology. Luminous plans to use these technologies and others acquired to
enhance its current product suite and to incorporate into future offerings.
Although Luminous is formed as an independent company, Adobe has obtained an
equity interest in the new venture. Further, Adobe has licensed its
Configurable PostScript Interpreter (CPSI) technology to Luminous for
expansion into the high-end printing market. Other financial and licensing
terms were not disclosed.

"The entire printing industry is migrating to new, standards-based digital
printing and transmission systems and away from the traditional, proprietary
systems at an astonishing pace," said Betlyon. "As part of Adobe, we were
able to bring innovative products to market by identifying the needs of this
rapidly changing color publishing marketplace. By leveraging these
technologies, Luminous will be able to meet the needs of customers in the
larger scale print production business. With Adobe as one of our key
technology partners, Luminous will satisfy these special industry needs
while breaking new ground in comprehensive print production systems."

In addition to furthering the product cycles of the acquired or licensed
Adobe prepress products, Luminous will shape its product portfolio into a
complete, modular, and integrated system suitable for use in client/server
architectures and distributed network publishing. Its primary customers will
be in the electronic prepress, print production, printing and graphic arts
segments.

"Adobe will continue to enhance the core technologies on which the award
winning prepress products are based," said Fred Schwedner, vice president,
Adobe Printing and Systems Division. "As a result, OEMs such as Luminous
will be able to focus on delivering leading prepress applications to
professional, on-demand high-end printing customers."

The prepress stage is the final phase of the print production process in
which color separation and publication assembly take place. These
traditionally manual methods continue to migrate to electronic computer
platforms much like manual page layout did in 1985 with Aldus Corporation's
creation of desktop publishing.

By making the prepress processes digital, short-run, high quality color
printing is now possible. BIS Strategic Decisions of Norwell, Mass. reports
that in 1993, the short-run commercial printing market for electronic black-
and-white, or monochrome, and color documents shorter than 5,000 pages was
$31 billion. They project that by 1998, on-demand short-run color jobs will
account for 49 percent of that figure, or roughly $15 billion.

Luminous Corporation is staffed primarily by former Adobe prepress
personnel, most of whom joined Adobe Systems after its merger with Aldus
Corporation in Sept., 1994. The current Luminous products, with the
exception of the Adobe Virtual Network, were previously the core offerings
of the Aldus Prepress Division prior to the merger with Adobe. Luminous'
engineering, operations, product marketing, customer and technical support
are based in Seattle. The company has regional sales offices and
distribution channels in the United States and Europe. For more information
on Luminous Corporation, interested customers should call (800) 685-6736.

Adobe Systems Incorporated, founded in 1982, is headquartered in Mountain
View, California. Adobe develops, markets and supports computer software
products and technologies that enable users to create, display, print and
communicate electronic documents. The company licenses its technology to
major computer, printing and publishing suppliers, and markets a line of
applications software and type products for authoring visually rich
documents.

Additionally, the company markets a line of powerful, but easy to use,
products for home and small business users. Adobe has subsidiaries in Europe
and the Pacific Rim serving a worldwide network of dealers and
distributors. Adobe's 1995 revenue was approximately $762 million.

TrapWise, PressWise, Color Central, OPEN, Print Central and PrePrint are
trademarks of Luminous Corporation. Adobe, the Adobe logo and PostScript are
trademarks of Adobe Systems, Incorporated and may be registered in certain
jurisdictions.



MS & WANG Imager STR Infofile



Wang, Microsoft Announce Imaging Software For Microsoft Windows 95

Provides Built-in Support for Document-Imaging Applications

Software Available Now Without Charge Over Internet


BILLERICA, Mass. and REDMOND, Wash. - Jan. 16, 1996 - Wang and Microsoft
Corp. today announced the release of imaging software developed by Wang for
the Windows 95r operating system. The software provides built-in support for
new document-imaging applications by enabling users of Microsoftr Windows 95
to scan, view, annotate, manage, store and share faxes, paper documents and
electronic images. The software is available now over the Internet and major
online services. It will also be incorporated into future versions of the
Windowsr operating system.

With the new Windows 95-based imaging software, a user can transform any
paper or fax-based information into an electronic image that can be stored,
filed, retrieved, edited, annotated, printed, faxed and shared. This
eliminates the need to manage and store paper documents such as handwritten
meeting notes, memoranda and business correspondence. The software also
includes powerful 32-bit OLE interfaces that allow developers to create
image-enabled applications easily.

"Users of Windows 95 will now have easy-to-use, high-performance imaging
software that can change the way they work and communicate," said Brad
Silverberg, senior vice president of the personal systems division at
Microsoft. "Wang's commitment to providing cost-effective and reliable
imaging software is a true benefit to customers."

"The Wangr imaging software for Windows 95 makes an important technology
immediately available to millions of people worldwide," said Bob Weiler,
president, Wang Software. "Working with Microsoft, Wang has made desktop
document imaging a pervasive and inexpensive mainstream application. It will
accelerate the broad deployment of imaging and workflow as business
productivity tools."

Users, Developers Gain Unprecedented Imaging Access
The imaging software for Windows 95 provides an open, standard way to handle
image documents and to view faxes through Microsoft Exchange Inbox. For
example, in an office environment, the easy-to-use, intuitive interface
enables users to transform paper and faxes into useful electronic documents
as bit-mapped or rasterized images in black and white, grayscale or color.
The software supports Windows 95 Explorer, standard Windows 95-based
printers and fax products, as well as popular electronic mail systems such
as Microsoft Exchange Server and Microsoft Mail.

The imaging software provides developers and integrators with standard
interfaces and components for creating image-enabled applications and for
customizing or controlling Windows 95 capabilities. These interfaces include
the following:

ú OLE component technology to add image documents to Windows-based
personal productivity and database-driven applications
ú OLE Automation for integrating imaging into existing line-of-business
applications
ú OLE Controls for building new applications using a broad range of
popular developer tools

Commitment to Back-End Server Integration
In the first half of 1996, Wang will provide connections between client
imaging software available for Microsoft Windows 95 and Wang's other imaging
software products. The connections will enable users to access and retrieve
images stored on any Wang image server. In addition, Wang plans to
incorporate the new OLE interfaces into its entire workflow and imaging
product line, offering further integration capabilities between the desktop
and back-end server software products.

A Significant Result of the Wang and Microsoft Alliance
The imaging software is a significant result of the broad alliance between
Wang and Microsoft announced last April. This alliance will bring improved
document-imaging and work-management capabilities to all users of Windows 95
and the Windows NTT operating system. As part of the alliance, Wang was
designated Microsoft's preferred workflow and imaging vendor and is working
closely with Microsoft to define the MAPI Workflow Framework for enabling
interoperability between production workflow systems and messaging
environments such as Microsoft Exchange.

Easy, Convenient Access Over the Internet
The new imaging software for Windows 95 is available immediately worldwide
through the Internet (http://www.microsoft.com and http://www.wang.com) and
will be available through other Microsoft online services.

The software is available immediately in seven languages. This includes U.S.
English, Dutch, French, German, Italian, Japanese, and Spanish. The software
will also be available on the April Microsoft Developer Network CD.

Wang Laboratories, Inc. (NASDAQ:WANG) is a recognized worldwide leader in
workflow, integrated imaging, document management and network storage
management for client/server open systems and a major worldwide provider of
integration and support services for office software and networks.

Founded in 1975, Microsoft (NASDAQ:MSFT) is the worldwide leader in software
for personal computers. The company offers a wide range of products and
services for business and personal use, each designed with the mission of
making it easier and more enjoyable for people to take advantage of the full
power of personal computing every day.

Microsoft, Windows and Windows NT are registered trademarks or trademarks of
Microsoft Corp. in the United States and/or other countries. Wang is a
registered trademark of Wang Laboratories, Inc.


McAfee 229 STR Spotlight


What's New in VirusScan Version 2.2.9 (9601)
Copyright 1994, 1995 by McAfee, Inc.
All Rights Reserved.



These release notes cover what is new in VirusScan 2.2.9 and the December
DAT replacement (9601) of VirusScan for DOS, VirusScan for Windows,
VirusScan for OS/2, VirusScan for Windows 95, VirusScan for NT and VShield.


Why this emergency release:

The versions released as 2.2.8 was discovered to have a couple of false
ids:

SHZ on some COM files used in association with CPTOOLS.
PROBABLE UNKNOWN BOOT SECTOR VIRUS on Disk Manager MBRs.

This release of 2.2.9 (9601) fixes those issues.



Vshield 2.2.9

You will need VShield 2.2.8 or 2.2.9 in order to use these DAT files
with VShield for DOS.


New features for VirusScan 2.2.9 and OS/2 Scan 2.2.9:

/CLEAN /FORCE
When confronted with a boot sector virus, /CLEAN /FORCE tells VirusScan to
forcibly remove the virus using its generic remover capabilities. For MBR
infecting viruses, this is similar to the use of FDISK /MBR.

/CONTACTFILE <filename>
Display contents of <filename> when a virus is found. Previously it worked
only for viruses found during disk scan. Now, it also applies to viruses
found during memory scan.

/FREQUENCY DAILY
Will scan once each day based on the date and not by hours.

/NODOC
In 2.2.7, we introduced .DOT and .DOC into the default list of files checked
when you run Scan. /NODOC forces DOT and DOC files not to be checked.
Some of our users requested this flexibility.


OS2SCAN 2.2.9

The OS/2 code has been changed to fix a disk corruption problem. It's
implementation has created a change in the way Scan works. When OS/2 Scan
finds that the system has loaded IBM LAN drivers, it will not Scan the MBR
of the s system, however, if you are using those particular Requesters, you
need to boot the OS/2 box from the two Diskettes provided by IBM and then
Scan your System. Booting this way will not load the drivers and OS/2 Scan
will Scan your MBR. It has been our experience that most Boot Sector
Viruses will not let your OS/2 machine boot and you would need to boot
from the Diskettes anyway to find the machine's problem.

Creating a Clean Boot Disk:
When creating a clean OS/2 boot disk, it is necessary to copy the file
NLS.DLL to the disk as well as OS2SCAN.EXE
and *.DAT.

The file NLS.DLL is part of standard OS/2. The path where it can be
found is: \OS2\DLL\NLS.DLL



About Macro viruses...

Included in this ZIP file is a self-extracting archive, MVTOOL10.EXE, being
distributed by Microsoft. It is a way to protect yourself against the
Concept virus, as well as to warn you against document files that contain
macros without your knowledge.

To make use of it, execute the program:

MVTOOL10.EXE 40732 bytes

It will create these files:

README.DOC 36864 10-02-95 1:08p
SCANPROT.DOT 49152 10-02-95 3:44p

Enter Word and read the README.DOC to see if the package is suitable for
your environment. Removal of macro viruses directly from within VirusScan
will soon be made available. If you wish to help us test the beta, please
check our beta area on our Web Site (www.mcafee.com) in the download area.


Detectors added or updated in the 9601 DAT file from 9511 (105):
AC.1400 HLLO.7227
ACIDWARP HLLO.41714
AEP.2518 HOME SWEAP.658
AMZ.1100 HYDRA.1657
ANARCHIST.478 IMI.1536.G
ANARKEY.1179 ITTI.161
ANTI PASCAL.400.A IVP.939
ANTI PASCAL.400.B IVP.FLIPPER.872
ANTI PASCAL.407 KOHNTARK.KOMPANION.268
ANTI PASCAL.440.A/B LEPROSO.1221
ANTI PASCAL.480.

