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To: manohar kanuri who wrote (384)	12/21/1998 8:11:00 PM
From: Alan Casey	Read Replies (1) \| Respond to of 1989

My read of the press release is that Dragon will be issuing shares from treasury, which will serve to dilute SEG, but certainly neither take them out or provide them with any funds. Question: Why would SEG not provide the funds itself? It has the capacity, I don't think having Dragon as a public co. will significantly enhance SEG's market valuation (not big enough a deal). Am I missing something ?

To: manohar kanuri who wrote (384)	12/21/1998 8:32:00 PM
From: William Epstein	Respond to of 1989

Kanuri; All the questions about Dragon are justified and we don't have enough information to give us the answers. However, having learned a little bit about voice recognition software; what I learned is that even the most sophisticated software and hardware can only equal the language skills of a 3 year old. We still have a long way to go. If Dragon does the right kind of R & D it has a very bright future for a long time to come. Maybe, that is where we should focus? Does anyone know anything about its current R & D? We already know about its current software. As Einstein said," First you must form the right question." PHOTOMAN