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To: Archie R. Wortham who wrote (3993)7/2/1996 10:46:00 PM
From: Young D.T. Nguyen
   of 58323
 
More info about the Nordic, courtesy of Dale Stempson (#3948).
Young

The following is a repost from

About JTS
--------------------------------------------------------------------
BACKGROUND

JTS corporation was formed through Jugi Tandon's acquisition of the
technical assets of Kolak Corporation in February 1994. At that time,
a low-cost, profile 3.5 inch product was under development along with
a 3-inch -diameter low -profile disk drive. These products were the basis
for the offerings of the new company. Mr Tandon is well known in
the computer storage industry for his vision and his ability to bring
advanced products to market with wide industry acceptance of new
ideas and products.

Investors in the new company included the Tandon family and Tom
Mitchell. Subsequent investments have been made by Burr, Eagan,
DeLeage and Company, Western Digital Corporation, Sofinnova Inc.,
Walden Group, Advanced Technology Ventures, Needham and
Company, TA Associates, Brentwood Associates, and others. As of
October 1995, a total of $41 million had been raised for this new
company's operation.

The addition of Tom Mitchell to the management team at JTS brought
immediate credibility to the venture. Mr Mitchell was a cofounder of
Seagate Technology and president and chief operations officer of
both Seagate and Conner Peripherals. His experience in high-volume,
low-cost disk drive production is unparalleled in the industry.

Currently, JTS employs 130 people in the United States, eight in
Southeast Asia, and 1,190 in Madras, India.

PARTNERSHIPS

The endorsement of JTS product design by Western Digital Corporation (WD)
was enforced by WD's equity investment in the company as well as its
purchase of manufacturing and marketing rights to certain JTS products.
Under the terms of this agreement, WD obtained manufacturing and marketing
rights to JTS's 3-inch disk drive products. WD also became a minority
shareholder in JTS as part of the transaction for a total consideration of
$10 million. (The technology portion of the investment was approximately
$6 million, and equity stake was $4 million). Both parties have reciprocal
royalty free cross license agreements for future 3-inch drive developments.

Mr Tandon's associations in India are broad. The Tandon family has
been the largest exporter of high-technology products from India for
many years. India offers tremendous labor cost savings and serves
as a source of significant working capital credit facilities and capital
investment funds for plant and equipment. Extensive tax holidays are
also available in India. Mr Tandon's family already controls businesses
in India producing head stacks, spindle motors, and voice coil motors
for disk drives. One of these companies, Modular Computer, based
in Madras, is being acquired as a JTS subsidiary. The Madras factory
currently employs about 1,200 people with very attractive labor rates.

A substantial investment has been made in the newly completed Madras
manufacturing facility. Currently, the Madras facility is producing 1,000 dives
a day with plans in place to grow to 10,000 drives per day.

JTS signed a volume purchase agreement with Compaq Computer, and
it is believed that Compaq has also agreed to help fund the final development
of the 3-inch drive named the Nordic.

PRODUCTS

The JTS product breakfast is focused on a narrow product line of 3.0
and 3.5 - inch disk drives with enhanced IDE interfaces. As recording
efficiencies increase, each of these form factors will be brought to higher
and higher capacities. One of the key factors in the proprietary JTS technology
is the highly integrated electronics board, which resides inside the head
disk assembly (HDA). This board allows the company to eliminate the
additional space normally required for the printed circuit card on the
back of a disk drive and also reduces the cost of the board substantially.

The Nordic is the most unique disk drive product available today. Its size
is similar to that of a 3.5 - inch floppy diskette. Its dimensions are 10.5 x 90 x 120mm
for two-platter, four-head configuration with a 640MB capacity. The drives
spin at 4,103 rpm, and the average seek time is 16ms, falling 14ms in
future drives. The drives use low-cost double-MIG heads from NMB in
Japan and currently have an areal density of 300Mb per square inch.