  
A/B MAGIC DOLLAR
ANTITB MIREA_II.4157
AUSTRALIAN PARASITE.306.A MNEMONIX.NEUROPATH.928
AUSTRALIAN PARASITE.482.A MOSQUITO.768
BEDA.1530 MRTINY.155
BROTHER MZBOOT.B
CIVILWAR.RATBOY.303 PC FLU.763
COITO.644 PS-MPC.670
COP-COM.286 REKLAMA.2723
COP-COM.287 RTL
CREATIVE.877 SCRATCH.554
DAEMAEN.2041.B SEMTEX.686
DARK_AVENGER.OLIVER SEPULTURA.2136
DEI.1526 SHARK.1027
DSME.DEMO SHARK.B
EAF.656 SHIFTER.983
EMF SILLYRC.414
END-OF.788 SIRIUS.640
ERRORINC.465 SISTER
EVOLUTION.2770 SMALL COMPANION.160
EVOLVE.2770 SMALL.65
EXEHEADER.FUNKED.425.C SMASH
EXEHEADER.PURE.DE'BUGER.427 SPM.A
FAIRZ.2340 STONED.IVT
FOGGY.91 STONED.PC-AT
FOGGY.129 TRIVIAL.123
FOGGY.149 VACSINA.VACSINA-LOADER.A
FOGGY.188 VCL.DIAL.600
FOGGY.220 VIENNA.BYTEWARRIOR
FOGGY.228 VIENNA.M1.B
FOGGY.256.A VME_1.DEMO
FOGGY.256.B VRD
FOGGY.292 WEREWOLF.658
FOGGY.300
FOGGY.382
FOGGY.420
FOGGY.444
GIRL.2273
HIPERION.249
HLL.4075
HLL.4629
HLL.6167
HLL.8902
HLL.12304
HLL.BIRTHDAY.5824
HLL.KASIENKA
HLL.MERCURY
HLL.SAURON
HLL.VOVA.8896
HLL.VOVA.9904
HLLC.4768.B
HLLO.4032.B
Removers added or updated in the 9601 DAT file from 9511 (37):
ANTI PASCAL.400.A
ANTI PASCAL.400.B
ANTI PASCAL.407
ANTI PASCAL.440.A/B
ANTI PASCAL.480.A/B
DARK_AVENGER.OLIVER
DVD.455
FOGGY.91
FOGGY.129
FOGGY.149
FOGGY.188
FOGGY.220
FOGGY.228
FOGGY.256.A
FOGGY.256.B
FOGGY.292
FOGGY.300
FOGGY.382
FOGGY.420
FOGGY.444
FREDDY_2.1
HI.802
HOME SWEAP.658
HYDRA.1657
MRTINY.155
OVER1644
PS-MPC.670
QUICKSILVER.1376 (Needs 2.2.8
Executable)
SAYAWATP
SHEHAS
SMALL COMPANION.160
STONED.ZAPPA
SVC.2936.C
SVC.2936.D
TRIVIAL.123
VIENNA.648.LISBON
WEREWOLF.658


False Alarms fixed:
HLL.4984
KILROY
NOKERNEL (BOOT)
OVER1644
PS-MPC.ARCV.3
THIEF


Significant virus name change:
Breasts -> SheHas
Yale -> Alameda


Top active viruses other than those presented above:

AntiCmos (alias: Lixi)
Byway.A (*)
Byway.B (*)
Concept
Da'Boys (**)
Junkie
MonkeyA
MonkeyB
Natas
NYB (alias: B1)
Ripper
Sampo

(*) To remove Byway, boot up with the virus in memory. Copy all executable
files to floppy, with a non-executable extension. Copy all the data files
off. Format harddisk. Replace files.

(**) To remove Da'Boys from a hard disk infection, one needs to boot from a
clean corresponding DOS version and execute the command "SYS C:".




MS Acquires Vermeer STR Focus



Microsoft Acquires Vermeer Technologies Inc.


Critically Acclaimed Visual Client-Server Web Publishing Tool
to Complement Internet Offerings
From Microsoft Desktop Applications Division


REDMOND, Wash. - Jan. 16, 1996 - Microsoft Corp. today announced the
acquisition of Vermeer Technologies Inc., a pioneer of visual, standards-
based Web publishing tools based in Cambridge, Mass. Vermeer's flagship
software application, FrontPage(TM), is a critically acclaimed tool for
easily creating and managing rich Web documents without programming.
FrontPage will become a key component of Microsoft's strategy to provide a
full range of tools that put the power of Web publishing, for both the
Internet and intranets, in the hands of the broadest range of computer
users.

"Millions of productivity-applications users want an easier way to
participate in the excitement and enhanced productivity of the Web," said
Bill Gates, chairman and CEO of Microsoft. "Vermeer's FrontPage fills the
wide gap between simple HTML page editors and high-end, professional Web
publishing systems available today."

"Access to Microsoft's resources and channel partnerships will allow us to
realize our vision of 'Webtop publishing' on a broader scale," said John
Mandile, Vermeer's president and chief executive officer. Vermeer coined the
phrase "Webtop publishing" to define the process of creating Web sites using
its innovative visual tools.

High-Quality Web Publishing
FrontPage provides users with the fastest and easiest way to develop and
maintain high-quality Web sites without programming. Designed for both
individual users and collaborative work environments, FrontPage's client-
server architecture supports authoring, scripting and Web-site management
from a user's desktop, across a corporate LAN, or over the Internet. The
client portion of the software, which is currently available for Windowsr
operating system-based platforms and will be available for the Macintoshr
later this year, includes the following features:

ú FrontPage Editor for creating and editing HTML pages, with WYSIWYG
support for many of the latest HTML formatting extensions
ú FrontPage Explorer for graphically visualizing and managing a complex
Web site composed of many documents and images
ú WebBots that implement the most common Web server functionality, such
as text searches, feedback forms, and threaded discussion forums, without
any programming or complex setup
ú Wizards and templates for easily creating personal and business Web
pages in a task-oriented manner
ú To Do List for tracking the status of authoring and management tasks to
be completed on the site, a critical task for a collaborative Web document

The server portion of the product, known as Server Extensions, is
implemented using the open industry standard Common Gateway Interface (CGI)
and can run on the Windowsr 95 or Windows NT™ operating systems and
popular versions of UNIXr. These extensions support Internet server products
such as NetSite from Netscape Communications Corp. and Microsoft Internet
Information Server, which is currently in beta and is scheduled to ship in
the first quarter of 1996. To allow users to get their Web sites up and
running right out of the box, FrontPage includes an easy-to-set-up Personal
Web Server.

"Web Documents" Strategy
Allowing users to create and edit Web documents easily is a key aspect of
Microsoft's desktop applications strategy. Word processing and spreadsheet
documents are the most common daily business communication formats among
users today; Microsoft believes this same broad category of users will
author Web documents for corporate intranets or the Internet in the near
future.

FrontPage is Microsoft's key offering in this burgeoning market. FrontPage
extends the concept of document creation to include a variety of document
types such as HTML or those created with Microsoft Word, Microsoft Excel,
and the Microsoft PowerPointr presentation graphics program, connected by
hyperlinks on both corporate LANs or the Internet. FrontPage was designed
for the end user and business professional, with a user interface consistent
with Microsoft Office.

With this announcement, Microsoft now provides a complete range of tools for
users creating Web documents:

ú In December, Microsoft Office announced a line of Office Internet
Assistants that make it easy for users to author standalone HTML pages using
their familiar Office applications such as Microsoft Word, Microsoft Excel
and Microsoft PowerPoint.
ú FrontPage builds on this technology by providing the easiest way for
end users, business professionals and Web-site managers to publish and
manage high-quality Web sites without programming. Documents created with
Microsoft Office and Office Internet Assistants can be incorporated easily
into a FrontPage Web document.
ú For professional publishers designing high-end solutions, Internet
Studio provides a sophisticated publishing system to create, publish and
manage Web sites that can include integrated programming and interactive
multimedia.

Desktop Applications Division Creates New Product Unit
Over the next few months, the FrontPage development team will move to
Microsoft headquarters in Redmond, Wash., and become the core of the newly
established Web authoring product unit within the desktop applications
division. This new group will be managed by Chris Peters, currently vice
president of the Office product unit overseeing the design and development
of Microsoft Office. A 14-year veteran at Microsoft, Peters was formerly
general manager of the Word business unit and led the development of
Microsoft Excel for five years. "We are incredibly impressed with the talent
at Vermeer," Peters said. "They're smart people with great development
talent and a deep understanding of what it takes to create high-quality,
easy-to-use Web software. We're also excited about how well FrontPage works
with our Office applications today and about the possibilities for even more
integration in the future." FrontPage will continue to be available as a
standalone product directly from Vermeer during the transition period, and
through Microsoft's channel partners in the future.

Founded in 1975, Microsoft (NASDAQ "MSFT") is the worldwide leader in
software for personal computers. The company offers a wide range of products
and services for business and personal use, each designed with the mission
of making it easier and more enjoyable for people to take advantage of the
full power of personal computing every day.

Microsoft, Windows, Windows NT and PowerPoint are either registered
trademarks or trademarks of Microsoft Corp. in the United States and/or
other countries. FrontPage is a trademark, in the United States and/or other
countries, of Vermeer Technologies Inc., a wholly owned subsidiary of
Microsoft Corp. Macintosh is a registered trademark of Apple Computer Inc.
UNIX is a registered trademark in the United States and/or other countries,
licensed exclusively through X/Open Company Ltd.

If you are interested in viewing additional information on Microsoft and
FrontPage, please visit the Microsoft home page at http://www.microsoft.com
or e-mail frontpg@microsoft.com, or call Microsoft customer service at (800)
426-9400.


A T T E N T I O N-A T T E N T I O N-A T T E N T I O N

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A T T E N T I O N-A T T E N T I O N-A T T E N T I O N



Apple/Mac Section
John Deegan, Editor



EDUPAGE STR Focus Keeping the users informed




Edupage
Contents


Case Closed On Zimmermann
Investigation
Pretty Good Phone Privacy, Too
New Survey Lowers Internet User
Estimates
Apple Workforce Cuts Ahead
BBS Purges Porn
Microcash
Battle Continues In Canadian Phone
Rate Hike
Sculley Buys Stake In Photo
Software Company
Telecom Barricades
Swiss Workers Fired Over Cyberporn
On The Job
Web Syntax, Explained For All
Are IBM And Sears Abandoning
Prodigy?
Software Piracy Case Settled
Windows 95 Sales Raise Concerns
Academic Networking Assessment
Cal Tech Benefits From Intel
Largesse
France Telecom Gears Up For
Internet Access
Internet Domain Policy
Credit Card Software For Internet
Cisco Buys Cable Modem Maker
IBM Is Number One Patent Winner
Microsoft To Acquire Vermeer
Technologies
Spy Agency Warns Of Corporate Spies
Asian TV Network From NBC
Pirate Chips
Supreme Court Deadlocks 4-4 On
Copyright Issue
Brokers Say Net Threatens Telecoms
Exodus From Commercial Services?
One Is Enough
Apple To Eliminate 1,300 Jobs
IBM To Provide Government With
Encryption Keys For Notes
The Power Of Small Teams
Teacherless Classrooms Considered
Wang's Imaging Software For Win 95
Spider Eases Life On The Web
Eastman Kodak Supports Digital
Library Program
Cross-Border Culture War Looms
Internet Domain Policy



CASE CLOSED ON ZIMMERMANN INVESTIGATION
Federal officials have told cryptographer Philip Zimmermann that their 28-
month grand jury investigation regarding international dissemination of his
encryption software is now closed. The software, called PGP for Pretty Good
Privacy, was developed in 1990 because Zimmermann thought computer users
needed a tool to protect their e-mail messages from government prying.
After someone put it on the Internet, it was quickly distributed around the
world. "This decision shouldn't be interpreted as meaning anything. I
caution people against concluding the Internet is now free for export,"
says the assistant U.S. attorney in San Jose where the action originated.
(Wall Street Journal 12 Jan 96 B2)

