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Technology Stocks : VocalTec (VOCL) -- Ignore unavailable to you. Want to Upgrade?

To: STK1 who wrote (1640)	7/10/1998 10:29:00 AM
From: Don Walster	Read Replies (3) \| Respond to of 2349

Hi Charles and Ariella! The email response from VocalTec is attached. They express mild disappointment that ACCR chose NSPK,"for the time being, at least". She says that their relationship with ACCR is still very good, so this may change. They point out that the revenue from ACCESS POWER was not material. They refer to new ensemble architecture from 3.x gateway product line to 4.x and 5.x gateway product lines. I did not understand the relevance of this, unless VocalTec's primary target is something different from that which NSPK got. Kindest regards, Don subject: Re: ACCR? Date: Fri, 10 Jul 1998 07:24:19 -0500 From: "Claudia Gatlin"<Claudia_Gatlin@vocaltec.com> To: don I was out of the office yesterday afternoon and just now saw your inquiry. Yes, this release does indicate a change. For the time being at least, Netspeak did manage to get this account away from VocalTec. There were a number of contributing factors, as there always are in these situations, and it's not practical for me to go into all the specifics. But I can tell you that the fundamental issues related to the timing of VocalTec's transition from the 3.X gateway product line to the 4.X and 5.X product lines (which are based on the new Ensemble architecture). While management is certainly disappointed and considers every customer relationship important, I would caution you against overreacting to this particular item and to bear in mind the following: 1) The revenue from Access Power was not material to VocalTec's results for either 1997 or the first half of 1998; 2) This is very situation-specific and should not be the basis for any conclusions about VocalTec's full product line or its strategy; and 3) As the market leader, everybody is shooting at us. Therefore, we can't really blame Netspeak for wanting everyone to know that they grabbed this one, but please note that the release your referred to was made solely by Netspeak -- not Access Power. It was not even a joint release, nor did it contain so much as a single quote from anyone at Access. We believe this indicates that Access recognizes that VocalTec will be around for a long time and that they do not want to close any doors permanently. There are no "hard feelings" between the two companies and VocalTec and Access Power remain on very good terms. In such a dynamic market that is moving so rapidly, a certain amount of switching back and forth between vendors is to be expected, and it's only logical that, as the market leader and the people to beat, we'd be the primary target . This is not meant to imply that VocalTec management is taking this lightly; I assure you they are not. As always, please feel free to phone me at 212-830-9080 if you have further questions. Best regards, Claudia Gatlin