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Technology Stocks : ZENITH ELECTRONICS

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To: rd greer who wrote (428)	5/12/1996 12:34:00 PM
From: Franco Battista	of 578

I saw ZE's prototype for HDTV 3 years ago at the NAB (National Association of Broadcasters) in Las Vegas. This is the most important trade show for the broadcast, video and multimedia market. It was a very impressive demo. Basically what they have done is managed to broadcast a HDTV signal which can also be picked up by one of today's conventional TVs. That is why their product was approved by the FCC. The FCC announced about 5 years ago that they would only accept HDTV in the United States if someone came up with a technology that would also not make conventional TVs obsolete. This put the Japanese companies (Sony, Toshiba etc.) back to square one. In Japan, which has a very different culture to North America, HDTV signals could only be picked up by owners of HDTV sets. The Japanese do not mind literally throwing out their brand new conventional TVs in order to buy the latest in technology. They have alot of disposable income and very small lodgings. They do not have the room to keep the old TV, even if they only bought it a year ago. ZE was able to come up with the solution that satisfied the FCC. They made their presentation with a number of partners and this is what is now called the Grand Alliance. This approval from the FCC is a very important development, HDTV will be the next electronics revolution. Anyone who has seen a HDTV image knows what I am talking about. HDTV can be projected to sizes larger than your local movie theatre with more clarity and definition. In my opinion this is far far more important to ZE than the cable modems.

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