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To: rocky haag who wrote ()	9/14/1996 11:31:00 AM
From: rocky haag	of 129

<Iomega OEM Update> (thanks to Shig2 and Emerald Res. full report located@ fool.web.aol.com #5 Quoting Emerald Research reagarding Matsushita Deal: "Under the agreement, MCI obtains a non-exclusive license to Zip technology. Iomega will provide proprietary components so that MCI can sell drives as early as December Quarter. MCI's strength is in the OEM channel. In additionm, MCI is also interested in retailing Zip ans Jaz for Panasonic retail line. Although MCI will compete with Iomega in some situations (esp. retail) we beilieve Matsushita will SIGNIFICANTLY EXPAND the market for Zip technology by selling drives to OEMs that would not have bought from Iomega. Therefore, sales are not expected to cannibalize Iomega's own sales, and the relatively small royalty payments are considered to be incremental to Iomega's net earnings. Most importantly, the expanded installed base of drives will benefit Iomega in terms fo increased revenue and earnings in media sales. We, therefore believe this particular licensing agreement is positive for Iomega. -------------------------------------------------------------- bumper snicker: "have you bot your Iomega today?" in the public service: rocksta

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