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To: GARY P GROBBEL who wrote (286)6/14/1999 12:17:00 PM
From: GARY P GROBBEL  Read Replies (1) of 393
 
Malcom...last week I put VETX here and that stock continues to do well. Another stock I think is worth your time (to R&D) and your money (to spend it on<g>) is RSI systems. Some of the press releases are listed here...on the 5/27 release the stock shot up to 2.94 but now is priced at 1 7/8. Profile, SEC filings etc are avail on YaHoo and RSIS is Nasdaq.

gpg

RSI Systems Announces the MEDIAPRO SV System
for Streaming Video Applications

MINNEAPOLIS, May 27 /PRNewswire/ -- RSI Systems, Inc., (Nasdaq: RSIS - news)
today announced an intelligent integration of streaming video and circuit-switched, high performance videoconferencing which
offers corporate customers a winning solution. This new capability offers a cost effective solution for delivering real-time
multimedia throughout the corporation.

RSI has integrated devices from Real Networks, Inc., (Nasdaq: RNWK - news) and its own family of high performance
videoconferencing meeting room products to provide an integrated, high performance system. The new system, the
MEDIAPRO SV leverages the innate advantages of H.320 videoconferencing and IP-based video streaming technology. RSI
is offering an integrated unit for installation in the ''data closet'' of a medium-sized corporation or the ''server farm'' of a larger
enterprise. This system offers the recognized advantages of the consistently high quality signal derived from H.320 technology
combined with the low cost per deployed workstation in a streaming video network.

The primary advantage of H.320 videoconferencing is high quality imagery and the ability to make a circuit-switch connection
anywhere in the world. The primary advantage of IP-based streaming video is the reuse of existing ''permanent'' investments in
data oriented networks and the low cost per workstation. RSI's MEDIAPRO SV system combines these two technologies to
provide a cost effective way to distribute video and audio content throughout the corporation.

The MEDIAPRO SV is a rack-mounted system which includes a fully standards compliant H.320 videoconferencing engine
configured for global connectivity and integrated with a high performance IP-based streaming video server. Documentation
includes network loading profiles and a guide to practical deployment of streaming video.

Marti Miller, Vice President of Engineering at RSI, said, ''We have been watching the IP video delivery technologies for a long
time. With the recent developments implemented by RealNetworks, Inc., in their RealServer G2 6.1, it is possible to deploy a
very cost effective streaming video system. I believe we have addressed many of the difficulties associated with delivering
video, audio and information content throughout the corporation. We now offer a cost effective solution to our customers which
will add value to their videoconferencing investment by extending its reach beyond the circuit-switched environment.''

Donald C. Lies, President and CEO of RSI Systems, said, ''The primary merit I see in this is the ability to deliver information
to employees using various network facilities which currently cannot accommodate H.320 or H.323 videoconferencing signals.
RSI is in the business of delivering quality video and audio worldwide.

We have positioned our new system to address critical, real-time sensitive enterprise-wide or distance prohibited information
dissemination and distribution applications. The MEDIAPRO SV is intended to provide healthcare, manufacturing and
educational organizations with the ability to conduct ENTERPRISE-WIDE VIRTUAL MEETINGS for new employee
orientation, policy/benefits education, sales training and new product introductions. The product will also have practical
application for organizations that consistently interface with franchisees, reseller networks or their associated business partners.
The financial community of analysts and brokers will also benefit from the systems' ability to provide both real-time or record
for future playback of live video presentations. Our research has shown that streaming IP video will provide a level of quality
that is suitable for remote training and information transfer within these organizations.

We intend to help our customers take advantage of the reuse of the bandwidth which they have already paid for by providing
them with a simplified, on-demand video delivery system. Consistent with this research is the company's belief that multilevel
video networks will exist throughout the world. We see the deployment of H.320 lifelike quality videoconferencing to remain
the network of choice for both conference center and large meeting room applications. It has a very short-term ROI and finally
delivers the consistent quality that the marketplace has demanded for over two decades. Unfortunately for many, the
deployment of H.320 and H.323 at the desktop level may present obstacles to many organizations either in cost, difficulty of
implementation and/or ongoing management of the network. Though streaming video has a less obvious payback and is only
one-way, it offers a very attractive workstation price tag and simplified level of on-going management.''

