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Computer News and Rumors

May 8-15 2002

About News and Rumors. InfoHQ Computer News and Rumors is a daily column. It features news coverage of new PC and Mac computer hardware and software, Internet news, and other technical news items.
Every Sunday, News and Rumors features "Sunday Shopping Watch", which is a comparison and analysis of Sunday computer store advertisements.
The Computer News and Rumors is an archived column, so feel free to review previous week's or month's computer news by clicking on the link below. Previous computer news articles can also be searched, by using our site search feature found in the top and bottom menu bar.

InfoHQ Computer News and Rumors Article Index
Date
(Click on story to read, use your Browser's back button to return to the Index.)
May 15 HP Reports Pre-Merger Second Quarter Results
May 15 Microtek Ships ScanMaker 6700: 4800 x 2400 DPI Scanner
May 15 Red-M Genos Software Unites Wireless LAN and Bluetooth
May 15 Nintendo Ushers in GameCube Wireless Control At Lower Price
May 15 DVvideo.com Announces HotSwap IEEE 1394 Hard Drive Enclosures
May 14 Nintendo Reveals Online Gaming Plans for GameCube
May 14 Sampo America Launches High-Performance Plasma Video Monitor
May 14 Supreme Court Decision Gives Telecom Competition Critical Boost
May 14 VeriChip Health ID Implant Launched In U.S. Market
May 14 Market Growthh for Wireless Internet Access Predicted
May 13 Dell Introduces New Micro-Portable Projector
May 13 AMD Introduces Flash Memory Device Based On Mirrorbit(tm) Architecture
May 13 Toshiba Shipping Digital Camera with Touch Screen LCD
May 13 Digital Radio Services to Finally Take Hold in Consumer Markets
May 13 Seven in Ten American Mothers Use PCs
May 12 Sunday Shopping Watch
May 10 1394 Trade Association Forms Network Working Group
May 10 Boeing Co. Brings Latest Digital Cinema Technology to Moviegoers
May 10 Video On Demand Market Showing Impressive Growth
May 10 E-Mail is the Dominant Online Activity Worldwide
May 10 Digital Cameras and Digital Camcorders Sales Are Up
May 9 Butterfly and IBM to Introduce First Video Game Computing Grid
May 9 Fujitsu Develops Record-Breaking 300Gb/in2 HDD Technology
May 9 U.S. Internet Traffic Experiences Annual Growth of 100%
May 9 CITA Announces 12-Hour Brain Treatment for Cocaine and Alcohol Addiction
May 9 Businesses Report That DSL Delivers Exceptional Value and Productivity
May 8 The New HP Lays Out Business Focus
May 8 Intel's new 850E chipset supported by ATI's RADEON Graphics Accelerators
May 8 Intel Drives Ethernet to Higher Speeds and New Market Segments
May 8 Embedded DRAM Market Forecasted to Grow 21.3%
May 8 SMC Introduces 802.11a Desktop PCI Adapter

 
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May 15 - HP Reports Pre-Merger Second Quarter Results. HP (NYSE:HPQ) today reported its financial results for its second fiscal quarter ended April 30, 2002, the company's last pre-merger earnings report.

The company reported second quarter revenue of $10.6 billion compared to $11.4 billion in its first fiscal quarter. Sequentially, pro forma revenue declined 7%, while gross margin increased from 26.9% to 28.7%. The company generated cash from operations of $2.1 billion for the quarter. Pro forma operating expenses were essentially flat on a sequential basis and were 22.2% of net revenue.

Pro forma earnings per share (EPS) for the quarter was 25 cents, in line with current consensus analyst estimates, compared to 29 cents in the first quarter and 17 cents in the year-ago period, excluding acquisition-related charges, in-process research and development charges, amortization of goodwill and purchased intangibles, restructuring charges and investment losses.

Including these items, reported GAAP EPS before an extraordinary item was 12 cents per diluted share, compared to 25 cents last quarter and 2 cents in the year-ago quarter.

U.S. revenue for the second quarter was down 11% sequentially and 16% year-over-year. Revenue from outside the U.S. was down 4% both sequentially and year-over-year. In Europe, revenue was down 6% sequentially, but up 2% year-over-year, the only region of the world to show year-over-year improvement. Asia Pacific was down 2% sequentially and down 13% year-over-year. Latin America was up 3% sequentially and down 12% year-over-year.

"We stayed focused and executed well during a difficult quarter," said Carly Fiorina, HP chairman and chief executive officer. "The IT spending environment remains tough around the world. On top of this, in the final weeks of the quarter, 400 senior managers were named to their assignments in the new HP, and we were involved in a highly visible lawsuit. While there was real potential for distraction, HP delivered.

"Weakness in our computing systems business, embedded and personal systems business and our consulting services business persisted in the second quarter, but was offset by solid performance in our imaging and printing and IT outsourcing and support businesses.

"Despite the tough enterprise spending environment, during the quarter HP held its own relative to our competitors in key segments of the enterprise market, including UNIX servers, storage and printing. While revenues in our consumer business were down slightly, operating profit for the business was strong with all regions of the world posting profitable results.

"Continued focus on cost structure and expense management resulted in significant gross margin improvement led by our imaging and printing business.

"Meanwhile, our ongoing efforts to aggressively manage the balance sheet are paying off. We again reduced inventory by almost $500 million in the quarter. Cash flow from operations was a healthy $2.1 billion for the quarter, and we exit the period with nearly $9 billion in cash and short-term investments.

"Today, we announced HP employees will receive a Company Performance Bonus for the first time in 18 months. Looking back at our performance during the first-half of our fiscal year, there is a lot to be proud of. Nevertheless, we are realistic about the hard work ahead of us," said Fiorina.

HP can be found online at www.hp.com.

May 15 - Microtek Ships ScanMaker 6700: 4800 x 2400 DPI Scanner. Microtek Lab, Inc., a 20-year veteran in scanning technologies and a leader in graphic imaging solutions, is now shipping the ScanMaker 6700. This powerful, network-capable scanner for office users offers 48-bit color depth and 4800 x 2400 dpi optical resolution, as well as dual FireWire and USB connections.

The ScanMaker 6700 achieves a true optical resolution of 4800 x 2400 dpi by using the Sigma Six(TM) CCD (Charge Coupled Device) technology, with six rows of sensors, to scan intricate details with exceptional accuracy. The 48-bit color depth reproduces trillions of colors, and the integrated 16-bit ADC (analog-to-digital converter) converts originals into digital data with high fidelity.

The ScanMaker 6700 allows users to share the scanner with peers over a LAN (Local Area Network). With Microtek's LANWizard(TM) scanning software for PCs, the ScanMaker 6700 provides more versatility and ease of use for network image sharing. Intuitive icons and network messaging allow users on the network to know the exact status of their scanning jobs and when the scanner is available for access. The ScanMaker 6700 also includes a PCI FireWire host adapter, offering Windows PC users an easy upgrade path to FireWire.

Additional value-added features include a built-in transparency adapter for scanning up to 4" x 5" transparent originals. Combined with Microtek's patent-pending FilmView(TM) technology, the lid also serves as a light box for previewing slides and film.

Microtek's electronic design provides FireWire and USB connections for both PC and Mac systems. The ScanMaker 6700 offers an optional 50-page automatic document feeder, the ADF-650, with an SRP of $199.99. The ScanMaker 6700 is listed at $399.99.
Information about Microtek can be found on the Web at www.microtek.com.

May 15 - Red-M Genos Software Unites Wireless LAN and Bluetooth. Red-M(TM), the leader in wirelessware and wireless networking products, today announces version 2.1 of its Genos(TM) core software which enables the full integration of 802.11 wireless LAN and Bluetooth into one unified wireless network supporting the vast range of multi-vendor wirelessly-enabled devices and applications.

Genos is uniquely designed to provide organizations with a highly scalable system for building large-scale managed and fully secure wireless networks. Optional Genos modules will allow maximum flexibility for adding advanced applications and services, such as in-building mobile voice.

The Genos core software implements a unique 5-layer wireless security model that provides unparalleled control and security over an entire wireless network. To achieve this, Genos combines wireless management and security standards with vendor-specific extensions built into different access points. As a result, Genos can prevent, at the point of entry into the wireless network, unauthorized wireless users accessing the network and hacking into critical data, as well as detecting unauthorized access points.

The 5-layer model includes: wireless VPN data encryption using the IPSec protocol; integrated, customizable wireless firewall; native authentication for Bluetooth devices; up to 128 bit dynamic WEP key encryption for WiFi supported by 802.1x, and native 128 bit encryption for Bluetooth; and device address and access point authentication. For additional flexibility, Genos can also be easily integrated with corporate firewalls and VPN systems.

Genos provides a sophisticated wireless policy control scheme that allows the network manager to define the rights and privileges for individuals and groups of users, devices and access points. For management from third party enterprise management systems and web browsers, Genos supports industry standard SNMP and HTTPs protocols. Genos also provides an XML-based application program interface (API) that allows wireless applications to access and control the wireless network and attached devices. Application developers are already using this API to develop powerful wireless applications such as asset tracking and location-based services.

Simon Gawne, vice-president and co-founder of Red-M adds: "Genos overcomes the complexities for both users and network managers operating enterprise-wide wireless networks. Genos is the first wirelessware to unite a mix of technologies, devices and different vendors' products. Our unique Genos software is designed to provide organizations with a highly scalable solution that can encompass advanced wireless applications such as mobile in-building voice."

