ST Report: 16-Dec-97 #1351

From: Bruce D. Nelson (aa789@cleveland.Freenet.Edu)
Date: 01/12/98-05:04:15 PM Z


From: aa789@cleveland.Freenet.Edu (Bruce D. Nelson)
Subject: ST Report: 16-Dec-97 #1351
Date: Mon Jan 12 17:04:15 1998



                                     
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>From the Editor's Desk...


     Happy New Year!  With that salutation comes all the best wishes for a
Healthy and Prosperous New Year to all our readers.  It's difficult to
believe we've been around for ten, going on eleven, years now.  I might
add, its still a bunch of fun doing STReport.  With successful offshoots
like Amiga Report which began humbly, as a section in STReport, so long ago
it seems like an Eternity.  Computing has come a long, long way since those
days.  In looking back, its easy to see the "good guys" and the "bad guys"
well. not really bad just more "notable" than those who simply worked at
doing a great job and making little or no waves.

     Some are still around.  Unfortunately, some of the "notables" are too.
But in these times they're so busily involved in their own survival that
they become lost in their miniscule worlds.  No more power struggles,
"Napoleonic" Efforts at platform control and of course the most
aggravating, the behind the scenes backstabbing.

     At about ten am Wednesday Christmas Eve. BellSouth lost two main T1
64kbit trunk lines as a direct result we, and two thirds of NE Florida lost
all digital internet service.  It was not restored until noon today,
Saturday, December 27, 1997.  Thus the late issue.  It proves they're human
too.  Happy Holidays to all.





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                     Top Gun Hired for Microsoft Case

New York super-lawyer David Boies reportedly has been hired by the U.S.
Justice Department to help the government in its antitrust case against
Microsoft Corp.  The Washington Post comments this morning that the
government's decision to hire Boies signaled its determination to win its
case, quoting Joel Klein, a top Justice Department antitrust official, as
confirming Boies was on the  government's payroll and would work on the
Microsoft case, but declining further comment.

Meanwhile, Boies told the paper he has been working for the Justice
Department for about a week  and a half and that it is too early to
determine what his role will be, adding that he will charge the government
about half his usual rate of $550 an hour.  As reported earlier, the
government has asked U.S. District Court Judge Thomas Penfield Jackson to
hold Microsoft in civil contempt and fine the software publisher $1 million
a day for allegedly violating an order the judge issued last week barring
it from tying sales of its Windows 95 operating system to its Internet
browser.

                      Judge Disputes Microsoft Claim

Federal Judge Thomas Penfield Jackson told his court yesterday he was able
to quickly remove the Internet Explorer browser from his Windows 95 system,
seeming to dispute Microsoft's contention that the system wouldn't perform
properly without the program.  The procedure took 90 seconds and, said
Jackson, "Windows 95 functioned flawlessly as it was intended to operate."
Associated Press writer John D. McClain quotes the judge as saying he had a
courthouse technician showhim how to remove IE.

Nevertheless, Jackson has scheduled Jan. 13 to hear "designated
spokespeople" from both the Justice Department and Microsoft Corp. argue
the question of whether the two programs can be separated without impairing
their operation.  As reported earlier, Jackson issued a preliminary
injunction Dec. 11 ordering Microsoft to quit requiring manufacturers to
distribute the Explorer browser program as a condition of installing its
popular Windows operating system on personal computers. The Justice
Department has asked Jackson to hold Microsoft in contempt of court in the
case.

Brad Smith, Microsoft's associate general counsel, told AP his employer
welcomes the January hearing, noting, "This is an issue of high technology.
It is important that the court have the opportunity" to hear from technical
experts rather than lawyers.  Said Smith, Windows has 14 million lines of
computer code, more than the Federal Aviation Administration's air traffic
control program, and "we simply can't slice and dice it with a legal meat
cleaver."  As reported earlier, the Justice Department has hired
high-profile New York lawyer David Boies to help with the case.

                     Microsoft Charges DOJ Turnaround

Microsoft Corp. claims that new U.S. Department of Justice filings prove
that the Internet Explorer browser is an integral part of the Windows 95
operating system.  According to the Reuter News Service, Microsoft says the
DOJ has reversed itself by "essentially admitting" that software code
embedded in Internet Explorer 3.0 is essential to allow Windows 95 to
function properly."

Reuters notes that Microsoft has also replied to a Justice Department
motion opposing its request for an expedited appeal of the judge's order.
"We are disappointed by the government's attempts to delay resolution of
these issues," commented William Neukom, Microsoft's senior vice president
for law and corporate affairs, in a prepared statement. "We think it is
important to resolve these matters as quickly as possible."

                       Bob Dole Goes Anti-Microsoft

The expanding campaign by Microsoft Corp.'s rivals to curb the software
giant's entry into Internet businesses has a new ally. Former Senate
Majority Leader Bob Dole has been sending letters and calling companies
seeking support for the effort.  The 1998 presidential hopeful is part of
what The Wall Street Journal this morning characterizes as "a nascent but
growing lobbying effort that goes far beyond issues raised by the Justice
Department's antitrust case against Microsoft."

Journal reporters Michael Schroeder and Bryan Gruley comment, "While
competitors and groups fearful of Microsoft's growing Internet influence
may be sympathetic to anti-Microsoft forces, many are reluctant to join a
public campaign," adding that Dole represents several Microsoft rivals,
including Netscape Communications Corp., Sun Microsystems Corp. and Sabre
Group Holdings Inc., a Dallas-based airlines reservation system.

The paper quotes Dole in a recent letter to one company as saying, "In the
coming months, we will need to educate the public, the administration, and
Congress about the dangers of a laissez-faire attitude toward Microsoft. I
am personally convinced that if nothing is done now, it will become
increasingly difficult to have fair competition in the years ahead. That is
why we will need companies like yours to help finance and support our
efforts."

A person close to Dole told the paper the former senator has been involved
in the effort for about six weeks, has contributed significantly to
campaign strategy and has contacted more than a dozen companies that either
compete with Microsoft or would be affected by the software maker's
expansion into new businesses, such as securities firms. So far he has
recruited at least six firms to join the campaign, said the unidentified
source.

Meanwhile, Washington public-relations firm Powell Tate has approached more
than 20 trade groups representing the banking, newspaper, broadcasting,
retail, real-estate, travel and securities industries, Schroeder and Gruley
report, adding, "Powell Tate has been giving prospective supporters
three-inch-thick binders outlining Microsoft's plans to expand into those
industries."

Dole's letter continues, "As you know, I have never been an advocate of
overly aggressive antitrust enforcement. I am nonetheless convinced that,
if we are to maintain a competitive electronic marketplace, we must enforce
our existing antitrust laws to ensure that no one company dominates the
Internet and access to it."

As noted, sparking the high-profile battle is the Justice Department's
contention that Microsoft violated a 1995 consent decree by requiring
personal-computer makers to distribute its Internet browser -- software
that helps people navigate the Internet -- as a condition of installing its
popular Windows operating system. The government contends Microsoft is
illegally extending its monopoly in Windows software to Internet software.
Microsoft denies the charge.

Publisher Note: Above, we See Bob Dole at his very best in politicking..  A
scant year ago he had no clue as to what the INTERNET was all about let
alone Microsoft.  Dole is Dole... a coat-tail rider.  This matter has, with
the entrance of Dole, who by the way is busy soliciting corporate donations
from those corporation who join the "campaign against Microsoft," become a
"political football".  Keep in mind the miserable failure of the government
when it went up against AT&T.  AT&T today is BIGGER than ever and is very
busy buying back up all the Baby Bells.

                        Microsoft Challenges Judges

In what analysts say is a risky move, Microsoft Corp. is attacking Judge
Thomas Penfield Jackson, arguing he engaged in "improper" extrajudicial
fact finding in his hearing of the government's antitrust case against the
software publisher.  The company also says it is concerned that a Harvard
law professor Jackson appointed to help decide the case may be biased.

Reporting for the Reuter News Service, writer David Lawsky found lawyers
differing on whether Microsoft's approach was a smart one, "but all agreed
the company may alienate the judge who has long-term control over the
interpretation of a 1995 consent decree governing the company's actions."
As noted, the U.S. Justice Department has gone to court contending
Microsoft is violating the consent decree -- designed to ensure competition
in the computer industry -- by tying sales of its Windows 95 operating
system to its Web browser. The case has quickly exploded into a series of
filings and counterfilings.

Now Microsoft has filed two motions telling Judge Jackson he should not
hold the company in contempt of court, mostly repeating arguments it has
made before. But, says Lawsky, "it saved some of its harshest words for the
second filing, in large part concerning Jackson himself." For instance,
Microsoft:

Notified the U.S. Court of Appeals for the District of Columbia it will ask
it to overturn Jackson's decision to appoint a "special master." Jackson
appointed Harvard law professor Lawrence Lessig, a specialist in computers,
to advise him on facts and law in the case.  Contended Jackson acted
improperly when he watched a demonstration that appeared to easily remove
Microsoft's Web browser from a computer in 90 seconds.

"The district court's experiment was conducted without prior notice to
counsel and without participation by the parties," the company said in its
brief. "Such 'extrajudicial fact-finding by a judge is improper because it
cannot be tested by the tools of the adversary process. This case shows why
judges should not engage in such extrajudicial fact-finding."  Antitrust
lawyers told Reuters they found the attacks by the company unusual.

Said Steve Newborn of Rogers & Wells in Washington, "Microsoft is just
flailing out at everyone in sight, hoping to hit some pay dirt somewhere. I
think that if you don't like the decision, you attack the judge. That's
clearly Microsoft's philosophy."

Steve Axinn of Axinn, Veltrop & Harkrider in New York, notes Microsoft
succeeded in getting the case transferred to Jackson three years ago from
U.S. District Court Judge Stanley Sporkin, under the orders of the
appellate court. He said the firm now appears to be laying the groundwork
in an attempt to remove Jackson as well.

However, Axinn added, Microsoft officials "may wearing out their welcome
with the D.C. Circuit Court of Appeals. This is not the way to influence
people."  On the Lessig matter, Microsoft has filed documents writing the
professors writings and published statements as evidence of a possible bias
that would render him unfit to serve as special master in the antitrust
case.

Reuters says Microsoft noted Lessig:

Had predicted the government would become more deeply involved in
regulating computer software.
Recently wrote an article in a legal journal "implying that the company is
a threat to political freedom" because of its tight control over software
code.

Said the filing, "These preconceived notions that Professor Lessig
apparently has about Microsoft and the government's proper role in the
development of software products present a compelling basis for objecting
to Professor Lessig's appointment as a special master."  Microsoft argued
that the appointment of a special master is permitted only in "exceptional"
conditions not found in the current case. The publisher also said it was
typical for both sides to get a chance to nominate special master
candidates or at least review their background and object before an
appointment.

                       Programmer Battles Microsoft

It's David and Goliath in cyberspace. A North Dakota programmer is
complaining to federal officials that Microsoft Corp. is forcing him to
promote the software giant's Internet Explorer Web browser.  Brian Glaeske
of Fargo contends Microsoft effectively requires him to
provide its Web browser in his accounting software, which has nothing to do
with the World Wide Web or the Internet.

Writing to Joel Klein, the Justice Department's top pursuer of antitrust
allegations, Glaeske says, "Microsoft should not be permitted to force
third party developers to redistribute Microsoft Internet Explorer in order
to use (new) features."  Covering the incident for the Reuter News Service,
reporter David Lawsky characterizes Glaeske as "a small fish in the Web
browser wars," but says his complaint, "one of many received by the Justice
Department, demonstrates why Justice is doing battle against the world's
biggest technology company, in a fight that could determine the future of
the software industry."  Like many programmers, Glaeske writes his software
to run on the dominant Microsoft Windows 95 operating system. Microsoft
regularly distributes improvements to its Windows 95 operating system over
the World Wide Web.

"Earlier this year," says Lawsky, "Glaeske learned of an updated version of
a common control dynamic link library, COMCTL32.DLL, with nifty new
features such as a 'time-date picker,' a small window that permits users to
click on times or dates, instead of writing them out. But Glaeske became
unhappy when he discovered the updated software for Windows 95 was no
longer distributed independently, but was now in Microsoft's Web browser."
Reuters says Glaeske easily removed the software from Internet Explorer,
but found Microsoft prohibited him from redistributing that.

(Microsoft's licensing conditions are outlined on a Web page often perused
by independent software writers at
http://www.microsoft.com/permission/copyrgt/cop-soft.htm  freq .