RSI Systems was the first to deliver a standalone, computer-free appliance-type videoconferencing system to the marketplace
for under $9,000 USD in 1997 and was the first to introduce a cross-platform, computer-based videoconferencing appliance
for plug and play with laptop computers. Again, the company is leading the way with the introduction of intelligent Circuit
Switched/IP video streaming. This results in the sum being greater than the parts. The company offers all the parts and has
developed the expertise and know-how to provide robust, quality cross-platform multimedia solutions. We believe this
extension to our growing family of videoconferencing appliance engines offers our customers a broader base of standards
driven videoconferencing options for their visual communication meetings.

RSI plans to release the new MEDIAPRO SV system for sale in summer 1999.

RSI Systems designs, manufactures and distributes a family of high performance, cross-platform H.320 and H.323 ready,
affordable videoconferencing engines. Its Video Flyer PLUS system provides 128, 256 or 384 lifelike quality
videoconferencing with enhanced audio and 261 or 263 video compression for low bandwidth applications.

The Video Flyer offers unique interoperability between all popular brand H.320 based videoconferencing engines and its
self-contained component design internalizes all electronics (inverse multiplexer and network terminal adapters). Its small size
and light weight makes it a practical, portable videoconferencing appliance.

Founded in 1993, RSI is a worldwide providers of high-performance, lifelike videoconferencing component engines. Systems
are designed and manufactured at their facilities in Edina, Minn. Systems are certified and for sale in 39 countries throughout the
world.

For more information about RSI, contact RSI Systems Corporate Communications by phone at 612-896-3020 or
800-496-4304, or visit the company's Web site at rsivideo.com

RealNetworks and RealServer, are trademarks or registered trademarks of RealNetworks, Inc. based in Seattle, Wash.

SOURCE: RSI Systems, Inc.

RSI Systems Announces a New Line of Affordable
Videoconferencing Systems

MINNEAPOLIS, June 3 /PRNewswire/ -- Today RSI Systems, Inc., (Nasdaq: RSIS - news) announced it is adding three
new videoconferencing systems to its new MEDIAPRO 384 Family of Products. The new MEDIAPRO 384 systems are the
LT (data-based laptop system), CF (computer-free component system) and the advanced DP (dual-platform system) and join
the MEDIAPRO 384 SV (streaming video announced on May 27). Together these four new ''engines'' offer the marketplace a
full range of high performance H.320 and H.323-ready systems, starting at under $4,995 USD including camera.

All MEDIAPRO engines share common componentry. ''We have miniaturized the videoconferencing footprint while enhancing
its overall capability and signal quality,'' said Donald C. Lies, President and CEO. ''These new products are smaller than a
notebook computer, weigh 5.6 pounds and are encased in an attractive full metal shell to allow them to be truly portable. All of
the MEDIAPRO engines operate at 128, 256 or 384 KBPS, internalize the inverse multiplexer (IMUX) and have built-in
network terminal adapters (NT1s) or optional S/T interface. We have significantly improved the fit and feel of the software and
IR remote controller to make them easier to operate.''

RSI also announced new software: the MP2000 computer-free version for TVs and non-intelligent display devices and the
MP2000 package for computer-based applications. Both packages incorporate an advanced ergonomically designed
GRAPHIC USER INTERFACE. The MP2000 software packages combine graphics and text to make complex video
applications much easier to understand and perform. A setup genie is now standard making it possible for even the novice user
to install the system in a matter of minutes by following the on-screen self-prompting software instructions.