Genos core version 2.1 begins commercial shipments through Red-M's authorized partners this month, with prices starting at $7,500. For further information visit www.red-m.com/genos2.1.

May 15 - Nintendo Ushers in GameCube Wireless Control At Lower Price. Nintendo gives gamers the ultimate freedom when it introduces the WaveBird(TM) wireless controller for NINTENDO GAMECUBE(TM) on June 10 at a new lower MSRP of $34.95.

Capable of maneuvering Mario, mastering Samus's combat or piloting Fox McCloud's Arwing from up to 20 feet (6 meters) without wires, the device transmits radio frequency (RF) signals to a receiver plug that fits into one of the controller sockets on a NINTENDO GAMECUBE. Nintendo is also lowering the price of the standard controller to a suggested $24.95, effective May 20, 2002.

The same size of the standard NINTENDO GAMECUBE controller, the WaveBird has a slightly extended lower end to accommodate two `AA' batteries that provide more than 100 game play hours of wireless control. The RF standard enables the wireless connection to stand true -- even under the covers or behind a wall. With 16 different channel frequencies to choose from, four WaveBird controllers can easily hook up to a single machine, enabling a totally cordless multiplayer experience.

"Nintendo always strives to improve the players gaming experience," says Peter MacDougall, executive vice president of sales and marketing at Nintendo of America Inc. "The WaveBird controller, with its new lower price point, exemplifies our commitment, allowing players to get comfortable and enjoy new freedom, while still being connected to the on-screen action."

For more information about NINTENDO GAMECUBE or any other Nintendo product visit the company's Web sites, www.nintendo.com or www.nintendogamecube.com.

May 15 - DVvideo.com Announces HotSwap IEEE 1394 Hard Drive Enclosures. DVvideo.com, the digital video starting point, announces the availability of the HotSwap IEEE1394/FireWire/iLink hard drive enclosures.

DVvideo.com HotSwap Hard Drive Enclosures are a pro-grade product delivering a convenient, speedy, scaleable and portable alternative to the complexity of installing internal hard disk drives in a computer.

Offering plug and play ease-of-use, users will appreciate the significant value, convenience and performance this product provides.

"Its speed and scalability allow the HotSwap solution to fill a storage void for many digital video editors and media creators," said president and founder of DVvideo.com, Ben Miskie. "Because of it's industrial strength, speed, and hotswap-ability, the HotSwap Enclosures can be especially useful for digital video editors and media creators whose storage needs grow very rapidly."

DVvideo.com HotSwap Enclosures offer the highest performance and durability available equipped with an included premium heavy-duty gold plated 6pin/6pin cable, a triple fan cooling system, complete compatibility with both Mac OS9/OSX and Windows platforms, ATA-6 compatibility, and the ability to insert and remove hard drives while the computer is running. Because the HotSwap Enclosures are external and connect via FireWire, they can complement perfectly any computer requiring external high performance storage, such as an iMac or any laptop.

"Like the DVvideo.com Premier Enclosures ($139), the DVvideo.com HotSwap Enclosures take advantage of the 2nd generation Oxford 911 chipset," Miskie added. "Using the Oxford 911 chip and an enhanced firmware enables our product to achieve real world transfer speeds of up to 40 MB/s, fast enough to directly capture DV video."

Pricing and Availability

DVvideo.com HotSwap IEEE1394 Hard Drive Enclosures are priced at $225 and are available immediately at DVvideo.com. For more information visit: http://www.dvvideo.com/shop/storage/buyHotSwap.htm .

May 14 - Nintendo Reveals Online Gaming Plans for GameCube. Nintendo of America Inc. unveiled plans for its online gaming initiative for NINTENDO GAMECUBE(TM), slated to begin this fall.

The first announced product is Sega's Phantasy Star Online Episode I & II launching this fall in North America. Sega's game will be playable at the upcoming Electronic Entertainment Expo (E3) starting May 22 in Los Angeles.

Nintendo's network strategy is built on the philosophy that online will be most successful if the game play is extremely compelling and highly affordable. To match this philosophy, Nintendo's initiative consists of a flexible development program, favorable publisher business model, and support for all consumers whether the player connects by modem (narrowband) or broadband.

"Nintendo is known for great gaming and our first priority is to continue that legacy, " explains Satoru Iwata, director, corporate planning, Nintendo Co. Ltd. "Game content developed with that sole mission will enhance the joy of video gaming."

"The profitable part of the online business is very likely several years away. Entering the business because it's the hot topic of the day doesn't make a profitable business nor satisfied customers," Iwata adds. "That's why it will be a part of Nintendo's strategy, not the mainstay, as other companies are attempting to do. There still are too many barriers for any company to greatly depend on it."

Nintendo currently is making software development kits available to developers worldwide. It will begin selling both the NINTENDO GAMECUBE v.90 Modem Adapter and the NINTENDO GAMECUBE Broadband Adapter this fall at retail for an MSRP of $34.95 each.

"We understand the strong appeal of online gaming to a select group of video game players, and indeed, it's one way to increase their satisfaction in exploring new types gaming," says Peter MacDougall, executive vice president, sales and marketing, Nintendo of America Inc. "To make online more appealing to the rest of the game-playing population, we're taking concrete steps to aid our development partners in overcoming some of the inherent technical and financial obstacles to successful online games."

For more information about NINTENDO GAMECUBE or any other Nintendo product visit the company's Web sites, www.nintendo.com or www.nintendogamecube.com.

May 14 - Sampo America Launches High-Performance Plasma Video Monitor. Sampo America, a leading provider of advanced display technologies for consumer and business applications, today made plasma display technology affordable with the launch of the PME-42S6.

The new full-featured 42-inch high-performance plasma video monitor is targeted at fulfilling the demanding performance and price requirements of video enthusiasts and consumers.

Sampo's fanless PME-42S6 video monitor incorporates a robust feature set designed specifically for video enthusiasts and consumers including side-by-side picture, picture-in-picture, 3-to-2 pull-down processing to minimize motion artifacts for film-based content, 3-D digital comb filter, dual high-definition component video inputs, discrete power and input controls, and a full-function remote control.

"We're excited to bring to market a high-performance plasma video display solution that provides an extensive video functionality to support the demanding requirements of home theaters and video enthusiast applications at an industry-leading price point," explained Brian Ballard, director of sales for Sampo America.

"The PME-42S6 reflects the integration of a host of new features designed to make the displays easier to use for the average consumer, while providing an increased level of performance to suit the needs of video enthusiasts."

Sampo's high-performance PME-42S6 (852 x 480 pixels) is a fan-less 42-inch widescreen video monitor incorporating Sampo's MotionDSC(TM) Digital Processor, which provides adaptive motion de-interlacing for digital progressive line scaling and 3-to-2 pull-down processing for film-based video content.

The PME-42S6 offers a robust feature set including selectable preset color temperature settings, variable image aspect ratios controls, user selectable fixed or variable audio outputs, built-in amplifier and speakers, and BBE(R) and SRS(R) Surround Sound processing.

Connectivity options for the PME-42S6 include: composite, S-Video, high-definition component video, DVI and RGB inputs for computer applications, RGB output for loopout functionality and RS-232 and USB ports are provided for remote control purposes.

An optional NTSC TV/CATV tuner module expands the monitor's capabilities to include cable or over-the-air television reception capabilities with convenience functions such as Closed Caption decoding, favorite channel programming, channel lock and V-Chip parental control.

Sampo's plasma monitors are available through specialty audio/visual retailers. The PME-42S6 is available now at a list price of $4,999. Additional information about Sampo America is available at www.sampoamericas.com.

May 14 - Supreme Court Decision Gives Telecom Competition Critical Boost. According to Z-Tel Technologies, Inc. (Nasdaq: ZTEL), a leading provider of advanced local, long distance and enhanced telecommunications services, the competitive telephone industry received a critical boost and validation from the U.S. Supreme Court today.

In the final chapter of litigation that has run for over five years, the Supreme Court affirmed the Federal Communications Commission's rules requiring that incumbent local telephone companies provide entrants like Z-Tel access to "unbundled network elements" at cost-based rates established pursuant to the Total Element Long-Run Incremental Cost (TELRIC) pricing standard. In addition, the Court reinstated FCC rules that require incumbents to provide companies like Z-Tel access to combinations of elements, including the combination of loops and switching that provide the basis for the Unbundled Network Element-Platform, or UNE-Platform.

"This ruling is nothing less than a landmark win for telecom consumers and for the competitive phone industry," commented Robert A. Curtis, Senior Vice President, Strategic Planning for Z-Tel. "Today's move by the Supreme Court helps to entrench a competitive environment in this country once and for all, because it not only provides a firm foundation for pricing the UNE-Platform, but it also supports the availability of unbundled loop-switching combinations that are the heart of the UNE-Platform.

"The overarching theme of the Court's decision is that the TELRIC rules create an environment in which the market - and not regulators -determine when and where it is appropriate for entrants to deploy their own facilities. It is the FCC's job to implement that mandate."

Z-Tel Public Policy Papers Nos. 3 and 4, available for download at www.ztel.com, provide evidence that where access to unbundled local switching and the UNE-Platform is unrestricted, residential and small business consumers enjoy more competitive entry and new entrants deploy more switching facilities.

