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Microcap & Penny Stocks : TEVE - TelVue -- Ignore unavailable to you. Want to Upgrade?

To: Sheri who wrote (16)	4/5/1998 3:38:00 AM
From: Jerry S.	Respond to of 195

Will do Sheri. Good question, would also be interested in knowing how demo was received. However, in looking more at financials & 10-K, the substantial balances owed to Lenfest is disturbing, considering his age at 67. Hell, just about the whole right side of the ledger is Lenfest! (although I understand there would be no TEVE w/o him) My point is, yeah, they have a moratorium agreement w/ him thru 1/99, but you would think it's time for him to start recouping his investment. If he were younger this wouldn't concern me as much. First concern is he could dilute the hell out of this co. thru the PS or the warrants in the near term although that wouldn't make sense for him to go that route until his post-diluted share value was at least equal to loans & int balances at that time of conversion or exercise. Could also redeem PS @ $2/share instead (whew! logically eased that concern quickly). Second concern is, being that happenings of first concern is hopefully improbable, the co. will soon have to step up payments on debt service & probably start redeeming the PS for cash and it is unlikely (again because of his age) Lenfest will lend anymore moola. A good question would be: does this co. need to incur any further substantial capital investments in order to increase revenues & profits vis-a-vis web-ordering or any other new marketing and technological implementations? And if so, how can they raise it? Certainly not thru profits, it'll all be going to Lenfest (deservedly so). We've now come full circle. The best scenario is that TEVE has all it needs now related to resources and just needs to sell, generate substantial increased revenues & profits, pay down Lenfest w/o dilution, and develop a positive book value (keep in mind, we are dealing with a co. technically "broke" by $5M; $8.5M if they agree to redeem PS in cash). IMO, the above scenario is the one and only one that makes this co. a winner. Does anyone agree or am I full of it?

To: Sheri who wrote (16)	4/7/1998 10:48:00 AM
From: Jerry S.	Read Replies (1) \| Respond to of 195

TO ALL: Reply of E-mail from F. Carcione, CEO Hello, Nice to here from someone interested in TelVue.ÿ In regards to some of your questions, I offer the following responses: 1)ÿ Our intention, currently, for Internet PPV ordering is to partner with various content providers such as WWF, WCW, Cyber Bouts, Prevue Networks, etc. to allow cable subscribers who visit their Web sites to also use those sites as an ordering vehicle.ÿ We intend to charge a monthly license fee and a per transaction or "hit" fee for those entities to facilitate Internet PPV ordering through TelVue.ÿ At this time, we don't anticipate an increase in overall buy rates.ÿ However, we feel as services, such as Web TV and World Gate gain penetration, monthly PPV buy rates could be positively impacted.ÿ Therefore, in the near term, we expect to see incremental revenue from the Web via sign up and monthly fees and long-term revenues from increased buy rates.ÿ Additionally, we are negotiating with HBO and Showtime to utilize our ordering site for instant upgrades via the Web for cable subscribers.ÿÿ Our recent demo at the CTAM National PPV Conference in Los Angeles caused quite a stir among cable system personnel and content providers and appeared to be the talk of the conference. 2)ÿ We have forecast for 1998 the following: ÿÿÿÿÿÿÿ 1,244,000 new addressable subscribers ÿÿÿÿÿÿ $6,989,441 in Gross Revenue (does not include Internet orders) ÿÿÿÿÿÿ $4,245,916 Gross Profit ÿÿÿÿÿÿÿÿÿ $970,498 Net Income ÿÿÿÿÿÿ $1,800,000 Loan Repayment to H.F. Lenfest 3)ÿ At this time, Mr. Lenfest has no intention of converting his preferred stock. I would be happy to speak with you personally, at any time.ÿ You can reach me at (609) 273-8888 or visit our web site at www.telvue.com. Thank you Frank J. Carcione President & CEO TelVue Corporation fcarcione@telvue.com