In addition to the standard connectivity options on the MEDIAPRO 384 engines, they also incorporate a built-in 10/100 Mbps
Ethernet connector to facilitate connection to local area networks for remote configuration, operation or service diagnostics
available from the systems embedded web server. ''We chose to incorporate a 10/100 Mbps interface to allow the system to
connect to a customer's LAN without the need for speed matching hubs,'' said Marti Miller, Vice President of Engineering.
''We also feel that a 100 Mbps connection is more appropriate for H.323 traffic.'' The systems are also H.323 ready and will
accept RSI's new LAN software targeted for release in fall 1999.

''We designed the new MEDIAPRO family of products to accommodate the market's demand for lower price points, higher
performance and expanded system connectivity. Our current Video Flyer PLUS product line has been very popular and will
remain the mainstay of our sales strategy for the long-term. In addition, the new software operates on the Video Flyer PLUS
products to allow them to improve their performance window as well. We believe that both products will have a fit in today's
explosive marketplace,'' said Donald C. Lies, President and CEO.

RSI designed four MEDIAPRO system options to address an organization's diverse videoconferencing needs based upon the
application or department into which they are bringing the capability. The MEDIAPRO LT (data-based laptop system) is an
industry first. RSI began marketing the product earlier this spring on a limited basis and has been pleased with the market's
acceptance of the system. The engine can connect to any brand laptop or personal computer. Acting as an external
videoconferencing appliance, it eliminates the problem of opening up the computer unit to add electronic boards or to make
other internal system modifications. Once connected, the system provides full screen or multi-screen 384, 256 or 128 Kbps
videoconferencing on any Windows 95, 98 or NT-based computing device. In addition, the system provides simultaneous
multi-screen or multimedia audio, video and data collaboration increasingly requested by analysts, brokers, engineers, medical
professionals, financial planners, software designers and business professionals who are comfortable using a laptop computer in
the office or on the road. The suggested list price for this product including camera is $4,995 USD.

The MEDIAPRO 384 CF is a computer-free system designed to attach to any size or brand TV, LCD or DLP projector,
flatscreen or other non-intelligent output display and is targeted at the rapidly growing workgroup and conference room settop
videoconferencing. By incorporating the new MP2000 graphic user interface, this system provides a level of user operation and
video quality to allow organizations to seamlessly communicate with any other videoconferencing unit via ISDN or T1/E1
(V.35) connectivity. This component-based system includes a detachable, high quality pan/tilt/zoom camera to allow it to be
rack mounted or permanently installed in large conference rooms. It can also fit easily on or inside rollabout TV carts, on
desktops or in shoulder bags for portable audiovisual applications. Suggested list price for this system including color
pan/tilt/zoom camera is $7,995 USD.

The MEDIAPRO 384 DP is the industry's first dual-platform, component-based videoconferencing system. Both MP2000
software packages reside on the system simultaneously offering unparalleled connectivity and application flexibility.
Cross-platform architecture eliminates the frustration generally associated with multiple brand or software types being operated
by users within the same organization. The MEDIAPRO dual-platform system provides connectivity and sophisticated
operation to any type of intelligent display product in a matter of moments. The system brings together the functionality of the
LT and CF in one compact and portable device. For large display NTSC or PAL applications, the user may choose to operate
the system with its IR control-based computer-free software. For data-based or T.120 collaborative applications, they may
wish to select the data-based software to command the system from the keyboard of their laptop or computer. The suggested
list price of the dual-platform system including both versions of software and a color pan/tilt/zoom camera is $8,995 USD.

These new MEDIAPRO systems will begin shipping during the month of June and be in full production in July 1999.

RSI Systems designs, manufactures and distributes a family of high performance, cross-platform H.320 and H.323 ready,
affordable videoconferencing engines. Its Video Flyer PLUS system provides 128, 256 or 384 lifelike quality
videoconferencing with enhanced audio and 261 or 263 video compression for low bandwidth applications.

The Video Flyer PLUS and new MEDIAPRO 384 products offer full interoperability between all popular brand H.320 based
videoconferencing engines. Their self-contained component design internalizes all required electronic components (inverse
multiplexer and network terminal adapters) to provide small, light weight and portable appliance.