PRETTY GOOD PHONE PRIVACY, TOO
Now from the creator of PGP encryption software comes a new product for
making your phone calls more private. Philip Zimmermann's PGPfone software
scrambles phone calls made through a computer modem using a complex
algorithm called Blowfish, which rearranges the digital version of your
voice conversation and then decodes it at the other end. The result is an
intelligible -- though not high-quality -- totally private conversation.
The URL is: < http://web.mit.edu/network/pgpfone/ >. (Popular Science Jan
96 p43)

NEW SURVEY LOWERS INTERNET USER ESTIMATES
A new survey by New York-based Find/SVP pegs the number of U.S. Internet
users at 9.5 million, far below the findings of a disputed Nielsen Media
Research survey a couple of months ago, which had reported 24 million North
American users. The Find/SVP study also estimated the number of U.S. Web
users was about 7.5 million. (Wall Street Journal 12 Jan 96 B2)
Meanwhile, a survey conducted by the Emerging Technologies Research Group
shows Internet users spending an average of 6.6 hours a week on the Net,
time previously spent watching TV, listening to the radio or making long-
distance phone calls. The average session was 68 minutes. Women are twice
as likely as men to use the Internet exclusively for business. (Tampa
Tribune Jan 12 96 B&F1)

APPLE WORKFORCE CUTS AHEAD
Analysts are predicting that Apple Computer will be cutting up to a fourth
of its workforce in an effort to recover from its recently posted losses of
$68 million for the last quarter. "It's very clear they can't continue in
the same vein because they are not making any money," says one investor.
"They need to organize the business so that they can make a profit." The
restructuring is widely viewed as CEO Michael Spindler's last chance to turn
things around. (Investor's Business Daily 12 Jan 96 A5)

BBS PURGES PORN
A Wisconsin-based BBS that bills itself as the nation's largest computer
bulletin board has eliminated about 50,000 files containing adult material,
including photos of porn stars and other nude scenes. Exec-PC's founder
says, "Since it is only 7% of our service and it could result in the 100%
loss of our business, the risk is not worth it." The move comes on top of
CompuServe's efforts to restrict access to adult material on its service as
U.S. legislators ponder new laws to prosecute electronic transmission of
"indecent" content. An attorney for the Electronic Frontier Foundation
says, "He has a perfect right to choose what to carry, but it's a shame
that he feels he has to exercise the right out of fear of what government
might do. That's what constitutional lawyers call a chilling effect."
(Tampa Tribune 12 Jan 96 B&F5)

MICROCASH
Digital Equipment filed a patent last August for a payment system called
Millicent, which enables Web-site operators to charge as little as a tenth
of a cent for each customer "hit." The system relies on middle-men --
credit card companies or digital banks -- to handle the transactions, but
its novelty lies in its cost-effective design geared toward tracking
minuscule amounts of cash. To keep disk storage at a minimum, security
measures providing privacy and a trail of signed receipts are not included
in the system, but proponents point out that would-be cyberthieves would
have to crack a lot of transactions -- 10,000 at 0.1 cent each -- to make
just $10. "There are easier ways to make 10 bucks," says Millicent's
inventor. (Business Week 15 Jan 96 p90)

BATTLE CONTINUES IN CANADIAN PHONE RATE HIKE
A coalition of Canadian business and consumer groups urged Cabinet to order
phone companies to give back the extra money they will receive from
increases in local phone rates, otherwise they will pay for new
infrastructure on the backs of local consumers. The coalition also wants
some of the money to be used to set up "lifeline" programs that subsidize
low-income customers. Bell Canada maintained the coalition's proposal
should not be taken seriously and its petition to Cabinet is "frivolous."
(Toronto Star 12 Jan 96 E2)

SCULLEY BUYS STAKE IN PHOTO SOFTWARE COMPANY
Former Apple CEO John Sculley has taken an equity stake in Live Picture
Inc., a small California company producing software that allows
photographers and graphic artists to manipulate images through shape, color,
shade and resolution. (New York Times 12 Jan 96 C16)

TELECOM BARRICADES
Cable giant Rogers Communications president Ted Rogers, courting American
money through new stock issues on the New York Stock Exchange, maintains
Canadian media companies must work together to protect their vulnerable turf
by building a "virtual fortress" around Canada. Rogers added the industry
cannot rely solely on the federal government to protect Canadian interests
against American incursions. (Toronto Globe & Mail 12 Jan 96 B2)

SWISS WORKERS FIRED OVER CYBERPORN ON THE JOB
Roche, the health products group based in Switzerland, has fired three
workers after ignoring a verbal warning to stop using company time and
computers to retrieve and copy allegedly pornographic materials from the
World Wide Web. Swiss law permits summary dismissal of workers only there
are "serious grounds" for doing so. The workers plan to appeal.
(Financial Times 12 Jan 96 p1)

WEB SYNTAX, EXPLAINED FOR ALL
Syndicated columnist Dave Barry says that "those weird string of letters
that have started showing up everywhere in newspaper stories,
advertisements, TV shows, etc., the ones that look like
http//www/clamsucker.doo.wah" are "code instructions to Dan Rather from
his home planet."

ARE IBM AND SEARS ABANDONING PRODIGY?
Corporate spokespersons have declined comment on reports that IBM and the
Sears, Roebuck Co. are talking with investment bankers in order to devise a
way to extricate themselves from their ownership of Prodigy, the third-
largest consumer online service after AOL and CompuServe. Prodigy's
marketplace value may have increased in recent months as a result of its
aggressiveness in positioning itself as an Internet access provider with
some ownership of content. (New York Times 16 Jan 96 C2)

SOFTWARE PIRACY CASE SETTLED
Microsoft and Novell have reached a settlement with the computer hacker who
ran the Assassins' Guild BBS, which served as the headquarters for two
groups that distributed illegal copies of commercial software. The BBS
operator will pay $70,300 and forfeit $40,000 worth of computer equipment
in the settlement. (Investor's Business Daily 15 Jan 96 A7)

WINDOWS 95 SALES RAISE CONCERNS
Software companies that bet on phenomenal sales of Microsoft Windows 95 are
reporting disappointing financial results. The problem is that fewer
companies are switching over to the new operating system than anticipated,
instead waiting until they buy newer, more powerful computers better suited
to the Windows 95 environment. "It is still the largest software product
done in the industry to this point," says an analyst at Computer
Intelligence Infocorp. "We're estimating that they've got something on the
order of 17-million units out there already, and that's not chicken feed."
But "it's not becoming the corporate desktop, and that has some people
worried." (St. Petersburg Times 15 Jan 96 p8)

ACADEMIC NETWORKING ASSESSMENT
Syracuse University is conducting a 15-month study, financed by the U.S.
Dept. of Education, to determine how computer networking contributes to
teaching and learning. The main product of the $143,000 effort, a manual
entitled "Assessing the Academic Networked Environment: Strategies and
Options," is almost finished, and provides a summary of networking issues
that colleges and universities should address, along with an extensive
questionnaire to elicit information, with the goal of intelligently
assessing the cost/benefit issues of networking in higher ed. The
assessments are key in planning for future technology: "There are more
bells and whistles out there than we could ever afford to buy, and the
university has to make some really tough decisions about which applications
to use, what kinds of systems to support, and so on," says chief researcher
Charles McClure. (Chronicle of Higher Education 19 Jan 96)

CAL TECH BENEFITS FROM INTEL LARGESSE
The California Institute of Technology will receive a gift of about $700,000
worth of computer gear from Intel Corp. The new lab, which will house Cal
Tech's electrical engineering department, the Center for Neuromorphic
Systems Engineering, and an NSF engineering research center, will be named
in honor of Intel co-founder Gordon Moore and his wife Betty. Moore is an
alumnus of Cal Tech, as are several other Intel executives. (Investor's
Business Daily 15 Jan 96 A6)

FRANCE TELECOM GEARS UP FOR INTERNET ACCESS
France Telecom is beefing up its network infrastructure in preparation for
offering its customers local Internet access. The move is seen as
significant, because in order to bring its population up to speed, the
utility will be forced to undermine its $1.33-billion Minitel business.
France Telecom has signed an agreement to distribute Netscape software to
its users, and is developing Wanadoo, a search engine and classification
system for information on the Web. The company also plans "France En
Ligne," a closed service similar to America Online. (Wall Street Journal 15
Jan 96 A7B)

INTERNET DOMAIN POLICY
Network Solutions Inc. (NSI), which issues Internet domain names to U.S.
companies and organizations, has a new domain-name registration policy
which will "protect the ability of companies to extend their corporate
identity into the Internet." The policy requires applicants to warrant
that the requested name will not infringe any intellectual property of any
third party and will not be used for any lawful purpose. <
http://www.shsl.com >

CREDIT CARD SOFTWARE FOR INTERNET
Portland Software has come up with a solution for would-be Internet shoppers
who aren't comfortable sending their credit card information over the Net.
The software allows the customer's PC to dial the credit card network for
transaction approval, and supplies a code needed to receive the
merchandise. "Customers are much more willing to use this than to use a
standard Web server," says one satisfied Portland Software customer.
Today's servers "may be secure, but the perception is, they're not." (Wall
Street Journal 15 Jan 96 B3)

CISCO BUYS CABLE MODEM MAKER
Cisco Systems, known for its computer network equipment, has acquired an
equity stake in Terayon Corp., a manufacturer of cable modems. The two
companies will collaborate on developing technology to capitalize on the
transmission speed possible through cable-linked networks, which can operate
hundreds of times faster than those that rely on telephone lines.
(Investor's Business Daily 16 Jan 96 A9)

IBM IS NUMBER ONE PATENT WINNER
IBM has topped the list of U.S. patent winners for the third straight year,
with 1,383 patents awarded for 1995. The patents will be used in
developing new IBM products, generating license fee income, and helping IBM
barter for cross- licensing arrangements. Other big patent winners were
Canon, Motorola, Eastman Kodak, Mitsubishi Electric, Toshiba, Hitachi,
Matsushita Electric Industrial Co., and General Electric. (Investor's
Business Daily 15 Jan 96 A6)

MICROSOFT TO ACQUIRE VERMEER TECHNOLOGIES
Microsoft is planning to buy small Cambridge, Mass.-based Vermeer
Technologies Inc. and to incorporate into the "Microsoft Office" software
suite Vermeer's "Front Page" program, which helps people without complicated
programming skills to develop pages for the World Wide Web. (New York Times
16 Jan 96 C9)

SPY AGENCY WARNS OF CORPORATE SPIES
The Canadian Security Intelligence Service warns that companies eager to do
business in competitive global markets must be vigilant about foreign
companies trying to acquire information through less-than-legal means,
particularly when it becomes economic espionage sponsored by foreign
governments. Since 1992, CSIS has investigated security concerns at about
500 companies and found economic espionage in about 70% of the cases.
(Toronto Star 15 Jan 96 E2)

ASIAN TV NETWORK FROM NBC
The National Broadcasting Company has begun offering from Hong Kong a 24-
hour English-language cable service providing global and Asian news
intended for a target audience of Asian business professionals and their
families, expatriates and travelers. (Atlanta Journal-Constitution 16 Jan
96 E3)

PIRATE CHIPS
One of Canada's top computer "crackers" and video pirates claims he's made
$20,000 tax-free over the past five weeks by selling the green cards that
decode programming from DirecTV's popular satellite system. According to
the cracker, more than 5,000 cards have been sold on the black market
(about 80% in Canada, Mexico and the Caribbean, with the rest smuggled into
the U.S.). Canadian federal regulators have banned Canadian consumers from
watching U.S. signals. There is also "no moral issue at stake" (according
to crackers), because a ruling by a Winnipeg judge determined that what's
beamed into your backyard is your own business. (Toronto Star 16 Jan 96 D1)

