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To: Brent D. Beal who wrote (9049)	4/14/1999 12:26:00 PM
From: Ken Pomaranski	of 10072

<< Also included are some profit breakouts--it looks like IOM took it in the short on the Jaz drives in 1998. The zip, contrary to what some people have been saying on this thread, looks like it made the company a lot of money. >> Thank you! This is what I've been trying to say. ZIP IS IT!! So my point is, once margins start shifting downward on ZIPS (eg, because of higher OEM percentage), Iomega will be in BIG trouble if they don't deal with it. I have NEVER, EVER said that Iomega doesn't make money on ZIPS. On the contrary! What I've been saying is that they make very little money on OEM ZIPS, and a ton of money on retail ZIPS. This has been the only thing keeping them in business in the past, so it is VITALLY important to study the pricing / earnings trends between these devices. kp

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