Meanwhile, Mike McCue, vice president of technology at Microsoft rival
Netscape Communications Corp., told the wire service if Microsoft
distributes its operating system updates through Internet Explorer "that's
a big, big problem ... Microsoft is fundamentally changing the way they do
business."

Microsoft officials contend the latest COMCTL32.DLL had not been
distributed by itself because it was unstable that way or would have
damaging interactions with other programs.  David Cole, vice president for
the company's Internet client and collaboration division, said after
considerable testing and development, Microsoft engineers broke out
COMCTL32.DLL.

Said Cole, "It took substantial test effort to strip it out" of Internet
Explorer and make it stable.
Glaeske told Reuters he had easily stripped out the code and found it
stable. But another independent programmer who had made no tests himself
said Microsoft could be right that the code was unstable.  Nonetheless, the
code was now available separately on the Web, as Glaeske had wanted.  "We
said it would be available before the end of the year," Cole said. "It's
already posted on the Web."

Glaeske said he was never notified and -- more importantly -- could not
find the separate COMCTL32.DLL on the Web.  One week after that a Microsoft
spokesman said the code had been posted in an area where Glaeske and other
programmers would not normally look, but that it was now available as a
stand-alone product and could be shipped by itself. He said the site was
http://www.microsoft.com/msdn/techsite/.

                      Microsoft Stock at 7-Month Low

Wall Street is not happy with the bad publicity generated by Microsoft
Corp. and its current antitrust fight with the U.S. Justice Department.  he
company's stock has fallen to a seven-month low, down $4.375 yesterday to
$118.94.  "In my opinion the stock is trading in direct response to the
legal  activity," analyst David Readerman of NationsBanc Montgomery
Securities told reporter Martin Wolk of the Reuter News Service. "As the
legal action between the U.S. government and Microsoft is intensifying,
investors are heading to the sidelines."

As reported yesterday, analysts are terming "risky" Microsoft's latest
tactic, to criticize U.S. District Judge Thomas Penfield Jackson and to
call into question his appointment of Harvard law professor Lawrence Lessig
as a special master in the case.  Wolk notes Microsoft is up 44 percent
from last year's close of $82.625 -- and some of the recent activity has
been attributed to profit-taking ahead of what is expected to be a year of
slow growth -- "but Microsoft has fallen 19 percent since Dec. 8, just
before an order by Jackson triggered a flurry of legal activity in the
conflict between the Redmond, Wash.-based company and the U.S. Justice
Department."

                          Net Subsidies Draw Ire

Powerful House and Senate representatives are concerned that subsidies for
schools, libraries and rural health care facilities to hook up to the
Internet were not publicly debated before the were adopted by regulators
last week.  The Federal Communications Commission has been asked by Senate
Commerce Committee Chairman John McCain (R-Arizona) and House Commerce
Committee Thomas Bliley (R-Virginia) to provide detailed information
involving communications leading up to the Dec. 16 decision in which the
FCC agreed to slow the phase-in of its Internet program.

Associated Press writer Jeannine Aversa notes the FCC agreed to provide
$625 million in subsidies to schools and libraries and $50 million to rural
health care providers for the first half of 1998. Later next year, the FCC
will consider what to do for the second half of 1998.  As reported earlier,
the FCC said last May it would provide schools and libraries with a maximum
of $2.25 billion a year in subsidies and rural health care providers with
up to $400 million a year.

McCain and Bliley's Dec. 19 letter notes, "The lack of public notice and
participation calls into added question the reasonableness" of the FCC's
decision.  Aversa says FCC Commissioner Harold Furchtgott-Roth dissented
from the decision last week on the grounds that it wasn't publicly debated.
But FCC Chairman Bill Kennard at the time rejected that, saying the new
subsidies were adequately discussed and that the FCC received more than
110,000 pages of public comments on the matter.

Also last week, the FCC rejected Bliley's request that the FCC not begin
collecting money from telecommunications companies to pay for the Internet
program on Jan. 1. Bliley has raised concerns that it would raise
residential phone bills. Kennard has said it won't.  "By not addressing the
matter in its order," says Aversa, "the FCC left it up to
telecommunications companies to decide whether to detail on phone bills
various subsidies, including those for schools, libraries and rural health
care, that are built into phone rates. Historically, those subsidies have
not been broken out, but some companies have said they will. McCain favored
having companies break out the new subsidies."

                        Domain Name Suit Dismissed

A federal judge has dismissed a suit against Network Solutions Inc., saying
its policy for distributing Internet domain names is sound, and strikes a
"fair and balanced approach" recognizing rights of both domain name holders
and trademark owners.  Writing from Henron, Virgina, for the Newsbytes
computer news service, reporter Bill Pietrucha says U.S. District Judge
Laughlin E. Waters dismissed a case brought by the Los Angeles-based
Academy of Motion Picture Arts and Sciences, following an order denying the
Academy' motion for a preliminary injunction against Network Solutions in
its suit involving the "Academy Awards" and "Oscar" trademarks.

As reported earlier, the Academy had alleged Network Solutions, in allowing
registration of Internet domain names, including academyaward.com and
oscar.net, "was engaged in contributory trademark infringement and
dilution."  However, Waters cited a case last month filed by Lockheed
Martin Corp.  against Network Solutions, and ruled "the soundness of
Network Solutions' domain name dispute policy and its fair and balanced
approach in recognizing the rights of Internet domain name holders and
trademark owners alike."

Waters said the Academy "was unlikely to succeed in its attempt to show
that Network Solutions' actions, as a registrar of Internet domain names,
infringed in any way upon the Academy's trademarks, including 'Academy
Awards' and 'Oscars.'"  Said the judge, "The mere registration of a domain
name does not constitute a commercial use," and ruled against the Academy's
assertions that "irreparable injury" should be presumed.

                       Internet Ponzi Scheme Alleged

Assets of two Salt Lake City companies and their presidents have been
frozen by a federal judge as part of an investigation into use of the
Internet to defraud investors in what authorities contend was a $20 million
Ponzi scheme.  A temporary restraining order has been granted against
Capital Acquisitions Inc. and its president, Wayne Notwell, and Somerset
Group Inc. and its president, Clealon Mann.  Officials with the U.S.
Securities and Exchange Commission have told the Reuter News Service that
U.S. District Judge David Sam's order stems from the commission's civil
complaint that Capital allegedly raised about $20 million from at least 600
investors nationwide, beginning in 1996, through sales of three-year notes
offering an annual "guaranteed" return of 20 percent.

In its complaint, the SEC says investors were solcited through a network of
sales agents directed by Mann and Somerset. At least one of those agents
posted the offering on the Internet, which led to its detection by the SEC.
The SEC alleges the defendants defrauded investors by conducting a Ponzi
scheme, with the source of the promised interest payments being funds
received from the ongoing sale of Capital's notes. (A Ponzi scheme is a
fraudulent pyramid-type scheme in which investors seeking high
interest-rate returns are lured and earlier investors are paid off with
funds from newer investors.)  The agency says that while Capital claims to
be operating 225 oil wells in Kansas and California, it failed to disclose
other important information.

                       IBM Leaving Comdex Trade Show

Saying the event has just gotten too big, IBM says it is pulling out of the
Comdex computer trade show.  "That, at least," says The Associated Press,
"is the reason IBM gives for not attending Comdex next year for the first
time in the show's 20-year history."  AP quotes Comdex organizers as
estimating about 220,000 people saw last month's show, which IBM attended.
Next year's show is scheduled for Nov. 16-20.  IBM spokesman John
Bukovinsky told the wire service, "We don't think Comdex is the best  way
to reach our customers. Comdex is a good way to talk to customers about
products, but not the best way to talk about solutions."

He adds that in order to work directly with prospective customers about
their personal computer needs, IBM needs "an environment that is not as
hectic and crowded as Comdex has become."  AP says IBM also doesn't plan to
attend the smaller Comdex Spring show in April, held in Chicago.  Softbank
Comdex, the company that produces the computer shows worldwide, says that
IBM would be missed, but that the company's absence won't hurt the premier
show of the computer industry.  Comdex spokeswoman Suzanne Lonergan added,
"Companies have to make their own decisions with regard to their own
marketing programs on their own basis."

                    Study Finds Internet Growth Slowing

A new study from Computer Intelligence shows that as of last August 36.9
million PCs were regularly accessing the Internet in the U.S., up a
relatively modest 19 percent from the beginning of the year.  According to
the study, 31.1 million U.S. PCs were regularly connected to the Internet
in January 1997, an increase of nearly 70 percent over January 1996. By
August 1997, the number of PCs connecting to the Internet on a regular
basis had grown to 36.9 million, a 19 percent increase.

The study further notes that 37 percent of all U.S. PCs were regularly
connecting to the Internet in August 1997. Growth in the number of Internet
users was stronger in businesses (28 percent) than in the home (16 percent)
or the self-employed markets (5 percent).  "While the Internet remains the
nexus of activity in the PC and  telecommunications industries, the growth
in the number of users of the Internet is clearly slowing," says Dave
Tremblay, a senior analyst with the La Jolla, California, market research
firm.

E-mail and Web-surfing were the most common Internet applications, finds
the study, used by over 80 percent of those who connect to the Internet. A
minority of users purchased something over the Internet - including 17
percent who used financial services, 10 percent who purchased PC products
and 6 percent who purchased other consumer electronics products.  The study
notes that while Netscape's Navigator remains the most popular Web browser,
its share of users has declined, falling from 63 percent in January 1997 to
58 percent in August. Microsoft Internet Explorer's share grew from 12
percent to 21 percent in the same period.

"Microsoft's relentless efforts in the browser market are bearing fruit,"
says Tremblay. "Microsoft has gained more than eight points of share and
4.1 million browser users since January. While Netscape has also gained
users, its browser lost nearly five points of share over the same period.
More serious for Netscape is where its share loss has been highest - in the
business market. Netscape has lost relatively more share among business
users, the fastest growing Internet segment and its relative stronghold,
than it has among home users. Netscape's strategy is built on success in
the business market - our latest research shows that Internet Explorer has
hit Navigator hardest in this target market."

                       Apple Cybercafe Plan Shelved

Apple Computer Inc.'s plans to launch a string of cybercafes around the
world, starting with one in Los Angeles next year, have been put on hold,
company officials confirm.  Apple spokeswoman Rhona Hamilton has told
Johanna Bennett of the Dow Jones news service the decision to shelve the
project actually was made about six months ago by one of the deal's
partners, not Apple Computer.

As reported earlier, the restaurants with Internet stations at the table
were to be developed in global capitals such as Toyko, London and Paris by
Landmark International of Los Angeles.  Says the wire service, "A
trademark-licensing agreement allowing Mega Bytes International BVI, a
London real-estate investment company, use of the Apple trademark expired
before the cafe project got started, Hamilton said. The agreement hasn't
been renewed, she added."

                       Jobs Keeps Apple Post for Now

Despite previous indications, Apple Computer Inc. now says it won't be
naming a new chief executive officer before the end of the year, meaning it
will keep co-founder Steve Jobs as interim CEO for a while longer.  But,
says reporter Therese Poletti of the Reuter News Service, Jobs' presence
"is seen by industry executives as complicating the search for a
replacement for Gilbert Amelio, who was ousted by Apple's board in July."
Analyst Lou Mazzucchelli at Gerard Klauer & Mattison says, "He cuts quite a
figure," adding that while Jobs is on the job, he has authority but no real
responsibility, and would loom over anyone who takes on the CEO job. "A CEO
needs to have a balance of responsibility and authority. Therein lies the
problem."

As noted earlier, industry insiders were saying in late September that
Apple had narrowed the CEO search to four candidates, but since then, two
of the reported candidates have taken other jobs. And, as also noted, the
San Francisco Chronicle reported last week Sun Microsystems Inc. executive
Ed Zander was offered the job but reportedly turned it down because Jobs
would not agree to leave the board.  Apple spokeswoman Katie Cotton told
the wire service, "There has been a lot of discussion about the candidates
... but we just haven't found the right match for Apple yet. Therefore, the
search is going to continue in 1998."

                     Grove Named Time Man of the Year

Intel Corp. chief Andrew Grove has been named Time Magazine's 1997 Man of
the Year.  Time managing editor Walter Isaacson told United Press
International that the 61-year-old Grove -- who came to the United States
without a cent to his name, a refugee from the Nazis and then the
communists -- now is at the forefront of a technological revolution that
rivals in impact the industrial revolution of the late 1800s.  Intel,
co-founded with Gordon Moore, is now worth $115 billion, makes 90 percent
of the world's computer chips, reports up $5.1 billion in annual profits,
making it the world's seventh most profitable company, and for the past
decade has made an annual return to investors of 44 percent. Its factories
produce 4 quadrillion transistors every month, about 500,000 for every
person in the world.

