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

To: Terry Berg who wrote (3453)	11/21/1997 10:51:00 PM
From: Robert Utne	Read Replies (1) \| Respond to of 6570

Korea adopting the US digital system over the European system is big news. Based on the reasoning provided, appears that both Japan and China also will be in the ATSC camp. Mexico, Canada, Brazil and Australia should adopt the US digital system, too. The rest of Asia, CES, Mid East and Africa all are up for grabs. Don't forget, Zenith will earn VSBi royalties on every digital TV and set-top box (worldwide) capable of receiving VSBi transmisions. Appears that current LGE/ZE stategy is for LGE to focus on manufacturing chip sets and screens for the digital TVs while Zenith manufacturers set-top boxes (using LGE chips) and the HDTVs and SDTVs (using LGE chips, some screens and optional Divx DVDs). Both companies will be distributors (depending upon the dynamics of each market). May sound far fetched but recommend that LGE consider acting as the distributor of Zenith brand HDTV and SDTV sets, set-top boxes and cable modems in the Korean market. This could help counteract the dumping charges (and actual duties) leveled on the Korean TV manufacturers by the US and would be a clear sign to the US that Korea is a more open trading partner than presently perceived. Going it alone in this savagely competitive, CE environment is a strategy fraught with land mines. Certainly, there are more powerful CE guns in Japan and the Netherlands. However, with Zenith and LGE acting in close harmony (cross sales, cross distribution, joint ventures, financial assistance, personnel interchange, technology/ design sharing and joint marketing (advertising, web sites, PR, IR) this partnership will continue to work.