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Technology Stocks : Zenith - One and Only -- Ignore unavailable to you. Want to Upgrade?

To: Robert Utne who wrote (3423)	11/19/1997 10:58:00 PM
From: Robert Utne	Respond to of 6570

LG's website features this as their lead news item: Zenith Gains Satellite Contract. Zenith Electronics has signed agreement to build IRDs for News Corp.'s Sky Latin America, breaking into satellite business for the first time. Under agreement, Zenith will build single DVB-compliant IRD containing MPEG-2 video data compression with deliveries to start by early 2nd quarter 1998. Box will contain 2,400-baud modem, although design allows for addition of connectors, faster modems and larger memory, Zenith Network Systems Pres. William Luehrs said. Set-top box will be co-marketed with LG Electronics, which owns 57% of Zenith. Box will be sold separately under each brand and in combination, Luehrs said."We'll try to use the brand that matches the need of that particular market," he said in saying that while Zenith brand is strong in Mexico and Brazil, LG has cache in other countries. LG also will supply memory and other components for box, Luehrs said. IRD will be shipped preassembled to most markets although it will arrive in Brazil as kit, he said. "The platform we have is one common reference design that can use different variations of in different markets, but the hardware will serve us around the world," Luehrs said. Zenith will build IRDs at Chihuahua, Mexico, plant with shipments reaching "several hundred thousand" units over several years, Zenith spokesman said. Zenith, which will be competing with DirecTV's Latin and S. America DBS service, was said to have been in running as IRD supplier for News Corp.'s proposed ASkyB service In U.S. Service folded earlier this year as part of proposed merger with Echostar, deal that later collapsed. On Americast front, Zenith will start production of digital wireless MMDS box for BellSouth in 4th quarter, with wired version due for Ameritech, GTE and SBC in spring, Luehrs said. BellSouth is expected to test product in Atlanta. Volume production had been slated for 2nd quarter. Although Americast recently cut some jobs to eliminate overlap, Luehrs said partners remain "dedicated to concept of rolling out digital video services." Zenith has 5-year,$1-billion, contract with Americast to build 3 million digital set-top boxes at Mexican plant. "We have the flexibility to use either dedicated lines [for Americast and Sky products] or mix and match them on a single line," Luehrs said.