SUPREME COURT DEADLOCKS 4-4 ON COPYRIGHT ISSUE
A U.S. Supreme Court 4-4 tied vote on a Lotus/Borland copyright dispute
leaves in place an appellate court ruling which said Lotus Development
Corporation was not entitled to copyright protection for a system of
commands and menus which it had developed for the Lotus 1-2-3 spreadsheet
program and which were copied by Borland for that company's Quattro Pro
program. The appellate court ruling said that a command structure was not a
"form of expression" (i.e., something that is copyrightable), but rather a
"method of operation" (i.e., something outside the scope of copyright law).
(New York Times 17 Jan 96 C2)

BROKERS SAY NET THREATENS TELECOMS
The London stock brokerage firm Durlacher says in a report that telecom
companies underestimate the threat posed to their business by the Internet:
"Their greatest difficulty is that telecom operators run business based on
charging for the cost per unit of time used. The long-term marginal costs
associated with a local call are now, however, heading toward zero. In the
future, charges will be made for content that is accessed rather than the
cost of moving the material from the host machine to the users." The
report warns that technical developments could leave telecom operators "with
an obsolete system, of no obvious value, other than the recycle value of the
copper in the cables." (Financial Times 15 Jan 96 p6)

EXODUS FROM COMMERCIAL SERVICES?
Commercial online services are having a difficult time keeping customers and
differentiating themselves, as more savvy computer users switch over to
small Internet access providers. "Most everything I find on the online
services, I can find using an Internet service provider," says one customer
who's made the switch. "For me, the need for an online service is
diminishing." "AOL is like the Internet on training wheels," says another,
who feels he's "graduated." In tandem with subscriber defection is the
problem of content providers who increasingly are setting up their own shops
on the Web, bypassing the commercial services altogether. The popularity
of the Web "turns the model of the online services industry upside down,"
says Scott Kurnit, the former No. 2 executive at Prodigy, who's now running
an Internet service for MCI and News Corp. While the number of commercial
service subscribers has grown to about 12.5 million over the past decade
(doubling in the past year), the number of World Wide Web users increased
eight-fold, to eight-million, in just the past year, according to
International Data Corp. (Wall Street Journal 18 Jan 96 A6)

ONE IS ENOUGH
The number of people subscribing to more than one online service has dropped
significantly since 1991 when almost a third of online users carried
multiple subscriptions. Now, 97% report they can do everything they need to
using a single service. (Business Week 22 Jan 96 p8)

APPLE TO ELIMINATE 1,300 JOBS
Apple Computer says it will be forced to lay off 1,300 employees, or 8% of
its staff, as a first step in restructuring its business. The company
plans to simplify its product line, focusing on high-end machines, while
allowing Mac clones to dominate the low-end market. In addition, CEO
Michael Spindler says Apple will fundamentally change its business model,
concentrating on its key products in education, business and home markets,
while pursuing expanded business alliances. (Investor's Business Daily 18
Jan 96 A9)

IBM TO PROVIDE GOVERNMENT WITH
ENCRYPTION KEY FOR NOTES
IBM has agreed to provide the U.S. government with a special key that would
enable government agents to more easily decode electronic messages, in
exchange for permission to export a version of Lotus Notes that includes 64-
bit security. The arrangement provides government officials with a key to
the first 24 bits of security code, meaning that they only have to crack
the remaining 40 bits to decrypt a message. U.S. Notes customers already
use a 64-bit system. "We were desperate enough to try to negotiate a short-
term, pragmatic solution," says Notes developer Ray Ozzie. "But we do not
believe this is the right long-term solution... Our customers have been
telling us that, unless we did something about the security, we could no
longer call it a secure system." (Wall Street Journal 18 Jan 96 B7)

THE POWER OF SMALL TEAMS
Sun Microsystems chief technology officer Eric Schmidt favors small teams
and a focused approach to technical problems: "The proper arrangement at a
company is a very large number of very small businesses. The best things
were done by very small engineering teams, because a small engineering team
is forced to make tradeoffs to do only one thing. They are very
committed... But small teams go against human nature. Human nature is to
build bigger and bigger enterprises." He cites examples to bolster his
argument: "Unix was developed by two people. Java was done by a team of
less than five, Mosaic was done by two to four people and the Mac system was
done by about 12 people. Even DOS was actually developed by only two
people." (Investor's Business Daily 17 Jan 96 A1)

TEACHERLESS CLASSROOMS CONSIDERED
Ontario's Community colleges, hunting for $120-million in savings for the
next academic year, are de-emphasizing the role of the teacher in the
learning process. A study prepared for the Colleges' Council of Presidents
titled "Learning Centred Education" says educational institutions can cut
teaching costs by using CD-ROM courses and computer tutorials to deliver
education using support staff rather than teachers to monitor students'
progress. (Ottawa Citizen 17 Jan 96 A4)

WANG'S IMAGING SOFTWARE FOR WIN 95
Wang Laboratories has developed software that allows PCs to file, forward or
annotate faxed and scanned images in a standardized way. The product
development stems from a patent lawsuit settlement reached last spring with
Microsoft, under which Microsoft acquired a 10% stake in Wang. The image-
handling capability will be incorporated into future versions of Windows
95. (Wall Street Journal 17 Jan 96 B5)

SPIDER EASES LIFE ON THE WEB
Toronto-based software developer Incontext says it "Spider" software allows
Net newbies to create Web pages without mastering HTML. The package, which
retails for $129, includes a browser, spell checker and several Web page
templates to make it easier for beginners. (Ottawa Citizen 18 Jan 96 D2)

EASTMAN KODAK SUPPORTS DIGITAL LIBRARY PROGRAM
Eastman Kodak Co. has committed to spending $1 million on the Library of
Congress's National Digital Library Program. The program hopes to receive
$45 million in private donations by the year 2000, and has requested an
extra $15 million in government funding to reach its overall goal of $60
million. (Information Today Jan 96 p14)

CROSS-BORDER CULTURE WAR LOOMS
Canada's federal regulator is in Washington trying to persuade a skeptical
U.S. government that Canadian efforts to black out American TV signals that
contravene standards on violence and nudity do not violate NAFTA. U.S.
Trade Representative Mickey Kantor has warned Canadian Trade Minister Roy
MacLaren that the U.S. government, while supporting the development of a V-
chip to allow parental control, will react negatively if Ottawa takes
wholesale action to block American programming from distribution through
Canadian cable systems. (Toronto Financial Post 18 Jan 96 p5) Meanwhile,
Power DirecTV says the explosive growth of satellite TV piracy and the flood
of American direct-to- home dishes into Canada is threatening to wipe out
Canadian broadcasting. The company urged the Canadian government to create
rules that aid new Canadian DTH companies and to enforce laws that prohibit
the import of American dishes into Canada. (Toronto Star 17 Jan 96 B3)

INTERNET DOMAIN POLICY
We made a typo in the NSI Internet domain policy summarized in Edupage of
16 Jan 96. Corrected, the sentence reads: "The policy requires applicants
to warrant that the requested name will not infringe any intellectual
property of any third party and will not be used for any unlawful purpose."
The full text of the policy will be available in a few days at:
<http://www.shsl.com/>, but if you wish a copy sent by e-mail prior to that
time, send mail to: kinsella@shsl.com.


Edupage is written by John Gehl (gehl@educom.edu) & Suzanne Douglas
(douglas@educom.edu).
Voice: 404-371-1853, Fax: 404-371-8057.

Technical support is provided by the Office of Information Technology,
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ISDN NewsNotes STR Focus


IN 1996, SAYS BELL ATLANTIC:

"LOOK FOR COMMUNICATIONS BOUNDARIES
TO TUMBLE, INNOVATION TO SOAR"


Arlington, VA -- If there is one word to characterize Bell Atlantic's view
of 1996, "Wow!" would fit the bill.

Advances in technology will move society ever closer to the day when your
computer will speak, your TV will listen, your telephone will show you
pictures and your fax machine will zip you coupons, maps, rock concert
tickets and lottery receipts.

The boundaries between once-separate businesses will continue to be swept
away by new technologies. Increasingly, legal and regulatory distinctions
between "cable" and "telephone," "long distance" and "local exchange"
companies will be recognized as unnecessary barriers to market forces.
Competition in all phases of the telecommunications industry will mean more
innovation and more new services.

As you read this, a House-Senate conference committee pushes toward enacting
sweeping legislation that will, for the first time in 60 years, open the
nation's telecommunications markets to competition. This bipartisan bill,
if passed by both Houses and signed into law by President Clinton, could
enable you to do one-stop shopping for your local and long- distance phone
service, cable service and Internet access service. Or you may select
services from many providers. Either way, competition authorized by this
legislation will create thousands of new jobs and lower the prices you pay
for telecommunications services.

In 1996, look for Bell Atlantic to find more ways to meet the needs of
customers who say they want not just "plain old telephone service," but
information at their fingertips, video on demand and an on-line connection
to their bank, their youngster's school, their doctor and their office.

The key advantage is Bell Atlantic's superlative communications
infrastructure: miles of fiber-optic cable, digital switching, software-
drive "intelligent" network features and high-speed data transport
capabilities.

And advanced services. A good example is Bell Atlantic's ISDN (Integrated
Services Digital Network) feature, introduced late last year. With ISDN,
you can dial into the Internet or on-line services from home instantly.
Files and graphics can be transmitted or downloaded quickly and reliably.
And people who work at home can tap into databases or work face-to-face
with colleagues at the office -- right from their personal home computers.

ISDN is just part of Bell Atlantic's commitment to making technology
available to customers in urban, suburban and rural communities.

While the company concentrates on the new, some things will not change, such
as Bell Atlantic's pledge to be there when needed, through winter storms
and summer heat, 24 hours a day, 365 days a year.

So watch for Bell Atlantic to redefine the communications business for
everyone. It just might be the year your youngster asks for his own home
page on the World Wide Web; and the year you print your e-mail address on
your business card.

In short, in 1996 get ready to move ever closer to the wondrous promise of
the information age. And look to Bell Atlantic to take you there.

Bell Atlantic Corporation (NYSE: BEL) is at the forefront of the new
communications, entertainment and information industry. In the mid-
Atlantic region, the company is the premier provider of local
telecommunications and advanced services. Globally, it is one of the
largest investors in the high-growth wireless communication marketplace.
Bell Atlantic also owns a substantial interest in Telecom Corporation of New
Zealand and is actively developing high-growth national and international
business opportunities in all phases of the industry.




Kids Computing Corner
Frank Sereno, Editor


The Kid's Computing Corner
by Frank Sereno

I have to apologize that no reviews are ready for this week. Research
is being compiled on several titles and, hopefully, two or more will make it
into print next week. Among the titles are Thinkin' Things Collection 3
from Edmark, The Magic Bus Explores the Ocean from Microsoft and The SAT
Score Builder from The Learning Company.

Now I'd like to remind everyone about our software giveaway. There is
little or no cost to enter and your odds of winning are quite good. Just
remember you have better odds of being struck by lightning, TWICE, before
you will win a state lottery. Granted, the prizes do not have the same
monetary value, but what is the value of excellent learning opportunities
for you children? Don't delay, enter today!


FREE SOFTWARE

I have two software packages, and I will give away one each to two
lucky readers. The packages are Muppet Reading & Phonics and Muppet Reading
& Phonics II. Both programs require on IBM compatibles: a minimum 386 CPU,
Windows 3.1 or greater, 4 MB RAM and a CD-ROM drive; for Macintosh: 256
colors, System 7, 4MB RAM and a CD-ROM drive. Each sells for around $25.

Here are the rules:

1. Send an e-mail to me at this address - fsereno@matrix.uti.com
2. In the body of the letter, simply write Muppet Contest Entry and
include your real name. I will send an e-mail to acknowledge all received
entries.
3. If you do not have access to Internet e-mail, entries can be mailed to
Frank Sereno, 528 West Ave., Morris, IL 60450 Entries via U.S. Mail will
NOT receive an acknowledgment due to Postal efficiency and my poor bank
account.
4. All entries must be dated by 11:59 p.m. on January 31, 1996
5. Only one entry per household, please
6. Employees or staff of STR Publishing, American Education Publishing and
Tebay Communications are not eligible
7. The first name chosen will receive his choice of the programs and
second name will get the remaining program
8. Taxes, if any, will be the responsibility of the winners. Shipping
will be paid by STR Publishing (ME!)
9. Winners will be notified by e-mail or regular mail and will also be
announced in this column

I would like to thank American Education Publishing, Brighter Child
Software and Tebay Communications for providing the software for this
contest. Both programs were reviewed in 1995 and received good marks. The
software is very easy for younger children to run and very entertaining.
Children of all ages love the Muppets!

