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To: Scott R who wrote (1670)	12/15/1998 2:32:00 AM
From: Burt Roger	Read Replies (1) \| Respond to of 18366

For the music industry content providers and organizers (RIIA)the monies at risk are gargantuan. There will be many competitors out there with bragging rights about compression ratios and even co's. like Kobe and NTT will succeed. Neither of these 2 co's. are major forces like Intel and Lucent. Lucent has 24,000 scientists on their payroll (L.A. Times article on Cisco today mentions that figure) but they couldn't create a demo music product and design as quickly as NCII without spending an exorbitant amount of money and a lot of time. Intel's flash OS was no match for NCI's OS and they, like Lucent, sought to use and pay for and enter into agreements with NCI. Will Intel and Lucent win the race for the standards for music and will they take NCI to these levels of establishing a standard for music and voice over portable Internet devices? Time will provide that answer. In the interim, we've been chosen by 2 powerhouses in this field to provide our expertise in product design and hopefully manufacture in what may be one of the biggest markets for sound---music via the net and potentially home servers vs. CD's on home sound systems. These are not small achievements, but they need to be moved towards money-making contracts. The work done to date for Lanier required much more expertise than what will be required for music. When Lucent and Intel saw what Lanier got, it became very obvious that NCI knew more about digitizing sound for handhelds on various storage media than anyone else. I know that Sony, Creative Sound Labs, and Diamond MM are all in various stages of development for music players but if you were a content provider, would you pick any of these over an Intel-Lucent-NCI combo. Intel-Lucent-NCI offer skills in networking and routing and future CPU features, compression and sound transmission and very rapid development cycles at low costs. For those attending the annual meeting I expect much more information about the above dynamics will be shared. Happy Holidays and and best to all: