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Article #596 (730 is last):
From: aa789@cleveland.Freenet.Edu (Bruce D. Nelson)
Newsgroups: freenet.sci.comp.atari.mags
Subject: ST Report: 9-Aug-96 #1232
Reply-To: aa789@cleveland.Freenet.Edu (Bruce D. Nelson)
Posted-By: xx004 (aa789 - Bruce D. Nelson)
Date: Fri Aug  9 17:02:38 1996



                                      
                            Silicon Times Report
                  The Original Independent OnLine Magazine"
                                (Since 1987)
                                      
  August 09, 1996                                                  No.1232

             Silicon Times Report International OnLine Magazine
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                       STR Electronic Publishing Inc.
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                            R.F. Mariano, Editor
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 08/09/96 STR 1232  The Original Independent OnLine Magazine!
 
 - CPU Industry Report - Corel News     - LINKS LS
 - Nintendo 64         - IBM Virus Tool - HARE VIRUS
 - NEW MACS            - 150Mhz Pentium - Mario 64
 - Cybergangs          - CDROM to DIE   - JAGWIRE
 
                      AOL goes AWOL!
               Hackers Nail Scotland Yard
               U.S. Spies Invade UK System?

                                   
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                                                  The Publisher, Staff &
                                                  Editors



Florida Lotto - LottoMan v1.35
Results: 8/3/96: 3 of 6 numbers, no matches



>From the Editor's Desk...

     The Olympics are over and so is the era of folks believing the FBI is
infallible.  The manner in which the investigation in Atlanta has been
conducted is something of a spectacle that's just shy of a Max Sennett film
short.  Its sad to see.  However, it is reality.  Now, the Feebs can go about
their business normally.  Instead of being considered the immediate solution
of all problems.

     On another front, the matter of truth in advertising is creating quite a
flap among observers in many fields.  Especially the advertising fields.
They, the ad creators, had better pay attention.  After all the Pepsico thing
is bound to set some very startling precedents.  Since when is it ok to spoof
the public to sell a product?  The Harrier Jet thing is merely the tip of the
iceberg.  Advertising agencies have, along with various corporate executives
who're specifically involved, been taking some very liberal and dangerous
liberties in presenting their advertising.  Its time the nation's courts
became involved before it all reverts back to the snake oil sales of days
gone by.  Its bad enough that the promotional and marketing gurus are allowed
to colorize our fresh produce to make it more enticing but to outright lie in
a commercial is a bit much.  Pepsico got caught with their neck stuck out.

     The next area of questionable advertising and product sales is in the
computing industry.  The Hardware and software sales "deals" are truly in
need of the ultimate test.  Bundle deals, are they really deals?  Software
support and update programs are they for real or merely delightful cash cows?
We'll be looking at this picture in the next few weeks.  Stay tuned. its
going to get very interesting.

     In the last twenty four hours. another of the, "Boy Who Cried Wolf",
has appeared busily denouncing Microsoft's Personal WebServer  etc. as being
infested with security leaks.  Hmm after careful examination, the alarm
sounded by this "expert" proved to be a very false alarm.  One can only
wonder how many more will "jump up" taking cheap shots at MS in vain attempts
at making a name for themselves.  Gotta admit it does make for an interesting
and diversified world though.  Sorta reminds one of a set of Dice without all
the dots!

     Next Week. Building a Powerhouse Computer on a Budget!

                                             Ralph...

Of Special Note:
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                    Ralph F. Mariano, Publisher - Editor
                  Dana P. Jacobson, Editor, Current Affairs

Section Editors
     
PC Section                         Mac Section          Atari Section
R.F. Mariano                       J. Deegan                D. P. Jacobson

Portable Computers & Entertainment                     Kid's Computing Corner
     Marty Mankins                                          Frank Sereno

STReport Staff Editors
Michael Arthur                     John Deegan              Brad Martin
John Szczepanik                    Paul Guillot             Joseph Mirando
Doyle Helms                        John Duckworth           Jeff Coe
Steve Keipe                        Victor Mariano           Melanie Bell
Jay Levy                           Jeff Kovach              Marty Mankins
Carl Prehn                         Paul Charchian           Vincent P. O'Hara
     
Contributing Correspondents
Dominick J. Fontana                Norman Boucher           Daniel Stidham
David H. Mann                      Angelo Marasco           Donna Lines
Ed Westhusing                      Glenwood Drake           Vernon W.Smith
Bruno Puglia                       Paul Haris               Kevin Miller
Craig Harris                       Allen Chang              Tim Holt
Ron Satchwill                      Leonard Worzala          Tom Sherwin

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                           STReport Headline News
                                      
                      LATE BREAKING INDUSTRY-WIDE NEWS

                   Weekly Happenings in the Computer World

                        Compiled by: Dana P. Jacobson

                      Software Causes 19 Hour AOL Crash

America Online was shut down for 19 hours yesterday the worst blackout in the
Vienna, Virginia, firm's 11 year history    apparently because of a problem
with computer switches that route data from the external network that spans
the country into AOL's main network center.  That problem seems to have been
fixed, but "AOL said, however, that the root of the problem has yet to be
determined and that the company would be studying the shutdown throughout the
night," writer Jared Sandberg of The Wall Street Journal reports this
morning.

The outage, which prevented any user from being able to get online with the
service, began at 4 a.m. Eastern Time yesterday and continued until after 10
p.m.  Sandberg said the company didn't know how many of its members were
trying to get online yesterday, adding AOL said the blackout won't have a
material financial impact.  "But," adds the Journal, "AOL's media partners,
which receive royalty payments from AOL based on subscriber usage fees, will
have missed a day's worth of revenue. Moreover, the potential for damage to
AOL's reputation for reliability, which has suffered in previous smaller
outages, could effect turnover among the company's customers."

Says the Journal, "Company executives have said that among longtime users who
leave the service, complaints concerning connection problems have been among
the most frequently cited reasons for leaving."   Meanwhile, AOL officials
told the paper it will offer subscribers a credit of 3 percent of the $9.95
monthly fee it charges users, or 30 cents a customer.  AOL Vice President
Jean Villanueva told Sandberg that though the company has backup systems for
various areas of the service, the affected internal network had no such
"redundancy," adding she didn't know by last night how many people called the
service to complain. "It was one of our busiest days."

                      Renewed Effort to Block Net Calls

A group of 175 small to mid sized long distance telephone companies is again
asking to FCC to take action against firms that offer Internet based voice
communications.  Several companies currently offer software that allow users
to make long distance calls over the Internet. Although the voice quality is
far below that provided by standard telephone connections, users can place
calls for only a fraction of the price demanded by long distance carriers.

Last March, the phone companies, organized as America's Carriers
Telecommunication Association, petitioned the FCC to crack down on Internet
vendors that offer voice communications products. The FCC has since indicated
that it is in no hurry to address the issue, prompting the ACTA to issue an
open letter to FCC Chairman Reed Hundt.   "Whistling by the cemetery,
Commissioner Hundt suggests that technology, competition and access charge
reform will 'make the problem go away,'" states the letter, signed by ACTA
General Counsel, Charles H. Helein. "If this were true, the Chairman seems to
have written the need for his agency's involvement out of the picture.

If there is no need for the Commission's involvement in such issues as raised
by Internet telephony, what is the purpose of having an 'expert' body to deal
with such far reaching issues?"  The ACTA contends that the FCC must not wait
until Internet telephony "produces a more palpable impact on the nation's
traditional communications infrastructure."

                       Decency Act to Get Quick Action

Legal analysts are predicting the U.S. Supreme Court will move quickly to
review a new law regulating indecent material on the Internet now that a
second panel of judges has found portions of the act unconstitutional.   As
reported, three New York federal judges have ruled the new Communications
Decency Act was overly broad because it bans constitutionally protected
indecent speech between adults while trying to shield children.

This is the second recent victory for the Net's free speech advocates. Last
month, a federal panel in Philadelphia also ruled parts of the act to be
unconstitutional, saying portions were too vague as well as too broad.  This
week's second ruling "makes it even more inevitable that the Supreme Court
will take this quickly," attorney Steven Reiss of the New York firm Weil,
Gotshal & Manges told reporter Gail Appleson of the Reuter News Service. "I
would expect you would see an order this fall taking one of these cases."
The earliest the court might announce if it will review either case or a
combination of the two is the last week in September, a Supreme Court
spokeswoman told the wire service.

"While it is difficult to predict how the high court will rule," says
Appleson, "the fact that six judges see constitutional problems with the law
does not bode well for its future. ... Lawyers said Monday's ruling was also
significant because of the prominence of the panel members." The
controversial Computer Decency Act of 1996 was passed overwhelmingly by
Congress as part of the broader Telecommunications Act of 1996 and  was
signed by President Clinton on Feb. 8. Since lawmakers expected immediate
constitutional challenges, they included provisions allowing hearings before
special panels of federal judges, whose decisions can be appealed directly to
the Supreme Court.

As reported, the U.S. Justice Department already has filed an appeal of the
June ruling and has 20 days to act on the New York decision. A spokesman for
the Manhattan U.S. attorneys office told Appleson that prosecutors still are
studying Monday's ruling and could not comment on whether they might move to
combine the cases.

                        IBM Upgrades Anti Virus Tool

IBM has announced an improved version of its IBM AntiVirus software.  The
company says its IBM AntiVirus 2.5 has been enhanced to provide safer, faster
virus protection for the Internet, including the ability to scan Internet
documents for viruses before they can infect a computer. The software
provides protection from more than 8,000 strains of computer viruses,
including the Concept virus and other Word macro viruses.   Macro viruses,
which infect macro programs embedded in documents, have emerged as a new and
rising problem. The Concept virus, which infects Microsoft Word documents,
was first seen less than a year ago and is now one of the most prevalent
computer viruses in the world.

The desktop version of IBM AntiVirus 2.5, which runs on Windows 95, Windows
3.1, OS/2 Warp and DOS computers, is scheduled to become available in mid
August for $49. A network version will ship at the same time.  "Unlike other
anti virus products that are limited to specific Web browsers and sold
separately, IBM AntiVirus includes 'all in one' Internet protection," says
Steve Rosenblatt, worldwide segment manager for IBM AntiVirus.

                          Hare Virus Set to Strike

"Beware the Hare!" is the word from Cheyenne Software Inc., an anti virus
software publisher based in Roslyn Heights, N.Y.  The Hare virus is difficult
to detect through traditional anti virus software and is considered a severe
and highly destructive threat, says Cheyenne. The virus is set to strike on
August 22nd and September 22nd. On these dates, Hare will destroy all data on
an infected PC by overwriting the computer's hard drive.

The Hare virus was first distributed over the Internet in May of this year.
Since then, two other versions of the virus have also been distributed in
files on a variety of Internet newsgroups. The Hare virus has been detected
in the United States, Canada and Europe.  Perhaps the most widespread posting
of the Hare virus was in the pkzip300.exe file on the alt.comp.shareware
newsgroup, says Cheyenne. Users unwittingly can infect their PCs by simply
downloading and executing this file.

According to Cheyenne, Hare first infects the master boot sector of the PC
and, when the PC is restarted, installs itself into memory, thereby
contaminating .COM and .EXE files. Hare can avoid detection by traditional
anti virus software by remaining dormant within infected files and slowly
changing as it replicates.  PCs infected with Hare will display the message
"HDEuthanasia..." when the PC is restarted on August 22nd or September 22nd,
says Cheyenne.

Hare will then overwrite the entire hard drive, deleting all data. After
attempting to destroy all data on the PC, Hare returns to dormancy and may
then replicate to any floppy diskette used to recover and reboot the damaged
PC.  "The Hare virus is one of the most complex viruses in the wild today,"
says Ian Whalley, editor of Virus Bulletin, a U.K. based computer security
publication. "This virus will certainly present serious problems to users who
come into contact with it and who do not have adequate protection installed
on their systems."

                         Intruders Hit Scotland Yard

Scotland Yard reportedly has been targeted by computer vandals who broke into
a security system to make international calls at the expense of London's
famed metropolitan police headquarters.  The Reuter News Service says a
police spokesman would not confirm a report in the Times newspaper that said
calls totalled $1.5 million, saying only the main computer network remained
secure.  Said the spokesman, "There is no question of any police information
being accessed. This was an incident which was investigated by our fraud
squad and by AT&T investigators in the U.S."

The Times said AT&T investigators were involved because most of the calls
were to the United States.  The newspaper reported the online vandals made
use of a PBX call forwarding system that lets employees to make business
calls from home at their employer's expense.  "They dial a special number on
the company switchboard," says Reuters, "followed by a pass code, and then
the outside number they require."   The police spokesman said the fraud
loophole was stopped in March last year, adding the equipment had been
supplied by a reputable firm and the matter was "subject to civil
proceedings."

                      Did U.S. Spies Invade UK System?

London's top newspaper is reporting U.S. Secret Service agents broke into the
computer systems of the European Parliament and the European Commission in a
campaign to steal political and economic secrets.

The Sunday Times alleges security officials in Luxembourg have discovered the
U.S. used the obtained information to help in negotiations last year on the
General Agreement on Tariffs and Trade.  The French Agence France Press
International News Service quotes Lord Plumb, leader of Britain's
Conservative members of the European Parliament, as saying he was shocked by
the disclosure and "I will be taking this up directly with the American
ambassador to the European Union."

The European parliament's computer system links about 5,000 MEPs, officials,
researchers and other staff with the European Commission headquarters in
Brussels and the Council of Ministers.  Says AFP, "Suspicions were aroused
when officials suspected the United States had advance information about
confidential European Union positions in the GATT talks."  An unidentified EU
source told The Times, "It was established that the system had been
penetrated just days before the talks. Our principal concern is not to
establish what has already been copied but to ensure that it does not happen
again."

                       Netscape, Microsoft Lock Horns

An unusual legal battle is shaping up between Microsoft Corp. and Netscape
Communications Corp. over one of the Internet's hottest markets.  Writing in
The Wall Street Journal this morning, reporter Don Clark says the fight
likely is "adding a new issue to competitors' complaints about Microsoft's
businesses practices," because Netscape already has filed a complaint with
the Justice Department.  At issue is software used to set up World Wide Web
sites and some controversial Microsoft licensing restrictions on the use of
its Window NT operating system.

"Microsoft, Netscape and several other competitors are selling the so called
Web server programs that run on computers that use Windows NT," Clark
reports. Microsoft last week "sent a letter to Netscape demanding that it
stop distributing a price comparison between the two companies' Web server
programs."  The Journal says the letter alleges the comparison suggests Web
servers can be used with a low end version Windows NT designed for
workstations, potentially violating terms of Microsoft's licensing agreement.

The license provisions in quest "allow only 10 simultaneous electronic
connections to Windows NT Workstation, a restriction designed to encourage
people to use a more powerful version of the software that works on larger
computers called servers that tie together multiple desktop computers," Clark
notes.  Microsoft's Web server software works only with Windows NT Server,
and comes bundled with the product. Noting the workstation version of Windows
NT sells for about $300, compared with about $1,000 for the server version,
Clark reports, "Netscape and other competitors argue that customers can still
pay less by using their Web server programs with Windows NT Workstation."

It seems like an arcane point, but Clark comments that the restrictions on
Windows NT have attracted unusual attention "because of the industry's
growing focus on the Web server market, and fears that Microsoft will
unfairly shift its dominance from personal computer software to the Web."
The paper says Microsoft originally planned to insert software code that
would block more than 10 connections from a new workstation version of
Windows NT, "but removed the code last month in response to complaints by
competitors and some customers."  Microsoft's letter    disclosed by long
time Microsoft foe, attorney Gary Reback    gives Netscape until Aug. 15 to
"cease and desist" its pricing comparison, but, the Journal points out, does
not specify what it intends to do if Netscape does not comply.

                       Scientologists Settle Net Suit

A copyright dispute with an Internet provider that some say had many in the
computer industry worried it might lead to restricted freedom of expression
in cyberspace has been settled by the Church of Scientology.

Reporting from San Jose, California, The Associated Press says the church and
Netcom On Line Communication Services have agreed not to discuss details of
the out of court settlement reached Friday.

However, they did say the online service has posted a warning to its
subscribers telling them not to use Netcom to "unlawfully distribute the
intellectual property of others."

As reported earlier, the dispute arose when a former Scientology minister
became a vocal church critic and posted some of the church's writings on
private bulletin board to which Netcom arranged for its subscribers to have
access.  "One posting," says AP, "was a 17 page transcript of confidential
lectures by Scientology founder L. Ron Hubbard. The Religious Technology
Center, a wing of the church, claimed copyright infringement, saying many of
its literary works are trade secrets. The church notified Netcom and the
bulletin board operator about the alleged infringement, but neither did
anything."

In February 1995, the church sued Netcom, the bulletin board operator and the
user who posted the writings, 48 year old Dennis Erlich of Glendale, winning
an order allowing its representatives to raid Erlich's home and seize
Hubbard's copyrighted work.  Subsequently, Netcom and the bulletin board's
operator, Tom Klemesrud of North Hollywood, argued that they are only
conduits for material and are in no position to screen all messages.

Last November, a federal judge ruled:
    Netcom and Klemesrud were not directly responsible for the copyright
     infringement.
    But that they may have contributed to the infringement by failing to
     remove the documents once they were informed of them.

The church has other lawsuits pending against Klemesrud and Erlich.

                      North Korea Alleges Net Blocking

The official news agency in North Korea is blasting its neighbors to the
south for allegedly blocking its citizens' access to a new Internet page
sponsored by Pyongyang.   "What Seoul should block," says the Korean Central
News Agency dispatch, "is not the North Korean Page but the U.S. channel
dealing with methods of murder and robbery and pornographic scenes too
shameful to watch."  Reporting from Tokyo, United Press International says
the KCNA report quoted researcher Kim Hyong sok of the Information and
Culture Center of North Korea as saying the history of the Internet has seen
no example of people being punished for monitoring certain sites.

Said Kim, "Such punishment would cause bitter condemnation from the
international community."  UPI reports, "Bristling with slogans about the
'great leader comrade Kim Il sung,' the Internet page has upset South Korean
leaders, said KCNA, to the point of having access to the site banned."  South
Korean law specifically prohibits any newspapers or other publications from
receiving KCNA services on the grounds of "national security."  As reported,
authorities in Seoul last June declared a Canadian university student's World
Wide Web site on North Korea "subversive" and forbade 14 local computer
networks from accessing it. Under South Korean law, it is a serious crime to
"manufacture, import, copy, possess or distribute data that can benefit,
eulogize or encourage the enemy."

Reached by UPI, a South Korean Embassy spokesman in Tokyo declined comment on
the KCNA report but said the Canadian student closed the WWW page of his own
volition.  Says the wire service, "The two Koreas have technically remained
in a state of war since the 1953 armistice that ended the Korean War and the
Internet dispute is but the latest in a long history of jammed radio
transmissions and other banning of data transmissions across the 38th
parallel that divides the Communist North from the capitalist South."

                           Apple Unveils New Macs

Apple Computer Inc. today unveils new upgraded Macintosh computer models,
introducing high end Power Macintoshes that include the firm's first multi
processor machines and a new Macintosh Performa model.

The Reuter News Service characterizes this as "a bid to begin delivering on
Chief Executive Gil Amelio's plan to bring value added products to market
swiftly."  The models are the first major products to be developed and
brought to market under the leadership of Amelio, who took over in February,
and his management team.

Editor Pieter Hartsook of the Hartsook Letter told the wire service this is
"certainly important from a symbolic perspective because this is really the
first introduction which Amelio and his crowd really had a hand in."   The
six new Power Macintosh models range from a model with a 120MHz PowerPC
microprocessor up to a 9500/180 MP model, which is Apple's first
multiprocessor model and priced at $5,699. The high end Power Macintosh 9500,
priced at $4,899, is configured with a 200MHz chip.

Apple said its 132MHz Power Macintosh 7600 and 150MHz 8500, priced at $2,999
and $3,599, respectively, are available immediately with other models fully
available in September.  Reuters quotes Apple executives as saying there will
be more Performa computers targeted at consumers before the end of the year,
including some at price points below $2,000.

                          Macintosh Still Holds On

A new survey conducted by trade journal MacWEEK finds that Apple Computer
Inc.'s Macintosh and Power Macintosh computers have attained a solid position
as mainstream business platforms. The survey also finds that the machines
also have a strong hold on creative niche applications such as graphic arts,
Internet content development and multimedia.   The MacWEEK 200 survey of
largest Macintosh user sites finds that 98 percent of the sites are running
business productivity applications on 25 percent of their Macs. In addition,
90 percent of the Macs at 81 percent of the surveyed sites are running
business productivity applications.

"Clearly, reports of the Mac's death are greatly exaggerated, to paraphrase
Mark Twain's famous quip," says Rick LePage, editor in chief of MacWEEK. "Our
survey results this year confirm that the Mac now is more broadly established
than ever as a business productivity tool, while it also continues to
dominate its traditional creative niche markets as the computer platform of
choice. Indeed, 71 percent of the MacWEEK 200 sites will spend between
$50,000 and $2.4 million on Macs this year."

                      Upgraded Mac WordPerfect Unveiled

Corel Corp. has introduced Corel WordPerfect 3.5 for Macintosh and Power
Macintosh, an updated version of the venerable word processing program.  The
new package includes a large collection of clip art, photos, sounds and
fonts, along with MasterJuggler Pro, a font management utility. Language
tools for writing in Spanish, French and German are also included.

"Corel is excited about the business prospects we see for supporting the
Macintosh platform. We think the Mac will play a major role in our future,"
says Michael Cowpland, Corel's president and CEO. "WordPerfect for Macintosh
has traditionally given users greater choice and flexibility in utilizing new
Apple technologies and Corel will continue to be the industry leader in word
processing innovation."  Corel WordPerfect 3.5 for Macintosh and Power
Macintosh is expected to ship by the end of August for $295. Upgrades and
competitive upgrades will be priced at $89.