Curtis added, "Justice Souter's decision validates Z-Tel's research and soundly rejects Bell company arguments against unbundling. And despite constant Bell company pleas, the FCC cannot now re-write the Act contrary to the wishes of Congress and the Court."

"Today's decision ends years of litigation and delay," concluded Curtis. "Even though the Bell companies fought these UNE pricing rules since September of 1996, not one of them has actually challenged a specific rate in any state. These kinds of roadblocks to TELRIC have caused entrants like Z-Tel delay and uncertainty. With the vindication of TELRIC we received today, those roadblocks are gone. The states are now free to act in the best interest of consumers, and emerging carriers are free to compete effectively."

May 14 - VeriChip Health ID Implant Launched In U.S. Market. Applied Digital Solutions, Inc. (Nasdaq: ADSX), an advanced technology development company, today announced the successful launch of VeriChip(TM) in the U.S. market with the first-ever "chipping" of the Jacobs family and Nate Isaacson.
Nearly 40 major media organizations from around the world covered the event.

Following the Jacobs family "chipping," the company held a press conference at the Boca Raton Resort & Club. During the press conference, company executives described the business model and the market rollout plans for VeriChip's personal verification applications in the healthcare arena. Applied Digital's President, Scott R. Silverman, explained in his remarks that the rollout involves three main categories:

-- VeriChip Subscribers (individuals who decide to "get

chipped(TM)");

-- Authorized VeriChip Centers (healthcare facilities where the

"chipping" procedure takes place); and

-- VeriChip System Affiliates (including hospitals, EMTs, search

and rescue units, and urgent care clinics) that will use the

proprietary VeriChip scanners to read Subscriber VeriChips.

These three categories are supported by the Global VeriChip Subscriber (GVS) Registry service, which provides immediate access to a secure database containing vital Subscriber personal verification and Subscriber-provided information.
By seamlessly integrating the GVS Registry and the proprietary VeriChip scanner, healthcare professionals will have instant access to the vital information provided by the Subscriber such as allergies to medications, medical device implants, pre-existing medical conditions and emergency contact numbers. The entire VeriChip program is designed to save lives in an emergency and enhance the peace of mind of Subscribers and their loved ones.

The GVS Registry Service is hosted and maintained by Digital Angel Corporation's (Amex: DOC) state-of-the-art operations centers in Riverside, California, and Owings, Maryland. Complementary, 24/7 call-center services are provided by a physician-supervised staff of support associates in Owings, Maryland.

Commenting on the successful VeriChip launch on May 10th and on the plans for the initial rollout in Palm Beach and Broward counties, Mr. Silverman said: "VeriChip has been successfully launched in the U.S. market. We've attracted enormous media attention. We've demonstrated to a worldwide audience how quick and easy the procedure is. Now it's time to make this amazing new product available to what we believe is a very large and receptive customer base. A top priority is to continue to coordinate with area hospitals and other potential affiliates in South Florida to ensure that scanners are made available and properly deployed. We've received very positive responses from potential affiliates in our test market. We expect to begin donating scanners to participating System Affiliates in the next three weeks."

Mr. Silverman said that the VeriChip rollout would follow the successful business model used by Applied Digital's sister company, Digital Angel Corporation, with the introduction of the now familiar companion animal identification system (HomeAgain(TM)). At first, veterinarian clinics and animal shelters did not have the scanners used for identifying lost pets.
To encourage the use of its scanners and ID chips, Digital Angel (previously known as Destron-Fearing Corporation) donated scanners to vets and shelters and provided educational materials about using the pet ID technology. This model has proven to be extremely effective. Digital Angel scanners now enjoy the overwhelming leadership position among U.S. veterinary clinics.

The South Florida rollout will also feature the use of the first ChipMobile(TM) - a state of the art, medically equipped mobile unit that will deliver VeriChip to initial target markets such as elder care centers, critical care facilities and Generation Y events. The Palm Beach and Broward rollout will last until June 30, 2002, at which time the company plans to assess the results and then move into other geographic markets and initiate nationwide distributor alliance programs.

The company announced that Dr. Wulkan also performed the "chipping" procedure on three of its senior executives: Richard J. Sullivan, Chairman and CEO; Scott R. Silverman, President; and Dr. Keith Bolton, Vice President and Chief Technology Officer. Mr. Silverman commented: "All three of us wanted to 'get chipped' to experience for ourselves just how safe and easy the procedure is and to demonstrate to the world our complete confidence in the success of this exciting, life-enhancing technology."

For more information, visit the company's website at www.adsx.com.

May 14 - Market Growthh for Wireless Internet Access Predicted. Two of the most successful technologies of the 20th century - the Internet and mobile telephony - have formed another promising technology, wireless Internet access, but the great promise of this technology remains unfilled. Will it ever be realized?

According to Pioneer Consulting's latest market & technology assessment report, Wireless Internet Access over Unlicensed Spectrum: An Alternative to 3G Mobile Data Networks, wireless Internet access offers a sizable market opportunity with global equipment revenues expected to grow from $3.1 billion (USD) in 2002 to $19.1 billion in 2008. Profiting from this growth will be 4th Generation (4G) wireless equipment providers such as Avaya, Nokia, Cisco, Sierra Wireless, Compaq, Linksys among others.

Initially, the market opportunity for wireless Internet access was not realized for several reasons including, its prematurity, lack of development and the market's failure to recognize these realities. Today, however, the Internet and mobile worlds are finally beginning to converge, creating a new market that will entail impressive growth.

According to Pioneer Consulting's report, the market for wireless Internet access will begin to take off over the next few years, as mobile operators, wireless ISPs, and fixed operators begin to build "hot spot" locations based on 4G technology (wireless LANs based on 802.11b, a, g, HIPERLAN standards) and 2.5G and 3G networks. The report predicts that service provider revenues for mobile and wireless Internet access will grow from $1.0 billion (USD) in 2002 to $18.4 billion by 2008. 4G service providers including Voicestream (through Mobilestar purchase), Wayport, Boingo and Air2LAN are inline to see revenues increase with the adoption of wireless Internet access technology.

"Lower equipment costs, higher bandwidth services, access to corporate intranets, and focus on high-traffic areas will help 4G succeed where previous generations of mobile data struggled," says Paul Kellett, senior director of research at Pioneer Consulting. "In addition, the large potential user base created by the phenomenal growth of wireless networking will help to spur the rapid growth predicted for public access."

For more information on Pioneer Consulting and its products and services visit the company's Web site www.pioneerconsulting.com.

May 13 - Dell Introduces New Micro-Portable Projector. Dell (Nasdaq:DELL) today announced U.S. availability of the 3100MP projector, a 3.5-pound unit that can project anything from sales figures to feature films at up to 294 diagonal inches, nearly five times the size of the largest home television sets.
The $2,499 projector uses Digital Light Processing(tm) technology, enabling crisp, bright images while significantly reducing size and weight. Other features include XGA (1024x768 pixel) resolution, a maximum brightness of 1050 ANSI lumens, and a 2-year limited warranty with Advance Exchange. Setup is a quick plug-n'-present operation, with the display resolution automatically adjusting to accommodate the source device, including virtually any notebook computer.
"Projectors are a logical complement to a notebook computer for presenters," said Gerry Smith, vice-president of Peripheral Development and Procurement. "Our goal with this product is to deliver the practicality and features our customers want at a great value. We've created a projector that not only addresses the needs of a broad spectrum of customers, but stands on its own as a strong entry into the market."

Dell 3100MP

The 3100MP is housed in a sturdy magnesium chassis and can be oriented on a desktop, mounted to a ceiling (with available kit), or easily adjusted to project from behind a screen. Other standard features include integrated zoom lenses, digital keystone correction, built-in 2-watt speaker, and a full-function remote control with integrated laser pointer. The projector ships with cables (DVI-I to VGA, S-Video, component video, RCA, remote mouse, and audio) and a fitted carrying case. A combo case, for carrying both the projector and a notebook computer, will be sold separately.
Information on Dell and its products can be obtained at www.dell.com.

May 13 - AMD Introduces First Flash Memory Device Based On Mirrorbit(tm) Architecture. AMD (NYSE: AMD) on May 13 announced it has been sampling the company's first MirrorBit(TM) Flash memory device. General availability of the 64 Megabit product is scheduled for the end of this quarter. MirrorBit technology is a breakthrough that allows a Flash memory device to hold twice as much data as standard Flash without compromising device endurance, performance or reliability. The company is on schedule to deliver 128 Megabit and 256 Megabit devices in the second half of the year.

The MirrorBit architecture uses a true multi-bit Flash memory cell that delivers the same high levels of performance and reliability as standard NOR Flash. NOR Flash is commonly used to store and execute operating system software for many of the world's electronic devices. MirrorBit technology allows for the lowest cost production of ultra-high density NOR Flash devices.

MirrorBit Flash memory devices enable customers to develop advanced products such as cell phones, personal digital assistants, car PCs, telecommunications equipment, and TV set-top boxes that offer higher levels of features and functionality.

Over 350 billion bits of MirrorBit technology were subjected to AMD's rigorous and extensive qualification procedures. As a result, AMD is able tocontinue to deliver industry-leading levels of data retention and endurance. MirrorBit Flash memory devices are designed to deliver endurance of at least 100,000 program/erase cycles and 20 years of data retention at 125oC.