Development plans include a rapid climb in areal density and drive capacity.
The 640MB Nordic began first production shipments in October 1995,
and an 840MB product is due to customers before the end of 1995.
A three-platter, 12.7mm-high drive is scheduled for production in May
1996, with two-platter, 1,080MB, 10.5mm Nordic due in June. JTS intends
to use D-MIG heads for all of these steps, going as far as
500Mb-per-square-inch areal density before switching to thin film
inductive heads.

The 3.5-inch JTS drive family is named Palladium and also features
low-profile products. The Palladium dimensions are 12.7 x 101.6 x 156.2mm
. Currently in that package, JTS is shipping two-platter, 540MB and 850MB
drives, with a two-platter, 1,080MB product due to customers in January 1996.
The D-MIG technology is expected to take JTS to a two-platter, 1,260MB
level in July 1996. The Palladium is identical to the Nordic in most respects
except for its media and outside case dimensions. The electronics and
mechanics are the same.

MARKETS

Most questions about JTS center on the issue of the 3-inch disk drive.
This product was developed specifically to target the market so closely
held by the 2.5-inch disk drives in mobile computers. PC makers became
most excited when they realized that this product would fit their low-power
requirements and provide an 80 percent increase in recording area over
that of a 2.5-inch drive. The inexpensive design platform can then
provide a drive with a substantial decrease in cost per megabyte and
still fit in portables. The leading 2.5-inch producers such as IBM and Toshiba
all use advanced recording techniques to reach higher capacities. IBM
uses MR heads, a PRML read channel, and glass media. JTS uses 1900
oe media and MIG heads.

The recipe points toward a cost saving to OEM buyers of as much as
$100 on a notebook while providing excellent profit margins for JTS. While
JTS technology is clearly behind that of IBM and Toshiba, the JTS cost
structure could allow these products to meet the entry-needs of mobile
PC manufacturers and gain a significant share of that market.

The JTS Palladium drives are aimed at the desktop PC market and
face a tougher competitive battle. These drives are going for the
market already crowded with Quantum, Seagate, Conner, Western Digital,
and Maxtor, each fighting for market share. With many of these vendors
already leaving the 540MB capacity point because of low profitability,
JTS may find a good opportunity to sell low-cost, "end-of-life" products.

JTS estimates that it will sell and build 900,000 Nordic drives and 1.5 million
Palladium products in the next 12 months. Dataquest estimates that the
total 1996 market for hard drives in notebooks and laptops will be 15 million
units. If JTS predictions are true, the company would gain 6 percent
market share in its first year.

DATAQUEST PERSPECTIVE

Start-ups in the disk drive industry have not found entry into the market easy.
Conner's quick rise was fueled by the simultaneous growth of the 3.5-inch
rigid disk drive market. Now, JTS has thrown its hat into the market previously
dominated by 2.5-inch products as it begins its increased growth curve.
Timing may be everything, and JTS could not have picked a better
time to come into the market.

Tom Mitchell's strengths in bringing up manufacturing powerhouses will be
tested as he blazes new territory once again. Tom was the first to enter
Singapore and Thailand and was one of the first to expand into Malaysia
for disk drive production. India will be another challenge.

End of article.

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To: VICTORIA GATE, MD who wrote (3997)7/2/1996 10:51:00 PM
From: Young D.T. Nguyen
   of 58323
 
"Q2:1996 quarter results
Revenue (millions) 341
Earnings Per Share 0.17
Shares Outstanding (millions) 135.01"

Your estimates, or is this news? I have not seen any news out of IOMG,
so I assume the above are your estimates.

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To: Young D.T. Nguyen who wrote (3999)7/2/1996 11:12:00 PM
From: Young D.T. Nguyen
   of 58323
 
IOMG awards update. Repost from AOL MF.
--------------------------------

ubj: Updated Iomega Awards!!!
Date: 96-07-02 14:32:17 EDT
From: MANREAL308

This is Iomega (IOMG:Nasdaq) Fact #61.

