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Technology Stocks : 7th Level

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To: steve walsh who wrote (217)	4/2/1997 11:22:00 PM
From: Eric Hautala	of 1019

Annual Report has been posted to Edgar and answers all these questions. sec.gov Lot's of interesting stuff. The Microsoft deal get's some press. Looks like 7th Level got the outright rights to sell the next three titles in the series. Pretty good deal. " Microsoft - In cooperation and coordination with Microsoft and The Lyons Group, an entertainment unit of Lyrick Studios, the Company was selected to develop and produce four interactive titles featuring Barney, the purple dinosaur. Barney is an interactive toy designed for preschoolers that can be controlled by the PC CD-ROM. This project, combining Microsoft's Realmation(TM) technology with the Company's animation, software and production expertise, was started by the Company at the end of September 1996. The full capability product was first demonstrated at a consumer toy trade show in early February 1997, and the games are scheduled for completion in the second half of 1997 . The toy and the CD-ROM games will be marketed by Microsoft and the Company will earn a royalty based on sales. Additionally the Company has rights to sell three of the titles in the OEM channel. "

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