MirrorBit products also offer customers an easy to use solution by maintaining complete pin-compatibility with existing AMD Flash families. As a result, current customers can easily replace their current AMD Flash device with a MirrorBit device without having to change their system design. The packages and pinouts provide customers with an easy migration path all the way to 1Gigabit Flash.

Additional information about AMD and its products is available at www.amd.com.

May 13 - Toshiba Shipping Digital Camera with Touch Screen LCD. Toshiba Imaging Systems, a division of Toshiba America Information Systems, Inc., today announced shipment of its new "button-free" Toshiba PDR-T10, the world's first digital camera to utilize its LCD as an interactive touch-screen menu.
Also distinguishing the two-megapixel PDR-T10 -- and adding to its excitement -- is a collection of interchangeable, snap-on faceplates, including zebra stripes, polka dots, and grasshopper green, that let the user alter the look of their camera to match whatever mood they find themselves in. Two faceplates come with the camera, with eight more available to be purchased separately.
"The PDR-T10 is perfect for people who want serious digital imaging performance from a point-and-shoot camera that lets them express their own distinct personality," said Doug Freck, Vice President & General Manager, Toshiba Imaging Systems. "Younger, more fashion-minded users will appreciate the camera's good looks, compact size, and uniqueness, while experienced photo enthusiasts will be pleased by its crisp, clear images, as well as ease-of-use features such as auto flash, auto focus and exposure, and a self timer."
On the performance side, the fully automatic PDR-T10 matches its beauty with a smart 2.0 megapixel CCD sensor that captures brilliant color photographs at resolutions up to 1600 x 1200 in universal JPEG format at three quality levels. To take advantage of the wide spectrum of uses of photography on the Internet -- from e-mailing friends to uploading photos to a personal web page -- the camera also has an 800 x 600 resolution mode that creates smaller-sized files.
By touching the bright, high-resolution 1.6-inch LCD with a stylus, users can quickly navigate the camera's simple menus and icons to select from a host of controls including flash and zoom options... to instantly review their photos... or to launch the downloading of their pictures to a Windows(R)-based or Macintosh(R) OS computer. The camera comes with its own stylus, but is just as easily controlled by a standard PDA stylus or even a fingernail. The absence of buttons, levers and switches on the back of the camera gives the PDR-T10 a streamlined, elegant styling that ideally compliments its pocket-sized dimensions (3.36 x 2.83 x 1.1 inches).
MSRP is $399. Visit Toshiba on the Web at www.dsc.toshiba.com.

May 13 - Digital Radio Services to Take Hold in Consumer Markets. Despite having met a series of difficulties in the early years of development, digital audio broadcast (DAB) and digital audio radio services (DARS) services in the United States and abroad will finally gain increasing acceptance among consumers within the next 5 years.
In-Stat/MDR (www.instat.com) reports that, even though the digital radio space is being developed at one of the most economically challenging points in time over the last 50 years, receiver manufacturers are ramping up production to meet growing customer demand for these services, indicating that they may eventually overshadow traditional analog radio.
"Major markets like the U.K., Germany and Canada are starting to show how vital digital is in adding more value to radio service as DAB is inspiring a whole renaissance of new programming choices," said Michelle Abraham, a senior analyst with the high-tech market research firm.
In the lagging U.S. market, inroads made by DARS services like XM and Sirius and increased momentum behind DAB from major radio station groups suggest that the next few years will witness the rapid development of digital radio.
"In all geographical regions, there are hurdles that will need to be overcome in order for this technology to really take hold in the consumer market," said Abraham.
"Manufacturers will need to produce receivers at a price that is desirable to the consumer, the availability of receivers will have to broaden, and the transmission system must provide a wide coverage area. In addition, interoperable receivers that pick up all digital radio systems will have to be developed."
In-Stat/MDR has also found that:

-- As iBiquity technology is added to more and more stations, there will be a divergence between the number of digital receivers sold and the subscriber base of the two DARS services. For many consumers, the new features available on the free DAB channels will be enough, and they'll opt against the pricier DARS services.
-- Because of the low cost and speed with which analog radio stations can add DAB service, it's very likely that DAB will gain critical mass in the United States within a fairly short span of time.
-- Worldwide shipments of digital receivers have been low though huge gains are being made with the introduction of DARS services in the United States.
-- The success of digital radio in the United States will depend to a great extent on automotive manufacturers, as many consumers' introduction to digital radio will come in an automotive setting.

May 13 - Seven in Ten American Mothers Use PCs. Just over 70% of the nation's mothers age 21 and over use computers in 2002, up significantly from 57 percent in 2000 and 35 percent in 1994, according to preliminary results from the 2002 Technology User Profile report released today by MetaFacts.

Access to the Internet is one reason for the big increase in computer use by mothers, as nearly eight in ten American mothers with PCs access the Internet.

"Gaining access to the Internet and email has played a major role in convincing mothers to buy and use Home PCs," said MetaFacts Principal Analyst Dan Ness. "Although many different types of Internet Appliances have been available for years, these haven't been as widely adopted as personal computers."

The Personal Computer is a focal point for other technology products in the household. Nearly one-third (31%) of PC-Using Moms have a digital camera and 18% have a PDA (Personal Digital Assistant).

"The age of children in the household was not a factor in whether Moms were more or less likely to have a PC," said Ness. "Households with Toddlers have the same PC penetration rate as those with PreTeens and Teens."

Cellular phones are another technology product favored by Moms. More than eight in ten (82%) of Moms with PCs have a cellular phone, compared with only half of Moms without PCs.

Of the mothers who do not own a computer at home, the main stated roadblocks to purchasing one were a lack of experience in buying consumer electronics, perceived high risk in buying electronic products, not feeling they can keep up with current events, and financial concerns.

"Waiting for prices to come down and concerns about Internet security and privacy received similar importance ratings from PC-using Moms and Moms that don't use PCs." said Ness.

Socioeconomic factors are some of the most distinguishing characteristics separating PC-Using Moms from those that don't use PCs. Moms with PCs are educated with at least some college, work outside the home, and work in a professional, managerial, technical or administrative occupation. Also, their spouses have a similar educational and occupational profile. Household incomes are also a defining factor, with incomes $35,000 and over being above average in their PC use by Moms.

Other findings from the report include:

-- A greater percentage of Moms in Suburban areas use PCs than in

Central Cities

-- The three states with the highest percentage of Moms using PCs

are Vermont (94%), South Dakota (89%) and New Hampshire (85%).

Metafacts can be found on the Web at www.metafacts.com.

May 12 - Sunday Shopping Watch. Happy Mother's Day.

Weekly Comparison.

Deal of the Week - Best Buy is offering a build-to-order Compaq 2 GHz complete system for $1199.

Notebooks - Prices fell a little on notebooks. This week's best deal is a Toshiba 1.1 GHz Celeron for $899. This still seems high compared to the deal from 3 Sundays ago, an Athlon 4, 1 GHz laptop advertised below $1,000.
High-end Athlon, Pentium III-M, and Pentium 4-M processor notebook prices appear unchanged.
Desktops - Best Buy's Compaq 2 GHz Pentium 4 complete system at $1199 is the lowest price we've seen advertised on a 2 GHz desktop. Prices on Athlon "+" processor desktops went up $100 compared to last week.

This Sunday's Special Discounts and Financing. In addition to sales on specific items, the following store-wide sales are advertised this week. (Note that these ads are for the Dayton,Ohio area. Prices or offerings may be different where you live.)

BestBuy is giving away 6 months of free MSN with any computer purchase. They are also offering 9 months of interest free financing on any purchase over $298. Additionally, they are giving $100 mail-in rebates on all desktop packages and notebooks.
Circuit City has 12 months of interest free financing on all notebooks. Additionally, they are offering a $100-$400 mail-in rebates with purchase of any Intel Pentium 4 desktop package.
Office Depot is offering no interest, no payments, for 6 months on any computer purchase over $298.
CompUSA no ad this Sunday.
Staples no ad this Sunday.

Shopping Alert on Lower Priced Desktops. Many lower priced Celeron desktops made by almost all computer manufacturers should be carefully investigated before purchase.
Most of these low priced desktops have no AGP video expansion slot, no onboard dedicated video RAM, no CD-RW drive, and very few empty PCI expansion slots. These computers will be very difficult to upgrade, and they have poorer performance than other desktops that do not have integrated audio and video chips on the motherboard.
Often by spending $200-$400 more dollars for a Pentium 4 or Athlon XP based system, you can get twice the performance, more features, and you will have an upgradeable computer that will serve you well for another 3 years.
If you choose the $700 Celeron system to save a few bucks, keep in mind that in a year or two you will probably want to replace it.

About Windows XP. It has been a little over 5 months since Windows XP began to be bundled with new computers. Windows XP became available for separate purchase on October 25th. For more information on Windows XP see our Windows XP Upgrade Guide.

Internet Rebates. Most stores are no longer advertising 3 year Internet rebates. Check with your local store before you buy. Please see our article, What You Need to Know About Internet Rebates and Free PCs, for an in-depth discussion of Internet Rebates.

Definitions. A desktop system/package is defined as a computer with monitor and printer or scanner.
A build-to-order system is customized at the retailer and then ordered from a vendor's store. In addition to the computer's stated price, you still pay sales tax and shipping charges (if you order direct from the vendor without going through the chain store, you may not have to pay sales tax and you could get a better warranty).