                       Microsoft Offers New Windows NT

Some computer makers believe a new version of Microsoft Corp.'s Windows NT
operating system could help spur new hardware sales to businesses.
Associated Press writer Rory Marshall says Microsoft "is making a push for a
bigger share of the market for systems that link numerous PCs into networks,
and that can run more complicated programs than the typical home PC would
use."  Earlier this week Microsoft completed work Windows NT version 4.0 and
sent it to manufacturing sites in advance of a formal introduction of the
system today during a meeting with financial analysts.  "Although Windows NT
is not designed for home or consumer use," notes Marshall, "a key advance
over previous versions is its adoption of the same appearance as Windows 95."

The recommended cost of the 4.0 server product will be about $1,000 for a
computer that works with 10 other PCs, says Jonathan Roberts, a Microsoft
marketing director. A desktop PC version, called Windows NT Workstation, will
cost $319.  In technical features, the new Windows NT "will put Microsoft on
a more level footing with competitors such as Novell's NetWare, IBM's OS 2
and the various versions of Unix operating programs found in machines by IBM,
Sun Microsystems and Hewlett Packard and others," Marshall comments. "Such
programs are known by the technical label of '32 bit' for the size of
instruction they permit."

Meanwhile, Roberts told AP that while Windows NT had a slow start when it
first became available in 1993, the server product sold 450,000 units and
workstation version just over 1 million units last year.  Adds Marshall,
"That's a reflection of how PCs, packed with more powerful processing chips,
have been chosen to do jobs that were previously done by more expensive Unix
workstations."

                        Intel Releases 150MHz Pentium

A 150MHz Pentium processor for mobile computers is being released by
chipmaker Intel Corp., which is selling the new chip for $341 each in 1,000
unit quantities.  Reporting from Intel's Santa Clara, California,
headquarters, United Press International comments the announcement comes "at
a time when Intel is trying to become more of a communications and computing
company rather than only the maker of the microprocessors that power most of
the world's personal computers."

The wire service says the development also fits in with Intel's strategy to
turn PCs into a machine with far wider uses, thus expanding demand for new
PCs and chips.  The previous fastest Pentium chip designed to run mobile
computers operates at a speed of 133 megahertz. Gateway 2000 and Packard Bell
NEC both announced plans to use the new chip in notebooks, UPI reports.

                      PC World Publisher Starts Web Mag

PC World publisher IDG Communications Inc. says it will produce a monthly
consumer magazine about the World Wide Web, starting next month.  Called The
Web, the magazine will have celebrity features and columns about the computer
network and reviews of Web sites related to music, films, sex, politics,
sports and other topics, says The Associated Press.  IDG, which also
publishes and several computer industry trade newspapers, "will aim the
magazine at 25  to 45 year olds who are interested in the Web as an
entertainment medium," the wire service says, noting the company's
traditional rivals all are producing Web magazines for consumers.

CMP Publications Inc. publishes NetGuide magazine, Mecklermedia has Internet
World, Ziff Davis has Internet Life and Newsweek publishes Virtual City.  The
Web publisher Greg Mason told the wire service he hopes the magazine will
avoid the technology reviews and stories found in the other magazines,
adding, "Our goal is to tell readers what's `on tonight' and to help them
spend their Web watching time and money efficiently."

                      Science Fiction Author Signs Deal

Science fiction superstar Alan Dean Foster has signed a long term deal with
MagicMaker Inc. of Palo Alto, California, to create literary works that mix
interactive and online media.  Michelle Kraus, MagicMaker's CEO, says Foster
will create stories for several properties due in late 1996 and 1997 as
online and multiplayer interactive media. The initial title will be available
on CD ROM in early 1997. Sequels will begin appearing soon thereafter,
together with books, soundtracks and other merchandise.

"I called this best selling author out of the blue and said, I want to come
and show you the future of entertainment    and I want you to be a part of
it," says Kraus.  Adds Foster, "When Michelle came to visit me in the desert,
I found her vision of where the company and its products were headed
compelling. It offered a creative challenge that I could not turn down. In
the future, I see MagicMaker's new products as only the beginning of a long
and fruitful creative partnership."  Alan Dean Foster is one of the world's
best selling science fiction authors. He produced novelizations of Star Wars,
the three Alien films and Alien Nation. He also created the treatment for the
first Star Trek movie.

                          Sanyo Offers New Notebook

A new notebook PC featuring high speed microprocessors and a 2.1 gigabyte
hard disk drive is being introduced today in Japan by Sanyo Electric Co.
Reporting from Tokyo, the Dow Jones news service says the new product, called
Winkey, is Sanyo Electric's "latest foray in an increasingly competitive
market which has seen several rivals announce new products in the last few
months."  Sanyo officials told the wire service the product is set to go on
sale in Japan Aug. 31 and it has no plans yet to sell the product abroad. The
new notebook features Pentium microprocessors with processor speed of 150MHz.
They also have an eight speed internal CD ROM drive, making them the fastest
on the market.

                      Acer Offers Machine Under $1,000

Acer America Corp. has followed AST Research Inc.'s lead to become the second
major PC maker offering a personal computer for just under $1,000.  Targeting
college students and families with children in school, Acer calls the new
system Acer Back to School Aspire, says The Associated Press, which adds that
the price does not include a monitor, which costs $300 to $400 more.

AP says the machine comes in the emerald and charcoal casing that has
distinguished Acer PCs for a year and uses an 100MHz microprocessor, 8MB of
main memory and a 1 gigabyte hard drive. It has a 14,400 bits per second
modem and video and sound enhancing features.   "Most PCs start at around
$1,500 and offer slightly more power than the Acer Back to School Aspire," AP
notes. "For example, computer stores in New York now charge about $1,500 for
a PC with a 133 MHz microprocessor and 16 megabytes of main memory."  AST is
offering a $999 PC through Wal Mart that includes a monitor. However, the
machine is less powerful, using a 486 class chip, AP notes.

                      Net Seen as Expensive, Exclusive

The Internet will become an increasingly expensive and exclusive medium, says
cyberspace expert Robert Silverman, a senior writer for Inside Media
magazine.  "As bandwidth increases, the cost of providing and receiving
content rich with audio and video will increase," said Silverman during a
debate at the Cyberspace and the American Dream Conference in Aspen,
Colorado. "Telephone modems already are being replaced with more expensive
cable modems, which will give way to still pricier fiber optics    all to
better capture content. Meanwhile, content providers will be spending more
and more on technology to provide that richer content. The inescapable fact
is that accessing the Net will become considerably more expensive    both for
end users and providers."

Silverman predicted the high cost of Internet technology will act as a
barrier to many on the lower end of the economic scale. "Indeed, some of the
larger content providers already are talking about and enforcing 'gated
communities' on the Infobahn," noted Silverman. "And even those with the
economic and technological wherewithal to make full use of Net will have to
pay subscription fees for the better sites.  "Of course, these 'gated
communities' also will have their 'housing project' brethren," Silverman
added, stressing the inherent inequities such a paradigm would invoke. The
Great Equalizer? "That the Net politically empowers the little guy is also a
myth," said Silverman. "The ruling elite remain as distant as ever,
regardless if they are online or off line."