Of Grove, Isaacson said, "His character traits are emblematic of this
amazing century: a paranoia bred from his having been a refugee from the
Nazis and then the Communists; an entrepreneurial optimism instilled as an
immigrant to a land brimming with freedom and opportunity; and asharpness
tinged with arrogance that comes from being a brilliant mind on the front
line of a revolution."  He says Grove predicted the continual flux of the
digital age, which would ultimately require constant reinvention: "...More
than any other person, Andy Grove has made real the defining law of the
digital age:  the prediction by his friend ... Gordon Moore that microchips
would double in power and halve in price every 18 months or so. And to that
law, Grove has added his own: we will continually find new things for
microchips to do that were scarcely imaginable a year or two earlier."

                      Apple Licenses Sound Technology

Apple Computer Inc. says it has licensed Roland Corp.'s Sound Canvas sound
set and GS Format extensions for inclusion in QuickTime 3.0, the latest
version of its digital media platform for Mac OS and Windows.  The computer
maker notes that the new QuickTime 3.0 musical capabilities promise
expanded creative control for music and multimedia content publishers and a
better sounding musical experience for consumers. An updated developer
preview release of QuickTime 3.0 and the new music instrument sound set are
available for downloading from the Web at http://www.quicktime.apple.com.

Apple notes that Roland's GS Format extends the General MIDI specification
by defining additional music performance controls that provide greater
accuracy, consistency, and expressiveness for MIDI-based interactive audio.
QuickTime's support for this popular music format will enable high-fidelity
playback of existing GS-format MIDI content and will provide music
publishers enhanced creative control.  The Roland sound set to be included
with QuickTime 3.0 consists of 128 General MIDI-compatible instruments,
plus more than 100 additional sounds from a variety of instrument
categories including keyboards, woodwinds, strings, brass, percussion and
sound effects.

"For music and multimedia content publishers, the Roland technologies,
combined with QuickTime 3.0's advanced music architecture, represent a
significant milestone in the development of interactive audio," says Avie
Tevanian, Apple's senior vice president of Software  Engineering. "For the
first time, it is now possible to create high-quality MIDI music that can
be reliably and faithfully reproduced on the consumer's computer."

                           HP Opens Online Store

Hewlett-Packard Co. has introduced Software Depot
http://www.software.hp.com , an online store that allows customers to
purchase and download software products after surfing through an electronic
catalog.  HP says Software Depot provides shoppers with a quick and easy
way to purchase the latest HP software products. The site also provides
free trial software and enhancement releases for some of the products
available in the electronic catalog.

Software Depot's opening follows the introduction of HP's Commerce Center
http://www.interactive.hp.com/hpcc , a Web site that allows small
businesses to purchase products such as HP network servers and printers
online.  "We're seeing the continued rapid development of  a global
information infrastructure," says Tom Ashburn, general manager of HP's
software services division. "The Internet presents tremendous opportunities
-- we want to maximize those opportunities for our customers, our resellers
and ourselves."

                      Ames Stores Launches Music Site

Ames Department Stores Inc. has launched Amesmusic.com, a new Internet
music store.  The discount retailer notes that the site features over
50,000 compact disc selections. Shoppers can preview clips from over
300,000 audio samples in 21 music genres.  Shoppers who order CDs or tapes
through Amesmusic.com will receive their orders by mail. Music samples can
be heard through Real Audio, Cool Edit, Sound App and other media tools.
Transactions are handled through  CyberCash.

"Ames is exploring the power of the Internet through Amesmusic.com," says
Joseph R. Ettore, president and CEO of the Rocky Hill, Connecticut,
company. "It is our practice to take advantage of retail opportunities as
they arise, and we believe that Amesmusic.com is a perfect way to offer
Ames customers the convenience of an expanded selection of music not
commonly available in stores."  Ames, which operates 298 stores in 14
Northeastern states and the District of Columbia, is the U.S.'s
sixth-largest discount chain, with annual total sales of $2.2 billion.

                    Printer Offers Separate Cartridges

Okidata has introduced the Okijet 2020, a four-color, ink-jet printer with
individually replaceable ink cartridges.  The printer maker, based in Mount
Laurel, New Jersey, says the separate cartridges will help users cut costs
by eliminating the ink waste inherent in traditional all-in-one printer
cartridge designs. The Okijet 2020 also permits the changing of ink
cartridges after a page has begun to print, allowing users to avoid the
possibility printing pages with missing colors. The printer offers a 600
dots per inch output resolution.  The Okijet 2020 is scheduled for release
in January at $249.  More details are available on Okidata's Web site at
http://www.okidata.com.

                Computer Associates Acquires AI WARE, Inc.

Advanced Neural Net Technology To Complement Existing And Planned Strategic
Efforts Computer Associates International, Inc. (CA) announced it has
purchased privately-held AI WARE, Inc., a developer of intelligent decision
support software utilizing artificial intelligence and other advanced
computer technologies.  Financial terms were not disclosed.   As a pioneer
in neural net and optimization technology, AI WARE has developed unique,
sophisticated applications for addressing highly-complex technical process
control issues.  Two of the company's products, CAD/Chem, a formulation
modeling-and-optimization system, and Process Advisor, an industry-leading
process optimization and control tool, have been extremely well received in
many industries worldwide.

The acquisition of AI WARE expands CA's extensive portfolio to include
sophisticated neural net technology for modeling, estimation, prediction,
classification and optimization for improving the performance of systems
and processes.   "Neural net technology will be instrumental in addressing
the next generation of business challenges," said Marc Sokol, CA senior
vice president of advanced technology.  "The incorporation of AI WARE
technology into CA's product line will give our clients a competitive edge
by enabling them to make accurate business forecasts based on historical
data."   Neural net technology will enhance and complement many of CA's
strategic initiatives.  It will enable CA to incorporate predictive
management and enhanced troubleshooting support facilities into its
industry-leading Unicenter TNG enterprise management systems.  Neural
network technology will also complement CA's application development
offerings -- including its newly released Jasmine database -- by providing
clients with the ability to effectively address the challenges of complex
process logic in a wide range of vertical markets.

"As part of CA, we will be even better able to continue advancing process
control technology while gaining access to a broader marketplace," said Dr.
Yoh-Han Pao, former president of AI WARE and a pioneer in the application
of neural-net and optimization technology. "Our highly complementary
technologies and the compatibility of our respective corporate cultures
makes this acquisition very fortuitous for ourselves, our investors and our
corporate customers."   Neural net technology reproduces some functions of
the human brain with mathematical models implemented in hardware or
software.  A neural network learns a particular task when given historical
data relevant to the task. During training, the model is tuned so that the
neural network can generalize the relationships underlying the specific
patterns in the historical data.  Once trained, a neural network can be
used to recognize a situation, make an evaluation, reach a conclusion or
take an action.  Neural networks have been applied to a wide range of
domains including business forecasting, manufacturing process monitoring
and control, market research, and financial risk analysis.

AI WARE has received many awards for leading the industry in delivering
computational intelligence solutions, including the R&D Magazine "Elite 100
Award" in 1994, and the Edison Emerging Technology Company Award in 1995.
The company holds several patents relating to computational intelligence
technology.  It has close ties with both the Center for Automation and
Intelligent Systems Research (CAISR) at Case Western Reserve University and
the Edison Industrial Systems Center, an organization supported by Ohio's
Thomas Edison Program, promoting technology transfer between academic
institutions and Ohio businesses.   All AI WARE associates have been
welcomed into the CA family, and the company's operations will remain in
Ohio.  Dr. Pao joins CA in a consulting capacity.   Computer Associates
International, Inc. (NYSE: CA), with headquarters in Islandia, N.Y., is the
world leader in mission-critical business software.  The company develops,
licenses, and supports more than 500 integrated products that include
enterprise computing and information management, application development,
manufacturing and financial applications.  CA has over 10,000 people in 160
offices in 40 countries and had revenue of more than $4 billion in fiscal
year 1997.  CA can be reached by visiting http://www.cai.com on the World
Wide Web, emailing info@cai.com, or calling 1-516-342-5224.

Since its founding in 1985, AI WARE's success has been rooted in its
ability to solve real-world problems in design and manufacturing with
proprietary advanced computer technologies.  AI WARE's research has
produced patented Functional Link neural net technology for modeling,
estimation, prediction, and classification, and patent pending Guided
Evolutionary Simulated Annealing optimization.  AI WARE also offers a new
visualization technology for helping decision makers understand
relationships within complex multi-dimensional data.  Combined use of these
technologies has led to breakthroughs in feature-based design and
manufacturing problem solving.  AI WARE is based in Beachwood, OH.

                IBM and NASA Teams Win Feynman Prize Awards
           For Nanotechnology Research from Foresight Institute

Foresight Institute has awarded the 1997 Feynman Prizes for research in
nanotechnology to teams based at IBM Research Division Zurich Research
Laboratory for experimental research and at NASA Ames Research Center for
theoretical research.  Each team received a $5,000 cash award to be divided
among its members, as well as certificates of recognition.  The awards were
presented at the recently completed Fifth Foresight Conference on Molecular
Nanotechnology, at which nearly 100 technical papers were presented on
nanotechnology research being conducted at leading academic and corporate
research centers on five continents. The Conference was keynoted by Nobel
laureate Richard Smalley of Rice University.

The prize is named in memory of California Institute of Technology
professor Richard Feynman, who proposed the concept of manipulating matter
at the molecular level and constructing materials with molecular precision
in a famous 1959 talk, "There's Plenty of Room at the Bottom." As part of
that talk, he offered cash prizes for advances in nanotechnology -- a
practice continued with Foresight's awards.  The IBM researchers awarded
the 1997 Feynman Prize in Nanotechnology for Experimental Work were James
Gimzewski, Reto Schlittler of IBM Zurich and Christian Joachim of the
Centre Nationale de la Recherche Scientifique in France.

Members of the NASA Ames team that was awarded the 1997 Feynman Prize in
Nanotechnology for Theoretical Work are Charles Bauschlicher, Stephen
Barnard, Creon Levit, Glenn Deardorff, Al Globus, Jie Han, Richard Jaffe,
Alessandra Ricca, Marzio Rosi, Deepak Srivastava, and H. Thuemmel.  All are
employed by NASA Ames Research Center or by MRJ Technology Solutions, Inc.
at NASA Ames.  The IBM team was recognized for its pioneering work to
extend the capabilities of scanning tunneling microscopy (STM) that has
expanded possibilities to manipulate molecules on an individual basis.
Their work included creation of a "molecular abacus" which used individual
C-60 carbon molecules (also known as "buckyballs") as "beads" of the
abacus.  The beads were moved along atomic-scale grooves in a copper
surface, at room temperature, using an STM probe.

The IBM team developed the capability to image molecules at complexity
levels of over 100 atoms such that molecular recognition of the
orientation, integrity, and even conformation of their subcomponents is
readily achievable. They also developed the capability to manipulate
molecules nondestructively on an individual basis and to use the molecular
recognition capabilities for verification of such operations. They
demonstrated that molecules can be controllably repositioned at room
temperature.  The primary goal of their research is to understand and
thereby increase the complexity and predictability of operations that can
be performed in assembly and functionality at the single molecule level.

The team at NASA Ames Research Center, has been using NASA's molecular
modeling computational capabilities to explore nanotechnology designs based
on machine phase functionalized fullerenes.  They have developed
theoretical means to construct molecular-scale  gears, pumps and other
mechanical components from fullerene tubes ("buckytubes") and fullerene
balls ("buckyballs").  Although it is not yet possible to construct any
such items, the NASA team's work suggests that fullerene-based designs may
be relatively accessible and possess great potential for aerospace
applications.  This nanotechnology might use carbon nanotubes and related
components as the building blocks of molecular machines.