Caution about advertised prices. When reading advertisements, read the fine print of the ad to make sure you know what is being advertised and what it cost. For example, many advertisers will show a complete system with computer, monitor, and printer but advertise a price for the computer only.

* Prices discussed in this article. We report prices after rebates and discounts are subtracted.
Items highlighted in Black are good deals.
Items highlighted in Red means prices have gone up and the system is not a good buy this week.
Items in normal text means prices are about the same as the previous weeks.

Best Deals this Sunday
Category
Product Description
Price* (see above)
Store
Best Celeron Deal
Compaq 1.3 GHz complete system
$879
Office Depot
Best Low-cost Pentium 4
Sony 1.6 GHz complete system
$1197
Best Buy
Best High-end Pentium 4 System
Compaq 2 GHz Build-to-order complete system
$1199
Best Buy
Best Low-cost Athlon XP System
HP 1600+ complete system
$999
Best Buy
Best High-end Athlon XP System
None Advertised
Best Low-cost Notebook
Toshiba 1.1 GHz Celeron with DVD
$899
Best Buy
Best High-end Notebook
Toshiba 1.6 GHz Pentium 4 with DVD/CD-RW
$1699
Best Buy

Additional Information. For additional technical information, advice on how to buy a laptop or desktop, and vendor and manufacturer links, please see our Computer Buying Advice page.
About Sunday Shopping Watch. Sunday Shopping Watch appears every Sunday (except some holidays like Easter and Christmas) in our News and Rumors column. It is a review of local (Dayton, Ohio) computer chain store advertisements. While we can not guarantee your local chain store has the same items, this article should help you make informed buying decisions.

May 10 - 1394 Trade Association Forms Network Working Group. The 1394 Trade Association last week created its newest standards development committee, the Network Working Group, to explore large, expanded and home networking applications using the 1394 multimedia standard. The group also will address issues involving interoperation with legacy networks, including Ethernet-based systems.

The Network Working Group was officially launched at the 1394 Trade Association's second quarter meeting in Barcelona.

It will be chaired by Michael Johas Teener, who originated the 1394/FireWire Standard in the 1980s while at Apple Computer. Vice Chairs are Scott Fierstein of Microsoft and Steven Harris of BridgeCo.

"The formation of this group reflects the growth of 1394 from its current role in consumer product applications and entertainment clusters to a broader application in home, legacy and large networks," Teener said. "We will review the use of IP (Internet Protocol) over 1394, convergence with other networking technologies, and expanded applications that are now enabled by the arrival of the 1394b version of the standard."

Teener added that the group will focus on three initial projects including: the implementation of IP over 1394; the co-existence of 1394 with Ethernet; and co-existence with 1394.1, the bridging specification.

According to James Snider, executive director of the 1394 Trade Association, the 1394/FireWire standard is well recognized as the optimal Audio/Video network technology for transporting multiple video streams and audio in real time. Formation of the new working group underscores the standard's leadership, he said.

For more information about 1394/FireWire and the 1394 Trade Association, visit www.1394ta.org .

May 10 - Boeing Co. Brings Latest Digital Cinema Technology to Moviegoers. The Boeing Co. (NYSE:BA) is making digital projection of full-length motion pictures a reality with the installation of the Boeing Digital Cinema systems in markets across the United States and in London.

Moviegoers will consistently enjoy clear images, free of all the defects typically associated with 35-millimeter film such as scratches, dirt, mechanical jumps and other degradation. The Boeing system, which utilizes satellite, fiber optics and physical media technologies, will be installed in 23 theatres by next week. Other theatre locations will be announced as systems are installed.

"Digital Cinema will give theatres using the Boeing system a competitive marketing advantage and attract more moviegoers because every showing of a digital movie will be as sharp and full of detail as the first viewing," said Frank Stirling, executive director, Boeing Digital Cinema, part of Boeing Space and Communications (S&C), a business unit of The Boeing Co. "This brings the cinematic experience closer to what was actually shot during filming. Moviegoers will see and hear the film the way the filmmaker intended."

Boeing Digital Cinema allows the secure delivery of a single movie file to thousands of theatres around the world. The system provides secure end-to-end transmission using encryption technology that has been endorsed by the National Institute of Standards and Technology (NIST) for protection of commercial and government information. From encryption upon receipt of content to decryption at projection in designated theatres, Boeing's end-to-end multi-layered security system ensures protection at each step of the process and reduces risk of film piracy.

Theater locations will be posted at the Boeing Digital Cinema Web site www.boeing.com.

May 10 - Video On Demand Market Showing Impressive Growth. Video on Demand (VOD) is rapidly coming of age, with all major US cable operators having VOD offerings in multiple markets and looking to dramatically expand into additional markets in 2002 and 2003. By year end 2002 Allied Business Intelligence (ABI) estimates that 4.8 million North American households will be VOD-capable.

VOD gives cable operators a product offering that satellite operators cannot replicate. Increased revenue per subscriber and reduced churn are driving immense interest from cable operators.

"Cable operators are intent on using VOD to differentiate their offerings from those of satellite operators," said Navin Sabharwal, ABI Director of Residential & Networking Technologies. "VOD is evolving beyond simply Movies on Demand, and certain VOD offerings such as Subscription VOD, will become an instrumental component in digital tier service."

The ultimate goal of Everything on Demand (EOD) is creating a significant VOD media server market. The global equipment market is projected to grow from $108 million in 2001 to $186 million in 2002. Leading vendors such as SeaChange, Concurrent, Diva and nCube will face increased competition from Sun and SGI, and other computer industry players. SeaChange and Concurrent led the market in 2001 with market shares of 40% and 28% respectively.

Not just limited to the cable platform, VOD offerings are being launched by content aggregators while progressive telcos are looking at IP VOD over DSL. Satellite providers are piggybacking on personal video recorder (PVR) technology to offer Near VOD (NVOD).

More information can be found at www.alliedworld.com.

May 10 - E-Mail is the Dominant Online Activity Worldwide. Sending and receiving e-mail was the dominant online activity in 12 countries over the past six months, according to the Nielsen//NetRatings First Quarter 2002 Global Internet Trends report, released today.

Nielsen//NetRatings, the global standard in Internet media and market research, found that at least 75% of households with Internet access participated in e-mail.

"Of all the popular Internet applications, e-mail is the global activity of choice," said Richard Goosey, chief of measurement science, Nielsen//NetRatings. "We found that an impressive 90% of the adults in three major markets - Australia, the UK and the Netherlands - used e-mail over the past six months, though the percentages were high for all 12 countries.

"In contrast, involvement in chat rooms was lower than 30% in all countries except Brazil, where 41% of adult Internet users used chat rooms, and in Spain where 38% used chat rooms. Additionally, looking at audio-visual content and using Internet radio was well below 50% in all countries, and instant messaging has less than 30% penetration in several countries, including France, Germany and Italy.

"The key to e-mail's popularity is two-fold: it's a cost-effective way to communicate across great distances, and it doesn't require the same high connection speeds as some of the other applications. In most countries in this report, a 56k modem or slower modem is the most popular tool to access the Internet. However, in Hong Kong, an astonishing 58% of those who responded and have Internet access use either a cable modem or high-speed telephone connection to access the Internet. Not surprisingly, their rates for using Internet radio and looking at audio-visual content were among the highest worldwide."

Globally, the number of people with access to the Internet via a home PC increased from 498.2 million people in Q4 2001 to 531.3 million in Q1 2002. North America is the biggest region, contributing 34% of the total global Internet population, followed by Europe and the Middle East at 27%, Asia & the Pacific at 21%, and Latin America at 2%.

For more information, visit www.nielsen-netratings.com.

May 10 - Digital Cameras and Digital Camcorders Sales Are Up. With graduations, weddings and the summer holiday fast approaching, digital cameras and digital camcorders experienced a boost in sales according to NPDTechworld(SM), the leading provider of consumer electronics and information technology market information.

In the channels that NPDTechworld tracks, combined unit sales of both categories experienced a 24.5 percent increase during the first three months of 2002 when compared with the first three months of 2001.

For the first three months of 2002, 1.229 million digital cameras were sold, compared with 958,000 during the same period in 2001 and 578,000 in 2000. For the same period, digital camcorders sold 215,000 units in 2002, 202,000 units in 2001 and 129,000 units in 2000.

"Digital cameras and digital camcorders are selling because they represent high quality in an easy-to-use product," said Tom Edwards, senior analyst, NPDTechworld. "Sales are up because the price points have come down considerably and many consumers are finding the technology too hard to pass up. Ten million digital cameras and camcorders will be sold this year, a twenty percent increase over the prior year."

Average selling price for digital camcorders decreased from $803 in March 2001 to $710 in March of 2002. Average selling price for digital cameras decreased from $425 in March 2001 to $385 in March of 2002.

In addition to sales price, another factor causing a boost in sales is the ease in which these digital products tie in with other products in the home including televisions and PCs.

Sales of digital media that allow consumers to tie their picture taking together with their other electronic devices are also skyrocketing. In the first quarter of 2002 NPDTechworld tracked the sales of almost 1.5 million memory cards, an increase of more than 150 percent over the first quarter in 2001.

"Digital cameras and digital camcorders are a peripheral of other tech products currently in the home," Edwards added. "The electronic photo album is no longer just a screen-saver or an e-mail to grandmother. Electronic pictures are on desktop frames, PDAs and even your cellular telephone display."

