Innovacom (MPEG), [announced single chip MPEG-2 encoder] Message Board

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Technology Stocks : Innovacom (MPEG), [announced single chip MPEG-2 encoder]

MPEG 0.000200

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Feb 6 9:30 AM EST

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To: Sean Lin who wrote (80)	10/11/1996 5:07:00 PM
From: Nhiem Nguyen	of 6297

That's true! Present real time encoders cost upward $60K per unit. MPEG investor relation told me that IBM is making the chip for them using 0.35um (micron) processing rule. For your information, the most advanced silicon processing technology today is 0.18um by Texas Instruments. Usual video chips are using older technologies around 1.0um rule. Therefore, as pointed out by MPEG news release, their MPEG chip really offers significant cost advantage. To give you a rough idea, the difference between 1.0um and 0.35um rules is near 10x improvement in chip area, meaning you can make 10x more chips for the same cost. Think about the effect of lowering chips cost. Your end-customers have been SERIOUS video folks who can afford $60K equipment (TV stations and more...) What's happening now is that you are able to offer the product to larger group of people for whom the cost has been prohibitive! In marketing terms, it's equivalent to creating a new market. Any time that you can create a new market with a new product, you're doing well, mighty well! Visit AOL boards (Investor Network & Motley Fool message boards). Others and I have left quite a bit of research information there. Many of us have talked to them directly. Perhaps, someone will be good enough to copy those messages to this board for all to see, periodically. By comparison, MPEG has a REAL product and ZITL does not. ZITL stock has risen from $18 to $40 during the last few days, based on the promise of a "potential" market but has absolutely nothing REAL to justify that increase, just hypes. Wait until people understand and discover MPEG! Stay long and stay real. Your patience will be most rewarding. Nhiem

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