                       Dataquest Lowers Win95 Forecast

Windows 95 is on pace to become the No. 1 shipped operating system in 1996,
but Dataquest Inc. has reduced it's forecast for Microsoft's operating system
considerably.  The San Jose, California based market researcher forecasts
that shipments of Windows 95 will reach 45.7 million units in 1996, down 27
percent from predictions made earlier this year. As it turns out, Microsoft's
biggest competitor is itself. Dataquest is lowering it's estimate for Windows
95 because of the continuing success of Windows 3.1x.

Earlier this year, Dataquest forecast that Windows 3.1x shipments would
shrink to 9.5 million units in 1996, but because of the demand for the
operating system in the first half of this year, Dataquest now expects
shipments to only fall to 20.9 million units this year.  "Large and medium
size companies are driving the continuing strong demand for Windows 3.1x,"
says Chris Le Tocq, director and principal analyst of Dataquest's personal
computing software program. "IS managers' initial aggressive upgrade plans
have become a deferred 32 bit decision, driven by high expectations for
Windows NT 4.0 and an assessment that Windows 95 is an interim desktop
solution, a stepping stone to Windows NT."

                         Mac Still Leads in Schools

New market research shows that Apple Computer Inc.'s Macintosh is the leading
computer platform in the public kindergarten through high school market, and
the one most educators intend to buy in the coming school year.  According to
Quality Education Data, the Macintosh now accounts for 41 percent of the
computers in the K 12 public education market, up five points from last year.
Vintage Apple II computers account for 20 percent of the installed base,
bringing Apple's total share of computers in U.S. K 12 public schools to 61
percent.

QED indicates that as the installed base of Apple IIs is replaced, educators
have turned to the multimedia rich Macintosh. It shows Macintosh as the
computer of choice for more than half (55 percent) of all intended school
purchases in 1996 97. This is more than seven times the number of computers
educators plan to buy from the next most mentioned brands, IBM and Compaq,
each with 7 percent.  "There is no doubt that the preference for Macintosh
remains strong in the K 12 market," says QED president Jeanne Hayes. "Our
research clearly shows that Macintosh is by far the preferred computer
platform in the education market. The majority of school districts plan their
technology futures around this platform."
Poll Finds Mom Is Key to Home PC

Mothers play an important role in the purchasing of computers and software
for their families    in some cases, a greater role than fathers    says a
new survey.  FamilyPC magazine, which conducted the research, says in a
statement, "The process of buying computers and software for families is
highly collaborative. Mothers and fathers play a dual role in this process,
often aided by their children. When it comes to buying software for children,
mothers play the leading role."  The study found:

    When it comes to buying software, three or four different family members
     play a role in the process.
    In buying a PC for the family, the decision making is usually done by
     both mother and father, with children being the motivator for such a purchase
     by expressing the need or desire to have a PC.
    Reviews in computer magazines, magazine awards and magazine advertising
     are the most important factors when these families are in the market to
     purchase software. Recommendations and advice from others are also very
     important.  When the respondents buy a PC, the key considerations are product
     features such as 24 hour technical support, the reputation of the
     manufacturer and the software bundle.

                         Net Bomb Injures Two Youths

Two boys, ages 11 and 13, are recovering today from burns suffered when a
"napalm bomb" they learned how to make on the Internet blew up in their
faces.  Reporting from North Attleboro, Massachusetts, 30 miles south of
Boston, United Press International quotes police as saying the youngsters
were cooking a combination of soap shavings and gasoline on a kitchen stove
when the concoction burst into flames Tuesday morning.

The younger boy, Scott Landry, escaped with only minor burns, but his friend
Michael Caponigrow was rushed to the Shriners Burns Institute in Boston with
burns over 11 percent of his body. He was listed in fair condition last
night.  In a frantic 911 emergency call from his family's home, Landry told
police he and Caponigrow got the recipe from an Internet site that told them
in detail how to make the device.  He shouted over the phone, "Help! There's
fire in the house. I could  die."

Police told UPI that investigators are trying to track down the author of the
online data "and find out how such dangerous information ever made its way
onto the worldwide computer network."  Landry's mother told police the
formula had been spotted by her 14 year old son, who passed on the
information to his brother.
Town Police Chief John Doyle told the wire service the boys had planned to
use the homemade explosive "to blow up some rocks or something," adding, "I
don't even think they know what napalm is," referring to the highly flammable
chemical used to bomb enemy targets during the Vietnam War.

                        E TRADE Unveils Upgraded Site

E TRADE Securities Inc. today announced a major upgrade of its CompuServe
based online trading service.  The revamped site includes a new look with
point and click access to all trading services, as well as current news,
price graphs and company reports for individual investors. In addition to the
new look and functionality, E TRADE's users may also continue to trade
securities through E  TRADE's menu driven interface.

The new trading service enhancements include strategically placed direct
links to online help, such as instructions on how to enter a stock order or
how to add money to an account. Other new features will include access to
breaking news and price charts on more than 12,000 stocks. E TRADE users can
also tap into a wide array of fundamental and historical information and
earnings forecasts. Users can create personal Stock Watch lists that
automatically link them to this information. The new interface also takes
advantage of the capabilities of the Netscape Navigator browser that
CompuServe members can now download without connect time charges.

E TRADE users can choose from a vast array of financial services that allow
individual investors to easily identify investment opportunities, research
those opportunities, execute transactions 24 hours a day and monitor the
results of their investment decisions.  "E TRADE has been a leading provider
of cost effective, round the clock online trading services for more than four
years to CompuServe members," says Scott Kauffman, CompuServe's vice
president for online services. "These new enhancements will make trading
online even easier and provide the trading information, online help and other
value added services that CompuServe is committed to giving our customers."

                       Foster Returns to Head Stratus

Stratus Computer Inc. founder/chairman Bill Foster is returning to the post
of CEO as well, replacing Gary Haroian at the helm of the Marlboro,
Massachusetts, firm.  "Gary and I have had some philosophical differences
over the long term direction of the company," Foster said in a prepared
statement. "Because of this, Gary has decided to leave Stratus to pursue
other business interests."  Foster added Haroian "has made innumerable
contributions to Stratus over his 13 years with the company," adding, "Much
of our success has been due to his hard work and dedication, and I know a
very successful future is ahead of him."

                            CD ROM's End in Sight

CD ROM's days are numbered, finds market researcher International Data Corp.,
which reports that the technology is about to be blind sided by the new kid
on the block    DVD (digital video disk).  According to IDC, worldwide DVD
ROM unit shipments will surpass CD ROM by the year 2000, climbing to 117.6
million in 2001. With this expected growth, DVD is well on its way to
becoming the next dominant technology in the removable storage market, says
IDC.  "There appears to be a high level of DVD awareness among software
publishers," says Crawford Del Prete, IDC's vice president of storage
research. "We expect over 13 percent of all software will be available in DVD
format by the end of 1998."



For Immediate Release
                                      
                                      
                        Corel Updates and Re-releases
                   Corelr WordPerfectr 3.5 for Macintosh
                                      
OTTAWA, Canada -August 8, 1996-Corel Corporation and its subsidiaries are
pleased to announce the updated version of Corelr WordPerfectr 3.5 for
Macintoshr and Power MacintoshT. The new Corel version includes a large
collection of popular clipart, photos, sounds and fonts, along with
MasterJuggler ProT, the comprehensive font management utility.  Language
tools for writing in Spanish, French and German are also included.  The
product is expected to ship by the end of August.

