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Microcap & Penny Stocks : Tech Squared (TSQD)- Internet Commerce -- Ignore unavailable to you. Want to Upgrade?

To: Smart_Asset who wrote (218)	4/30/1998 10:08:00 AM
From: M. Frank Greiffenstein	Read Replies (1) \| Respond to of 2752

DR paying some $$ to TSQD now... Digital River is paying TSQD for use of staff and resources as we speak. It is not much money, but it goes to show that the two ocmpanies are symbiotic. In addition, TSQD reports DR revenues and profits(losses) on its own operating statements as a proportion of its minority interest. So if DR is profitable this year, 23% of earnings fall to TSQD bottom line. DocStone

To: Smart_Asset who wrote (218)	4/30/1998 9:22:00 PM
From: Brian K Crawford	Read Replies (1) \| Respond to of 2752

Hey, Tamson. <<Do you think a successful offering for Digital River would have any possible additional benefits to Tech Squared other than as a liquid asset? ie direct participation in profits, merger, warrants to stockholders or options or.....>> I see the realization of the full value of the 4,800,000 share option as the main benefit. It's possible TSQD could become a software distributor of Digital River. No home run there. I don't believe TSQD or Mr. Ronning can legally compete against DR... TSQD can continue to record its 23% share of earnings/losses of DR. Right now that is mostly losses... This is a very odd situation to me, with Mr. Ronning controlling TSQD but basically stepping aside from day-to-day management, there. Why did he assign an option on 4,800,000 share to TSQD for $1? If that is where the home run IPO is to be hit, why didn't he just do it? All I have been able to speculate is that his fiduciary responsibility to TSQD shareholders required that they be cut in on the deal. He still has 53% of TSQD, and an unknown quantity of DR shares, but I wouldn't be surprised if his DR holdings are 5-10% of the total. I will be trying to evaluate DR as a stand alone investment as we approach the IPO. My preference would be to own a pure e-commerce software play, rather than a piece of a Mac distributor that owns a piece of a pure play....but as my old 8 ball fortune teller used to say "answer not clear...ask again later". <<Do you have a current position?>> Yessir, I am a long. Got interested when I saw that another of my long positions, Cendant, had signed to distribute all their software thru the Digital River network. (My gains in TSQD just about offset my losses in Cendant, but that's another story...) Good luck, Brian