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Technology Stocks : XYBR - Xybernaut -- Ignore unavailable to you. Want to Upgrade?

To: FJ who wrote (2284)	3/16/1999 1:50:00 PM
From: Bill Fischofer	Respond to of 6847

Thanks for the heads-up on ICWC'99 Should prove very interesting. The spike last May coincided with the '98 conference. I somehow doubt if the '99 conference will be something to snooze through.

To: FJ who wrote (2284)	3/17/1999 12:56:00 AM
From: FJ	Read Replies (1) \| Respond to of 6847

Here's a little excerpt from the 5/15/98 CNBC interview that I think some people are referencing. Maybe this will help clarify some things. Be sure to read the whole thing as they ask about the financing and then come back to it. Mark: David Faber. David: Mr. Newman, just a question about the good 'ole balance sheet and stock sales. I think the company filed a registration statement from sale of 3 million shares. Can you explain who was selling those shares, what the cost of the sales were and are insiders in fact selling stocks they got at $1.50. That's been explained to me, but I'd like you to clarify. I can state emphatically no shareholder I know of has sold a registration stock. We were doing additional fundings. One thing that a company like Xybernaut needs is financial resources in order to do a major go-to-market launch this fall. Mark: Are you using puts in that financing? I am not prepared to say at this point. Mark: I see. David: What can you tell about that financing then? My understanding was that there was stock that may have been purchased by maybe, not insiders, but other people at $1.50 a share that is in fact being sold. Is that incorrect? As far as I know the only thing that could have been sold would have been private placements private convertible stock. Mark: Now you, some of this technology is owned by....I'm sorry. Oh here it is. University of South Hampton in Britain. Is that correct? No. University of South Hampton is associated with a company in the U.K. They produce an engine that provides hyper linking. Xybernaut has licensed that product and integrated speak to allow you to automatically hyperlink across anybody's data, across anybody's platform and without affecting the actual source data and at the same time we've allowed people to link across multiple databases and fails in any format over 400 and speech enabling it at the same time. Mark: Let me ask you this though. It's my understanding that the license is a revenue-sharing deal. Is that correct? Yes. Mark: And how much of your revenue will therefore not be retained by you under this arrangement? Probably around 20% or 30% will not be reclaimed from the sale of this software product which we call Link Assist. Jim Rogers: Mr. Newman this is basically a miniature computer. Other people are miniaturizing their computers and putting them on a belt. Basically we have a strong intellectual property position. Our director of patents and licensing was director of patents and licensing for Xerox corporation. And he built their strong patent portfolio which kept them in a very dominant position for years. We're doing the exact same thing for Xybernaut in the area of wearable technologies. We have patents worldwide. Mark: Your unit's going to sell for about $5 000; Is that correct? We'll have an MSRP of $4995 for a complete system. Mark: This will pay for itself. You'll gain more in productivity than you're spending on the machine right? In some of the test cases these things have paid for themselves inside of a month. Mark: Joe Kernen wants in. Joe: Thanks Mark. One more question. On the three million shares registered spreads from the offering. 100% go for corporate purposes not to the private, if it was a private placement in a convertible you wouldn't get the spreads. Did the company get the spreads? Absolutely 100% goes to the company goes to product planning and marketing. Joe: Okay. Mark: Mr. Newman thank you very much. We look forward to watching this evolve. You're going to see a lot of action. Thank you. (end) Personally: my thanks to Phil Young for his help with this. Regards, FJ