Judges for the 1997 Feynman Prize awards were Carl R. Feynman, computer
scientist and son of Richard Feynman; William A. Goddard III, Chemistry and
Applied Physics, Materials and Molecular Simulation Center, Caltech; Tracy
Handel, Biochemistry & Molecular Biology, UC Berkeley, Jan Hoh, Johns
Hopkins University School of Medicine; Neil Jacobstein, Chairman, Institute
for Molecular Manufacturing and President, Teknowledge Corporation; Arthur
Kantrowitz, Dartmouth College, and Advisor, to Foresight Institute; Marvin
Minsky, MIT Media  Lab and MIT AI Lab, and Advisor, Foresight Institute;
Charles Musgrave, Chemical Engineering, Stanford University; Nils Nilsson,
Robotics Laboratory, Computer Science Dept., Stanford University; Nadrian
C. Seeman, New York University; Richard Smalley, Center for Nanoscale
Science and Technology at Rice University; and George Whitesides, Dept. of
Chemistry, Harvard.

Previous winners of the Feynman Prize are Musgrave, for his theoretical
work on a hydrogen abstraction tool for nanotechnology, and Seeman for his
pioneering experimental work on the synthesis of 3-dimensional objects from
DNA.  Nanotechnology is an emerging technology based on the ability to
assemble individual molecules and atoms into precise structures.  Its
realization will allow the construction of supercomputers the size of a
sugar cube, pollution-free manufacturing, super-strength materials, and
molecular-scale robots capable of repairing damage in individual human
cells.  More than one billion such nanorobots could fit inside a single
drop of blood.

Foresight Institute is an educational foundation whose goal is to guide
emerging technologies to improve the human condition.  Foresight focuses
its efforts upon nanotechnology and upon systems that will enhance
knowledge exchange and critical discussion, thus improving public and
private policy decisions. Foresight Institute can be found on the World
Wide Web at http://www.foresight.org.

        Globalization Heads List of Eight Trends Driving Companies
                          Into the New Millennium

Globalization of business and the increasing use of enterprise resource
planning systems are two of eight megatrends Price Waterhouse has
identified that will impact Global 500 companies from 1998 into the new
millennium.  Scott Hartz, managing partner and global leader of Price
Waterhouse's management consulting practice, said: "Globalization is the
single  biggest force driving corporate change.  It affects organizational
structure, technology, communications, product development, service
delivery, people and training. Global 500 companies need to transform their
organizations into global enterprises to compete successfully in the
future."

Price Waterhouse's List of Eight Megatrends

1.   Globalization.  Globalization is a response to intense market
  pressures brought about as trade barriers fall, as the emerging economies
  enter the global stage and as companies race to match the worldwide scope
  and appetite of their biggest customers.  This response takes the form of
  integrated systems, processes and organizational structures that provide a
  global architecture for the sharing and use  of information. The properties
  of the truly global corporation are evolving.

2.   Enterprise resource planning management systems.  To manage
  increasingly complex supply chains, streamline business processes and
  coordinate resources globally, a growing proportion of the world's biggest
  corporations are implementing enterprise-wide management systems, using
  packaged software.  These systems reduce the operational and maintenance
  costs of running stand-alone systems and provide an  opportunity, through
  the use of technology, to implement real global change.

3.   Focus on revenue growth.  Successful global companies have adopted
  "growth" as an underlying corporate value.  They are looking for ways to
  open up new markets, and to better service and expand sales to existing
  customers.  The focus has shifted from cost reduction to revenue growth.
  In support of their growth objectives, organizations are also starting to
  unleash the potential of the information they possess in their current
  systems.  Data warehousing and data mining technologies make it possible to
  consolidate and analyze information from previously unconnected systems.

4.   CFO focus on value.  Many progressive companies are switching to a
  value-based management approach to running their businesses.  Companies are
  demanding that all of their activities be tied to and held accountable to a
  bottom-line benefit.

5.   Return on human capital.  As large companies move toward becoming
  truly global, a strain is being placed on people resources.  In order to
  meet customer demands and take advantage of global opportunities,
  businesses need qualified professionals to capitalize on these
  opportunities. Companies not only need to be able to attract and retain
  quality professionals, but also they need to be able to enhance performance
  and give their employees the tools they need to work in a global
  marketplace.

6.   Electronic commerce/Internet.  Companies are starting to realize
  benefits from the migration of commerce, communications and business
  processes to the Internet, extranets and intranets.  Electronic commerce
  provides the ability to sell to and interface with vast numbers of
  geographically dispersed customers at a very low cost.

7.   Outsourcing/shared services.  Many organizations are focusing their
  efforts and management attentions solely on the key drivers of value in
  their business.  Remaining activities are pooled across the organization
  into shared services or removed from the organization entirely through
  outsourcing.

8.   Single-source solutions.  Companies have shifted their buying
  patterns. They are exploring and, in some cases, realizing the benefits of
  buying from a single source.  Single-source purchasing simplifies buying
  decisions and often cuts costs.

Price Waterhouse management consultants help global clients maximize their
business performance by integrating technology, organizational change and
business process improvements.  The U.S.$1.4 billion management consulting
practice is part of the worldwide Price Waterhouse organization, which has
60,000 people.  The web site address is www.pw.com/mcs.

                     Researcher Makes '98 Predictions

International Data Corp. predicts that the Web's population will reach near
100 million in 1998 and the Web's killer application, online commerce, will
grow to over $20 billion.  Other predictions for 1998 from the Framingham,
Massachusetts, market research firm include:

z    Intel will release a non-Pentium line aimed at the Internet appliance
  space.
z    Microsoft will launch a non-Windows platform, also focused on
  appliances.
z    Microsoft Windows will struggle to maintain its position as the
z    de facto standard client platform.
z    DSL (digital subscriber line) will join cable to launch the era of
  megabit consumer Internet access
z    Netscape, Oracle, and Sun are ripe to lead a wave of mega-merger
  mania.

"The basic shift in 1998 is to a consumer-centric PC business," says Frank
Gens, IDC's senior vice president of Internet research. "IDC believes
suppliers who do not succeed in the consumer PC segment will no longer be
in the PC business three years from now."

                Student suspended for wine gift to teacher

ATLANTA (Reuters) - A Georgia eighth-grader has been suspended for 10 days
for bringing a gift-wrapped bottle of Bordeaux wine as a Christmas present
for his French teacher. Cosmo Zinkow violated Georgia laws against
possession of alcohol by a minor and bringing alcohol onto school property,
Cobb County school officials said.  Zinkow's father said he was stunned at
the school board's action. He said his son is an A student and had offered
his teacher the bottle of Mouton Cadet Bordeaux in a sealed box wrapped
with Christmas paper Thursday.  The Griffin Middle School teacher, whom
officials said doesn't drink alcohol, informed the school's principal about
the gift, as required by a school policy which mandated a 10-daysuspension.
"When you take a Christmas gift to the teacher, wrapped and in a box with a
bow and a card, that's not possessing alcohol," Bill Zinkow told the
Atlanta Journal-Constitution newspaper.  "I felt like this was an
appropriate gift for her," Zinkow said. "He's a good kid and he didn't
deserve to be treated thisway at all."

               IG Farben meeting opens to anti-NAZI protests

By Tara FitzGerald

FRANKFURT, Germany (Reuters) - Holocaust survivors disrupted the annual
meeting in Germany Monday of a shell company that is the vestige of IG
Farben, the firm that made the gas for Hitler's death camps.  "IG Farben's
money belongs to the victims of Auschwitz," read one banner carried by
about 120 protesters blocking the entrance to the hall where the mostly
elderly shareholders of IG Farben industrie in Liquidation had gathered.
Several demonstrators who had bought a share in order to be able to attend
were thrown out for disrupting the proceedings.  Some survivors of the
Auschwitz death camp wore their prison numbers. Others wore the yellow star
that the Nazis forced Jews to wear.  "This is a way in which we can try to
make such companies face up to their responsibilities and I will keep
coming back until those people who suffered are compensated in some way,"
said Eduard Bernhard, 72, owner of one share.

IG Farben, which made Zyklon B gas, was split after the Second World War
into three chemical companies -- Hoechst, Bayerand BASF.  The shell company
survives in the hope, albeit dwindling, of reclaiming IG Farben assets left
abroad at the end of the war.  Above all, this meant property in East
Germany that was nationalized by Soviet occupiers and which IG Farben was
not able to try to  reclaim until after unification in 1990 -- and which it
has been unsuccessful in  trying to claim since.

Many present stock holders bought their shares cheap after the Second World
War.   The company had difficulty finding a venue for the meeting because
many hotels  in Frankfurt feared demonstrations.  Peter Gingold, a board
member of the German "Auschwitz Committee" whose family died in the camp,
said the company had chosen a date just before Christmas hoping that fewer
protesters would turn up.  "But more Auschwitz victims have come this year,
even from as far away as France, and others are mounting a protest outside
the German embassy in Paris.  We want to make clear what kind of company we
are dealing with," he said.  The  demonstrators blew whistles and forced
the nearly 200 shareholders to walk past  enlarged photographs of Nazi
victims.

They want the company -- which was the world's fourth-largest until 1945
and  used slave labor during the war -- wound up immediately and the money
paid to  Holocaust survivors.  "Of course everyone is welcome to have their
say in the proper way, but this is not a political forum and anyone who
treats it as such will not be allowed to speak further," board chairman
Ernst Krienke said after  protesters interrupted the meeting.  Some
shareholders were by no means ashamed.  "I have no moral problem with
holding the shares," said 74-year-old Georg Gerster, a shareholder for two
years. "I bought them for purely speculative reasons in order to make
money."



STR Editor's Mail Call    "...a place for the readers to be heard"


                             Editor's MailBag


                    Messages * NOT EDITED * for content



From: Cleveland Thornton [thornton@legalbits.com]
Sent: Saturday, December 20, 1997 11:20 AM
To: rmariano@streport.com
Subject: Tilting at windmills

For the record, I believe Ruby Ridge occurred under the Bush
Administration.  I also think that WACO is a place where a true goof-ball
decided to burn his own children and himself rather than comply with the
law.  Since your editorial is about motives, one has to ask about yours
when you are an "official" site for MSEX.  Would you care to state what
financial arrangements, if any, you have with MS?   Since the rest of the
editorial is of the "hate radio" and simi-educated ilk, it is pointless to
respond to it.

_____________________________________________
Cleveland Thornton            202-543-9673 (Office)
Attorney at Law               202-543-3482 (Fax)
15 Second Street, N.E.        E-Mail:
Washington, D.C. 20002-7301   thornton@legalbits.com

HomePage http://www.clark.net/pub/cthornto/home.html
______________________________________________


Well now.
     Dear Readers. please brace yourselves <g> normally, I'd jump right
through the door onto the "free parking sign our good barrister put up.
But since he is from the DC area, and most of us know that area is
overpopulated with so-so attorneys its best that we pity such a shabby
attempt at picking an argument let alone begin a sensible, incisive debate.

     Every now and then, unfortunately, it appears someone must jump up in
defense of the rabid control freaks of this nation.  Most of whom, (at
least those who can do real harm to this country's freedoms and
Constitution), are in the Washington DC area.  Lets see, first we're told
we know not of what we speak, that we may be on the covert payroll of MS
and then. in so many words we're compared to Rush Limbaugh and a few other
truthfully outspoken but "right on the mark" controversial radio
commentators.

Three quick answers;
a)   We do our homework,
b)   We are not in the employ of Microsoft,
c)   We thank you for the compliment.  We at STReport are especially fond
  of "The Dennis Miller approach."

     My Dear Counselor, perhaps you missed your calling. have you ever
pondered becoming say. a Prison Warden?  You'd do well to carefully review
what you are saying about WACO with the mind of a real and caring human
being.  Next you're going to tell us the Feds actions at WACO were the acts
of Officers. "only following orders".  Have you any idea how many times
that hairbag excuse for a factual, rational statement rang through the
courtrooms of Nuremberg?

     David Koresh and The Branch Dividians were no more a direct threat to
this Nation's Security or Sovereignty than any "ten dozen lawyer
politicians."  Do we attempt to surround the enclaved politicos, hammer
them with monotonous loud noises, displays of awesome firepower, actual
armed assaults by fanatical US Government Agents carrying automatic weapons
and wearing body armor?  No, of course not!  We do not envision this sort
of outrage occurring.

     But in the matter of Waco. the ATF (a pimple on the butt of the DOJ)
saw fit to do so once their CI (confidential informant) was exposed.
Amazingly, the assault's planned occurrence was KNOWN ahead of time by the
Dividians the "rocket scientists running the ATF still went ahead with
their planned assault.  Why??  Got an answer for that one? Anyone?   Waco
was as tragic as it was dumb.  Who cares what Koresh was up to. the
government's agents acting under Reno's and Clinton's orders were equally
as bad as any persons convicted for War Crimes against humanity.