To learn more about NPDTechworld, visit www.npdtechworld.com.

May 9 - Butterfly and IBM to Introduce First Computing Grid for Video Game Industry. Butterfly.net, Inc., and IBM announced today the deployment of the first-ever custom commercial grid for the online video gaming market.

The Butterfly Grid(TM) could enable online video game providers to support a massive number of players within the same game by allocating computing resources to the most populated areas and most popular games.

Butterfly.net, a development studio and infrastructure provider to the online video game market, will demonstrate the Butterfly Grid system to members of the video gaming industry at the Electronic Entertainment Expo (E3) 2002 show beginning May 21 in Los Angeles.

The Grid was built by Butterfly.net over the last two years using IBM e-business infrastructure technology that distributes the processing of video game interaction across a network of server farms, enabling Butterfly.net to support a massive number of video gamers playing simultaneously over the Internet. The Grid is a secure system built on customized software operating on the private network of Butterfly.net.

"We selected IBM as the infrastructure provider for our Grid because of their unparalleled support for the Linux operating system and grid computing, their understanding of the unique processing and communication requirements of video games, their carrier-independent collocation centers and their commitment to developing this market opportunity with us as a true partner," said David Levine, CEO of Butterfly.net.

The Butterfly Grid is powered by rack-mounted Linux-based IBM eServer xSeries systems hosted by IBM and running on internal fiber-optic networks for optimal use of computing and communications resources. The grid design offers the potential to support over one million simultaneous players from each facility in a 24/7 environment with automatic fail over capability.

"The Butterfly Grid is an innovative Grid system with the capability of processing online video games across a multicast network of server farms, allowing efficient utilization of computing resources for high-performance 3D immersive game-worlds," said Scott Penberthy, vice president of Business Development, IBM Global Services. "We believe the Butterfly Grid is a breakthrough platform that will help entertainment, media and game companies reduce costs and better deploy their entertainment properties online."

Online video games have historically segmented players onto separate servers, limiting the number that could interact and creating reliability and support obstacles. In the first generation of games, when one server is down, or patches are being installed, game-play comes to a halt. Butterfly's second-generation grid technology enables online video game providers to reliably deliver fast-paced, cutting edge games to millions at the same time. The server interaction is completely transparent and seamless to the user - delivering a resilient gaming infrastructure where servers can be added, or replaced, without interrupting game-play.

Globus Project co-leader Dr. Ian Foster of Argonne National Laboratory and the University of Chicago noted, "The Butterfly Grid approach to building scalable, reliable gaming infrastructure is a wonderful example of how Grid and Globus Toolkit technologies can deliver real value to end users. We're delighted to have Butterfly working with Globus technologies."

The new Butterfly Grid is the industry's first to provide support for:

- Massive numbers of players within one persistent-state world.

- Before the Butterfly Grid, online video games have been
divided into "shards" that provide copies of the game world on
separate servers, limiting the number of players that can
interact. The Butterfly Grid provides "cross-server sentinels"
that could potentially support the interaction of millions of
players in one true world, with server boundaries invisible to
players.
- Distributed Artificial Intelligence - Butterfly.net provides a
"daemon controller" for advanced interactions between players
and non-player characters through a simple, standard Python
interface.
- Game genre's - Developers can build innovative action,
strategy, role-playing, simulation and adventure games,
combine genres and invent new ones.
- Multiple, concurrent games - With multiple online video games
on one computing grid, publishers can allocate resources to
more popular games, launch new games with less risk, and offer
flexible and innovative subscription plans to drive revenue
growth.
- Connected devices - Butterfly.net connects PCs, PocketPCs,
Palm-compatible handhelds, and dedicated video-game consoles
in massively-multiplayer online games. An innovative
packet-transport protocol provides fast, balanced game-play
over broadband, dial-up and mobile Internet connections for
unique multi-channel interactions
- Hot-swappable components. - Once an online video game is
launched, it doesn't need to be constantly taken off line for
patches or maintenance. When grid components are unavailable,
connections are redirected to available resources for
continuous gameplay.
- 3D engine support - Game developers working on the Butterfly
Grid can exploit fully integrated, industry-standard 3D
engines out of the box.
- Shared-source developer sandbox.- Unique license program
allows for real-time prototyping on live server grid with full
bandwidth and simulation/load testing.

An emerging model of computing, Grids are built with clusters of servers joined together over the Internet, using protocols provided by the Globus open source community and other open technologies, including Linux(R). Like the World Wide Web enables people to share content over standard, open protocols, Grid protocols emerging from the Globus open source community are enabling organizations to create virtual organizations sharing applications, data and computing power over the Internet to collaborate, tackle large problems and lower the cost of computing

IBM is the industry's leading supplier of Grid systems and services to the scientific and technical community and is working with the Globus open source community and others to extend Grid computing into commercial environments. For more information about IBM, visit www.ibm.com.

About Butterfly.net:

Butterfly.net, Inc., based in Shepherdstown, WV and Los Angeles, CA, is a development studio, online publisher and infrastructure provider for Massively-Multiplayer Games that connect players on PCs, consoles and mobile devices. Butterfly.net(TM)and Butterfly Grid(TM)are trademarks of Butterfly.net, Inc. For more information about Butterfly.net, visit www.butterfly.net.

May 9 - Fujitsu Develops Record-Breaking 300Gb/in2 HDD Technology. Fujitsu, a world leader in hard disk drive technology, has developed revolutionary new read head and media technologies that will enable hard disk drive (HDD) recording densities of up to 300 gigabits per square inch (Gb/in2).
The new technologies are expected to lead to the commercial introduction within two to four years of 2.5" hard disk drives with capacities up to six times the recording density available today. The breakthroughs, which come less than a year after Fujitsu announced record-breaking 100Gb/in2 technology, were announced by Fujitsu Laboratories Ltd., one of the world's premier technology research centers, at Intermag Europe 2002 in Amsterdam, The Netherlands, on May 2.

Fujitsu's latest technology advancements feature a new Current-Perpendicular-to-Plane (CPP) mode Giant Magneto-Resistive (GMR) head that achieves more than three times the playback output levels of current HDDs by allowing current to flow perpendicular to the GMR element. Existing GMR read heads, which operate in the Current-in-Plane mode, are considered to have a limit of approximately 100Gb/in2 in density due to their small signal output level. Fujitsu's new CPP GMR head also boasts improved sensitivity to data signals. Higher sensitivity when element size becomes smaller results in increased recording density.

"Fujitsu is a pioneer in hard disk drive component technology," said Dave Reinsel, industry analyst at IDC. "Through these technological advancements, the company has proven the viability of future disk drive component technology and has routed a path for advancing AD beyond forecasted requirements, as well as enabling future industry migration to small form factor drives."

Within the next two years, Fujitsu expects to implement these technologies in the commercial production of 2.5" hard drives. Within four years, Fujitsu further expects to achieve capacity increases of up to 360GB -- enough to record 76 high-quality DVD movies. According to Fujitsu, those increases will drive growth in the market for 2.5" HDDs in PCs, consumer electronics devices, and other products and will eventually render the 3.5" desktop HDD obsolete.

"Fujitsu is proud to once again offer a technology breakthrough that will lead to better and faster products for tomorrow's consumers," said Mike Chenery, vice president, advanced product engineering at Fujitsu Computer Products of America, Inc. "Fujitsu Labs' outstanding research breakthrough, which extends a string of technology advancements that remain largely unsurpassed and unanswered by other vendors, demonstrates our commitment to staying at the forefront of HDD technology."

Fujitsu's Tradition of HDD Technology Leadership

The latest breakthrough highlights one of many Fujitsu achievements in its long history of technology leadership. In 1998, Fujitsu was the first to integrate across its entire HDD line the Giant Magneto-Resistive read head that is the defacto standard in all hard disk drives today. Later, in 2000, Fujitsu developed and integrated Fluid Dynamic Bearings (FDB), the first successful implementation of this HDD motor design in desktop hard drives. Also in 2000, Fujitsu developed a pioneering media technology that integrated a layer of Ruthenium on the disks. Synthetic Ferrimagnetic Media, as Fujitsu has termed the media, allows tighter packing of data and more accurate reading of information from disks.

For more information, please see: www.fujitsu.com.

May 9 - U.S. Internet Traffic Experiences Annual Growth of 100%. Monthly Internet traffic in the U.S. now stands at around 100 Petabytes per month -- more than double the volume from the entire nation's long-distance voice calls. According to RHK's new Ryan Perspective report Internet Traffic Soars, While Revenues Glide, Internet traffic in the United States grew at an annual rate of 100% during 2001. This represents a drop from 130% in 2000 and 160% in 1999, but an ongoing increase in the absolute volumes that backbone providers must accommodate.

RHK's findings show dramatic consolidation of Internal traffic among the largest carriers, as bankruptcies take their toll of smaller service providers. A significant aspect of RHK's new research addresses the difficulties many telecom firms are having as revenue growth falls well behind the traffic surge, at 17% during 2001. Revenues-per-bit fell 45% in 2001, mainly due to intense price pressure, better utilization of higher bandwidth pipes by enterprise customers; and declines in the wholesale dial-up business as users migrate to broadband access.