Corel WordPerfect 3.5 is an updated version of the two time Eddy award-
winning WordPerfect 3.5, previously shipped by Novell, Inc.  WordPerfect was
the first word processor to ship as accelerated for Power Macintosh and is an
established leader in support for Appler technologies.   "Corel is excited
about the business prospects we see for supporting the Macintosh platform. We
think the Mac will play a major role in our future," said Dr. Michael
Cowpland, president and chief executive officer of Corel Corporation.
"WordPerfect for Macintosh has traditionally given users greater choice and
flexibility in utilizing new Apple technologies and Corel will continue to be
the industry leader in word processing innovation."

The new Corel package includes a collection of more than 150 TrueTyper fonts,
5400 clip art images, 187 textures, 67 sounds and 200 stock photos. For
managing new fonts and sounds, MasterJugglerT 2.0 Pro, the comprehensive
font, sound and desk accessory utility, is also provided.  Spanish, French
and German language tools including a spell checker and thesaurus -
previously sold separately - are now also included in the new Corel package.
To continue helping users put the Internet to work, Corel has included the
updated Netscape NavigatorT browser version 2.02. Updated HTML features
include an HTML button bar and macros for creating custom HTML forms and
borders. Also, the HTML export now converts PICT images to JPEG format for
easy viewing on the World Wide Web.

Corel WordPerfect 3.5 easily converts many popular document types including
Microsoftr Word versions 4, 5, and 6, RTF (Rich Text Format) and Corel
WordPerfect 7 for Windows 95. A non-WordPerfect document can be opened
directly from the desktop into WordPerfect via support for Macintosh Easy
Open. Additional document types can be converted through support for XTND and
MacLink Plus conversion filters.

Highlights of Corel WordPerfect 3.5 include:
    Updated ruler interface
    Print Envelope Feature
    Automated Templates
    Make It FitT
    Text to Speech with MacinTalkT (System 7.5 only)
    Bookmarks with hyperlinks
    Internet Publishing Tools, with HTML import and export

Future Development
Corel is committed to providing Macintosh users with word processing
innovation by continuing its leadership in support of new Macintosh
technologies, attention to the Macintosh interface and strong commitment to
the Macintosh platform. Corel WordPerfect 3.5 for Macintosh will continue to
set new standards for Macintosh business applications and add support for
OpenDoc functionality and Macintosh OS 8 in future releases of Corel
WordPerfect for Macintosh.

Pricing
Corel WordPerfect 3.5 for Macintosh is available for a suggested retail price
of $249 US.  WordPerfect users may upgrade for a suggested retail price of
$89 US, with competitive upgrades available for the same price.  Qualifying
products include, but are not limited to, Microsoft Word, MacWrite Pro,
Claris Works, Nisus Writer, Now Write, and Full Write.  Current WordPerfect
3.5 users will be able to download an update installer from the Corel web
site (www.corel.com), America Online, CompuServe, FTP, or Corel's BBS. The
update installer will only update current versions of 3.5 and does not
include the new fonts, graphics, sounds, or MasterJuggler Pro font utility.

System Requirements
For Macintosh computers, Corel WordPerfect 3.5 will require a minimum
configuration of a Macintosh II, LC or above, System 7.0 or above, 2 MB of
RAM, and will use at least 6 MB of disk space for a minimum install and 16 MB
for a standard install.  For Power Macintosh computers, Corel WordPerfect 3.5
requires 5 MB of RAM, System 7.1 or above (System 7.5 recommended), and will
use at least 6 MB of disk space for a minimum install and 16 MB for a
standard install.

Customer Support
Corel is the only software vendor to offer free, unlimited technical support
(toll charges apply) for the life of the product. (Life of the product is
defined as the time between product introduction-up to and including-six
months after product is no longer sold by Corel). WordPerfect for Macintosh
support can be reached at (801) 765-4020.

Corel also offers these additional support options:

    IVAN: Corel's Interactive Voice Answering Network provides customers
     with instant access to the most current product information available.
     Customer can obtain this service 24-hours a day, 365 days a year by calling
     (801) 765-4038. (Toll charges apply)
    Bulletin Board Service (BBS): A 24-hour product information and program
     file resource that may be accessed at the following number: (801) 221-5197.
     For an explanation of how to access and use the BBS, call (801) 765-4033.
    Fax on Demand Service: Customers may obtain faxed information by calling
     (801) 765-4037.
    Searchable Knowledge Base: Access the same knowledge base used by
     Corel's own customer support department to find "how to" information and
     solutions for known problems. Available on the World Wide Web at
     http://www.corel.com/support.
    WPMac News: This monthly online newsletter is written by Corel's
     WordPerfect Macintosh support team. Each month they share tips & tricks, work
     arounds, discuss common calls, and highlight a new feature each month. This
     informative newsletter may be found at http://www.corel.com/wpmacnews, or
     download on America Online (keyword = WordPerfect) or CompuServe (GO WPMAC).

Other Corel Products for Macintosh
In addition to Corel WordPerfect 3.5 for Macintosh, Corel Corporation has
more than 30 Macintosh titles on the market today and will soon ship
CorelDRAWT 6 for Macintosh. Also coming soon to the Macintosh platform is one
of the top selling consumer titles on the market, Corel Print HouseT, along
with CorelVIDEOT for desktop video and video conferencing.

Corel Corporation
Incorporated in 1985, Corel Corporation is recognized internationally  as  an
award-winning  developer and marketer of productivity applications,  graphics
and  multimedia software. Corel's product line includes CorelDRAWT, the Corel
WordPerfect  Suite and Corel WordPerfect Suite 7, Corel Office  Professional,
CoreIVIDEOT and over 30 multimedia software titles. Corel's products  run  on
most  operating systems, including: Windows, Macintosh, UNIX, MS-DOS and OS/2
and  are  consistently rated among the strongest in the industry. The company
ships  its products in over 17 languages through a network of more  than  160
distributors in 70 countries world-wide. Corel is traded on the Toronto Stock
Exchange  (symbol: COS) and on NASDAQ-National Market System  (symbol:COSFF).
For   more   information  visit  Corel's  home  page  on  the   Internet   at
http://www.corel.com.

 Corel and WordPerfect are registered trademarks and CorelDRAW, Print House
   and CorelVIDEO are trademarks of Corel Corporation or Corel Corporation
    Limited. Macintosh is a registered trademark and Power Macintosh is a
                      trademark of Apple Computer Inc.
    All products mentioned are trademarks of their respective companies.
                                      


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EDUPAGE STR Focus    Keeping the users informed




                                   Edupage
Contents


U.S. Yields To Japan On Oversight Of Japanese Chip Imports
Radio Identification Chips Could Replace Some Bar Codes
New Apple Computers Target High-End Users
Will Gates Be The "Wintel Gorbachev"?
Utilities Commission Says:  One Area, One Area Code
Nintendo's Hopes Built On New Game Player
Apple Offers Web Search System For Performas
Gasoline Wants To Be Free
Scientology And Netcom Settle Copyright Suit
Compaq Targets Workstation Market
Microsoft Hopes Its Talisman Will Work Magic
Intel Focuses On Hybrid Applications
IBM And Mercedes Team Up On Auto Electronics
"Smart Phone" Companies Merge To Form Tritech Corp.
Cairo To Have "Annuity" Upgrade Model
IBM Plans $2 Billion Investment In China
A PC For The Living Room
Microsoft, Netscape Escalate Browser Battles
MCI Tests News Distribution Via Computer
AT&T Sells Game Service To AOL
Microsoft Sues IRS For Export Tax Benefits
AOL Goes AWOL
Phone And Cable Convergence In Canada
Clinton On Education/Technology Joint Ventures
Look Down At Your Computer
Cybergangs