Founded in 1993, RSI is a worldwide providers of high-performance, lifelike videoconferencing component engines. Systems
are designed and manufactured in Minnesota. The company's systems are certified and for sale in 39 countries through a
worldwide network of factory-trained resellers and OEM partners.

For more information about RSI, contact RSI Systems Corporate Communications by phone at 612-896-3020 or
800-496-4304, or visit the company's Web site at rsivideo.com

SOURCE: RSI

RSI Systems Reports Profit and Record Sales for
Third Quarter

MINNEAPOLIS, April 21 /PRNewswire/ -- RSI Systems, Inc. (Nasdaq: RSIS - news), today reported that its fiscal
third-quarter sales increased 229 percent to $2,790,000 from $849,000 a year earlier. The company reported net profit of
$47,000 or 1 cent per share for the quarter ended March 31, 1999, in contrast to a net loss of $697,000 or 11 cents per share
in the third quarter of fiscal 1998.

''We are extremely pleased to have sustained our profitability while continuing to make substantial investments in our
technology and in marketing initiatives aimed at building name-recognition in the growing videoconferencing marketplace,'' said
Donald C. Lies, president and chief executive officer.

''Our third-quarter sales volume set a new single-quarter record by a wide margin, more than offsetting budgeted increases in
R&D and advertising expenses.'' Gross profit dollars increased by 287 percent in the quarter, outpacing sales growth.

For the nine months ended March 31, 1999, the company had net sales of $7,745,000, a 160-percent increase from
$2,976,000 in the same period a year earlier. The company reported a net profit of $54,000 or 1 cent per share for the nine
months, compared with a net loss of $1,516,000 or 28 cents per share in the first nine months of fiscal 1998.

''Throughout fiscal 1999 it has been management's strategy to invest in three forward-looking areas to sustain the company's
growth and create greater vertical market penetration,'' Lies said. ''These areas are research and development,
technical/customer support, and sales and marketing.

''Through our R&D investment we are continuing the refinement and delineation of the videoconferencing marketplace,'' Lies
said. ''RSI intends to continue its expansion from the conference room to the private office and into the home of the
professional business person with a family of multimedia-based communication stations offering television-quality technology.

''To expand and reinforce our worldwide distribution network, we are working with organizations that want to build
private-label products around RSI's videoconferencing engine. We have also increased our RSI-labeled brand network of
international distributors to assure more vertical market penetration within Asia, Europe and Australia.

''Not only did all of our OEM partners order products from RSI in the third quarter, but products were shipped into 20
separate countries, illustrating our growing market penetration around the globe.''

RSI Systems, Inc., manufactures and markets two families of high-performance, business-quality videoconferencing equipment
-- the Video Flyer(TM) PLUS videoconferencing system and the new MEDIAPRO-384 multimedia workstation. The Video
Flyer PLUS is a fully self-contained high-performance system designed for conference room, classroom and office use. It offers
life-like video and audio signal quality combined with simplicity of operation and exceptional reliability. It takes up less space
than a small notebook computer and can connect directly to any size or brand TV, LCD or DLP projector, flatscreen, display
system or properly configured laptop or personal computer.

The company's new MEDIAPRO-384 workstation is targeted at the professional desktop and home office markets, providing
a videoconferencing system for attachment to laptops or personal computers. It can communicate in real time with any other
standards-based videoconferencing system, delivering simultaneous video and data collaboration on the same display and
offering full 384 television quality. The systems are available worldwide through authorized factory trained resellers and other
RSI business partners. RSI is certified and sells products in North and South America, Europe, Asia, Australia, the Middle
East and South Africa.

Note: Forward-looking statements contained in this press release are made under the Private Securities Reform Act of 1995.
Actual results may differ. Certain factors that may cause such results to differ are identified in the company's Form 10-KSB for
the period ended June 30, 1998, and incorporated by reference.
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