"Although traffic growth is still strong, it is growing at a less extreme pace than in earlier years, suggesting the Internet is following the usual curve for any maturing market," says Muayyad Al-Chalabi, director of RHK's Executive Strategic Partnership program. "The boom and bust of the dot-com era generated myths and unattainable expectations. It is important to have a realistic understanding of growth patterns, as they provide the best indication of the size of tomorrow's networks."

The substantial gap between Internet traffic and revenue growth need not be a cause for concern, according to Al-Chalabi. The mismatch can be overcome if networks can offer increasingly efficient performance to counteract falling revenue-per-megabyte. This report provides recommendations to service providers, vendors and investors for determining future Internet-based business models.

In quantifying present and future growth, RHK interviewed all the top backbone carriers that together carry the majority of the U.S. Internet traffic. This analysis of past and future traffic patterns included modelling access bandwidth used by businesses and residential customers, and researching the factors that drive service provider strategies. For more information on the definitions and methodologies RHK uses to quantify Internet traffic and interpret the underlying trends, visit networkwatch.rhk.com/ShowAnalysis.asp?analysisId=108.

May 9 - CITA Announces 12-Hour Brain Treatment for Cocaine and Alcohol Addiction. The Centre for Research and Treatment of Addiction, CITA, announces the development of a 12-hour treatment for cocaine and alcohol dependence that eliminates the withdrawal symptoms and craving associated with detoxification.

The Spanish-based firm is best known for the development, a decade ago, of the highly publicized Ultra Rapid Opiate Detoxification (UROD). Method of treating heroin and methadone addiction in a six-hour deep sedation process with a 100% success rate.

The Spanish Ministries of Health and of Science and Technology cooperate with CITA through the Agency for Evaluation of Health Technologies and the Institute of Nutrition and Bromatology.

"This treatment represents a major advancement in our way to cure addictions," says Dr. Juan Jose Legarda, the London-trained Psychologist who developed the UROD method for CITA in 1992.

So far, the Centre has treated more than two hundred patients for alcohol and cocaine dependence using the procedure, dubbed DNA (Detoxification and NeuroAdaptation). No patients have dropped out from detoxification.

Legarda points out that the Centre's patients average a bottle of cognac or one gram of cocaine per day and typically arrive in grave physical condition. Nevertheless, they suffer no withdrawal symptoms, and they stop craving cocaine or alcohol within the first 12 hours of treatment. In fact, even though some patients arrived for treatment intoxicated, they experienced no withdrawal symptoms. Those who entered treatment already suffering from withdrawal symptoms saw those symptoms disappear.

Legarda explains that pharmacological interventions at NMDA, serotonergic and GABA receptor systems recuperate the normal neural functioning of the brain structures harmed by alcohol and cocaine. "This allows for neuroregulation and detoxification without withdrawal symptoms and without craving," he says. In just three days, brain neuroimaging (PET) techniques show metabolic normalization of frontal, parietal and temporal lobes.

CITA's website, located at www.webcita.com, includes news and information about the company's treatment options, results and official reports.

May 9 - Businesses Report That DSL Delivers Exceptional Value and Productivity. In a recent survey conducted on behalf of SBC, the Yankee Group found that 91% of business DSL subscribers believe that the productivity benefits of the service meet or exceed their expectations in relation to the monthly cost. In addition, 65% of business DSL subscribers reported that, if forced to cut costs, DSL would be one of the last services eliminated.

Dial-up Internet access is no longer sufficient, and high-speed Internet access is proving to be a necessity for businesses. As companies migrate from dial-up Internet access to DSL, it is clear that they realize increased productivity and enhanced competitive advantage.

"Businesses truly believe that broadband enables them to service their customers better and more efficiently," said Mike Lauricella, program manager with the Yankee Group's Small & Medium Business Technologies Practice. "Businesses will only continue to increase their use of the Internet and continue to extend broadband throughout the company."

Some of the key applications of the Internet include:

-- 88% of respondents use DSL Internet access service to conduct online research.

-- 83% send and receive e-mail with large attachments.

-- 78% purchase supplies online.

-- 69% book travel reservations.

The survey results of Business Broadband Watch are based on independent telephone interviews conducted by the Yankee Group from a random sampling of 550 small businesses with SBC DSL Internet access service.

The Yankee Group can be found online at www.yankeegroup.com.

May 8 - The New HP Lays Out Business Focus. Two business days after legally closing its merger with Compaq Computer Corp., HP (NYSE:HPQ) officially launched the new company with a focus on product and solutions offerings, go-to-market and brand plans, and recent customer wins signaling confidence and support for the merged company.

"After eight months and millions of hours of integration planning by our teams, today we are ready to do business as the new HP," said Carly Fiorina, HP chairman and chief executive officer. "Our management teams are in place in all 160 countries in which we operate. We have three-year product roadmaps for our customers in place for all of our products. More than 80,000 sales, service and support professionals are ready to serve customers. Our Web sites and email systems are combined. Our online store is open for business in the United States, and our joint Web site launched today in six languages and nine countries. All of it under the banner of the new HP. It is a proud and exciting day for all of us."

"The time is right for the new HP," said Michael Capellas, HP president. "Current economic realities are driving the information technology market to HP's strengths. Customers want fewer strategic partners, with global reach and scale. They want complete, end-to-end solutions based on open, industry-standard architectures. And they want access to the best engineering and most innovative technologies -- a hallmark of HP and a strong differentiator. While execution is essential and we have a lot to prove, we are confident in our ability to provide increased opportunity and value to our employees, customers, shareowners and partners. The new HP has what it takes for market leadership." In a press conference today, Fiorina and Capellas outlined the following:

Ready for Business

The company's business and functional organizations are in place, with management teams named three layers deep, including regional and country managers and the top 100 corporate account managers. Detailed product roadmaps are complete, including customer support and migration plans. In addition, the company's go-to-market model for each customer segment -- consumers to small- and medium-sized businesses to large enterprises -- is defined and financial targets have been identified with accountability established.

"The new HP is the largest consumer IT company in the world and the largest IT supplier to the small- and medium-sized business market," said Fiorina. "We also have a leading presence in large commercial accounts and multinationals, giving us one of the world's most valuable customer franchises."

The new HP's go-to-market model features a powerful combination of dedicated account teams, the largest global network of resellers, retailers and other partners, and direct and tele-Web sales. The company has already appointed account teams for its top 100 customers globally.

Four core business groups comprise the new HP, each of which is a market leader in its designated segment:

-- Enterprise Systems Group, led by Peter Blackmore, executive
vice president. ESG provides the key technology assets of
enterprise IT infrastructure, including enterprise storage,
servers, management software and a variety of solutions. HP
products in ESG have No. 1 market positions in UNIX servers,
fault-tolerant servers, Windows(R)-based IA-32 servers,
Linux-based IA-32 servers, enterprise storage, management
software and high-performance technical computing.

-- HP Services, led by Ann Livermore, executive vice president.
HPS features a premier IT services team of approximately
65,000 professionals worldwide. HPS, the industry's
third-largest IT services organization, is the market leader
in mission-critical infrastructure services, services for open
IT environments and enterprise-ready Microsoft integration and
support services, with the industry's largest channel partner
network.

-- Imaging and Printing Group, led by Vyomesh Joshi, executive
vice president. HP is the leading provider of printing and
imaging solutions for consumer and business markets, including
printer hardware, all-in-ones, digital imaging devices such as
cameras and scanners, and associated supplies and accessories.
Through its acquisition of Indigo, IPG is expanding into the
digital publishing market.

-- Personal Systems Group, led by Duane Zitzner, executive vice
president. PSG is the industry's leading provider of personal
computing solutions, offering business and consumer notebooks
and desktops, workstations, thin clients, handhelds and
Internet appliances. PSG also is responsible for HP's emerging
technology businesses in areas such as embedded software,
embedded computing, home networking solutions and personal
storage.

Product Roadmaps and Brand Strategies

The new HP also announced today detailed product roadmaps across the range of its hardware and software offerings, including comprehensive product transition and migration plans to protect customers' investments. (Additional detail on product roadmaps is available in an HP white paper at http://www.hp.com/hpinfo/newsroom/press/index.htm#whitepaper).

"The important message to customers is that the new HP features the broadest and best portfolio of products and solutions in the industry," said Capellas. "We recognize that customers have made significant investments in HP and Compaq technology. We intend to protect those investments with detailed transition and migration plans."

Product roadmap highlights include:

Servers -- HP will become the master brand for all server products, the company said. The company reiterated its commitment to the Intel(R) Itanium(TM) Processor Family (IPF), stating that, with the release of the third-generation Itanium processor (Madison), HP will offer Itanium-based servers from the low end to the high end of the product line, including HP's NonStop Itanium-based servers.

In the industry-standard server category, ProLiant servers will become HP's IA-32 server offering, along with the ProLiant blade server architecture for the data center and the HP's Powerbar blade family that has been optimized for the telecommunications market.

For RISC-based servers, HP will continue with previously published roadmaps for both PA-RISC and AlphaServer systems. PA-RISC servers will be targeted at all new business opportunities as well as the existing installed base; AlphaServers will be primarily focused on their installed base and high-performance technical computing.

The fault- tolerant NonStop server family from Compaq will now be named the HP NonStop Server.

In the UNIX market, HP-UX will continue to be the long-term, strategic UNIX platform for the new HP. Advanced features of Tru64 UNIX, including clustering and file systems, will be integrated into HP-UX over time. HP also will deliver on the previously announced OpenVMS roadmap, including the port to Itanium.

