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To: Naggrachi who wrote (9447)	4/27/1999 5:52:00 PM
From: Dale Stempson	Read Replies (4) of 10072

Today's confirmation of the seriously extended delay in the relaunch of Sony's drive is certainly good news IMO. (Sony's Leal said: "The modifications needed to improve product reliability haven't been completed, so a relaunch of the product isn't expected until this fall, at earliest.") In the mean time, I expect we will likely see the Zip installed base continue significant unit growth allowing for decreased manufacturing costs. The Zip 250 should be able to firmly establish itself by fall. I guess the bottom line is that Iomega management has been allowed some extra time to focus on key issues (such as reducing costs) instead of being forced into pricing action with a new competitor. It is interesting to me that Sony continues to see a lot of potential in the removable market and has not thrown in the towel now that Zip has such a huge headstart. Now, how 'bout we see some press from the legal department in Roy regarding the SyQuest court case pending against Castlewood. Regards - Dale

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