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To: Tom Hoff who wrote (3558)	4/16/1999 8:54:00 AM
From: fred whitridge	Read Replies (1) \| Respond to of 8393

Tom Hoff: Nice post on market prediction for DVD-RAM drives (see I typed an acronym!) Lets see. 9,000,000 drives which use maybe 10 discs per year at $10 out of the factory times a 1% royalty is ummmmm, $9mm to ECD. and then there is CD-RW and all the other fancy hunks of alphabet soup you guys throw around.... Would be nice if ECD would confirm what the royalty rates are on phase change media. Why is this such a big secret? Battery royalty rates seem to be widely known...

To: Tom Hoff who wrote (3558)	4/16/1999 11:21:00 AM
From: Don Devlin	Read Replies (1) \| Respond to of 8393

Razor blades not the razors! Please notice the date on the following correspondence between Steve Hudgins and me. (Tom it has taken a long time but it's real, now.) X-POP3-Rcpt: ddevlin@ringo From: OVONIC@aol.com Date: Wed, 18 Oct 1995 14:35:20 -0400 To: ddevlin@loop.com Subject: Phase Change Don, I really appreciate your continuing interest in our company and its technology so you should never fear that your questions "interfere with work." In fact, we greatly benefit from the information you send us by e-mail. Regarding your question, ECD receives royalties on media only since our patents are directed to the basic materials and device designs. We are very pleased with this arrangement focussing on the "razor blades" and not the "razors." Best regards, Steve Hudgens