Storage -- StorageWorks will be adopted as the product name for enterprise storage products and storage solutions, OpenView will be the product name for HP's storage software and ENSA (enterprise network storage architecture) will be the acronym adopted for HP's storage architecture.

Software -- HP's software strategy focuses on investments in OpenView management solutions, the Utility Data Center (UDC), Opencall telco solutions and J2EE and .NET middleware stacks.

The company will adopt the OpenView name for all appropriate management software and will integrate TeMIP into the OpenView product family. The HP OpenView product line will focus on integrated management solutions, on extended management reach for both network and IP devices and Web services management.

HP said that it will continue to invest in UDC software by leveraging Compaq Insight Manager and Adaptive Infrastructure offerings as well as Toptools to offer one of the most scaleable and comprehensive management solutions in the industry.

For telco software, the new company will consolidate both HP's and Compaq's telecom software into the Opencall product family that will be used to develop, integrate and deliver voice, data and converged services.

The new HP will be equally strong on UNIX, Windows and Linux-based servers, requiring middleware solutions to support all platforms. HP will leverage key partner company relationships that enhance the middleware stacks around both J2EE and .NET to deliver a comprehensive ecosystem for HP and partners' application infrastructure components. HP will help customers manage the heterogeneous stack environments by providing key interoperability through the company's services and solutions organizations.

Personal Systems -- The personal systems branding strategy is designed to capitalize on the strong equity in the HP brand across a broad range of technology products as well as the strong equity in the Compaq brand for PCs worldwide.

HP announced that customers will be able to purchase both HP and Compaq-branded consumer PCs and notebooks in stores and online. In the commercial PC and notebook product categories, the Compaq brand will be retained and the HP brand will be dropped. All other products, solutions and services will carry only the HP brand. Product names for surviving products will be maintained.

Imaging and Printing -- All imaging and printing categories and product lines remain the same, with the exception of Compaq-branded products. HP and Compaq digital projectors will be combined into a single product line under the HP brand, a transition that will occur over the next 12 months.

Information about HP and its products can be found at www.hp.com.

May 8 - Intel's new 850E chipset supported by ATI's RADEON Graphics Accelerators. ATI Technologies Inc. (TSE:ATY; NASDAQ:ATYT) today announced that its RADEON(TM) product line of graphics and video accelerators fully support the newly announced Intel 850E graphics chipset. Powered by a 533 MHz front side bus, Intel's new chipset combines with Intel's Pentium(R) 4 processor to enable ATI's RADEON graphics chips to deliver exciting 3D and video on the PC.

"As a leader in the graphics industry, ATI has proven to be a valuable supporter of Intel's 850E chipset," said Jason Ziller, Technology Initiatives Manager for Intel. "We're pleased to have worked closely with ATI to ensure that ATI's RADEON family of graphics accelerators complement Intel's new chipset."

ATI has ensured that its RADEON product family is optimized for the Intel 850E chipset and the Pentium 4 processor. As a result, more users will experience the benefit of the 533 MHz front side bus enabling amazing results with the latest texture-rich, high frame rate games and other 3D applications.

"Working with valued companies like Intel enables ATI to deliver the highest quality graphics products to the marketplace," said Andy Thompson, Director, Advanced Technology Marketing, ATI Technologies Inc. "As a result, Intel's 850E will provide ATI's RADEON customers with an even greater visual experience through increased performance from the 533 MHz front side bus."

Visit our ATI's site at www.ati.com.

May 8 - Intel Drives Ethernet to Higher Speeds and New Market Segments. Intel Corporation today announced new wireless LAN, Gigabit Ethernet and 10 Gigabit Ethernet products that will drive Ethernet networks to higher speeds and new market segments. The new products, unveiled at NetWorld+Interop 2002, reflect Intel's efforts to further the convergence of computing and communications through silicon integration.

Among the new products introduced today, Intel announced a dual band wireless LAN access point and demonstrated an internally developed dual band wireless LAN chipset, both of which serve to enhance Ethernet as a wireless networking technology.

Accelerating the availability of Gigabit Ethernet to the desktop PC, Intel announced that Dell Computer Corporation will use Intel's Gigabit Ethernet controller as a standard network connection on the motherboard in future OptiPlex(1) desktop PCs. Intel also announced the availability of six new Gigabit Ethernet adapters, including dual port adapters for servers and an adapter for desktop PCs that are priced the same as the Fast Ethernet versions.

Intel also unveiled high performance 10 Gigabit Ethernet connections for the enterprise market with the introduction of the Intel(R) 82597EX 10 Gigabit Ethernet controller, the world's first single-chip controller running at 10 Gigabits per second. In addition, Intel announced it has begun sampling the industry's first 10 Gigabit Ethernet adapter that fits in a standard PCI-X slot.

"With more than 20 years' experience in Ethernet, and more than 250 million ports shipped, Intel is uniquely positioned to deliver industry leading Ethernet solutions to multiple market segments," said Sean Maloney, vice president and general manager of Intel's Communications Group. "By fostering industry standards development and driving their implementation into silicon, Intel is helping to shape the future of Ethernet and accelerating the convergence of computing and communications."

Additional information on Intel's wireless LAN, Gigabit Ethernet and 10 Gigabit Ethernet networking products is available at www.intel.com/communications/events/ni.htm.

May 8 - Embedded DRAM Market Forecasted to Grow 21.3%. Despite being limited in future growth by compatibility issues and the increased use of Application-Specific Standard Products (ASSPs), embedded Dynamic Random Access Memory (DRAM) will be a necessity for some high-performance, infrastructure, applications.

As a result, In-Stat/MDR (www.instat.com) forecasts that worldwide merchant market dollar shipments of high-complexity, cell-based designs, containing at least one or more blocks of embedded DRAM, in conjunction with other functions, will grow from $95 million last year to $250 million by 2006, a Compound Annual Growth Rate (CAGR) of 21.3%.

"While embedded DRAM technology has been available for nearly a decade, it has never reached the level of revenues originally forecast by many industry prognosticators," said Jerry Worchel, a senior analyst with the high-tech market research firm. "In large part, it faces the same issue as the flash memory market -- incompatibility between conventional memory and standard logic wafer processes."

Even though these issues will be addressed and resolved in the future, density limitations within a system-level design will remain a major restriction.

"Embedded DRAM will never be used to implement main memory, on a personal computer, for example, in a single-chip design solution," said Worchel. "It may be used to implement a version of on-board cache memory in a limited number of designs, somewhat similar to the inclusion of on-board static RAM."

In-Stat/MDR has also found that:

-- In the embedded DRAM market, as is the case in other markets
employing customer-specific, high complexity designs, high-end
communications applications, in both the wired and wireless
segments, will dominate product consumption, accounting for
nearly three out of every four product dollars consumed, over
the forecast period.

-- On the geographic side, it will be The Americas, followed by
Europe, which will control future product consumption. The
Americas will average about a 50% consumption market share,
with Europe accounting for nearly a 40% consumption market
share, throughout the forecast period.

-- Unlike the standard DRAM market, which is dominated by the
stacked or planar capacitor architecture, the embedded DRAM
will be dominated by the trench capacitor architecture, a
consequence of its smaller footprint, a key to high-complexity
designs.

May 8 - SMC Introduces 802.11a Desktop PCI Aadapter. Increasing the efficiency, productivity and mobility of users of business and home networks, SMC Networks, a leading provider of wired and wireless networking solutions today announced the launch of its EZ Connect™ 802.11a Wireless PCI Adapter.

The PCI adapter (SMC2702W) expands SMC's current 802.11a-compliant solutions by bringing high-performance 802.11a connectivity to desktop computer systems. SMC's 802.11a-compliant wireless networking solutions offer transmission speeds of up to 54Mbps in standard mode and 72Mbps in "Turbo Mode." By utilizing the 5GHz frequency range with 8 non-overlapping channels, the EZ Connect 802.11a wireless products offer seamless coexistence with Bluetooth , microwave, cordless phones and currently installed 802.11b wireless solutions.

"The industry has been demanding a PCI adapter to bring 802.11a connectivity to desktop systems since we began shipping our 802.11a wireless networking equipment last December," explained Betty Chan, product manager of Wireless Networking Solutions at SMC. "Until now, the high-speed data transfer rates provided by 802.11a technology has been accessible only to PCMCIA-enabled computers. Our new PCI adapter completes the 802.11a wireless network enabling all computers in the home or office to enjoy the benefits of networking at speeds of up to 72Mbps."

In addition to the ease of implementation provided by the EZ Connect's Plug-and-Play configuration and Windows-based management interface, the SMC2702W provides enhanced security features including 64-bit, 128-bit and 152-bit WEP encryption.
The EZ Connect 802.11a Wireless PCI Adapter (SMC2702W) instantly connects the client computer to the wired network backbone at data transfer speeds of up to 72Mbps with automatic fallback to 6, 9, 12, 18, 24, 36, 48, 54, and 72Mbps.

Backed by a limited lifetime warranty and 24/7 technical support, SMC's EZ Connect 802.11a Wireless PCI Adapter will be available in Q3 via retailers, direct marketers, e-commerce sites, through the solution provider channel, and to strategic accounts around the world. The estimated street price for the SMC2702W is $179.99.

More information about SMC Networks is available at www.smc.com.

 

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