1.July 8, 1996 Business Week Cover story using MORGAN STANLEY
INTERNATIONAL DATA resources; announces "Global 1000 Table,"
Iomega joins the list of: General Electric,Royal Dutch Petroleum/Shell Group,
America On Line, Fore Systems, Coca Cola, NTT, Ascend Communications,
Exxon, Merck, General Motors, Ford Motor, Toyota Motor, Philip Morris,
Bank of Tokyo-Mitsubishi, AT & T, US Robotics, Itochu, Mitsui & Co.,
IBM, HSBC Holdings, Glaxo Wellcome,Republic Industries, Gartner Group,
Mitsubishi Corp. Marubeni, Cascade Communications, Total System
Services, Avon Products, Freeport-McMoran Copper & Gold, Schering-Plough,
Smithkline Beecham, UST, etc.

***************************************************************************************************************
2. 1996 June 30, 1996 Iomega lists on Russell 1000, "Top 1000 Stocks."

3. 1996 Consumer Reports - Iomega earns "Quality Product Seal"

4. 1996 Spain's MacWorld - "Product Award" given to Iomega.

5. 1995 Spain's PC Magazine - "Actual Award," goes to Iomega.

6. 1995 France's PC Magazine - Capablities Award," bestowed on Iomega.

7. 1996 United Kingdom's PC Plus Magazine - "Value Award," to Iomega.

8. 1995 United Kingdom's PC Direct Magazine - "Best Buy Award," given to Iomega.

9. 1996 Business Magazine's - "Best Product Pick," Iomega.

10. 1996 Home Office Computing - "Editor's Choice Award," to Iomega.

11. 1996 PC Magazine's - "Storage Product of the Year Award," to Iomega.

12. 1996 PC Computing Magazine's - "Most Valuable Product Award," given to Iomega.

13. 1996 BYTE Magazine's- "Readers Choice Award," to Iomega.

14. 1996 CMP Windows Magazine's- "Hardware of the Year Award," Iomega.

15. 1996 Windows Magazine's - Hardware Product Award," Iomega.

16. 1996 MACWEEK Magazine- "Five Star Rate Award," Iomega.

17. 1996 PC World, OnLine--Released July 1996: "As Always a Zip Mentioned--Never the LS-120."

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To: Young D.T. Nguyen who wrote (4000)7/2/1996 11:16:00 PM
From: Young D.T. Nguyen
   of 58323
 
Updated IOMG 's OEM partners. Repost from AOL MF.
-------------------
Subj: Updated Iomega Facts: #60
Date: 96-07-02 13:33:20 EDT
From: MANREAL308

The following are global Original Equipment Manufacturers (OEMs)
Iomega partners:

1.NEWEST: Digital Secured Network (DSN) Technology, Inc.
contracted with nation's premier manufacturer's representatives across
USA, including TAMCO, Smart Stuff and R2 to sell and support its
new Intranet security product, the NetFortress.

DSN has chosen represent Bay Networks for routers, MCI for Internet
connectivity & Iomega for Zip drives. Source: ENGLEWOOD CLIFFS,
N.J.---(BUSINESS WIRE)---July 1, 1996

