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Technology Stocks : Zitel-ZITL What's Happening -- Ignore unavailable to you. Want to Upgrade?

To: Kathy Riley who wrote (16505)	7/12/1998 3:02:00 PM
From: Ruyi	Read Replies (2) \| Respond to of 18263

M/D, Zitel announced early last year they didn't make the tech. breakthrough they had hoped for as I recall. This resulted in a key director resigning and commenting (as reported on CNBC) that they(the team) may use the fully automated solution of a San Fran. based Y2k. company.The point I'm trying to make is whatever work they (the team) may get it is likely going to be contracted to third parties.Sorry if I was not clearer in my previous post. Zitels stock price early in 97 reflects this development, or lack of in this case IMO.

To: Kathy Riley who wrote (16505)	7/13/1998 11:39:00 AM
From: Marconi	Read Replies (1) \| Respond to of 18263

Hello Kathy Riley: Zitl owns 1/3 MD I agree Zitel has an 1/3 interest of some nature in Matridigm, but that interest is not a simple interest--the actual interest remains obscure after several reviews by capable and experienced people as noted in this forum more than a year ago, as it remains so today. It is clear to date whatever that interest is it has not shown up as any revenue to Zitel--that is more than 6 quarters straight. To fill the gap to ZITL market capitalization, a flow of cash from MD would have to far exceed $10M per month, and with Zitel's persistent spendy habits, more than $20M a month would be more realistic. Zitel cannot be a going concern without profitability in at least one of their many activities, all of which remain net consumers of cash and ultimately, the remaining shareholder equity. If any one of Zitel's operations were profitable, they could liquidate everything else and remain a business entity, but at this point, I have seen nothing whatsoever that changes the picture that Zitel is in the death throes of business failure. Best regards, m