         U.S. YIELDS TO JAPAN ON OVERSIGHT OF JAPANESE CHIP IMPORTS
American trade negotiators gave in to Japan's insistence that the U.S. cease
trying to provide oversight of  Japanese imports.  In any event, most
analysts think that such bilateral pacts are no longer relevant to the chip
industry, which economic forces have made more competitive (with countries
such as Taiwan and China now  prominent in chip manufacture) and at the same
time more cooperative (with companies in various nations  working together to
develop new chips).  In 1986 the trade agreement called for Japan to import
20% of its  chips;  now one-third of all its chip purchases are imported.
(Atlanta Journal-Constitution 3 Aug 96 D3)

           RADIO IDENTIFICATION CHIPS COULD REPLACE SOME BAR CODES
Chipmaker Micron Technology of Boise, Idaho, has developed a "radio
identification" chip likely to replace  the traditional product bar code for
such uses as remote tracking of shipping containers.  With support from the
Federal Aviation Agency, the company plans to develop an airline luggage
security system that would use the  new chips to track every package on an
airplane, identify its owner, and call attention to possible bombs in
packages not properly identified.  The chips are expected to be produced for
less than $1 each.  (Wall Street Journal 2 Aug 96 B3)

                  NEW APPLE COMPUTERS TARGET HIGH-END USERS
With Apple's new Macintosh computers priced as much as $1,000 more than
competing PCs based on Intel  chips and Microsoft Windows operating system ,
Apple is following through on chief executive Gil Amelio's  plan to
concentrate on the needs of specialized high-end users such as professional
graphics designers.  The  new machines will range from $2500 for a home unit
to $5700 for a system with two PowerPC microprocessors to take advantage of
Apple's next-generation operating system's ability to have a task worked  on
simultaneously by two separate chips.   (Wall Street Journal 2 Aug 96 B3)

                    WILL GATES BE THE "WINTEL GORBACHEV"?
Red Herring magazine < http://www.herring.com/mag/issue34/letter.html > urges
Microsoft's Bill Gates to  use a cross platform architecture for the
company's ActiveX software, arguing that "ActiveX is the right  language for
the Intranet and for useful pages on the World Wide Web" but that "Java is
the right language for  the emerging market of digital devices that will be
attached -- in ways that are still mysterious -- to the  Internet...  In
other words, Java is perfect for what it was originally designed for: the
embedded systems inside  smart telephones, faxes, printers, set-top boxes,
and non-standard devices."  The magazine admits that Gates  could become "the
Wintel Gorbachev" by following its advice, but insists that Microsoft would
be foolish to  hold onto proprietary standards too long.  (Red Herring Aug
96)

             UTILITIES COMMISSION SAYS:  ONE AREA, ONE AREA CODE
Pacific Bell, the principal unit of the Pacific Telesis telephone group,
failed to get permission from the  California Public Utilities Commission to
overlay new area codes in a geographical area on top of existing ones  to
meet the burgeoning demand for new numbers caused by dramatically rising
numbers of fax machines,  cellular phones, and pagers.  PacBell rivals such
as AT&T and MCI said that overlays are anti-competitive,  and the Commission
decided to continue dividing up overcrowded area codes into new areas and
forcing some  customers to change their three-digit codes.  (Los Angeles
Times 3 Aug 96)

                  NINTENDO'S HOPES BUILT ON NEW GAME PLAYER
Nintendo is hoping to reestablish its superiority in video games with its new
64-bit microprocessor designed by  Silicon Graphics.  The system features
fully rounded figures that can turn on their heels, rotating realistically
through 180-degrees on screen.  Both of Nintendo's major competitors, Sega
and Sony, are thought to be  losing money on each of the 32-bit machines they
sell, but making up their losses with royalties on sales of games that run on
them.  (Economist 3 Aug 96)

                APPLE OFFERS WEB SEARCH SYSTEM FOR PERFORMAs
Apple has developed a user-friendly Web search capability called Personalized
Internet Launcher for its 180  and 200 megahertz Performa computers.  The
systems also offer  built-in blocking software from SurfWatch, a  Web
authoring tool for children, and a bundled browser from Netscape.  Existing
Apple owners can go to
< http://myhome.apple.com > to obtain the software.  (Interactive Age 2 Aug
96)

                          GASOLINE WANTS TO BE FREE
Author James Gleick says that the opponents of online copyright tend to be
people who have never tried to  make a living from their writing.  "The
writing of professors is subsidized.  The new millions of impromptu  Web
publishers have a different mentality, too;  their work is rarely for pay,
and they are delighted if it is  noticed and passed along."  Dismissing the
slogan "Information wants to be free" as equivalent to the sentences  "I want
information to be free ... and I want gasoline to be free," Gleick says the
best way to promote  knowledge is to let people profit from the intellectual
products they create.  (New York Times Magazine 4 Aug 96 p16)

                SCIENTOLOGY AND NETCOM SETTLE COPYRIGHT SUIT
An out-of-court settlement closes the lawsuit the Church of Scientology
brought against Netcom, an Internet  services provider, after an individual
hostile to the church posted to a Netcom private bulletin board a  document
for which the Church claimed to hold a copyright.  In late 1995 a federal
judge ruled that Netcom  and the bulletin board operator did not themselves
violate the Church's copyright but may have contributed to  the infringement
by failing to remove the documents once they were told that copyrighted
documents had been  posted on their systems.  Netcom will now warn its
subscribers not to "unlawfully distribute the intellectual  property of
others."  (Investor's Business Daily 6 Aug 96 A9)   Internet personality
Howard Rheingold says:   "I would hate to see Netcom to be put in the
position of having to police the material posted on its service.   You can
sue a publisher for libel but of course you shouldn't be able to sue the
bookstore."  (Washington Post 5 Aug 96 A11)

                      COMPAQ TARGETS WORKSTATION MARKET
No. 1 PC maker Compaq is getting into the workstation business, posing a
direct challenge to companies such  as Sun and Hewlett-Packard, which
dominate the market.  Compaq's workstations, which will be unveiled later
this year, will be based on Pentium Pro chips from Intel and Microsoft's
Windows NT software.  Sun, HP,  Digital Equipment, Silicon Graphics, and IBM
currently use different, proprietary chips in their workstation  designs.
Compaq's latest move is expected to put pressure on other workstation
manufacturers to lower their  prices and make machines that are easier to
integrate into office systems that already use Intel-based PCs.  The company
has not said how much these machines will cost.  (Investor's Business Daily 6
Aug 96)

                MICROSOFT HOPES ITS TALISMAN WILL WORK MAGIC
Some industry observers are saying that Microsoft's two-year microchip
research project is bearing fruit, in the  form of Talisman -- a chip that
delivers fast, realistic graphics using a $300 PC circuit board.  The new
chip  will be marketed as a way of enabling PC owners to produce graphics
similar in quality to those produced by  150,000 Silicon Graphics
workstations, resulting in a proliferation of animated, online, storefront
and other  applications.  One research industry president calls Talisman
"fabulous," and predicts it will inspire "killer"  applications by 1998.
(Wall Street Journal 6 Aug 96 B4)

