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To: SE who wrote (14183)	5/29/1998 2:02:00 PM
From: Andrew Vance	Respond to of 17305

AV--I am sure you saw today's news release excerpted below along with the previous stories on the ongoing Nomai litigation. Friday May 29, 8:30 am Eastern Time Company Press Release Iomega's Buz Multimedia Producer Gains Industry-Wide Acceptance ROY, Utah--(BUSINESS WIRE)--May 29, 1998--Iomega Corp. (NYSE:IOM - news) Friday announced that only six weeks after it began shipping the company's Buz(TM) multimedia producer, it has gained the number two position in the industry for video capture (according to the PC Data Hardware Report, March 1998) and industry-wide acceptance for professional quality video capture and editing board capability. The product, a combination of video capture card, Ultra SCSI controller and software suite, enables the user to get multimedia from camcorders, digital cameras, DVD-ROMs, CD-ROMs, VCRs and laser disc players into a PC for under $200 (estimated U.S. street price). Not only can the user store multimedia content on their PC with Buz, they can also customize that content. Large corporations with their own business television networks who broadcast nationally or worldwide could use Buz multimedia producer, to complement or replace their existing suite of multimedia tools. Buz offers an integrated solution at a low price, and offers most of the functionality required by professionals. According to Andrew R. Soderberg, president of Merlin Media Inc., a multimedia production company, Buz produces professional quality video. In the professional multimedia/video production industry, it is very important to maintain the highest possible quality of content throughout the production process. ''No amount of production magic can correct for poor source material, or for content,'' says Soderberg. Merlin Media Inc.'s evaluation of Buz was based on three levels of A/V production quality commonly accepted in the industry: Consumer/Prosumer grade, Professional (Industrial or Corporate) quality and Broadcast quality. Using a wide range of video source material, Soderberg and his video engineer tested Buz's MJPEG compression. ''Buz held its quality consistently from scene to scene,'' claims Soderberg. When used with a properly rated hard drive, they were able to digitize at over 180 Kpf, well above the minimum level for professional quality use. In the enterprise, Buz can be used as part of a videoconferencing system, for digitizing video for editing and output to digital analog tape, for digitizing video for distribution on CD-ROM or for capturing video for MPEG-1 format. Buz multimedia producer provides high-quality multimedia applications for professional use without the high cost of production studios. Buz can be used to create multimedia productions for human resources, investor relations, marketing communications, sales, internal training, CAD/CAM/CAE and product development. From video storyboards to in-house training videos, Buz allows easy production of high-quality multimedia applications for use in every department of a company. Buz has already received recognition in the professional world for its outstanding multimedia capabilities. In April at the National Association of Broadcasters' (NAB) conference, Buz received the ''1998 Pick Hit'' award by Video Systems magazine. NewMedia magazine then gave Buz it's highest rating ''Awesome'' in the April 14, 1998 issue after Buz was tested in NewMedia's Lab. PC Computing followed in its May 1998 issue and gave Buz a five-star award, singling it out from other video-editing devices because ''it breaks the external video-capture mold, producing higher- resolution video at a rock-bottom price.'' ==== I took a defensive position in IOM to maximize profits or to minimize future losses. With 2 executives resigning (CEO and CFO), the company is rudderless and without clear direction. With all the times that I did not participate in the IOM roller coaster, I decided to back this puppy on what I though to be the bottom of another ride up. I still have confidence in this company and am looking for a $12 target down the road. I do not think the BUZ will bring the company back to full value but I do think we have yet to see the financial impact of the OEM integration of the Zip or Jaz drive into the PC marketplace. I cannot help to think that the 3.5" disk drive is getting close to obsolescence like the old 5.25" floppy disks. Every week I am seeing sales on 3.5" diskettes that are practically free. As a matter of fact, there are places where you can get a box of 50 diskettes with a rebate coupon equal to the purchase price. The 3.5" drive itself runs anywhere from $35-$60 making the transition to a $99 Zip drive very attractive. The final nail in the coffin for the 3.5" disks are both the capacity (70 3.5" diskettes to every Zip disk) and the inability to transport large graphic or .wav files on a single diskette. The LS-120 and Syquest drives are making more inroads that I would have anticipated but I still believe that IOM shareholders will benefit as the 3.5" disk drive is replaced with Zip or Jaz drives as standard equipment on new PCs. Andrew The only negative aspect is if the implementation of re-writable CDs becomes mainstream on an accelerated timetable or full functionality for DVD technology. These are still more costly scenarios though.