     Our government with its infinite resources could've easily waited
Koresh out and ended the Waco incident peacefully but no, we simply had to
shoot teargas grenades into the complex (everyone knows teargas when
discharged will ignite fires) but the powers that be felt it was right and
proper to run the Bradley Armored vehicle in against women, children and a
few men.  Yes Sir, it was indeed Reno & Co.'s finest hour.

     The DOJ, Reno & Co., could learn a great deal by the recent
performance of the Sheriff's Office in handling the Plano, Texas hostage
situation.  A great deal indeed.  That Department deserves a humanely
earned Well Done!







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special stock and be of superb quality.  We obtained a mint copy of a  1927
COLOR  ENGRAVER'S  YEAR  BOOK.  Our Scanner is doing  "double  duty"!   The
results  will  absolutely blow you away.  If you  want  this  high  quality
sample package please include a check or money order in the amount of $6.95
(Costs only) Please, make checks or money orders payable to; Ralph Mariano.
Be  sure  to include your full return address and telephone number  .   The
sample will be sent to you protected, not folded in a 9x12 envelope.  Don't
hesitate.. you will not be disappointed.  This "stuff" is gorgeous!

           A T T E N T I O N-A T T E N T I O N-A T T E N T I O N












EDUPAGE STR Focus        Keeping the users informed


                                  Edupage

Contents

AT&T Abandons Push To Enter Local
Phone Market
AOL Wins Court Battle Against Junk
E-Mailer
Judge Challenges Microsoft Claims
W3C Endorses HTML 4.0
Brits Claim Credit For Public-Key
Encryption Methodology
Beware Diploma Mills On The Net
Projections For K-12 Info Tech
Materials
New Internet Law Attacks Non-Profit
Pirating
AlterNIC Founder Extradited To U.S.
Edupage Until The Very Last Word
Lawmakers Question Subsidies For
Internet Access By Schools
Cisco Buys Voice Signaling Company
Domain System Transition Plan Still
On Hold
Sony, Thomson-CSF Vying For Digital
TV Boxes
Dole Lobbies Against Microsoft
"The Web Is What We Make It"


              AT&T ABANDONS PUSH TO ENTER LOCAL PHONE MARKET

After spending $4 billion trying with little success to break into the
local phone market, AT&T is giving up on its strategy of trying to resell
the services of local phone companies.  Along with long-distance carriers
MCI
and Sprint, AT&T says that the Bell operating companies are obstructing
their efforts by being reluctant to  fulfill customer orders for competing
local service or to resell their services at reasonable rates.  In the
future,  AT&T may try again to enter the local market by leasing pieces of
the Bells' local networks or building its own networks.  (AP 20 Dec 97)

                AOL WINS COURT BATTLE AGAINST JUNK E-MAILER

America Online has declared itself "victorious" over junk e-mailer Over the
Air Equipment Inc. after a federal court ruled that Over the Air must pay
undisclosed damages and stop sending unsolicited e-mail messages  promoting
adult-oriented Web sites to AOL members.  "It's important to send a signal
that monetary damages in  these cases are going to be payable," says AOL's
general counsel, who adds that "there are a number of suits in  the wings."
Lawsuits are still pending against e-mailers Squeaky Clean Marketing and
Cyber Services, both of  which have bombarded AOL members with junk
messages.  Many observers are skeptical, however, that taking  junk
e-mailers to court one-by-one will prove an effective deterrent, however.
"There are so many spammers that trying to take them out one at a time in
the courts is going to be hideously expensive," says the chairman of  the
Coalition Against Unsolicited Commercial E-Mail, an organization trying to
amend existing laws prohibiting junk faxes.  (Wall Street Journal 19 Dec
97)

                     JUDGE CHALLENGES MICROSOFT CLAIMS

Having been told by Microsoft that it cannot unbundle Internet Explorers
from Windows 95 because Windows  will not operate properly without several
of the Explorer files, Judge Thomas Penfield Jackson says that, with  the
help of a technician, he successful uninstalled Explorer from a new PC in
about 90 seconds.  "If the process  is that simple, I'd like to have it
confirmed by the government.  If it is not that simple, I'd like to have it
refuted  by any evidence Microsoft plans to introduce."  Microsoft says
that uninstalling Explorer removes only 3% of  the browser files from a
PC's hard disk.  (Washington Post 20 Dec 97)

                           W3C ENDORSES HTML 4.0

The World Wide Web Consortium (W3C) has declared its support for HTML 4.0,
okaying the latest version of  hypertext markup language for global use.
Version 4.0 adds support for advanced forms, in-line frames, and  enhanced
tables, as well as objects, scripts and style sheets.  The new version will
be especially useful for  multilingual documents, says the W3C, and can
handle differences in language, text direction and character  encoding
schemes.  (InfoWorld Electric 18 Dec 97)

                     BRITS CLAIM CREDIT FOR PUBLIC-KEY
                          ENCRYPTION METHODOLOGY

A paper published this week by a retired officer of the British
government's secret Communications-Electronics  Security Group says that he
invented public-key encryption in the late 1960s -- seven years before
cryptographers Whitfield Diffie and Martin Hellman published their
description of the technique in 1976.   James Ellis, the British officer,
died on Nov. 25, just days before his paper was published.  In his paper,
he says  his algorithm closely resembles the RSA algorithm, a patented
technology developed using the Diffie-Hellman  technique.  "This does not
detract from the significant contributions of Diffie and Hellman or the RSA
team,  who independently discovered public-key cryptography and brought it
into the public domain," says leading  cryptographer Dorothy Denning.
"This is a case of independent discovery."  (TechWeb 18 Dec 97)

                      BEWARE DIPLOMA MILLS ON THE NET

A number of would-be students have fallen victim to the dark side of
distance learning on the Internet --  fraudulent schemes that claim to
offer accredited degrees in as little as 27 days.  In many of these cases,
a Web site is about all these "institutions" have to offer, says the
co-author of "Bears' Guide to Earning College  Degrees Nontraditionally."
And while some people assume that a ".edu" suffix guarantees the
authenticity of an   educational institution, Network Solutions (the
company that registers Internet domain names) says it gives a  ".edu" name
to anyone who requests it.  So far, the Accrediting Commission of the
Distance Education and Training Council is the only nationally recognized
accrediting body for distance-learning programs, while the  Global Alliance
for Transnational Education focuses on evaluating and certifying
international institutions. (Chronicle of Higher Education 19 Dec 97)

                 PROJECTIONS FOR K-12 INFO TECH MATERIALS

A newsletter from Cowles/Simba Information, a division of the Cowles
Business Media market research  company, says that U.S. K-12 educators will
spend about $841.7 million this year on electronic instructional
materials, including software, videocassettes and online subscription
curriculum materials.  And it expects the  level of sales to rise to about
$1.02 billion in 1999.  (New York Times 20 Dec 97)

               NEW INTERNET LAW ATTACKS NON-PROFIT PIRATING

President Bill Clinton signed into law a controversial bill imposing
criminal penalties on copyright violators  who do not profit from their
actions.  The No Electronic Theft Act, passed by Congress last month, was
strongly  backed by the software and entertainment industries, but opposed
by science and academic groups.  Under the  new law, a person who
"willfully" infringes on copyrighted material worth at least $1,000 could
be subject to criminal prosecution even if he does not profit by it.  Under
the previous law, copyright violators could not be  charged with criminal
misconduct unless they profited from the violation.  Software and
entertainment groups, including the Business Software Alliance, the Motion
Picture Association and the Association of American  Publishers, said the
change was essential to protect software, music recordings and other
creative products easily pirated over the Internet.  (Toronto Financial
Post 18 Dec 97)

                    ALTERNIC FOUNDER EXTRADITED TO U.S.

The founder of a bogus Internet domain name registration site is being
turned over by Canada to the U.S. to face  a lawsuit filed by InterNIC,
whose mail he rerouted to his AlterNIC site, which registers alternate
top-level domains such as .ltd, .med and .sex.  "Internet users who had
expected to register or update domain names were  denied ready access to
the system to do so, causing confusion, frustration, and immeasurable
economic harm,"  says an FBI affidavit.  The FBI is also considering
charging the cracker with criminal computer and wire fraud.   A conviction
on both charges could net the cracker up to 10 years in federal prison.
(Net Insider 18 Dec 97)

                     EDUPAGE UNTIL THE VERY LAST WORD

We frequently receive mail from nice people who urge us to call more
attention to our "Honorary Subscriber"  feature at the bottom of Edupage,
saying they always enjoy it but complaining that they'd been reading
Edupage for a year or more before they happened to notice its existence.
So we'll take this edition to suggest that you go  all the way to the end
with us today and read the words of our honorary subscriber -- whose
thoughts we offer as  our greeting card to you and your friends and
families this holiday season.

                     LAWMAKERS QUESTION SUBSIDIES FOR
                        INTERNET ACCESS BY SCHOOLS

Arguing that the issues have not been publicly debated, Senator John McCain
and Representative Thomas J.  Bliley Jr. have convinced the Federal
Communications Commission to slow down the phasing-in of subsidies
intended to help schools, libraries and rural health care facilities
connect to the Internet.  The FCC had planned  to provide $675 million in
subsidies in the first half of 1998, with an intention of eventually
providing more  than $2 billion a year.  (AP 23 Dec 97)

                    CISCO BUYS VOICE SIGNALING COMPANY

Cisco Systems is acquiring LightSpeed International, a privately held voice
signaling translation company, for $160 million.  LightSpeed's technology
will assist Cisco in making the transition from purely circuit switched
networks to integrated circuit and packet/cell-switched networks in order
to accommodate voice over Internet protocols.  (TechInvestor 22 Dec 97)

                DOMAIN SYSTEM TRANSITION PLAN STILL ON HOLD

The U.S. government's plan to transfer responsibility for assigning
Internet domain names from Network   solutions, which has been under
contract to the National Science Foundation to perform the task, to a newly
formed group of registration authorities, is still not complete, and
industry observers say they doubt it will be  out by Christmas, as promised
by optimists in the Commerce Department.  The plan originally was due at
the  end of last month. Presidential Internet advisor Ira Magaziner is
currently interviewing stakeholders, including  Internet service providers,
computer software and hardware companies, telecommunications firms, and
others.   "This isn't about domain names," says one interviewee.  "It's
really about solving the problem of Internet  governance, and it needs
adult supervision."  (InternetWeek 22 Dec 97)

               SONY, THOMSON-CSF VYING FOR DIGITAL TV BOXES

Sony Corp. and Thomson Electronics are competing for the right to
distribute NextLevel Systems' digital TV  set-top boxes, a move that would
assist either company in gaining a foothold in the huge potential market
for  cable-based high-definition television, telephone services, and other
digital options. NextLevel is said to be  favoring Sony's offer to affix
the well-known Sony name on every box, a powerful marketing tool.  Sony
also  offers access to its established videogame business, which could
eventually be built into the NextLevel boxes.   Last week, NextLevel
announced that most of the top cable companies, including
Tele-Communications, Inc.  and Comcast, have agreed to buy as many as 15
million set-top boxes over the next three years.  (Wall Street Journal 22
Dec 97)

                      DOLE LOBBIES AGAINST MICROSOFT
                          "On the Corporate Dole"

Former Republican presidential candidate Bob Dole is representing several
major companies, including  Netscape, Sun Microsystems, and Sabre Group
Holdings, in an attempt to obtain support for resistance to  Microsoft's
expansion in Internet-based activities.  In a letter to one company, Dole
wrote:  "In the coming  months, we will need to educate the public, the
administration, and the Congress about the dangers of a  laissez-faire
attitude toward Microsoft.  I am personally convinced that if nothing is
done now, it will become  increasingly difficult to have fair competition
in the years ahead.  That is why we will need companies like  yours to help
finance and support our efforts."  (Wall Street Journal 23 Dec 97)

                       "THE WEB IS WHAT WE MAKE IT"

World Wide Web inventor Tim Berners-Lee says users are responsible for
making the Web safe:  "It is  important to realize that the Web is what we
make it.  'We' being the people who read, the people who teach  children
how to surf the Web, the people who put information up on the Web.
Particularly the people who  make links....  The Web doesn't force anything
down your throat.  If you are worried that your children are going  to read
low-quality information, teach them.  Teach them what to read.  Teach them
how to judge information."  (Scientific American Dec 97)


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Jason's Jive






Jason Sereno, STR Staff
jsereno@streport.com


Hi everyone,

The holiday season is coming to a close.  Did you get everything you asked
for?  If you didn't, I am giving you two great games that you should
consider when you return your presents.  Or, if you are staying home for
New Years, these two should bring you into 1998 with style.
                                     
