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To: Kathy Riley who wrote (40439)	1/7/1999 11:51:00 PM
From: KZAP	Read Replies (2) \| Respond to of 119973

I'm not sold on VRIO. (yet) Rev's up 400% but losses also way up! Insider selling, but that may not be all bad. I have to like their structure. JMO KZAP

To: Kathy Riley who wrote (40439)	1/8/1999 2:05:00 AM
From: JC Money - President of a Loca	Read Replies (3) \| Respond to of 119973

VRIO - Here's something to think about! I own a local Internet service company in Chicago and when VRIO bought out our upstream provider, their dedicated service went to HELL. They do not have a strong back bone like GTE, PSI or UUNET. I think it was probably a mistake for them to get their own backbone which I think is where their most of loss is coming from. As soon as VRIO bought WWA in Chicago, they lost about 40% their dedicated service customers - previous employee who is now working for me told me (they lost our business as well). However, they are probably generating positive cash flow in other departments such as web hosting and dialup service because all the local ISPs they buy out, in almost all cases, they are profitable. They have incurred tons of one time fee for buying out all these local ISPs but in about a year, it's going to pay out big time. Now, this is the big one which is the MAIN reason why I like VRIO. They bought HIWAY. To become a web hosting service provider, it costs A LOT less than an ISP. I don't know HIWAY's fianancials but if they weren't making a profit, they should have very minimal loss on their book. The fact HIWAY is the #1 hosting service in the U.S., tells me that not only they offer their service at a great price (there are some cheaper ones, too) but also carries technology that can add value to VRIO. Also, if I am not mistaking, HIWAY filed for an IPO last fall (I am 100% sure I saw this one on IPO central). This could still happen. If/ when it happens, remember UBID / MALL deal? This could actually be VERY similar!! I never liked VRIO before the deal with HIWAY but NOW, I am long on VRIO. Made a couple points today but am willing to hold this one for LONG term until some announcement comes out for HIWAY.