2.Unisys Computer.
3.Gateway 2000 Computer.
4.TDK Data Recording Media.
5.Japan's NEC & NEC's USA units.
6.Packard Bell Electronics/Computer.
7.Japan's NEC & Packard Bell Electronics/Computer recently merge.
8.International Business Machines (IBM).
9.Norway's Olmpia Finas Group AS subsidiary Katz, Inc.
10.Katz, Inc. is an Apple Computer licensee of Pippin (tm) @World.
11.Japan's Bandai Digital Equipment also an Apple Computer licensee of Pippin(tm)@World.
12.Japan's Bandai Digital Equipment are also the famous Morphin's Power Ranger marketers.
13.Germany's Escom Computer.
14.Belgium's Sentinel, NV.
15.Taiwan's Acer Computer & Acer America units.
16.Taiwan's Acer successfully markets $500 PC.
17.Taiwan's Acer is supplying Texas Instruments with 400,000 notebook computers.
(Source: CENTRAL, Hong Kong, 1996 June 21---Newsbytes (NB) )
18.SystemSoft Corporation.
19.Taiwan's Megamedia Computer.
20.Japan's Sony & Sony USA units.
21.Japan's Fuji Film & Fuji's USA units.
22.Japan's Seiko-Epson & Epson's USA units.
23.Japan's Hitachi-Maxell & Hitachi-Maxell's USA units.
24.Japan's Maxtor.
25.India's TVS Electronics.
26.Pinnacle MicroApex.
27.Ingram Microstrategic
28.Hewlett Packard Computer & Hewlett Packard's international units.
29.Dell Computer & Dell's international units
30.Micron Electronic's Technology & Micron's international units.
31.Motorola & Motorola's international units.
32.Power Computing & Power's international units.
33.Roland Musical Instrument/Musical Computers & Roland's international units.
34.Ensoniq Musical Instruments & Sound Recording/Radio Studio Technologies.
35.Pipeline Communications.
36.Pipeline Communications recently merges with IntelliQuest.
37.HMT Technology.
38.Imp Technology.
39.Read-Rite Technology.
40.Ameridata.
41.BTG.
42.Cheyenne Software.
43.Cheyenne Software recent sign agreement with Computer Associates.
44.Reveal Software.
45.Pacific Microelectronics.
46.Quantex.
47.Sir Speedy Printing.
48.Kinkos
49. 3-M (Source:NY-Reuter-May 31, 1996/Business Wire, June 19, 1996 ), Iomega a 3-M Travan licensee.
50.Goldmail Marketing. (New see, Source: ST. LOUIS, July 1, 1996/PR Newswire)
51.Hambrecht & Quist, LLC an Iomega secondary share offering partner.
52.Hambrecht & Quist, LLC, plans to track Iomega & offer expert stock research.
53.Heller Bank, AG Mainz Germany, an Iomega financial partner.
54.Heller Bank, AG Mainz Germany, will handle international currency conversions.
55.JP Morgan, an Iomega secondary share offering partner.
56.JP Morgan is tracking Iomega and offering expert stock research.
57.JP Morgan current Iomega 12 month conservative stock range $40-$42.
58.JP Morgan current Iomega July 18, 1996 quarterly earnings estimate @ .10 (a dime).
60.Wells Fargo Bank, Iomega financial advisor.
61.Iomega graduates now listed on Russell 1000, top 1000 stocks.
62.PC will display "IomegaReady" stickers on hardware.
63.1996 Consumer Reports - Iomega earns, "Quality Product Seal."
64.1996 Spain's PC Magazine - Iomega earns, "Actual Award."
65.1996 Spain's Macworld- Iomega earns, "Product Award."
66.1995 France's PC Magazine - Iomega earns, "Capabilities Award."
67.1995 United Kingdom's PC Plus Magazine - Iomega earn,. "Value Award,"
68.1996 United Kingdom's PC Direct Magazine - Iomega earns, "Best Buy Award."
69.1996 Business Week, July 8, 1996 Iomega listed on cover: "Global 1000 Table."
70.1996 Business Week - Iomega earns, "Best Product Picks." & Numerous More!

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To: Jimmy Parks who wrote (3979)7/2/1996 11:35:00 PM
From: Rick Mortellra
   of 58323
 
JP said: <An interesting thing about the EZFlyer is it's lack of supply.>

Bloomberg just ran a news story Tuesday evening reporting on statements made by SYQT in their preferred offering filing with SEC made yesterday. SYQT admits it has yet to sell or produce commercial quantities of the EZFlyer and the company is continuing to refine the product. They go further to caution that they may not be able to sell the drive above cost. Also having trouble obtaining parts as suppliers are refusing delivery pending payment and expects the shortage to continue for the forseeable future. The $20 million obtained from the offering will do little to relieve their working capital crunch.........etc., etc.

Still looks like no competition to me. Unbelievable! Hope the stock gets a boost Wed.

