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Technology Stocks : General Magic -- Ignore unavailable to you. Want to Upgrade?

To: Seconds Out who wrote (9784)	10/2/2001 5:59:42 AM
From: cybermagician	Respond to of 10081

Suspending Portico service FYI - email 1st Oct 01 "Dear Portico Subscriber, We regret to inform you that we are suspending our Portico service as of October 31, 2001. The decision to suspend operation of the service was a difficult one, especially as we know how enthusiastic you have been about the service, and how supportive you have been of General Magic. The voice application market continues to evolve at a rapid pace. Many of you who have followed the company in recent months are aware that we have shifted our focus to voice infrastructure software, and although we have continued the Portico service during this transition, we have not actively marketed or promoted the service to new subscribers. We have concluded that Portico is no longer core to our business and that our business would be best served by focusing our efforts on empowering developers to build and deploy high quality voice applications using our suite of voice infrastructure software products. We understand that many of you may be personally disappointed that we are discontinuing the service but we hope that you will continue to recommend General Magic to any of your colleagues who are looking to implement voice-based services. Again, thank you very much for your support and business over the past years. If you have questions or concerns regarding the Portico service that you would like share with us please feel free to contact Portico customer service at 1-800-774-3311. We value your continued goodwill and hope you will choose to use General Magic products and services in the future. Sincerely, Kathie Layton President and CEO "

To: Seconds Out who wrote (9784)	10/2/2001 1:09:11 PM
From: Souze	Read Replies (1) \| Respond to of 10081

Here's GMGC's press release about the conversion: General Magic Streamlines Capital Structure To Avoid Future Dilution To Common StockholdersPreferred Stockholders Convert Substantial Portion Prior to October "Repricing" Period SUNNYVALE, Calif., Oct 1, 2001 (BUSINESS WIRE) -- General Magic, Inc. (Nasdaq: GMGC chart, msgs), a pioneer in voice infrastructure software and services, today announced that it reached an agreement with certain of its investors that held over 40% of the company's outstanding Series D and Series F preferred stock, to convert their preferred stock holdings into the company's common stock and to allow the company to cancel all warrants held by them to purchase shares of the company's common stock. In exchange, General Magic has agreed to pay an aggregate amount of $400,000. The conversion price for the Series D Preferred Stock was $1.08 per share and the conversion price for the Series F Preferred Stock was $0.81 per share, the prices effective as of June 30, 2001. "The agreement significantly reduces potential dilution to our shareholders," said David H. Russian, chief financial officer of General Magic. "This is a major step in our efforts to simplify our capital structure in order to make the company more attractive to long-term, growth-oriented investors, strategic partners and potential customers." By securing the agreement with these investors, the company prevented further potential dilution from its Series D and Series F Preferred Stock, which was scheduled to reset, or "reprice," based upon the trading value of the company's common stock in the ten trading-day period following September 30, 2001. General Magic continues to work to streamline its capital structure in order to prevent further potential dilution to stockholders that may be attributed to the antidilution protections granted to its preferred stockholders of Series D and Series F. The terms and conditions of this transaction are detailed in the company's Form 8-K and Exhibit 99.1 to that document, filed today with the Securities and Exchange Commission. About General Magic General Magic is a leading voice infrastructure company that provides enterprise-grade software and supporting voice dialog design and hosting services that enable companies to quickly and efficiently provide anytime, anywhere access to information and services over the telephone. General Magic's VoiceXML & J2EE(TM)-based solutions enable enterprises to easily integrate voice access into enterprise applications using a broad selection of speech recognition technologies and telephony interfaces. These solutions make voice a strategic tool in helping businesses improve the customer experience, reduce transaction costs, and provide high quality, voice branded access to content and services. General Magic is headquartered in Sunnyvale, Calif. For additional information, visit www.generalmagic.com. Note to Editors: General Magic and magicTalk are trademarks of General Magic, Inc., which may be registered in some jurisdictions. Contact: General Magic, Inc. Laura Crowley, 408/774-4457 ir@genmagic.com or Stapleton Communications Leslie Green, 650/470-0200 leslie@stapleton.com