                    INTEL FOCUSES ON HYBRID APPLICATIONS
Intel is turning toward hybrid applications to bridge the gap between today's
computer network capacity and  the futuristic expectation of unlimited
bandwidth.  "The myth of the Internet is that there is plenty of bandwidth,"
says Intel CEO Andy Grove.  "The hybrid application is what we will use for a
long time to  overcome the limits of the available bandwidth."  Such
applications involve, for instance, ways of compressing and downloading data
via telephone lines and then storing that data on a PC hard drive for
accessing later.  In  addition, Intel is developing Intercast technology,
which uses the television signal's vertical blanking interval to transmit a
limited amount of digital data.  (Wall Street Journal 6 Aug 96 B12)

                IBM AND MERCEDES TEAM UP ON AUTO ELECTRONICS
IBM and Mercedes-Benz will jointly work on development of an advanced
electronics system to monitor and  control such automobile systems as lights,
engine, and climate control for the car's interior.  The plan calls for
drivers to be connected eventually to the Internet for access to electronic
mail, driving condition reports, and  road directions.  (USA Today 6 Aug 96
1B)

             "SMART PHONE" COMPANIES MERGE TO FORM TRITECH CORP.
U.S. Order Inc. and Colonial Data Technologies Corporation are merging to
form Tritech Corporation, which  will pursue a strategy of providing a
"complete system," including phones, networks and services.  Tritech's chief
executive officer says:  "There are a lot of people saying, 'Here is a screen
phone, go do something with  it.  But a market doesn't just need hardware, it
needs end-to-end solutions."  (New York Times 6 Aug 96 C2)

                    CAIRO TO HAVE "ANNUITY" UPGRADE MODEL
Microsoft says that its next-generation object-oriented operating system,
code-named Cairo, will follow an  "annuity" upgrade model rather than rely on
rolling out all-in-one upgrade packages, such as Windows 95.   The company
also plans to start promoting annuity programs for various other products.
(Computerworld 5 Aug 96 p93)

                  IBM PLANS $2 BILLION INVESTMENT IN CHINA
Between now and the end of the decade IBM will invest $2 billion in China, a
country in which it now has  11% of the PC market.  (Computer Industry Daily
6 Aug 96)

                          A PC FOR THE LIVING ROOM
Asked about the new Simply Interactive Personal Computer (SIPC) that Intel
and Microsoft are working on,  Intel chief executive Andy Grove explains that
"it's the entertainmentization of the personal computer:  a set of  design
concepts that move the personal computer to the center of the living room.
It's only confusing because  it comes at the same time as network computer
stuff.  It helps to remember that PCs in homes are in the den  and in the
study, not in the living room.  What we are asking is:  'How do we get these
things in the living room?'"  (Red Herring Aug 96 p82)

                MICROSOFT, NETSCAPE ESCALATE BROWSER BATTLES
Microsoft and Netscape Communications have extended their browser war to two
fronts:  the marketplace and  the courtroom.  Lawyers for Netscape have
complained to the Justice Department over licensing restrictions  that
Microsoft places on its Windows NT operating system, and Microsoft lawyers
last week sent a letter to  Netscape demanding that it stop distributing a
price comparison between the two companies' Web server   programs.  "Netscape
has already caused irreparable harm to Microsoft, and further publication of
the  deceptive information will only compound the damage," says the letter.
"This is their lawyers trying to  intimidate a small company," responds
Netscape's attorney.  "It's just very strange conduct by a monopolist."
(Wall Street Journal 7 Aug 96 B5)

                  MCI TESTS NEWS DISTRIBUTION VIA COMPUTER
MCI is funding trials at 20 television stations around the country of a
system that allows NBC to distribute TV  news and program promotion spots to
its affiliates by computer.  The system is designed to replace satellite
feeds for most purposes, and is being tested at 20 stations.  MCI is now
trying to persuade other television  networks to move to computer-based
distribution and retrieval of news video.  ''It's literally video on demand.
I can call it up as available,'' says a news director at one NBC affiliate
station.  (Investor's Business Daily 7 Aug 96)

                       AT&T SELLS GAME SERVICE TO AOL
AT&T has sold its ImagiNation Network online game service to America Online
for an undisclosed sum,  rumored to be less than the $40 million that AT&T
paid for it in 1994.  The network allows game enthusiasts  to play each other
online, regardless of geographic location.  "While gaming is an attractive
segment, it's not  one that's consistent with our strategy," says an AT&T
spokesman.  ImagiNation plans to introduce a newly  packaged Windows 95-
compatible collection of games later this year.  (Washington Post 7 Aug 96
F2)

                 MICROSOFT SUES IRS FOR EXPORT TAX BENEFITS
Microsoft has filed a lawsuit against the Internal Revenue Service, in an
effort to recoup about $19 million paid  as part of the company's 1990 and
1991 tax returns.  The legal action ups the ante in the software industry's
bid for favorable treatment under a 1984 law that allows businesses to set up
foreign sales corporations,  hereby exempting 15% of their export income from
U.S. taxes.  Similar industries, including exporters of  films, tapes and
records, have benefited from the 1984 provision.  The software industry has
said it would save  about $200 million over five years if it were allowed the
same protections.  (Wall Street Journal 8 Aug 96 B4)

                                AOL GOES AWOL
America Online went off-line yesterday, stranding more than 6 million
subscribers in the real world of snail  mail and "sneakernet," as one
consultant who depends on e-mail described it.  The AOL computers were shut
down at 4:00 a.m. for routine maintenance, and then were unable to resume
function at the scheduled 7:00  a.m. power-up.  While some people took the
outage with a dose of philosophy, others predicted this event was  the
harbinger of more trouble in cyberspace.  "Clearly the longer-term goal has
to be for the Internet to  become more like the phone system is today," in
terms of reliability, says a director for AT&T's WorldNet  service.  "The
likely scenario is increasingly calamitous breakdowns," predicts an industry
columnist.   Meanwhile, AOL CEO Steve Case expressed his regret over the
inconvenience via conventional news release.   (Washington Post 8 Aug 96 A1)

                    PHONE AND CABLE CONVERGENCE IN CANADA
Canada's Cabinet endorsed a policy allowing cable and phone companies to
compete, but phone companies  seem less excited about being in the cable
business than they were four years ago, and cable companies seem to  be
concluding that the phone business is not as simple as they thought.

               CLINTON ON EDUCATION/TECHNOLOGY JOINT VENTURES
In an election-year visit to Silicon Valley,  President Clinton gave a speech
at a San Jose middle school  praising the joint efforts of educators and high-
tech business leaders to reform education.  All participating schools in the
"Challenge 2000" project are required to integrate technology into their
plans, which in many  cases include the use of computer networking to allow
students to communicate with mentors in the business  community.  (San Jose
Mercury News 8 Aug 96)

                         LOOK DOWN AT YOUR COMPUTER
Health writer Jane Brody says you should position your computer so that the
center of the screen is four to nine  inches below eye level and a little
farther away than the normal reading distance, and should keep reference
material close to the screen, perhaps on a screen mount.  Wipe the screen
often with an antistatic cloth;   minimize glare on the screen;  and reduce
the brightness of the room lighting or use a three-sided computer or  filter.
(New York Times 7 Aug 96 B6)

                                 CYBERGANGS
The head of the gang task force for the Arizona Department of Public Safety
reports that a Web site established  in Detroit offers a how-to guide for
gangster wannabes and is urging gang members everywhere to unite under  its
umbrella to form the first cyberspace gang.  The official says:  "Now it's in
your home, your living room,  your den... Unfortunately, these guys can talk
about anything they want and there's nothing law enforcement  can do about
it."  (Atlanta Journal-Constitution 8 Aug 96 F3)


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