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To: Young D.T. Nguyen who wrote (3998)7/2/1996 11:59:00 PM
From: Rick Mortellra
   of 58323
 
Another JTS Nordic drive tidbit...

This product name rang a bell and I checked through my notes made in March when I first became interested IOMGs CB. Researching IOMG led me to a very profitable April trade in IMPX, the so called "son of Iomega." Turns out IMP made an Aug. 15 press release that JTS had selected IMP's IMP62C548 read channel device for the "revolutionary" Nordic....etc., etc. Coincidently, IOMG had announced on Aug. 1 that it had selected IMP's IMP62C538 read channel device (the Zip chip) too!

The technical implications of this tidbit are beyond my areas of expertise. Anyone care to comment or speculate?

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To: Mark Lijewski who wrote (3970)7/3/1996 12:01:00 AM
From: Guy Gordon
   of 58323
 
Wow Mark! You're surrounded by "ultra-techies" and they don't even have CD-ROM drives? Who are these guys?

Just for the record, I own a Zip, and know 5 other people with Zip drives (and CD-ROMs :) The tie ratio seems to be about 10.

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To: Young D.T. Nguyen who wrote (3984)7/3/1996 12:49:00 AM
From: Jim Higgins
   of 58323
 
Young, I agree, but not only are the home users buying, but business as well. At the company where I work we employ a computer aided design draftsman who recently acquired a zip to store his drawings. Every time I see him now he's telling someone how great it is. A typical CAD operator can generate a 50-100 Megs of data in a week. A typical file could be 5-10 megs. Talk about a floppy nightmare, you should see his file cabinet. I would say his tie ratio will very rapidly exceed a hundred. I just love to hear him brag about his new drive.

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To: Young D.T. Nguyen who wrote (3981)7/3/1996 1:16:00 AM
From: Jimmy Parks
   of 58323
 
You can get the specs for the Syjet on Syquest's website. It has a higher capacity and faster speed than the JAZ.

I think that the CEO was referring to the price war between the EZ135 and Zip as being a bad move. I don't think this will be true with the Syjet and Jaz. The Zip drive hardware has lower costs than the hardware for the EZ135. When we're talking about the 1 gig capacity removables, Iomega still doesn't have a very large supply. If Syquest follows the strategy of fooling everyone into thinking that the EZFlyer is their main product, they will be able to shift that capacity into the production of the Syjet. There hasn't been any word of the Jaz production capacity.

You are correct about the $20 mil not going that far. This is why I have noticed that they are dumping as much of their stock as possible. They are also decreasing the number of products in their product line. By shifting all or most of their production to the Syjet, they can very well compete with Iomega in the specialized 1 gig removable market. Remember that this is a very special market that Iomega has not yet captured. After all, the Jaz is a scsi only product. The Zip has gained as much acceptance as it has because it is a parallel port product. The potential consumer base for both the Jaz and Syjet are users who are conversant with SCSI and therefore are more sophisticated computer users. These types of users are the type that would just as easily order something through the mail. Availibility through the current Iomega marketing channels is thus less important than it has been for the Zip. This is also a segment of the market (high - end users) that Syquest has traditionally done very well. In fact, they have beat Iomega more than once in this particular market (high-end users).

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To: Rick Mortellra who wrote (4002)7/3/1996 1:23:00 AM
From: Jimmy Parks
   of 58323
 
It's unlikely that Syquest will get a boost any time soon unless it is because of speculation.

I agree with you about the $20 million not going far. I suspect that this is the reason they have been liquidating stock as fast as possible. The SQ3270S that normally costs $339 is on sale for $139! They are also liquidating the EZ135's as fast as possible.

Syquest is following the same type of tactic I would follow if I were in their position. I'm long on Iomega and I've got some Syquest puts, but there's no way I'm going to short this stock. I suspect that they will drop to below $5 per share within the next 4 months. If they follow their current strategy of smoke and mirrors with the EZFlyer and push everything they've got into the Syjet, we could see Syquest's stock shoot past $16 a share by April.

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