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Technology Stocks : WAVX Anyone?

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To: SDR-SI who wrote (6696)	5/7/1999 10:36:00 AM
From: Norman Klein	Read Replies (1) of 11417

email from Sprague (Posted on RB) I found this on RB and am reposting it, because I think that many people might have missed it and would find it informative. I am assuming that it is a legimate email message from S. Sprague. To all. An email from Steven Sprague. Below you will find an email reply from Steven Sprague. I think that his words are quite important as they assuage the concerns many of us have over the lack of response by Wave to recent developments in the music industry. There are many interesting nuggets in here, but I will let the crack team of Wave experts pick it apart as they please. Best regards, Mayo Steven Sprague@WAVE_DOMAIN 05/06/99 07:29 PM Here is a comment I sent to another shareholder who had questions on intertrust. Intertrust is spending tremendous time in the music business and is making progress, We have been involved in SDMI since it's inception and their are many issues involved with music distribution. I think it is important to note that the SDMI architecture needs Embassy in the PC and Wave will play a very important role in music distribution. There are also a couple of other key points: SDMI is a ZOO but making progress. Intertrust is a technology company not a distribution or service company. Wave will provide the majors with services and distribution and if they need to use intertrust as a technology Embassy can provide the security that is required. I think it is out of scope to believe that The majors would not distribute directly themselves. We offer unique distribution opportunities that will make them money and ourselves. Music is not yet a revenue generating market that will help us sell ongoing revenue to the PC OEM's, Cool to support but no money yet. We are and will be a key part of the system for security and delivery of music. But we are also focused on our core goals of mass deployment. Think about the details of the music business today there are many questions that are key to how big it is going to be. I believe that SDMI is only going to design a level of security not interoperability. (this has become very clear this week) the result is that the systems will all be proprietary. In order to have interaction on the delivery of music from multiple networks it will be necessary to load embassy appletts that have compatibility with each of the distributors systems. If Wave can reach an audiance of millions of customer with a juke box of content then we have all the content we can distribute. I have verified this and the companies with titles want to play. We will let them set the standard for interaction between license management systems and players and we will watch closely so that Embassy can support them and then we will leverage deployment to gain significant share of distribution. Stick to our guns, we are making excellent progress, we are paying very close attention to music and we are confident in our ultimate role in this content market. Finally, It is really unclear the industry will have a viable strategy against free music with MP3 and consumer acceptance of the new models being discussed.

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