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Technology Stocks : SI Diamond Technology (SIDT) -- Ignore unavailable to you. Want to Upgrade?

To: Joe Master who wrote (182)	3/3/1998 4:44:00 PM
From: Jim Armstrong	Read Replies (2) \| Respond to of 623

To: Joe Master From: Jim Armstrong Tuesday, Mar 3 1998 4:16PM EST I got the following additional information back from Sara Breuer at SIDT. -- JimA I asked two questions. (1) was the news release correct in referring to LCD technology? And (2), since SIDT is generally recognized for FED-based technology, how does the LCD wrinkle fit in?. In particular, is LCD being added to the technology base, and/or is FED being used as a backlight for the devices being produced. She answered: 1) Yes, the release was announcing an LCD product we developed with/for TDS. 2) LCDs are part of the technology focus of Electronic Billboard Technology, our subsidiary that uses existing display technologies for electronic signs and billboards. SI Diamond is a holding company with three subsidiaries. Diamond Tech One (DTO) concentrates on bumping services for wafers. EBT uses digital technologies of all kinds, but particularly LCDs with our proprietary technology that makes them sunlight-readable, for signs and billboards. Field Emission Picture Element Technology (FEPET) is the subsidiary that is working with field emission displays, developing them for future flat panel display and other products. I hope that explains a bit of the strategy behind each of our subsidiaries. Because FEPET's products are still in the development phase, we created EBT to take advantage of and to modify existing technologies to what we feel are large potential markets. Your understanding of our methods is correct. Thanks for your interest! In a prior communication, Sara responded: Our agreement with Texas Digital Systems has been amended from a purchase agreement to a royalty agreement. This means that, instead of TDS ordering completed displays (with electronics, interface, packaging, etc.) from us, they will pay us a royalty for the use of the technology (hardware and software) in the displays and manufacture it themselves or through their vendors. As I'm sure you're aware, the nature of business is such that agreements between companies evolve and grow as projects progress. As we developed our relationship with TDS and as the products developed, it became clear that a royalty agreement was more appropriate. From our point of view, we will get revenues without the burden of manufacturing costs. From TDS's point of view, they already have manufacturing lines and vendors set up and can probably achieve cost and time savings more easily under their own line. This agreement is for this particular set of products only, and for the fast food industry only. It does not preclude us from making similar products for other markets, or from using the technology (hardware and software) in completely different products. I hope this answers your questions, but if you have more I'd be happy to try to answer them. Regards, Sara Breuer Corporate Communications Manager SI Diamond Technology, Inc. voice (512) 250-2702 fax (512) 250-2807