                                     
                               Shipwreckers
                           Overboard (overseas)
                                 PC CD-ROM
                           Street Price: $39.99
                 For all ages (that own a 3D accelerator)
                                     
                                 Psygnosis
                      (Effective as of December 19th)
                       989 East Hillsdale Boulevard
                          Foster City,  CA 94404
                           (650) 287-6500 (tel)
                           (650) 287-6601 (fax)
                             www.psygnosis.com
                                     


Pirating has never been so much fun.  No, I haven't just broken any
copyright laws, I have been playing Shipwreckers from Psygnosis.  This new
marine simulation uses humor, deep sea terror, and 3D graphics (see
requirements below) to keep you  entertained in dozens of treasure-seeking
levels.  And of course you can swashbuckle other would-be pirates in ten
multiplayer levels.  Large amounts of weapons and foes highlight this game
alongside a free roaming third person perspective.

Shipwreckers brings gamers many delights.  The game is full of humor.  The
stereotypical pirates are found floating in a treasure chest if your ship
happens to sink.  Many crewmen jump overboard if your ship catches fire
during play as well.  You can hear them yell as they take their chances
with the sea.  Also included in the game are imaginative sea monsters and a
large array of other pirate foes.  Sea dragons, squids, and giant lobsters
all inhabit these dangerous waters.

Fighting against your opponents won't be too difficult with the proper
usage of eight unique weapons.  Flame throwers, lightning bolts, Rockets,
mines, and of course cannon balls may be used at your disposal along with
several other useful implements of destruction.

However, the most important tool you must use is your brain.  You must
strategically maneuver your way through the levels and avoid being shot,
flamed, stung, or eaten.  After you have mastered your ships controls and
firearms you should use them conjointly to succeed in this simulation.
Your map will help you immensely, showing the next place you must travel to
end the level and find the treasure.

Graphically, Shipwreckers shows an abundance of colors.  The waters vary in
pigment and hue to show great depths and detail in every area.  The
surrounding towns, beaches, and forests all appear very three dimensional.
The polygon effect is obviously used in the game, but it is done well.  If
gameplay alone doesn't draw you to Shipwreckers, the speedy and detailed
illustrations should.

To display all of these graphics, Shipwreckers uses a unique free floating
third person perspective.  Three camera angles in all are available.  One
camera is a top view of the ship, the second camera shows the view directly
behind the ship, and the last displays a side view.  Each camera can be
toggled with the press of the "tab" button.  You may want to use these
cameras at different intervals to give you better looks at what lies ahead
of you.

When you play multiplayer games, the camera angle zoom in and out from a
compromise of the side and top view.  The closer the ships get to one
another, the smaller the amount of ocean that is visible.  However, when
the ships separate from each other, the camera zooms out to show the
required space.  Up to five players can play on ten specifically designed
Microsoft Sidewinder levels.

Shipwreckers is very entertaining and addictive.  The assortment of foes
and firepower really makes this game entertaining.  Multiplayer levels and
the third person views also add entertainment value to this game.  Although
a 3D accelerator is required, it is a small price to pay if not already
purchased, to enjoy Shipwreckers from Psygnosis.

Program Requirements
Pentium 133 MHZ, Windows 95, Double Speed CD-ROM, a Supported 3D card:
Diamond Monster 3D, Obsidian 3Dfx, Orchid Righteous 3D, Apocalypse 3D or
3Dx, ATI All-IN-Wonder, ATI Xpert@play, ATI 3D Xpression+, Matrox Mystique,
Matrox Millenium II, STB Nitro 3D, Creative Labs 3D Blaster, STB Velocity
3D 128, Diamond Viper 330, Guillemot MaxiGamer, Hercules Stingray 128-3D,
Diamond Fire GL, Recommended Chipsets: 3DFX Voodoo, Voodoo Rush, Matrox
Mystique, Power VR (PCX1, PCX2), Rendition v1000, v2200, Nvidia Riva 128,
Permedia, Permedia 2 S3 VIRGE, VX, DX, GX



                              Forced Alliance
                           The Glarious Mandate
                                 PC CD-ROM
                           Street Price: $49.95
                               For ages 13+
                                     
                               Ripcord Games
                         4701 Patrick Henry Drive
                                 Suite 101
                          Santa Clara,  CA 95054
                             408.653.1897(tel)
                             408.653.4046(fax)
                           www.ripcordgames.com



Ripcord Games has recently released Forced Alliance: The Glarious Mandate
for the PC.  This Space fighter is a giant step in the sci-fi genre because
of a very gripping story accompanied by progression of rank.  This game is
never the same twice and every action the gamer makes changes the outcome
somehow.  With this release, Ripcord Games proves again that they are a
real competitor in the software industry.

Forced Alliance is definitely out of this world when it comes to the story.
This game takes place ten years into an intergalactic war between humans
and a species called the Volaptroid.  These aliens resemble lizards and
have very advanced war ships and tactics.  Also fighting against the humans
are a group of pirates called the marauders.  These expert pilots raid
ships and steal cargo with high tech weaponry.

You start as a cadet in training before you actually have a chance to "get
a piece" of either of these parties.  You must pass five simulations in
cadet training to be assigned to a ship.  When you graduate you are
assigned to the Lafayette.  It is the oldest and most sought after ship in
the war.

>From there on you run mission after mission and consequently move up in
rank.  You journey from wing man to squadron leader and eventually captain.
You must first take orders, but as the game progresses, you will be giving
them.  Near the very end of the game you will control an entire fleet of
ships.

Many twists also occur during gameplay.  There is word of the Volaptroid
and marauders joining forces during one part of the game.  Of course there
will be casualties and the story will adapt to them.  Each kill or decision
you make, no matter how small, will also have an impact on the plot.

The only disappointing thing in the game may be the graphics.  The movement
of the ships do tend to be choppy at some times during combat.  However,
when you converse in the Lafayette the graphics are done in SGI and are
much better. Forced Alliance has a few cinematic sequences during the game.
Two that are commonly used are the leaving and docking of your ships.  I
won't dwell on the graphics too much though.  The real excitement comes in
the gameplay.

And that is why I am recommending this game to sci-fi enthusiasts and space
sim fans.  First time pilots should also take a look at this game.  It is
really fun during actual combat and it engulfs you into the story.
Although the graphics are very average, the plot and characters add a lot
of depth to this game.  All of you that have been saying you want more of a
story in your simulations can find it in Forced Alliance.

Program Requirements
486DX-100 or better, 16 MB RAM, VGA & SVGA graphics supported, Sound
Blaster or 100% compatible sound card, 20 MB free hard disk space, Windows
95 compatible mouse and keyboard. (Direct 3D compatible graphics
accelerator recommended)







Special Notice!! STR Infofile       File format for Articles


                         File Format for STReport

     All articles submitted to STReport for publication must be sent in the
following format.  Please use the format requested.  Any files received
that do not conform will not be used.  The article must be in an importable
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.05" left and 1.0" Monospaced fonts are not to be used.  Please use
proportional fonting only and at Twelve (12) points.

z    No Indenting on any paragraphs!!
z    No Indenting of any lines or "special gimmickery"
z    No underlining!
z    Columns shall be achieved through the use of tabs only.  Or, columns
  in Word or Word Perfect format.  Do NOT, under any circumstances, use the
  space bar.
z    Most of all.. PLEASE! No ASCII "ART"!!
z    There is no limits as to size, articles may be split into two if
  lengthy
z    Actual Artwork should be in GIF, PCX, JPG, TIF, BMP, WMF file formats
z    Artwork (pictures, graphs, charts, etc.)should be sent along with the
  article separately
z    Please use a single font only in an article.  TTF New Times Roman
  12pt. is preferred. (VERY Strong Hint)

     If there are any questions please use either E-Mail or call.    On
another note. the ASCII version of STReport is fast approaching the "end of
the line"  As the major Online Services move away from ASCII.. So shall
STReport.  All in the name of progress and improved readability.  The
amount of reader mail expressing a preference for our Adobe PDF enhanced
issue is running approximately 15 to 1 over the ASCII edition. I might add
however, the requests for our issues to be done in HTML far outnumber both
PDF and ascii.  HTML is now under consideration.  We'll keep you posted.
Besides, STReport will not be caught in the old, worn out "downward
compatibility dodge" we must move forward.

     However, if the ASCII readership remains as high, rest assured. ASCII
will stay.  Right now, since STReport is offered on a number of closed
major corporate Intranets as "required" Monday Morning reading.. Our ascii
readers have nothing to worry themselves about.  It looks like it is here
to stay.

Many grateful thanks in advance for your enthusiastic co-operation and
input.

                         Ralph F. Mariano,  Editor
                         rmariano@streport.com
                         STReport International Online Magazine







                     Holiday Cookie Recipe Contest!!!
                                     
Win your very own copy of Recipe Box for Windows 95:
All you have to do is send in your favorite Holiday Cookie Recipe to:
recipes@recipe-box.com
                                     
      As an example: My favorite and very best Holiday Cookie Recipe.
                                     
                   Ralph's Chocolate Chip Diet Spoilers
                            They're Delicious!

                      2 cups Grade A, unsalted butter
                                1 tsp. salt
                               2 cups sugar
                           3 tsp. baking powder
                            2 cups brown sugar
                            3 tsp. baking soda
                           4 large grade A eggs
                   24 oz. chocolate chips or M&M candies
         3 tsp.  Flavor extract (Vanilla, Rum, Butterscotch, etc.)
           1 chocolate bar (8 oz.), sweet or bittersweet, grated
                            4 cups sifted flour
                      3 cups chopped nuts (optional)
                      5 cups smooth blended oatmeal*
         assorted Holiday Colors in sprinkle toppings (optional)**
                                     
     Melt butter slowly under very low heat and fold in both sugars, stir
to a creamy smooth texture.       Thoroughly but gently stir eggs and
flavor extract together using a wisk.  In a large bowl,  mix prepared
ingredients together with flour, blended oatmeal, salt, baking powder and
soda.  Fold in chocolate chips and grated chocolate bar.  Add chopped nuts
(if desired).  Roll mixed cookie dough into 3/4 inch balls and place about
two inches apart on buttered cookie sheets.

     A few tips; for a light colored cookie; chill the chocolate chips and
add them and the grated chocolate to the batter last.  For a chewy cookie;
add one more bar of butter.  Bar=4oz.  For larger, fancy cookies use an ice
cream scoop or a cup shaped tablespoon portion measuring spoon.For effect,
granulated sugar may be sprinkled on top of the cookies before baking
instead of the colored sprinkles.  If chocolate sprinkles are used, add
immediately after removing cookies from oven.   Also, instead of chocolate
chips etc.. and grated chocolate, candied fruits may be used.  However,
they must be diced and used sparingly.  Omitting all added goodies (chips,
candied fruits, chocoates, sprinkles etc.) and using only the genuine
flavor extract (no imitations) of your choice and topping with granulated
sugar will yeild fantastic holiday sugar cookies.

     Bake for 10 minutes at 375 degrees.   Makes approximately 100 cookies
(recipe may be doubled or halved as desired).

*    Measure oatmeal (not instant) and blend in a blender until a fine,
silky powder.
**   Sprinkle colored candy toppings on cookies about 15 seconds before
done.






Classics & Gaming Section
Editor Dana P. Jacobson
dpj@streport.com


>From the Atari Editor's Desk              "Saying it like it is!"

     Well, at this time next week it will be the new year.  Where did the
time go?  It's hard to believe that I'm sitting here putting the final
touches on this week's issue on Christmas night.    I don't have a lot to
say this week - just getting over the festivities over the past few days:
finishing up Christmas/Hanukkah shopping, wrapping  gifts, and other
holiday preparations.  Had my sister-in-law and her husband over for dinner
- our first real holiday event with company in the new house.

     It was a great week talking with longtime friends and receiving cards
and letters from people we don't talk with as much as we'd like these days;
everyone is busy and tends to be busy with their own personal lives.  Yet
the holidays seem to bring everyone together in some form or another.  It's
a great time of year for most of us.  I hope your holiday was as enjoyable
as ours - that Santa or "Hanukkah Harry" brought you your favorite gifts.
I hope you spent some enjoyable time with family and friends; I wish it
would happen more throughout the rest of the year.  I hope 1998 continues
where 1997 leaves off.

