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Technology Stocks : TAVA Technologies (TAVA-NASDAQ)

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To: richard p. martino who wrote (3656)	10/7/1997 10:46:00 AM
From: Karl Drobnic	of 31646

CD Revenues: Originally, TPRO announced $10,000 as the average price to do an assessment (pre-CD). TPRO then announced the CD and said TPRO would receive $7,000/CD. Then the discussion went to a split between TPRO and the alliance partner: $5,000 to TPRO and $2,000 to the partner. As of the Sept. conference call, the idea of using the CD to get the foot in the client's door surfaced (the Netscape strategy of giving away browsers to gain market share). On the conference call, TPRO mentioned that beta testing was going well. I think "excellent" was the word used. It looks like TPRO is playing a mind game. Continue to lower the potential price of the CD in the pre-launch stage to discourage competition. Then, when it works, triple the price. After all, what's a monopoly for?

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