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Technology Stocks : Data Race (NASDAQ: RACE) NEWS! 2 voice/data/fax: ONE LINE! -- Ignore unavailable to you. Want to Upgrade?

To: drakes353 who wrote (29239)	7/27/1998 6:44:00 AM
From: Marshall	Read Replies (2) \| Respond to of 33268

>>>"Raise some cash, use it to go sue 3Com" It can take years and tons of money to do something like that effectively, they're going to have to show significant sales and/or close an alliance or two.

To: drakes353 who wrote (29239)	7/27/1998 7:22:00 AM
From: Dante Sinferno	Respond to of 33268

Data Race Successfully Completes $4,000,000 Private Placement SAN ANTONIO, July 27 /PRNewswire/ -- DATA RACE (Nasdaq: RACE) today announced that it closed a $4,000,000 private placement of convertible preferred stock and warrants. $2,250,000 was funded at the closing and each of the investors committed to purchase additional amounts totaling $1,750,000 of convertible preferred stock and warrants on similar terms by January 31, 1999, subject to certain conditions. The convertible preferred stock is convertible into common stock at prices determined by the closing documents, which include maximum and minimum conversion prices. Dr. W.B. Barker, President and CEO commented, "We welcome the new investors, including First Capital Group of Texas, a private fund co-managed by our Chairman. I believe this financing meets our objectives of providing an investment structure that better protects our existing shareholders' interests, strengthens the Company's financial position, and provides funding for the continuing development, sales and marketing efforts for the Be There!(TM) product line." About DATA RACE, Inc. DATA RACE, Inc. (http://www.datarace.com) designs, manufactures, and markets a line of communications products for remote access to the corporate environment. Its unique client/server product, the Be There! remote access system, gives teleworkers access to all elements of corporate communications networks. Through Be There!, teleworkers reach the corporate intranet, LAN and the Internet while sending and receiving e-mail, faxes and phone calls simultaneously over a single phone line. DATA RACE also designs and manufactures advanced communications subsystems for makers of notebook computers and network multiplexers that carry data, LAN, voice and fax traffic among a company's multiple offices. DATA RACE and the DATA RACE logo are trademarks of DATA RACE, Inc. registered in the U.S. Patent and Trademark Office. Be There! is a trademark of DATA RACE, Inc. SOURCE DATA RACE, Inc.

To: drakes353 who wrote (29239)	7/27/1998 2:57:00 PM
From: Alan Edgett	Read Replies (1) \| Respond to of 33268

So, Drakes since you were right (again)..help me out a little so I can learn...if you don't mind. Fortunately, I don't have a position so this really is academic. Let's see if I get this right... These "new" investors will be guaranteed a conversion that will probably be the lowest closing during the previous 30 days or something, so they have guaranteed access to something like 5 million shares (assuming a price of conversion of .50) sometime in the future. Between now and then, they try to pump the price up as high as possible...say $2.50 or $3 using PR,etc. whereupon they short 5 million or enter into an agreement with an institutional short seller to provide their 5 million shares when asked for a fixed price now. The selling causes severe pressure on the stock, the PR stops and the price falls to the needed level for conversion. So far so good? So they have between now and when RACE runs out of cash in november to pull-off the conversion, and, assuming my prices, would make anywhere from $2-2.50 X 5 million shares less commissions? So, their "risk", effectively is zero for any price over $1 assuming an eventual cost basis of .50? And management...for lack of a better term...is betting that between now and November sales will materialize, since they've virtually assured their stock will be at .50 by then. Hmmmm...Nice work if you can get it. edge P.S. Hey Fred...guess what livarkis (sp?) just made $40,000 for "helping" with the financing deal...c'mon man, it's time to quit our day jobs!!!