     Let me take this opportunity to wish you all a safe and prosperous new
year.  Remember, when you celebrate New Year's Eve, please do so in
moderation.  If not, be sure that someone gets behind the wheel.

                            Until next year...



                     JTS Reports Third Quarter Results


SAN JOSE, Calif., Dec. 22 /PRNewswire/ -- JTS Corporation (AMEX: JTS),
reported net loss of $60.6 million or $0.39 per share on revenues of $24.0
million for the fiscal third quarter ended November 2, 1997. The results
include a one time charge of $38.0 million associated with the company's
decision to suspend support for the 3-inch portable hard drive business.

Tom Mitchell, President and Chief Executive Officer of JTS commented, "We
are beginning to see positive results from our initiatives.  By focusing on
our desktop mid-range product offerings, and continuing our emphasis on
growing our OEM/System Integrator business, combined with our efforts to
restructure the company to reduce our cost and expense structure, we
believe we have positioned ourselves for profitability. With the
qualification of our Champion II product at 2 major OEMs and the growth in
demand we are experiencing from our smaller system integrator customers, we
expect to be profitable in our fiscal first quarter."

Third quarter revenue and profits were impacted as the company transitioned
its product line from Champion I to Champion II and converted from ATA-3 to
an Ultra DMA interface.  "We are encouraged by customer reaction to our
Champion II Family of desktop drives featuring Ultra DMA capacity.  Our
recent results indicate that our strategy of focusing on mid-range capacity
points in our desktop offerings, foregoing entry level product where excess
supply and pricing pressures are most severe, has paid off with improved
average sales prices and gross margins," commented Tom Mitchell.

JTS indicated that OEM/System Integrator sales continue to account for a
growing percentage of revenue, reaching 30% over the past two months versus
less than 5% for the first 7 months of the fiscal year.  Its Champion II
line of drives has been qualified at 2 major OEMs, and is in process of
being qualified at 2 additional major OEM accounts.   The one time charge
associated with suspending support for the 3-inch portable hard drive
business included the following items:  $15.8 of goodwill, $17.9 million of
existing technology, $1.8 million of capital assets, and $2.5 million of
inventory commitments.

Tom Mitchell, President and Chief Executive Officer of JTS, stated, "The
intense competitive pressures we continue to see in the industry
necessitate these actions for us to become competitive and profitable.
Though strategically we believe the 3-inch platform continues to offer
opportunities, tactically we decided not to continue to support this
program; we plan to focus our resources on our desktop product offerings."



                              Gaming Section

"Micro Machines V3!"
Million Sellers!  And more...



Industry News STR Game Console NewsFile  -  The Latest Gaming News!


    Hot Off the Press -- Diddy Kong Racing is the Fastest-Selling Game

REDMOND, WASH. (Dec. 19) BUSINESS WIRE - Dec. 19, 1997 - Nintendo of
America today announced that, with sales of more than one million units in
less than 21 days, holiday shoppers have crowned Diddy Kong Racing the
fastest-selling title in U.S. video game history.  As predicted, Diddy Kong
Racing becomes the fifth million-unit-selling game in 1997 released by
Nintendo for Nintendo 64 -- the most powerful home video game system ever
created. This year's previous million-plus selling titles are Super Mario
64, Star Fox 64, Mario Kart 64 and GoldenEye 007.  This is the first time
in the history of the video game industry in which one company has sold
five million-selling titles within a 12-month period.

          GoldenEye 007 Becomes Most Sought After Title of Season

GoldenEye 007, Nintendo's phenomenal first-person shooting game based on
the James Bond movie of the same name, has not only sold more than one
million units in the last few months, but the game is selling out at retail
outlets across the country.  The demand for the title is so high, recent
Internet video game news services have reported cases of $100 sales per
unit.

      NFL GameDay '98 Becomes Best Selling PlayStation Football Game

FOSTER CITY, CALIF. (Dec. 22) BUSINESS WIRE - Dec. 22, 1997 - Sony Computer
Entertainment America Inc. today announced that NFL GameDay '98(TM) has
sold more than 800,000 units, making it the top-selling PlayStation
football videogame of all time.   In addition, with consumer demand for the
game title continuing to escalate leading into the NFL playoffs and the
holiday selling season, NFL GameDay '98 is fast approaching the million
unit mark.

"The success of NFL GameDay '98 can be attributed to two main factors; the
game's graphic superiority and intense realism.  These key attributes have
broadened the appeal of NFL GameDay '98 beyond traditional videogame
enthusiasts to now include a wider user base," said Peter Dille, senior
director, product marketing, Sony Computer Entertainment America.
"Consumers, the media and numerous professional football players have
praised us for our attention to detail, incredibly realistic graphics and
flawless gameplay.  We're very proud of our accomplishments."

To achieve the realism of NFL GameDay '98, all-pro NFL players were brought
in to be "motion captured."  Motion capture means players were actually
filmed in a full range of movements with light sensitive reflectors
attached to numerous joints on their bodies. The result is the ability to
create life-like computer player models.   As the only PlayStation football
game to utilize "polygonal" graphics - providing for 3D player mass - all
of the players in NFL GameDay '98 look, move and respond realistically, all
in real-time.

NFL GameDay '98 also includes more than 500 real plays so that the game's
playbook simulates those of real NFL teams.  Jerome Bettis, Pittsburgh
Steelers (RB); Chad Brown, Seattle Seahawks (LB); Lamont Warren,
Indianapolis Colts (RB); Tim Brown, Oakland Raiders (WR); and, Christian
Fauria, Seattle Seahawks (TE) are some of the players that were motion
captured and consulted for NFL GameDay '98.  These players say they are
proud to actually be in the game, because it gives them bragging rights
among the other NFL players.

Carrying a MSRP of no more than $39.95, with many retailers advertising
this title at $34.95, NFL GameDay '98 is a PlayStation "segment opener;" a
game that is not only a breakthrough title, but has proven to broaden the
demographic of the PlayStation user base.

              Midway Home Entertainment Acquires U.S. Rights
                           to Micro Machines V3

CORSICANA, TEXAS (Dec. 24) BUSINESS WIRE - December 24, 1997 - Midway
announces retail debut of the definitive multi-player racer, Micro Machines
V3, for the PlayStation.   Midway Home Entertainment Inc. announced today
that the company has acquired the United States home video game publishing
and distribution rights for Micro Machines V3 from U.K. based video game
developer Codemasters Software Company Limited.  Midway also announced the
immediate retail availability of Micro Machines V3 for the PlayStation. The
announcements were made today by Byron Cook, President of Midway Home
Entertainment.   Based on the popular classic Galoob toy line, Micro
Machines was originally released for the 8-bit Nintendo Entertainment
System and 16-bit Sega Genesis platforms.  Both classic versions have
enjoyed great critical acclaim and now, with the release of Micro Machines
V3 for the PlayStation, gamers will experience the ultimate in 32-bit scale
miniatures multi-player racing. Micro Machines V3, released to the European
market exclusively on the PlayStation by Codemasters this past March, has
already established itself as a phenomenal success.

Micro Machines V3 incorporates all of the blinding speed and perfect
control that established its predecessors as video game landmarks. With
vivid zooming 3D graphics and environments, loaded with lethal weapons and
power-ups, and paced at a storming velocity to entertain 1 to 8 players,
Micro Machines V3 is maximum multi-player racing.   Micro Machines V3
features a wild array of 48 all-new, real-time 3D modeled racing
environments - including a breakfast table, school desk, science lab,
beach, restaurant, and garden - and an outrageous collection of 32 3D
modeled vehicles - no two with identical handling - including monster
trucks, transmutable cars and futuristic cars. Micro Machines V3 boasts an
array of all new features, updates, gameplay enhancements, and improvements
over its predecessors including Challenge, Time Trial, Keepsies, Team,
Knockout and Party Play modes, an intelligent zooming camera system, and
breathtaking new circuits bristling with surprises and traps including
mines and force-fields.

Drive LARGE with Micro Machines V3....and DO IT in totally unique and
surreal environments!  Race through a world where giant frogs, dragonflies,
dogs and cats morph into threatening obstacles! Encounter skyscraper-size
skateboards!  Race around RV-size snails! Do it on the kitchen table....and
experience the world of Micro Machines V3!  In making the announcement Mr.
Cook stated, "Midway is extremely excited to partner with Codemasters to
bring Micro Machines V3 to the United States.  Codemasters has created a
huge success with Micro Machines V3."   According to Nick Wheelwright,
Codemasters' Managing Director, "We are
delighted that one of Codemasters' most successful titles will be handled
by such an exciting and prestigious company as Midway Home Entertainment.
Midway has excellent heritage in the industry and we look forward to a very
rewarding partnership."

         New Video Game Owners Flood Nintendo With Calls for Tips

REDMOND, WASH. (Dec. 25) BUSINESS WIRE - Dec. 25, 1997 - Santa's Relaxing;
Nintendo In Overdrive  Nintendo's Consumer Service is expecting a
record-breaking year, with  nearly 500,000 calls to flood phone lines
during "Crunch Week" between Christmas and New Year's Day from brand new
owners of Nintendo 64 systems and games.  Due to the popularity of the
Nintendo 64 and its 40 technologically-advanced games, calls are expected
to focus on hardware hook-ups and game tips for kids of all ages, from six
to 96.

The largest number of calls will likely be about the two hottest-selling
video games of the season, Diddy Kong Racing and GoldenEye 007.  More than
200 Game Play Counselors will help families across the U.S. and Canada
enjoy the holiday gifts once the wrapping is torn off and boxes opened.
Nintendo anticipates that more than one million Nintendo 64s will be
unwrapped for the first time on Christmas day.  "This year's been
tremendous for the video game industry, with Nintendo responsible for the
top seven best-sellers on the market," says Peter Main, executive vice
president, Nintendo of America. "There are a lot  of happy kids this
Christmas, and Nintendo 64, Diddy Kong Racing and GoldenEye 007 are three
of the reasons!"

                The Annual Christmas Grinch Story/Award....

(JACKSON,MI) -- A two-year-old Jackson boy may be having a grim Christmas
this year after an unscrupulous thief broke into his home and stole all his
presents. Kristen Lee says her son Dustin was very upset when he came home
Monday to find all the brightly colored packages were gone...along with a
VCR and rented Sony Playstation. Lee says (in the Jackson-Citizen Patriot)
Dustin asked where all his presents were. Someone forced their way through
the back door of the house taking the presents under the tree...along with
some hidden in the bedroom closet.  Friends of the family say they're on a
tight budget and can't afford to replace the presents along with the stolen
video game. Some of Lee's co-workers have chipped in to help in the
family's plight.








ONLINE WEEKLY STReport OnLine          The wires are a hummin'!



                           PEOPLE... ARE TALKING

Compiled by Joe Mirando
jmirando@streport.com


     Hidi ho friends and neighbors. I don't know about you, but this has
been a hectic holiday for me. Shopping has never been my strongpoint, and
this is usually a busy time of the year at work.  All in all, I think the
concept of shopping was invented by some sick, twisted, sadistic person. It
seems that we need to go out and buy presents at almost the exact time that
the weather is the  worst (well, okay, it's not really the worst weather of
the year, but we  haven't really had the time to get used to it in late
November and early December), and just hope that everyone else buying
gifts for the same people don't decide on the exact same gift that we
risked life and limb to get.

     But now that it's all over and I'm sitting here trying to digest the
feast that was laid out before me today (Christmas Day), I begin to think
that it really was worth all the bustling crowds and charge card slips.
Actually, this thought came to me on Christmas Eve as I said the little
prayer that I've said on so many Christmas Eves. A simple, silent prayer
for the coming year. I can't even remember when this little tradition of
mine began. It seems like I've always done it.  As I remember what this
season is all about, the commercials, ads, and fancy lights fall away and
I'm left with the season itself.  This is a time of year regarded as holy
by several religions and that  gives me even more to think about.  I hope
you had a happy, healthy, and thoughtful holiday.

Now let's take a look at what's happening over on Delphi...

>From The Atari Advantage Forum on Delphi


TurboNick asks Tony Greenwood:
     "What about ST+ #23?  When I got #22, the ZIP header(?) said
     that #23 would be released in January (IIRC)... so, you're
     already looking forward to Feb.?

     By the way, since I finally sneakernetted ST+ downstairs to
     my user group's demo machine (I can't get it to run on my TT
     noway nohow <sigh> it really is TT-incompatible), I had a
     good time poking around it, reading articles, etc.  (and I
     didn't get into 1/2 the stuff).  It's pretty cool, and I'm
     going to give a disk to everyone (at least) who shows up at
     my group's Christmas party.  (They better not all have it
     already - no-one told me about it!"

