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Technology Stocks : Creative Labs (CREAF) -- Ignore unavailable to you. Want to Upgrade?

To: Derrick Lim Kok Fang who wrote (13290)	1/12/1999 8:49:00 AM
From: Rutgers	Read Replies (1) \| Respond to of 13925

Open Letter to Sim...... Just read Derrick's report of his conversation with you regarding your focus on PC related entertainment and I thought I would provide you with a little food for thought. As someone who has followed Creative's triumphs and failures for too long, I have the following suggestions: (1) Modify your focus: instead of "PC related entertainment", call it "PC-Internet related entertainment". (2) Use Creative Inspire as the vehicle to move this focus forward in today's global business world. As far as I know, no other PC Component related manufacturer has this type of vehicle - not that they couldn't launch a site - but you already have an established site. This is certainly an advantage over companies like Diamond. (3) Begin selling, i.e., e-commerce, everything related to "PC-Internet related entertainment" on Creative Inspire. (4) Examples of items to sell would include CDs, DVDs, MP3-MP4 players, other multimedia formats of music/videos, all PC related components, which of course would be high-end Creative products - because anyone interested in serious entertainment wants good quality. (5) here's the most interesting move: quickly spin Creative Inspire off through an IPO - I suggest letting Lucas Ward from Goldman Sachs handle it - he's been a good friend to the firm. Of course, CREAF would keep up to 80% of the spin off. (6) Once Inspire.com or CreativeInspire.com is spun off, you can go full guns in terms of spending the IPO funds with advertising dollars because internuts are not expected to make money anyway. This would also prove beneficial to CREAF's balance sheet because you would not have to show these losses. (7) Retain a MEGA-Recording Star(s) to distribute their next album on the Internet through Creative Inspire - thus cutting out one of the middlemen - the big record labels. If you would to discuss this matter further, please e-mail me. Very truly yours, Rutgers [e-mail address rutgers@cmpnetmail.com] Copyright (c) 1999 Rutgers All Rights Reserved.