P.S. I have been told that the e-mail at my ISP is not reliable. To
ensure that everyone who wants to enter can do so, entries can also be e-
mailed to my alternate e-mail address: frank.sereno@bbs.uti.com

Entries can also be faxed to 815-942-4469. Please remember to include
a voice number or e-mail address with your fax entry so you can be notified
if you are a winner.

Thank you for reading and good luck in the Muppet software contest!







Taking a Closer, more serious Look STR Spotlight An Editorial Overview & Opinion



What's up with the 64 BIT Jaguar??


by Ralph F. Mariano


Much water has passed beneath the "proverbial bridge" as far Atari
Corp. and this reporter is concerned. Most of which was and is extremely
fond memories. Memories of watching my family mature while using all types
of Atari high tech hardware. From the membrane keyboard of the Atari 400 to
the IBM Selectric Typewriter look-a-like Atari 800 to ultimately the TT030
with 26mb of memory, a 540mb hd and a 24" Monochrome Monitor. Of course,
all the Atari peripherals were there too. Including both flavors of Laser
SLM Printers. In light of all this.. it wasn't very difficult to make up my
mind, after almost four years, to invest in another enticing and innovative
Atari product. The 64 bit Atari Jaguar Game Console and of course, the CD
ROM Player, the memory card and a bunch of games both Cartridge and CD. I
felt I had "The Cat's Meow". Until.

A strange thing occurred. I was in SEARS of Orange Park and a
commotion in the electronics toy department caught my attention. Upon
further investigation, I found a slew of youngsters and their parents very
busy "trying out" the "NEW" Sony Playstation Game Console (PSX). After
watching the kids. ages 8 or 9 to young adult (and older) carry on over the
PSX, I spent some time at the controls myself. When we decided to leave
Sears and go home, a complete PSX ensemble went with us. To this day, I am
not, in the least bit, dissatisfied with the PSX and its software.

Anyway, on the way home.. I was thinking to myself about how the 32 bit
PSX would stack up to the 64 bit Jaguar. It didn't take very long to see
the differences. With the two machines side by side the comparison was easy
to make. The Jaguar, has its own strengths and is now mostly used for its
superb light show. The 32 bit Sony Playstation literally, BLEW the 64 bit
Jaguar's doors off! This I believe is due to shabby early on programming by
inexperienced developers for the Jaguar.

At first, I actually paid little or no mind to this finding. After
all, the "NEW" of the 32 bit PSX at our house had to wear off. But then,
after I kept seeing this constant harping online about how great the 64 bit
Jaguar was and how the greatest games in the world .AvP, etc., were on the
64 bit Jaguar and nowhere else I started digging. Sure, I read these things
in the Jaguar areas, but one would expect even the most avid fan to be
truthful in an obvious situation like comparing the output of both machines
.. side by side. After all, it could be done anywhere by most anyone. This
wasn't happening at all. Instead, I found the vast majority yapping about
how superior the 64 bit Jaguar was. After all, the Jaguar was 64 bits and
the PSX was ONLY 32 bits. This turned out to be the sorriest joke of all
being perped on both Atari and the unsuspecting masses. If only Atari had
been publicly told the truth "way back when" instead of being lulled into a
false sense of having a leading edge. This I blame the "mindless online
cheerleading" for. Here's how I discovered this "minor factoid".

There I was.. sitting at home comparing the two machines, the mighty 64
bit Jaguar and the new kid on the block, the 32 bit Sony Playstation. Lo
and Behold.. I began having some serious doubts about the Atari Jaguar's
claim to fame.. this "ever elusive but much touted" 64 bit performance!
Where? When?

Out of a sense of fairness, I kept giving the Jag the benefit of the
doubt because I had yet to obtain the "top banana games" with amazing
graphics and super, superior playability everyone was hollering and jumping
up and down about. I kept wondering if, in fact, once I had one of these
games running if it would be the mesmerizing, stupefying, hypnotizing,
spellbinding thrill most everyone in the Atari areas was yapping about.

Well Dearies, I finally got a few of the so-called super hot titles.
Alien Vs Predator, Baldies, Atari Karts, Highlander, Battlemorph, Power
Drive Rally, Ultra Vortek, Cybermorph, and the Tempest Soundtrack. Finally,
NOW, I was ready for the big showdown!! I asked two of my sons who were
experienced in the use of the PSX and the Jaguar to conduct the comparisons.
After all, the players are the key to the truth ..not the observers or
commentators.

Let the Games Begin!

Try as they might.. None of the Atari Jaguar "super" titles came close
to overcoming the quality of the PSX. Some easily matched the PSX, but none
outdid it. Now then, this is where the questions become somewhat serious.
Did Atari's brass know of this obvious short coming of the Jag? Were they
aware of the fact that a 32 bit machine was easily matching and in many
cases running circles around their omnipotent 64 bit machine? Or, did they
only recently discover the fact their 64 bit machine was being dogged by the
PSX in every way imaginable. Like perhaps at the recent CES show where they
had a suite of rooms and a semi-private thing going on? If. they had known
about the Jaguar's programming shortfall for any length of time then they
certainly didn't correct the shortfall quickly or did they try and found
their programmer corps lacked the necessary skills? (It could be a given
that they had more than ample opportunity to view the output of the 32 bit
Sony at Last Year's CES and E3 shows.) Now, with the most recent price cut
for the "64 bit Advanced Technology, US Made Atari Jaguar Game Console".
More people are buying the Jaguar than ever before. Are they too to be
disappointed by the poor programming of many of the titles? I firmly
believe there is light at the end of the tunnel. Buying the Jaguar at
$99.00 is a real value. The consumer is, in effect, getting in on the
ground floor. With all the tumult of the last two months, its certain the
quality of programming for the Jaguar will improve dramatically. In the
meantime, there are a number of excellent titles available that are bound to
entertain.

The bottom line is simple for me. While I know and think highly of
many of the folks who work or, have worked at Atari, I must be up front
with my readers. My informed opinion is; "while the claims of 64 bit power
for the Jaguar were being made far, wide, and handsome. the truth is. it
never performed like a 64 bit machine should have." Especially, after the
manner in which the Jaguar is promoted by Atari.. "The only 64 bit
machine".. "made in the USA" etc., all of this should lead to a machine that
was an absolute powerhouse with stunning graphics and equally superb
gameplay. It did not, does not and unless serious changes in the
programming for the Jaguar are accomplished .never will.

Which leads to the thought. "perhaps the Jaguar's claim to 64 bit power
is nothing more than, "a wish upon a star." While I have nothing to prove
anything as such, it has been implied many times in the past year or so in
just about every gaming magazine and recent hardware/software review
published. If anything, I'd say; "The presence of the Jaguar's 64 bit power
and performance was and still is a Myth." While we've been witness to most
everyone's opinions that the 32 bit Sony Playstation can blow the 64 bit
Jaguar away time in and time out. its time to either make the necessary
changes to properly compete or, give up the ghost. That's exactly what
Atari is doing in my humble opinion. Seemingly, "the curtain has fallen to
the floor and exposed the "Wizards" to be far better at Vaudevillian
Performances than sheer, honest to goodness, Wizardry." (Wizards meaning
programmers). The time for serious change is now at hand. What will
actually be accomplished by the changes is yet to be seen.

Looking at this from a consumer's viewpoint I must, once again, say the
Jaguar is a genuine gaming value at $99.00 and even has some very good games
for all ages. Games that exhibited indications it was a "high performance
64 bit machine". Mind you, it looks good and sounds good as long as the
right software is loaded. But the much expected continued flow of 64 bit
power "just ain't there". This I believe is the fault of the current crop
developers. Not Atari or the Jaguar itself as it has been hinted at by
some. Personally speaking, all of the games on the Jaguar were better
looking than those I'd seen and grown accustomed to playing on our three
"outdated" Atari 2600's and two Mattel Intellivision consoles.

In all fairness to the Jag, I'd go so far as to say the majority of the
games I saw for the Jag were of up to date quality but are, at the same
time, aimed a younger age bracket. Baldies resembles the old fashioned
overhead view games. The "movie" in Baldies, (if you want to call it that)
was strangely reminiscent of "Clay Animation". "Oooh Nooo .Mr. Bill!!"
Atari Karts . is real cute, guaranteed to appeal to the pre-teen and very
early teens, has excellent graphics and very smooth scrolling but its still
no match for any of the "more mature" contemporary racing games available on
the PSX. AvP was in so many words, when compared to DOOM on the PSX .SAD.
Good in game play for a youngster or new player, sad in sound, slow action
and mediocre graphics. Doom is good. Rayman is good. Blue Lightning is
very good and BattleMorph has its great moments. NBA Jam is excellent.
Primal Rage is very entertaining and looks just as good on the Jaguar as it
does on any other machine. Highlander is again, very good looking and
should be quite appealing to the younger set. Atari and it's developers
need to address the matter of their overall target audience and theme of
programming.

I'm afraid the Jaguar was destined to marketing problems from the day
it hit the market. If for no other reason than it simply did not have a
chance to live up to all the hype poured forth about it. In stark reality,
it never had a "snowball's" chance. First, the Tramiels put it on the
market far too early. Second, they bundled garbage software with it instead
of using a "free game of your choice" certificate and thirdly, they were far
too proud of the Jaguar.. They seemingly lost sight of the competition's
potential and got nailed and nailed hard by, incredibly.. a 32 bit machine.
"The Jaguar will always be remembered as "the soldier sent into war without
a weapon or ammo." Now, at least with the newer titles beginning to hit
there appears to be some hard evidence of the 64 bit power showing up.

Which, by the way, lends credence to the impression of "64 bit Power
for Only $99.00. Hey! Power without the Price! Now, there's an old,
familiar friend.

For as long as "Forever and a Day" lasts, the Jaguar shall be
remembered as the only "White Elephant" Atari, from Bushnell `till present,
ever foisted upon the savvy technological marketplace. For this and this
alone, forget the dead computers etc., the Tramiels will long be remembered
as having "blown it .big time!"

The pitiful little old, Jaguar is bearing the brunt of this onslaught
because of a number of early on blunders. One in particular ..the hardware
and software developers for the Jaguar were not "whipped into shape" by
Atari. The delays coming from this area of supply have been simply
horrific!! The developers need to be producing quality goods on or, ahead
of time! NOT consistently LATE!... So far, the results of their efforts
are very self evident.



Atari Interactive - software/Jaguar/Computer Section
Dana Jacobson, Editor



From the Atari Editor's Desk "Saying it like it is!"

Under the circumstances - the recent news of layoffs and resignations
at Atari - I'm left speechless for this week's Atari computing section.

All that I can do is let the following articles speak for themselves
while I ponder the situation at Atari. I foresee a degree of "normalcy"
with next week's issue. <g>

Until next time...


Anodyne Software

announces:
ExtenDOS Pro v2.3: CD-ROM with audio copy

ExtenDOS Pro version 2.3 is the latest version of Anodyne Software's CD-ROM
drivers for Atari systems. Like previous versions, it provides access to CD-
ROMs and audio CDs on most popular CD-ROM drives, but v2.3 offers many new
features including:

. direct audioCD-to-disk recording (requires compliant hardware)
. MIDI_COM support: CD-ROM drives installed by ExtenDOS Pro are
now accessible across a MIDI_COM connection
. improved automatic support for photoCD and audio CD on drives
unknown to ExtenDOS Pro
. support for single-session photoCD on the popular NEC25 drive.