Tony tells Nick:
     "ST+24 will be released in January and thats the 2nd
     birthday issue, but that's the LAST issue on disk, then we go
     to A5 paper..see pages in sig for details.

     Your comments on the zine are much appreciated..
     unfortunatly too late..  had more people come forward with
     such comments and we knew the diskzine was worth while then
     it would have stayed in that format:)... but not enough, in
     fact hardly anyone did respond,

     We have a USA distributor sorted out and it will be released
     in he USA on exactly the same day as the UK or any other
     country, Firstw eek of EVERY month :) But we are still
     desperatly seeking distributers from other countries.."

Nick tells Tony:
     "Well, I would certainly have commented on ST+ earlier if I
     had known about it earlier.  Some of us just don't have time
     to read UseNet much anymore.  But, I'm glad I got to see what
     I did.  I also shared ST+#22 (the latest out as of the day I
     went to the FTP site) with the members of my users' group
     (gave each of 'em who came to our December meeting & Holiday
     party last night, a disk w/the ZIP file and a README.1ST I
     wrote).

     I still don't understand what the fate of issue 23 is - I
     saw a message somewhere (displayed by STZip when unpacking
     the ZIP file?  in ST+ #22 itself? ?) that #23 was scheduled
     to come out in January.

     I'm looking forward to seeing what the new paper version of
     the magazine looks like.  (Whether I will subscribe remains
     to be seen...  after Current Notes disappeared with nary a
     word, I'm a bit gunshy about playing "Atari magazine
     roulette" again...)"

Tony gives Nick and the rest of us an update:
     "Issue 23 of ST+ arrived on time as usual :) and is on my
     web page for downloading, Issue 24 will also be released on
     time, first week in january,

     As for subscribing to the next ST+..First its
     NON-subscribable, we dont want subscriptions, its pay as you
     want it, its a fanzine and its A5 in size, the only charge
     will be that of photocopying it and posting to you.

     If outside the UK then we have distributors in USA and
     Finland and looking for other countries.

     We make the Fanzine every month and send a master copy to
     our distributors, they then copy and send to you, nothing
     changes hands between countries bar the master copy.

     Its not a magazine.. its very very Hobbyist and for ATARI ST
     owners.. not aimed purely at power users.

     see http://www.users.zetnet.co.uk/paxton for the st+ fanzine
     web page with all info and for the STOSSER software web page
     where you can get the current diskzine."

Nick replies:
     "Thanks for setting me straight.  I'll go get ST+ #23 when I
     get a chance.

     The "new" (paper) ST+ sounds good.  Fanzines are no problem
     (I'm an SF fan, and SF fanzines are common - admittedly, I
     don't read any though.  I think it's great that you and your
     'cohorts' are doing this.  I wish there were more people with
     your level of enthusiasm in my users group.  (Things did
     improve this year, though - we had a net gain of 2 members
     and now have a full complement of officers for 1998.)

     Have a merry Christmas and a happy New Year's and thanks
     again..."

'Myers' posts this little tidbit for all of us:
     "When I see people talking about boot managers, I wonder how
     many know about a neat little feature of the most recent
     versions of the ICD HD software.  It has the ability to boot
     from ANY partition on demand at bootup. Each partition can
     have a complete boot configuration, including AUTO folder,
     ACC's, and INF file.

     All you have to do is wait for the display of available
     drives at bootup, then press the key with the drive letter of
     the partition you want to boot from. Of course this requires
     that you use the ICD software, and have enough partitions for
     the number of configurations you want to use.

     I've never needed the power of a real boot manager. I'm
     perfectly happy with my regular config (NeoDesk, MultiDesk,
     W9, UIS, ramdisk/spooler, and a bunch of ACC's), a "vanilla
     GEM" config (absolutely nothing, for when PageStream gets
     piggy and needs all my RAM), and a few more that I can
     experiment with, so I can try new things without mucking up
     my regular stuff."

During a conversation about coprocessors, our own Dana Jacobson
asks:
     "I know nothing about FPUs - what are the benefits of having
     one installed in my Falcon.  And, is an easy
     "do-it-your-self"'er?"

Greg Evans tells Dana:
     "Installing the FPU is a piece of cake -- removing it is
     actually harder.  To install, just line up the chip (there's
     a cutout on one side) and push it in.  Removing it means
     prying it up while avoiding bending the pins or separating
     them from the chip itself.

     Some programs will use the FPU if you have it -- Phoenix,
     Calamus SL and some, but not many others.  Hey, I've got a
     great combo for you -- a used PowerUp2 and FPU!  You want to
     upgrade that ol' Falcon of yours don't you???"

Dana asks Greg:
     "Okay,  so it's easy to install. <grin>  But you didn't
     answer the other part of the  question: what will it do for
     me (I don't use either Calamus or Phoenix)?  And what's
     PowerUp?   I'm sure I've heard of  it, but can't place it at
     the moment."

Greg tells Dana:
     "The FPU will only do anything if you run a program which
     will use it.  That's not a Catch-22, a program has to be
     compiled to use floating point libraries rather than the
     software floating point routines.  For example, Screen Artist
     requires an FPU because it executes command only found in the
     FPU and not in the CPU.  It could have been compiled with
     software floating point routines, but I presume they would
     have been too slow.  Whether you'll get anything out of the
     FPU depends on the software you run.

     PowerUp is a upgrade that increases your CPU speed from 16
     to 32 mhz.  The overall system increase is between 125-150%
     since not everything is done by the CPU.  For programs using
     an FPU the increase in processing speed is about 3-4x when
     executing floating point routines, regardless of the PowerUp
     -- in other words, even though I mentioned both the FPU and
     PowerUp in this paragraph, they have nothing to do with each
     other."

Dana tells Greg:
     "Thanks for the info.  It  doesn't  sound like an FPU is of
     any use to me at the moment.  I'm assuming PowerUp is a
     hardware upgrade, right?  How involved is it?"

Greg tells Dana:
     "PowerUp needs about 8 wires soldered to various points on
     the motherboard.  After tha, it's driven by software to
     select the speed."

Dana tells Greg what we've always suspected:
     "Soldering is not my forte! <g>  In fact, I think  I got rid
     of my soldering iron  years ago.  Oh well..."

Greg replies with the same good humor as Dana:
     "You could always try taping the PowerUp wires down... I'm
     not much for soldering either.  Toad did the PowerUp
     installation for me a couple of years ago and a local, former
     Atari dealer, did the Afterburner and Nemesis."

Bob Trowbridge asks:
     "I am using Cab 2.5.  I don't have a multi-tasking setup so
     I have not looked at I_Connect.  Q: Is it supposed to work
     with MultiTOS?  Does anyone still use MultiTOS for
     multitasking?"

Having gotten CAB 2.5 up and running quickly, I tell Bob:
     "According to the manual I-Connect is supposed to work with
     MiNT/MultiTOS.

     I've never used MTOS, but I'm assuming that it requires
     MiNT. I've got the copy of MTOS that came with my TT, so
     maybe I'll try it out this coming week.

     My main complaint about anything to do with MiNT has always
     been that it is much slower than other options (MagiC,
     Geneva/NeoDesk). Even though I've got the TT now, I still try
     to keep in mind that there are still a lot of 1040s out
     there, and their users want to know if a particular program
     or setup will work with their machine. MultiTOS on a stock
     1040 is a real bother (or so I've been told), so I never even
     had an interest in using it... when it first came out, I had
     a 1040 STf.

     I _am_ having some trouble getting I-Connect to get me to
     Delphi, but I think that the problem is that I'm using the
     wrong ASCII code for the "@" in the logon sequence. More
     experimentation! <grin>"

Bob replies:
     "Manual ...... manual ...... read ..   an what a concept!
     SMILE!

     I guess I felt kind of let down by the first CAB manual that
     I haven't taken the time to actually read the manual "enough"
     to find out all of the new goodies!"

I tell Bob:
     "Same story here. The new manual is along the same lines as
     the first, but this time the program has enough new features
     to justify putting up with it. <half-grin>

     I still haven't looked at the manual except for the part
     about IConnect though."

By the way folks, I've given up on using the PPP-Connect program that comes
with CAB 2.5 and started using STinG, by Peter Rottengatter, for dialing
and connecting to either a SLIP (Delphi) or PPP (Delphi or CompuServe)
provider. I've found that it works quite a bit faster than Iconnect  and
allows you to use all the internet programs that you were able to use with
STiK. It's a very nice package once you figure out which portions you need
to set up and which you don't. I highly recommend STinG. If you have any
questions about it, feel free to drop me some email.

Greg Evans, having just upgraded his Falcon, now has the fever. He
posts:
     "I am looking to get a Nova graphics card for my Falcon, but
     I need to replace the 14 mb board.  I can either get a 4 mb
     board, or I can get something like the RAM-Gizmo and drop 10
     mb on it, I think.

     Would someone be interested in buying the 14 mb board?
     Also, if Jim Collins is here, can I still get a RAM-Gizmo, at
     what price, and can it be populated with 10 mb?"

Bob Matiska tells Greg:
     "I just received the latest Systems For Tomorrow catalog the
     other day and it lists the Ram Gizmo board at $59.99 without
     ram and $159.99 with 14 megs installed. I don't know where my
     Ram Gizmo instruction sheet is at the moment, but I do
     remember jumper settings for 1, 4 and 14 megs. I definitely
     don't recall any intermediate ram setting, like 8 or 10 megs.
     But $160 is a pretty good deal for the 14 meg board; I
     strongly suggest it. Let me know if you need ordering info
     for SFT...

     I just checked the usenet message groups here and saw that
     Systems For Tomorrow is selling the Ram Gizmo 14 meg Falcon
     upgrade for just $99 populated! And I just got their catalog
     the other day where the price was $60 higher. Will ram prices
     never stop dropping? Wow... I wish this upgrade fit the whole
     ST/STe line!"

     Well folks, that's about it for this week. Have a happy New Year's
Eve. And please, please, please, don't drink and drive. If you won't
consider this for yourself, consider it for your friends and family... The
life you take could be THEIRS!  I try to think of it this way... there are
enough idiots on the road without my adding one more.

     Tune in again next week, same time, same channel, and be ready to
listen to what they are saying when...

                            PEOPLE ARE TALKING




                            EDITORIAL QUICKIES

the following words.
were found in Old St. Paul's Church, Baltimore, MD (dated 1692):

      "Go placidly among the noise & haste, and remember what peace there
may be in silence.  As far as possible without surrender be on good terms
with all persons.  Speak your truth quietly & clearly, and listen to
others, even the dull & ignorant; they too have their story.  Avoid loud &
aggressive persons, they are vexatious to the spirit.  If you compare
yourself with others, you may become vain and bitter; for always there will
be greater & lesser persons than yourself.  Enjoy your achievements as well
as your plans.  Keep interested in your own career, however humble; it is a
real possession in the changing fortunes of time.  Exercise caution in your
business affairs; for the world is full of trickery.  But let this not
blind you to what virtue there is; many persons strive for high ideals; and
everywhere life is full of heroism.  Especially, do not feign affection.
Neither be cynical about love; for in the face of all aridity &
disenchantment it is perennial as the grass.  Take kindly the counsel of
the years, gracefully surrendering the things of youth.  Nurture strength
of spirit to shield you in sudden misfortune.  But do not distress yourself
with imaginings.  Many fears are born of fatigue & loneliness.  Beyond a
wholesome discipline, be gentle with yourself.  You are a child of the
universe, no less than the trees & the stars; you have a right to be here.
And whether or not it is clear to you, no doubt the universe is unfolding
as it should.  Therefore be at peace with God, whatever you conceive Him to
be, and whatever your labors & aspirations, in the noisy confusion of life
keep peace with your soul.  With all its sham, drudgery & broken dreams, it
is still a beautiful world.  Be careful.  Strive to be happy."


                      STReport International Magazine
                                     
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editors/staff  of  STReport International OnLine Magazine.   Permission  to
reprint   articles  is  hereby granted, unless otherwise  noted.   Reprints
must,  without exception, include the name of the publication, date,  issue
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or   misuse  of  information  contained  herein  or  the  results  obtained
therefrom.

       STReport  "YOUR INDEPENDENT NEWS SOURCE"   December 26, 1997
      Since 1987  Copyrightc1997 All Rights Reserved   Issue No. 1351


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