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To: James E Lynch who wrote (1675)	12/16/1998 10:24:00 AM
From: Walter Morton	Read Replies (1) \| Respond to of 18366

From: C=US/A=INTERNET/DDA=ID/wendy(a)norriscomm.com, on 12/15/98 12:52 PM: Thank you for writing. I have seen the press release you mentioned. The introduction of a competing product does not, in and of itself, consititute a threat to NCII's ability to meet the projections made by Renwick Corporate Finance. All of Norris' research indicates that this market is going to be popular, and it would be unreasonable to assume that there would be no competition to face in such a potentially lucrative market. The MicroOS(TM) Audio technology--originally called "Flashback Audio" in July 1997 when our first patent was filed on the product--is powerful and easy to use. We have every confidence that it will succeed when it reaches the market. Regarding the compression algorithms, Solid Audio claims an 18:1 rate of compression for CD quality sound. There were two potential configurations for MicroOS Audio mentioned in the Renwick report: i. a 22:1 compression ratio providing music at what is known as "near CD quality", ii. a 14:1 compression ratio providing music at CD quality sound. It is yet to be determined whether users will value speed over sound, i.e. will they be more interested in perfect sound quality that downloads more slowly, or a near-enough reproduction that downloads more quickly? Luckily, with Lucent's options for compression integrated with our technology, we will be in a position to offer a solution either way. I hope this information is helpful to you. Best regards, Wendy Ravenel At 11:44 AM 12/14/98 -0800, you wrote: comments = david.weekly.org Does NCII consider this a threat to its ability to meet the projections made by Renwick Corporate Finance. It seems that they have been working on this since before July 1998. NCIIdid not mention this to its shareholders until November 1998. How is their apparent lead going to affect NCII's ability to achieve its goals? Who has the better compression algorithm for CD quality? Please explain. ___________________________________________________ Wendy Ravenel Investor Relations Norris Communications, Inc. 13114 Evening Creek Drive South San Diego, CA 92127 (619)679-1504 (619)486-3922 FAX norriscomm.com investor@norriscomm.com