It continues to offer:
. easy installation and reconfiguration via a GEM-based
installation program
. support for a wide range of CD-ROM drives, including changer
mechanisms
. an extremely stable and well-tested environment.

With ExtenDOS Pro, you can play audio CDs as easily as you can access the
data on CD-ROMs. Put a CD-ROM in your drive, and access it like a large
removable hard disk, or pop in an audio CD and use the included program
to turn your CD-ROM drive into an audio player.

Direct audioCD-to-disk recording
ExtenDOS Pro now allows you to copy segments of an audio CD directly to your
hard disk, at sample rates of 25.033, 44.1, or 50.066 kHz. The length of
recording is limited only by the size of your hard disk! Please note that
this function requires the appropriate hardware support within the CD-ROM
drive; at this time, for those drives that are known to provide some form of
support, the status is as follows:

Drive Comments
Chinon 535 (revs Q20 & R20) not tested
NEC 3X see NOTE below
Panasonic 8004 not tested
Pioneer 602x not tested
Plextor 4plex not tested
Sony 561 (& OEM equiv.) OK
Toshiba 3401/4101/3601 OK

NOTE: NEC 3Xp tested; it appears to function correctly, but the firmware
does not always return the correct audio data, resulting in 'stuttering' in
the copied file. It is not known if other NEC drives suffer from this
problem.

For the latest support information, please contact Anodyne Software via
GEnie (R.BURROWS1), or via the Internet (r.burrows1@genie.geis.com), or
write to the address below.

Audio support
ExtenDOS Pro includes the following audio functions:
. play/pause/stop/eject
. track forward or back
. index forward or back
. skip forward or back
. cd repeat/shuffle
. scan
. set play segment
. volume control

These a

  
re provided through an interface visually similar to a standard audio
CD player, with clearly-marked buttons and a complete time/track display. A
smaller version of the main window may be selected at any time; this is
particularly effective in reducing screen clutter when running the audio
player as a desk accessory.

ExtenDOS Pro conforms to the defined CD-ROM software interface standard;
programming details for this interface are available on request from Anodyne
Software at the address below. The interface allows third-party software
products such as the CDP program from Alexander Clauss to access the audio
CD functions and provide functions beyond those available in the CDAUDIO
program/DA.

Data support
ExtenDOS Pro provides support for industry-standard CD-ROM formats. You can
access any ISO9660 or High Sierra format CD-ROM as if it were a removable
hard disk, switch between supported disk formats without a reboot, and
access files of any size. ExtenDOS Pro even provides a built-in
configurable cache facility to speed up data access. And with the right
drive, ExtenDOS Pro supports single-session or multisession photoCD as well.

Hardware requirements
ExtenDOS Pro requires a SCSI CD-ROM drive connected directly to a SCSI port,
or connected to an ACSI port via an ICD AdSCSI+, Link, or Link2 (or
equivalent) host adapter.

Please note that other host adapters (including the original Atari host
adapter, the Supra, the BMS, and certain early ICD adapters) may not be
capable of transmitting the commands necessary to support audio CD and
photoCD. If you're not sure whether your adapter is compatible, please
contact Anodyne Software at the address below.
ExtenDOS Pro runs on all TOS-based Atari systems, including the ST, STe,
Mega, MegaSTe, TT030, and Falcon030.
Supported functions depend on the type of drive:

Function Type of drive
read standard CD-ROMs Any
read photoCD Most current drives
audio control/play Any fully SCSI-2 compatible drive;
selected SCSI-1 drives, including models from
NEC and Sony
audio copy Selected drives (see list above)

The following is a partial list of supported drives:
. Apple CD-300e,CD-300e+,PowerCD
. Chinon 525,535
. Compaq 561
. MediaVision Reno
. NEC 25,35/72/77/80/82,73/83,37/74/84,38/74-1/84-1
. NEC 210,3Xe/3Xi/3Xp,3Xp+/4Xe/4Xi
. Panasonic 501
. Pioneer 602X,604X,124X
. Plextor 3024/3028,5024/5028,4plex
. Sony 6211,8022,541,561/55S
. Sun CDPlus
. Texel 3024/5024
. Toshiba 3201,3301,3401,3501,3601,4101,5201,5301

For the latest information on supported drives, please contact Anodyne
Software via GEnie (R.BURROWS1), or via the Internet
(r.burrows1@genie.geis.com), or write to the address below.

Software requirements
ExtenDOS Pro requires one of the following operating environments:

. TOS (1.0 through 4.04 tested)
. MultiTOS (with MiNT v1.08 or v1.12)
. Geneva (v003/v004 tested)
. Mag!X (v2.01 tested)

Preliminary tests of MagiC v4 indicate that ExtenDOS Pro drives are not
'visible' to the MAGXDESK desktop; however, they are available to any
program running from the desktop, including the builtin CLI. This anomaly
will be fixed in a subsequent release of ExtenDOS Pro.

Availability
ExtenDOS Pro v2.3 is available now at a suggested retail price of $39.95.
Order from your local Atari dealer, or directly from:
Anodyne Software
6 Cobbler Court
Ottawa
Ontario K1V 0B8
CANADA.
If ordering from Anodyne Software, you may request a manual in French
instead of in English.

ExtenDOS Pro Upgrades
If you are an existing ExtenDOS Pro user, you will be able to upgrade to
version 2.3 AT NO CHARGE by downloading an upgrade file. This will be
distributed to online libraries, including GEnie and Atari FTP sites, within
a few weeks. Alternatively, you may upgrade by sending your original
diskette plus $8 (including shipping) to Anodyne Software at the above
address. Please see below for methods of payment.

ExtenDOS Upgrades
Existing owners of ExtenDOS may upgrade to ExtenDOS Pro v2.3 by sending
their original ExtenDOS diskette plus $20 (including shipping) to Anodyne
Software at the above address. The upgrade includes a manual. Please see
below for methods of payment.

Methods of payment
For North American orders, please make your payment by cheque or money
order, in US$ for shipping to the U.S.A., in Canadian$ for shipping within
Canada. Ontario residents please add 8% sales tax. For shipments outside
North America, please pay by money order in US$. Please add an additional $2
for airmail shipping.


Houston Atari Safari! STR InfoFile! Safari '96 Announced!

HACE invites all Atari users to the sixth annual Houston Atari Safari.
Safari '96 is primarily a sales show, with plenty of old and new software
and hardware for the ST/TT/Falcon computers, Atari 8-bit computers and Atari
Lynx and Jaguar game systems. Major Atari vendors who will be at the show
include:
Binary Sounds - MIDI software ChroMagic - ST/Falcon hardware interfaces such
as the keyboard gizmo, ST MIDI tutorial software, ST game software & ST
utilities Crawly Crypt - ST shareware & PD CD Rom disks, CD drives Gribnif -
Dan Wilga will be there with Geneva, Neodesk 4 and more Systems For Tomorrow
- lots of commercial software from Kent's store TOAD Computers - Jennifer is
bringing lots of commercial software Trace Technologies - Keith Gerdes has
Load Aladdin v2.2 and more.

We will be adding another 3 or 4 major vendors in the next few weeks (just
waiting on a reply from them) ... right now the "possibles list" includes
the following vendors who have asked for information: BraSoft's Darek Mihoka
(Gemulator 4), Oregon Research Associates' Bob Luneski (Diamond Back,
Diamond Edge2, HiSoft titles), It's All Relative (CD titles), and Computer
Direct's Chris Krowchuk (retail software).

Safari '96 will also have a used hardware/software area composed of Atari
user and ex-user vendors.

Safari '96 will be held at the Ramada Hotel, 7787 Katy Freeway in Houston,
Texas. One day only, Saturday - February 24th, 1996 - 10 am to 6 pm.
Admission to the show is $4 (only 1 dollar for kids 12 and under). Vendor
tables are available for $20 per table.

Table Reservation Form for the Atari Safari '96
Fill in this form and return to the following address so that it will be
received in Houston no later than 17 February 1996:
HACE ~ PO Box 820335 ~ Houston TX 77282-0335
NAME: ___________________________________________________________
COMPANY: ________________________________________________________
ADDRESS: ________________________________________________________
CITY, ST, ZIP: __________________________________________________
Do you represent a Dealer or Company? .. Yes No
Number of tables Required? .............. Yes No Do you need an electrical
outlet? ....... Yes No
Will you have any special requirements? (describe) ____________
________________________________________________________________
________________________________________________________________
$20.00 X ______ (number of tables requested) = _______ Amt due HACE Make
checks payable to HACE.

THANK YOU FOR YOUR PARTICIPATION!



Jaguar Section

Atari, Limping Off Into the Sunset?
Layoffs, Resignations, and Nasty
Rumors/News - The ONLY News For the Day!


From the Editor's Controller - Playin' it like it is!

This has probably been the worst week for Atari/Jaguar news in all of
the years that I have been following Atari and supporting its products and
users - both in these pages of STReport, online, and personally. As likely
mentioned prior to your getting to this section, Atari has had another
layoff, a major one. There have also been some resignations. Most notably,
Ted Hoff and programmer Jeff Minter have left Atari.

Layoffs include Ron Beltramo, Sandi and Greg LaBreq, and Dan McNamee.
I've heard that there were about 20-plus employees either laid off or
resigned - not good news, especially after the other recent staff cuts.
With the departure of Hoff and the recent health problems of Atari CEO Sam
Tramiel, Atari patriarch Jack Tramiel is back at the helm of Atari. Garry
Tramiel is also back in the fold after a short departure.

News reports, rumors, speculations, and denials have been flying
everywhere online. Other than the staff cuts, we have no real hard facts
to back up the news reports, or deny them. What we do have are the various
reports from within Atari and what has been learned from former employees,
either directly or reported from other reliable sources. Reading all of
the available "stories", there seems to be a good degree of truth in it all.
Reading these reports, and reading between the lines, says a lot.

Personally, taking into consideration all of the history behind Atari,
the current lackluster success of the Jaguar, and the current stories - it's
easy to think that this is possibly the end of Atari. Atari, as I knew it,
died when the Falcon030 failed and the computer platform was abandoned for
the Jaguar. I felt then, as I still do now, Atari was making a mistake
putting all of its eggs into a single basket, the Jaguar. Regardless of the
fact that Atari was born out of the video games market,

I couldn't see it as being the "re-birth" for Atari. However, I did
consider that the Jaguar was a viable product and could be successful. In
fact, knowing that Atari computer users were still around in significant
numbers, it made sense to supplement the Atari section of STReport with
Jaguar news. It worked - for myself, staff, and our readers.

I won't pretend that I don't have a sinking feeling about the future of
Atari, or the lack of one. This recent news is ominous. What will happen
to current development of Jaguar games? What about games reportedly in
production? New development? Will Atari take the same path for the Jaguar
as they did for the Lynx - let whatever is in the pipeline come out and then
slowly fade away? I have no idea. My guess would be that the present
schedule of games will continue; it makes no sense to put that much money
into development and throw it away. Unless Jack Tramiel decides to just
pack up and retire Atari, I believe that we'll see the current games that
are in production and those close to being completed in development. After
that. your guess is as good as the next person's, if made with realism in
mind.

The time for emotional speculation is over. Reality is about to hit
the masses - be it the avid supporters or the detractors. There is going to
be plenty of "I told ya so's" and "no way" for a long time. I see a bleak
time for the supporters; and I see all of the "bashers" coming out of the
woodwork to immaturely taunt. I also see a lot of the realistic users or ex-
users continue to debate the current affairs in a responsible manner. It
will definitely be an interesting period until the dust settles on the
subject.

Where do I stand in this matter? I really don't know what to think. If
Atari fades away, as seems quite possible, I will not be a bit surprised.
If Atari continues, I believe it will be a difficult ride. In any event, I
do not see the Jaguar as having any real chance for success under present
conditions. I'm going to see how the dust settles, IF it does, and then
take a long hard look and then make my conclusions. Realistically, the signs
do not look good.

We'll be here to let you know what happens as we learn it. Stay tuned,
online and in upcoming issues - STReport has the tradition of learning the
news quickly and correctly, whether it be good or bad. We'll continue to do
so. As to the rest of the usual Jaguar section - it's been preempted other
than the few reports that have appeared. Under the circumstances, I feel
that a "normal" issue of Jaguar news and information is inappropriate for
this week. I apologize in advance if you were expecting more this week, but
I think that you will agree. I hope that during the days to come before
next week's issue, we'll have some good news. At the least, we hope to be
able to have more concrete information regarding the situation at Atari.

Until next time...


Industry News STR Game Console NewsFile - The Latest Gaming News!

Atari Exiting Video Game Business, Liquidating Gaming Assets
Atari Corp. is throwing in the video game towel. Company sources tell MMWIRE
Atari is liquidating all its video game assets, including the Jaguar, Jaguar
CD and Atari Interactive, the company's recently launched PC software
division. It would appear that the Tramiel family, the largest Atari
shareholders (with approx. 47%), have decided to apply Atari's $50 mill.
cash reserves in a business other than video games - or any consumer product
for that matter. The sudden move comes on the heels of the recently
launched Atari Interactive. Just last week Atari told MMWIRE it expected to
use a portion of that $50 mill. to invest in video game software companies.

The closed video game division leaves behind an installed based of 150,000
Jaguar game systems and outstanding title development contracts amounting an
estimated $6 to $8 mill. Approx. 20 employees have been laid off, leaving
30 remaining. These too are expected to depart shortly. Layoffs include
the entire Interactive division including management, accounting and legal
personnel.

The Tramiels intend to exit the video game business, liquidating those
assets. MMWIRE believes the Tramiels intend to merge the resulting company
with a computer components manufacturer. "The video game business at Atari
as we know will cease to exist," according to sources. While it is not known
who Atari intends to merge with, the combined companies are expected to
trade under the current Atari stock symbol (amex: ATC).

ATARI DENIES IT'S QUITTING GAME INDUSTRY
Atari has vehemently denied a published story that the company has dumped
the Jaguar and is planning to slip out of the video game business. The
company believes the story, which appeared on the Internet yesterday, was
sparked off by the sudden departure of key staff at the company, including
chief executive Ted Hoff. In an interview with NEXT Generation OnLine, chief
financial officer August Liguori commented: "We were in the video game
business a long time before Ted joined us. Just because he has gone does not
mean that we are quitting the business. The story is not true. "We sounded
this market in the first place and we are not about to give it up. We are
still supporting the Jaguar and we are still continuing with our recently
announced plans as regards Atari Interactive. "We have reorganized and we
are looking carefully at all our operations, but we are still developing
the same number of titles as we were at the beginning of the week."



ONLINE WEEKLY STReport OnLine The wires are a hummin'!




PEOPLE... ARE TALKING


On CompuServe

compiled by
Joe Mirando
73637,2262



Hidi ho friends and neighbors. As is usually the case, there isn't
much going on in the Atari world right now. Other than the rumors flying
around about Atari closing its doors or selling the rights to the Jaguar
(neither of the rumors is true), the big news is the "cooperative
programming" effort to bring a navigator or information manager to allow us
to access the special features that CompuServe offers for CIM and CISNAV
users. If you want to be involved in this effort just fill out the
information form below and send it to Steve Van Rossen at 100256,3406.


INFORMATION FORM


About yourself:


Name : .............................................................

Street : ................................................. Nr. : .....

Zipcode : ........ Town : .............................................

Country : .............................................................

I live in timezone: ...................................................


Your Atari:

MODEL: RAM:
[ ] ST [ ] 512 Kb
[ ] STE [ ] 1 Mb
[ ] Mega ST [ ] 2 Mb
[ ] Mega STE [ ] 4 Mb
[ ] TT [ ] Other: ... Mb
[ ] Stacy
[ ] Falcon
[ ] TT/030 boards only: .... ST RAM, .... TT RAM
[ ] ST Book
[ ] Other (MEDUSA, Eagle): .................

PRINTER: ............................................

Type : [ ] Matrix [ ] Laser [ ] Inkjet
[ ] Other: .........................

PERIPHERALS: -- Model ------------------------------------

External diskdrives : .............................................
.............................................
Modem : .............................................
Hard disk(s) : .............................................
.............................................
Monitor(s) : .............................................
.............................................


OPERATING SYSTEM EMULATORS

[ ] TOS version: ........ [ ] Gemulator95 version:
........
[ ] MultiTOS version: ........ [ ] Janus version:
........
[ ] Geneva version: ........ [ ] ...........
version: ........
[ ] MagiC version: ........
[ ] MagiCMac version: ........

ACCELERATOR BOARD:
[ ] .......... version: ........ ...................................

About 'AtariCIS'

General questions:

1. Do you want it to be WinCIM-like or CIS Navigator-like (underline your
choice)

2. What do you think would be a good name for this application? (e.g.
AtariCIS, CISsie, AtariSurf etc.)

3. How many hours per month are you going to invest in this project?

4. What basic functionality do you expect from the software?

If you can are on the participants list as a developer:

3. What is your favourite compiler? (e.g. Pure C, Lattice C...)

4. What resource-editor do you prefer?

5. Do you want to participate in defining the functional definition (a short
one should do)?

To All:

This project needs a coordinator. I am a candidate for this job, but I would
like that everybody who is interested in the overall coordination send me a
message to tell so. I propose that the project members choose the
coordinator...

Okay, now that that's out of the way, let's get on with the reason for this
column: All the great news, tips, and info available every week right there
on CompuServe.


From the Atari Computing Forum

On the subject of carrying your Atari software with you to another platform,
Mark Kelling posts:

"Even if you "jump ship" to a Mac, you _can_ take most of your great Atari
software with you. All you will need is MagiCMac. It works really well
with most well written Atari software. Just one note: the Mac will _not_
read disks formated in any of the extended styles. No extra sectors, no
extra tracks, no twisting, no single sided disks, just plain old 1.44meg or
720K. Make sure you get everything copied over _before_ you loose you ST.
I didn't (my ST died in a
thunderstorm) and I'm still trying to get some disks copied."

Jon Pruitt tells Mark:

"Thanks for the suggestion. I do sometimes use extra sectors in formatting,
but mostly, I buy DOS formatted 720k floppys out of laziness. I guess that's
in my favor on this issue."

While talking about accessing the Internet, Dennis Patton posts:

"I have tried to use CAB/Stik on my Mega4STe and a local provider w/no
avail. I can get all the way to connecting w/the provider then I can't seem
to get around the Internet. I'm thinking the provider is at fault, but they
support SLIP connections. I'm quite new to trying Internet stuff and would
love to do so, but can't afford a Mac just for browsing. Any input?"

Greg Kopchak of It's All Relative tells Dennis:

"I was most impressed with CAB, it does a few things Mosaic doesn't do.
Once you get it up and running you will be happy with it."

Neil Newman asks:

"Is it possible to use 14.4kbps on a Falcon, the modem.cpx and Stalker.prg
go from 9600 straight to 19200bps and yet StraightFax has 14.4kbps?"

Mark Hadfield tells Neil:

"The baud rate setting in modem.cpx is the speed with which the Falcon
communicates with the modem, not the speed at which the modem communicates
across the telephone line (e.g. with a Fax machine).

You need to set the Falcon's baud rate at least high as the modem's baud
rate (and preferably at least twice as high if your modem supports
compression). i.e. set modem.cpx, or within Stalker, to at least 19200
baud, preferably 38400 baud."

John Raymond asks for help:

"I am having problems downloading files from compuserve, (I have had this
problem before and can't remember how to rectify it). I am using Connect -
software, and Compuserve B+ protocol. I get data overflow, empty data
packet messages. I think my setup may have been changed by accident.
anyone have any ideas."

Sysop Jim Ness tells John:

"Most likely cause of those comm problems is that your flow control is set
up wrong. Flow control makes sure the other end doesn't not over run your
computer with fast data.

You should have one of the RS232 fix programs in your AUTO folder. Make
sure it is set up for "hardware" or "RTS/CTS" flow control."

Michel Vanhamme adds:

"I don't remember all the details, but check your parity settings in Connect
(in the 'port' dialog): they should be 8 bits, no parity, 1 stopbit. Also
check that the 8th bit is _not_ stripped in the 'compatibility' (or
something) dialog.

All this is from memory, so I might be wrong...

Also note that sometimes (typically when your connection with CIS is bad)
downloads will still fail with the same symptoms you mentioned. In that
case, you'll have to try to reconnect sometime later.

As was mentioned, a serial port patch in your auto folder will also help."

Shelly Gartner tells us:

"I'm new at downloading and have a basic question. I know you will forgive
me. I downloaded several files for the Falcon, including games like BOOm
and Masterword and Rummy. I also downloaded a zip program. Basically, how
does my Falcon read/run these programs. The Boom game and another game
worked when I changed the extension to .PRG. The others said "TOS Error
#35" when I did this. Is this what the zip program is for is the zip
dealing with converting files from PC language to Atari? In the Falcon
manual I read the extensions .ACC,.TOS, etc. These do not work either.
Thank you for your help. I hope this is an easy one."

Sysop Ron Luks tells Shelly:

"Zipped files are 'compressed archives' of one or more programs and files.
To access (run) these files you must UN-Zip the package. Download the
UNZIP utility from our libraries here. Simply changing the filename will
not work. Think of these files like clothes that you pack in a suitcase
for traveling on an airplane. You put all your clothes in a suitcase to
travel to another city, but you must unpack them before you can wear them."

Rob Rasmussen asks for help with PageStream:

"I wanted to try PageStream, so I ordered it from Toad and they sent 5 disks
(a program disk and the rest font disks) with a manual. Following the
directions, I copied the files from the disks to a folder on my hard disk,
but I keep having problems. The program disk has folders named Graphics
and Text which for some reason, won't copy to the hard disk. I get the
error message "Can't write destination file", even though there is no path
or filename conflict. I copied as much as I could to the HD, but I kept
getting alerts "Data on drive A may be bad." If I try to run the program
from the HD, it says "Data on drive E may be bad" (I had copied what I
could to drive E).

I called Toad about this, and they had no idea what could be wrong, so they
sent me another set of 5 disks, and the same thing happens. PageStream
won't install on my Falcon or ST. I'm about to give up on this and get a
refund if I can't get it to work. Anyone have any ideas?"

Ken Goodwin asks Rob:

"Is your hard drive full perhaps? Your alerts are the same ones usually a
associated when you try to copy a file and your destination drive is full.
I'm not meaning to insult your intelligence with what could be a very
obvious error, but I've done it myself a few times!

You might also want to check with Soft_Logik in the Atari Vendors Forum (GO
ATARIV). Mike from SL drops by occasionally."

Rob tells Ken:

"After a few more tries I finally got PageStream to install ok. There was
plenty of hard drive space, but some files wouldn't copy from the folder
they were in on the floppy. So I made new folders and copied the individual
files."


Well folks, that's about it for this week. Tune in again next week,
same time, same station, and listen to what they are saying when...

PEOPLE ARE TALKING





STReport Confidential
News, Tips, Rumors, Exposes, Predictions



- Sunnyvale CA. ATARI.. to "CALL IT QUITS??"

On Tuesday evening of this past week, STReport reported the following in a
number of posts on the CompuServe Forums; Atari Interactive, Video Game
Central and Video Games:

STReport . the FIRST publication to break this story .

#: 185760 S5/Atari Jaguar
16-Jan-96 20:58:16
Sb: #The Revolving Door
Fm: Ralph @ STReport 70007,4454
To: All


STReport Exclusive .... The whole story this Friday!

