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Technology Stocks : Gigalabs

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To: Jeff O. who wrote (3)	8/8/1998 5:12:00 PM
From: John F.	of 4

About 2 years ago I attended a investor seminar that Gigalabs was holding to raise seed capital . The product at that time was a Gigabit Switch and this eventually evolved into a Gigabit Ethernet Switch. At that time no standards were in place for such technology and customers were mostly on the sidelines . Gigalabs was 2 years ahead of everyone on this product but because of the delays in the standards it allowed other companies to come into this picture . Today , many companies are involved in making this type of product including Gigalabs so the market share and success has become more speculative at this time . For example Cisco and 3Com are making Gigabit Switches which takes market share away from the likes of Gigalabs . Nonetheless Gigalabs has survived and does have sales in this product and has grown from 9 people to over 100 at this time . But the question arises what has Gigalabs done so far ? While Gigalabs was developing the fastest and largest capacity switch on the market it was also developing a new product called a SCSI Switch which is also a Gigabit Switch but with the added advantage that it can integrated into the network without that latent problems that plague the other switching methods . Gigalabs claims that it is the only company that makes a SCSI switch . Another big selling point to this product is that the installed base of SCSI users is apparently very large and the cost is low on a per port basis . Gigalabs was on track for a IPO but it is my belief that it was derailed by various conditions like the standards question and the shift towards developing the SCSI Switch which took resources away from the Gigabit Switch . With the right marketing this product could be a blockbuster for Gigalabs , but that is the key issue that I have with Gigalabs at this time . Gigalabs has since then beefed up it's management team and is aggressively marketing the SCSI Switch . The marketing of this product will be the key to Gigalabs success or failure at this time and I will know more about this by next week . Gigalabs will have a shareholders meeting on August 12 9am - 10am at Napredak Hall , 770 Montague Expressway San Jose CA . I do not know if this is open to non shareholders but you can call Gigalabs to find out and their number is : 1-800-526-0788 and ask for Lambert LI who is the Cheif Operations Officer . You can also visit Gigalabs on the Web Site gigalabs.com .

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