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To: Robert who wrote (173)	7/30/1999 11:42:00 AM
From: MF	Read Replies (1) \| Respond to of 241

With 460,000 escrow shares at a cost of $0.01 / share being issued on August 10, 1999, some of which being issued to founders no longer involved in the company, I think we may see continued selling pressure. I believe in this company and their management and look forward to loading up on more shares but not until the stock suffers more from this escrow release. Ron, what are your thoughts?

To: Robert who wrote (173)	8/10/1999 11:13:00 PM
From: Ron Struthers	Respond to of 241

Hello Robert, I am looking for news in the 2nd half on the Lava Logic division. This might attract a major tech company. TSI just reported it's 2nd profitable qtr., althoung small profit, they are controlling expenses well. TSI is in a high growth industry and although the strong sales growth has paused, I expect it will resume again. I also agree with MFs comments that we could see continued weakness if some of these escrow shares come onto the market. The stock has been holding a bottom here around $0.40 as the whole tech sector is going through a major sell off. This looks to be positive with the only real threat on the stock price being the escrow release. Will be interesting to see how the stock trades this month. Ron