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Technology Stocks : PTEC superiority over Systemsoft

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To: Tim Oliver who wrote (272)11/17/1996 11:33:00 AM
From: Marc Phelan   of 287
 
Tim,

I can respond to some of your questions,

>>Why do you suppose Intel (who supplies CPUs for over 80% of the
PCs in the world) decided to quit competing with PTEC's BIOS
development program and decided to outsource it all to PTEC
for their Motherboards?

Under the equity agreement, some Intel rights and limitations are linked to the continuation of the technology agreement and to ownership of a specified number of Phoenix shares. The rights include limited rights in the event of any proposed acquisition of Phoenix and the ability to maintain its percentage ownership of Phoenix.
Intel has stated that the complexity of the new USB and associated architecture is changing so rapidly they needed a company that was involved in development of the BIOS with them. Otherwise the OEM lead time would be greatly increased as everyone reinvented the wheel.

>>Also, does anyone know if Compaq and IBM develop their own
desktop BIOS?

Yes they do but PTEC still has more BIOS engineers than anyone else in the World including MSFT.

>>With these things working in their favor, you'd think Compaq and IBM would follow in the footsteps of Intel and outsource their BIOS to Phoenix. Any opinions on this?

On April 22, 1996 -- In a move aimed at making PCs easier to use, Compaq Computer Corporation (NYSE:CPQ) and Phoenix Technologies Ltd. (NASDAQ:PTEC) a leading supplier of essential software for PC manufacturers, today announced an agreement intended to speed the adoption of the Universal Serial Bus (USB).

On July 19, 1996--PTEC announced today that Compaq Computer Corporation is shipping its new Presario 1000 notebook computer with Phoenix NoteBIOS 4.0.

Can the rest of the line be far behind?

IBM would be the last major holdout if CPQ was to come aboard.

Marc
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