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To: Dale Stempson who wrote (9459)	4/27/1999 10:56:00 PM
From: Naggrachi	of 10072

<< 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.>> No doubt about it, however, IOM needs to diversify is product line very quickly. It's bothersome to me that the company generates 70% of their revenue from one product. IOM's situation is similar to company deriving 70% of their revenue from one client, when one is in that situation, it's just a matter of time before..... I'm surprised that IOM has not gone after network storage appliances, similar to this: snapserver.com. The market for this type of product is supposed to be huge for the next couple of years. Needless to say, this kind of product will be aimed at the corporate side of the market (where there is some kind of pricing power,) and will diversify IOM's product mix. Just thinking outloud. Zead

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