Atari History Repeats itself again!

Ted Hoff Gone.......

Minter is gone...

More Lay-Offs......



Jack is back.

Maybe to put the "For Sale Ribbon" on the skeleton.

STReport then posted. in reply to repeated statements of disbelief

You could ask:

Ted Hoff
Ron Beltramo
Greg LeBrec & Mrs. LeBrec
Jeff Minter


....and all the others who THOUGHT they had at least six months....
but then... they're gone now. Not a happy week at ATC.

All that's really left is the Accounting Dep't, (natch) a few testers and a
person in customer service.

Jack's back and Gary's coming back. Oh Joy......... I wonder which
peripheral he'll sit on this time. <g>

I believe its "liquidation time"..... I hope I'm wrong... I think not.

More Information....
According to reports that first appeared in an Online Bulletin from STReport
International Online Magazine, and MMWire, Jack Tramiel, who bought what is
now Atari Corp. from Warner, has retaken control of Atari Corp. Atari
Corp.'s Ted Hoff, President of its North American Operations, vacated his
position this past Wednesday, after resigning. This, following further
layoffs of 20 or more employees. Hoff left amidst reports the company was
selling off its Interactive/Game Division. Which includes; The Jaguar
VideoGame Console, the Jaguar CD Player, and Atari Interactive, a recently
formed game software entertainment group.

STReport's Sources, among them; "GreenThroat" and "Big Cahuna" reported a
number of reasons, including certain health problems, sagging sales, and
internal turmoil are mainly behind this recent incident. Hoff mentioned "It
was an indication that Atari's long-term commitments were not materializing
as far as continuing in the Game business." Ted Hoff also remarked "the
layoffs include people from every major area in Atari." Those left, "don't
constitute the minimum levels of experienced personnel necessary to continue
successfully in the Game/Interactive Business."

Atari's Augie Liguori, Jack's close friend and Atari's long time "Bean
Counter", has vigorously denied anything Atari was/is being liquidated.
"We're not leaving. We have $50 million, and we fully intend to continue
being involved in strategic investments, developing and publishing for all
our platforms."

But, at the same time, a number of highly informed industry sources deftly
remarked it's highly unlikely that any ongoing development contracts will
ever reach fruition. Reportedly, both the Jaguar VideoGame Console and the
CD Player are no longer in manufacture. Additionally, our sources noted,
"It appears Atari has plans to vacate its present office space by the end of
next month, and its warehouse by the end of April."

Food for Thought...
This Fifty Million. Atari keeps talking about. Is this the very same Fifty
Million they had when they began with this Jaguar thing?? Why is the Fifty
Million Figure so common? To please the Stockholders? The SEC? Or, is it
simply a "Catch Phrase"?

Another of our snoops has it on good authority. "a West Coast Newspaper is
now involved in an investigative series of Atari Affairs from the day the
Tramiels took over".



Further Information Posted

Subject: **ATARI CLOSES DOWN** - Msg Number: 59136
From: SYSOP*John Ricciardi 75162,2212
To: all
Forum: VGCENTRAL Sec: 01-Gaming Central HQ
Date: 17-Jan-96 23:14

To all,

Try THIS one on for size... surely the biggest news in gaming so far in
1996. Make of it what you will, but no matter how you feel - one thing is
for certain: The Jag is done.

From: mmwire@interramp.com (Todd Elliott)
Subject: MMWIRE(tm) eFlash(tm) Atari Quits Video Games
Status: OR

MMWIRE(tm) eFlash(tm) 1-17-96 3:45pm ET.

We could not resist the urge to inform everyone before our weekly posting.

MMWIRE EXCLUSIVE:

ATARI CORP. EXITS VIDEO GAME BUSINESS,
TO LIQUIDATE GAME ASSETS

Copyright 1996 MULTIMEDIA WIRE. All Rights Reserved.

Atari Corp. is throwing in the video game towel. Sources close to the
company tell MMWIRE Atari is liquidating all its video game assets,
including the Jaguar, Jaguar CD and Atari Interactive, the company's
recently launched PC software effort. It would appear that the Tramiel
family, the majority Atari share holder, with $50 mill. in cash in the
company, have decided to apply that cash elsewhere.

The closed video game division leaves behind an installed based of over
150,000 Jaguars and outstanding title development contracts amounting to an
estimated $6 to $8 mill. Approx. 20 employees have been laid off, leaving
30 remaining. These too are expected to depart shortly. Layoffs included
the entire Interactive division including management, accounting and legal
personnel.

The Tramiels intend to exit the video game business, liquidating those
assets. MMWIRE believes the Tramiels intend to merge the resulting company
with a computer components manufacture. "The video game business at Atari
as we know will cease to exist," according to sources. While it is not
known who Atari intends to merge with, the combined companies are expected
to trade under the current Atari stock symbol on the American Stock
Exchange.

MMWIRE Online mmwire@interramp.com http://www.mmwire.com (V) 301/564-6122
(F) 301/493-8996


The following is from the Next Generation Website, its a little more
encouraging than the STReport and MMWIRE reports:


ATARI DENIES IT'S QUITTING GAME INDUSTRY

Atari has vehemently denied a published story that the company has dumped
the Jaguar and is planning to slip out of the video game business.

The company believes the story, which appeared on the Internet yesterday,
was sparked off by the sudden departure of key staff at the company,
including chief executive Ted Hoff. In an interview with NEXT Generation
OnLine, chief financial officer August Liguori commented: "We were in the
video game business a long time before Ted joined us. Just because he has
gone does not mean that we are quitting the business. The story is not true.

"We sounded this market in the first place and we are not about to give it
up. We are still supporting the Jaguar and we are still continuing with
our recently announced plans as regards Atari Interactive.

"We have reorganized and we are looking carefully at all our operations, but
we are still developing the same number of titles as we were at the
beginning of the week."


Subject: NextGen update on Atari. - Msg Number: 107542
From: Harj 76532,1142
To: ALL
Forum: ATARIGAMING Sec: 10-News/Reviews/Shows
Date: 18-Jan-96 23:46

The following is an article on the recent events at Atari from Next
Generation:


ATARI: THE LAST DAYS OF ROME

With conflicting reports raging through the game industry, and the Jaguar
community in a state of utter panic, NEXT Generation OnLine tries to see
sense in all the mess.

Contrary to some reports, Atari hasn't fallen yet. But the citadel is
crumbling. Here are the differing perspectives which the industry faces
today. Until the situation sorts itself out, you must make up your own mind
of what will emerge from the rubble.

Former insiders at Atari have found themselves without a job. Their
perspective is that the company is finished in the game industry. That the
Tramiels will take their $50 million suitcase and set up shop elsewhere
(bizarrely, the computer components market has been mentioned). Independent
observers have thus far been attracted to this point of view.

Atari's take is, not surprisingly, very different. It says that there has
simply been a post-Christmas re-organization. That senior management have
gone. That staff have been laid off. And that a new approach is being
implemented. The goals remain the same: support for the Jaguar and an
aggressive push into software development for more successful platforms.
This is soothing stuff for Atari-watchers.

Our take is that, right now, Atari resembles the Last Days of Rome. There
are many people at Atari itself who don't know what is really going on. Nor
what tomorrow holds. These are dark days for the game industry's oldest and
still one of its most colorful forces. Many are awaiting the word from on
high which will answer their question; just what the hell is going on?
Confusion reigns.

Senior management still in existence talk about restructuring and
reorganization but no details are forthcoming. They promise that no
development projects have been canned, but are not so forthcoming on what
games will actually see the light of day.

They fall back on Atari's long (if flawed) history as a justification for an
everlasting presence in this market which is, of course, sophistry.

Unfortunately, the Jaguar is facing its twilight hours. As a machine at $99
we see it as an okay buy. But it is not going to cause much lost sleep to
the people at Sony and Sega. The netherworld of user-groups and fanzines
beckons.

Ted Hoff, before he left, was doing the only thing plausible for an
embattled company. That is, redirecting Atari's brand strength and internal
talents towards areas of potential profitability (software development).
Atari may have enjoyed a long history in the hardware business, but only
the most faithful can see a way forward in this ultra-competitive sector. It
was and is time to get off.

We hope that Atari does continue. That new Jaguar games of the quality of
Defender 2000 make their way to market. And that the Atari name becomes
synonymous with gameplay quality.

We can only hope.


Subject: IGOnline Update on Atari - Msg Number: 107543
From: Harj 76532,1142
To: ALL
Forum: ATARIGAMING Sec: 10-News/Reviews/Shows
Date: 18-Jan-96 23:46

The following is from the Interactive Gamer web site:



Atari Announces Major Cuts

(Update: 1-18/96)

by Brian Osserman

Don Thomas at Atari has confirmed that Ted Hoff, President of North American
Operations, has resigned, and Jack Tramiel, the chairman of the board, who
had been very much in the background for the past couple years, has renewed
his active involvement in the company.

Atari has laid off a number of employees, including Ted Taquechi, who
produced a number of Jaguar games and was the producer for the upcoming
Phase Zero. Thomas commented that he did not expect these cutbacks to
affect upcoming Jaguar and PC releases, stating that games being produced by
people who were laid off will be reassigned to remaining personnel. Phase
Zero's new producer will be Jon Skruch. Skruch and Larry Pacey, who oversee
Atari's Jaguar and PC developments respectively, both remain at Atari.

Thomas also confirmed that Jeff Minter, the programmer of the incredibly
popular Tempest 2000 and VLM, and the much-anticipated Defender 2000, has
left for another company.

When Atari laid off a number of employees in November, IG ran a story
indicating that Atari did not plan to contract out any new Jaguar games. In
a subsequent interview with Don Thomas, Atari denied these allegations,
saying that they intended to continue to contract out Jaguar games to
outside companies.

However, it now appears that, in fact, the original story was correct. Jeff
Minter was quite possibly the most popular Jaguar developer, and other
evidence indicates the likelihood that Atari had no plans to contract out
another Jaguar project to Minter: High Voltage Software, who are responsible
for White Men Can't Jump, Vid Grid, NBA Jam: Tournament Edition, and Ruiner
Pinball report that Atari has not contacted them regarding any further
Jaguar projects. Moreover, Beyond Games, who coded Ultra Vortek, and were
supposed to receive a contract for the sequel to the incredibly popular
Alien vs. Predator, have stated that Atari has dropped the contract
negotiations for that game, and have not been responsive to proposals for a
conversion to the Jaguar of Beyond Games' Lynx hit Battlewheels. At this
point it seems likeliest that Atari will in fact finish most of the Jaguar
games currently being worked on, but will not pursue any new titles,
focusing instead on the PC games market.




EDITORIAL QUICKIES



Happy Birthday to George Burns!!




STReport International OnLine Magazine

[S]ilicon [T]imes [R]eport
HTTP://WWW.STREPORT.COM
AVAILABLE WORLDWIDE ON OVER 100,000 PRIVATE BBS SYSTEMS

All Items quoted, in whole or in part, are done so under the provisions of
The Fair Use Law of The Copyright Laws of the U.S.A. Views, Opinions and
Editorial Articles presented herein are not necessarily those of the
editors/staff of STReport International OnLine Magazine. Permission to
reprint articles is hereby granted, unless otherwise noted. Reprints must,
without exception, include the name of the publication, date, issue number
and the author's name. STR, CPU, STReport and/or portions therein may not
be edited, used, duplicated or transmitted in any way without prior written
permission. STR, CPU, STReport, at the time of publication, is believed
reasonably accurate. STR, CPU, STReport, are trademarks of STReport and STR
Publishing Inc. STR, CPU, STReport, its staff and contributors are not and
cannot be held responsible in any way for the use or misuse of information
contained herein or the results obtained therefrom.

STR OnLine! YOUR INDEPENDENT NEWS SOURCE January 19, 1996
Since 1987 Copyrightc1996 All Rights Reserved Issue No. 1203

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