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To: Tom Hua who wrote (693)	9/2/2000 1:33:04 PM
From: Street Hawk	Read Replies (1) \| Respond to of 19633

Would anyone want to do this for $15-20K? From the 10-K: The surgical procedure for the implantation of the Vibrant Soundbridge involves techniques that are similar to those employed in other common otologic procedures. The internal receiver unit is implanted behind the ear, under the skin and muscle. The conductor link connecting the receiver unit to the FMT is placed through the excavated mastoid bone. These steps are similar to those required for the surgical placement of a cochlear implant receiver. Cochlear Implants Cochlear implants were originally developed for people who have a profound hearing loss, approximately one million people in the United States alone. The cochlear implant is inserted into the inner ear in a highly invasive and non- reversible surgery that destroys pre-surgery, unaided hearing (residual hearing). So it seems that the SMPX procedure is highly invasive after all, considering that they compared it to cochlear implant receiver surgery. And from their description of the Vibrant Soundbridge surgical procedure, there is no way they can say this is non-invasive like hearing aids. They are also only allowed to implant the device into just 1 ear, not both. And that's what the person pays $15-20K for. The other ear can't be done. So this procedure can't even be done for both ears for symmetrical hearing. What a horrible option to hearing aids. Oh, also, the procedure takes 2 hours, while laser eye surgery which someone compared this to a few messages ago, it has beeen said that procedure takes less than 15 minutes.

To: Tom Hua who wrote (693)	9/2/2000 1:43:22 PM
From: Street Hawk	Read Replies (1) \| Respond to of 19633

SMPX financial position is also shaky. For the six months ended June 30, 2000, their cash & short term investments totalled, ~$6.8 million, compared to ~$14.1 million for the six months ended June 30, 1999. Also, their cash outflow for the 6 months ended June 30, 2000 was ~$7.7 million. So if they continue burning cash at their current pace, which is assumed, considering they are a developmental company, they will need to pursue additional financing by year's end, most likely to be a equity secondary offering since their revenues were under a $1 million for the past 2 years combined. (unaudited) Six months ended June 30, ------------------------- 2000 1999 ---- ---- ASSETS Current assets: Cash and cash equivalents $ 5,387 $ 7,998 Short-term investments 1,456 6,150 Accounts receivable, net 144 117 Inventories 778 662 Prepaid expenses and other current assets 363 680 -------- -------- Total current assets 8,128 15,607 Six months ended June 30, ------------------------- 2000 1999 ---- ---- <S> <C> <C> Cash flows from operating activities: Net loss $(8,408) $(7,990) Adjustments to reconcile net loss to cash used in operating activities: Amortization of deferred compensation 155 278 Stock based compensation 16 - Depreciation and amortization 395 390 Changes in operating assets and liabilities: Accounts receivable (27) 181 Inventories (116) 67 Prepaid expenses and other current assets 318 (42) Accounts payable (21) (248) Accrued compensation (230) (161) Deferred revenue (181) - Other accrued liabilities 360 184 ------- ------- Net cash used in operating activities (7,739) (7,341)