Rim Semiconductor Company (fka RSMI)

[pengy]

Below you will find the text to more Recently Asked Questions to NVEI by NVEI Shareholders. Yet again there is some valuable information here with information about the Technology, Development Process, and more about NVEI.
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QUESTION:
1. Is it a reasonable conclusion that at this time New Visual is developing its technology to demonstrate the fastest possible speed over the longest distance possible?

2. Assuming that the answer to no.1 is yes, it would seem to me that upon proving and making public those numbers that that alone would be information enough to bring in many investor dollars to help speed things along. Does this make sense?

ANSWER:

Yes, New Visual's semiconductors are being designed to transport data as fast as possible over distances that are as far as possible. The tests in our labs and at Maine Telephone satisfy us that we are on schedule to meet our goals for a high-performance semiconductor.

People continue to invest in future technologies, especially those that reduce costs at telephone carriers. We remain optimistic that we will secure the funding that is necessary to deliver on the promise.

QUESTION:

People are confused in some area's. It was thought by most that when the prototype was shown at shareholder meeting it was going to be used in the upcoming field tests that you did. Yet as the PR stated it wasn't. Correct?

ANSWER:

We have had many questions on this general topic. In the semiconductor industry, terms are not always used the same way by everyone. There are four steps involved in creating a semiconductor:

Item Status
1. Develop the technology and simulate it in the lab: Complete
2. Create a PC-based system which you take in the field and test on real lines: Nearing Completion
3. Create a hardware prototype using FPGA: Scheduled this year
4. Manufacture in the form of a finished chip (which may require additional engineering): Scheduled 2003



The first three items are on schedule to be complete in 2002. The following comments relate to these first two development stages.

Develop the technology and simulate it in the lab.
We have developed models of the telephone copper wire for three separate parameters, and have developed algorithms for processing the signal in three separate areas. These six processing blocks have been put together into a "First Order Simulation". This simulation was loaded onto a laptop computer and brought to Maine Telephone, along with a waveform generator. When the waveform generator generated a data stream, we read it and interpreted the results. These results were in line with our expectations, and contained clues as to how we could improve our models and algorithms. We have used these clues to improve our models and algorithms, and are right now in the process of finishing the "Second Order Simulation". When this simulation is complete, we will conduct tests on the outside plant of a real world telephone company, measure the results, and then further refine our models and algorithms.

Create a PC-based system which you take in the field and test on real lines
When we are satisfied that our models and algorithms are the best that they can be, we will convert them to the Field Programmable Gate Array (FPGA) stage. There will actually be six FPGAs, and they will physically reside on a printed circuit board. Our target customers will be able to take two of these FPGA boards, string telephone cable between them, put high-speed data into one board, and measure how quickly the data comes out of the other board.

We are planning to ship the FPGA boards to our target customers this year. The terms "board" and "card" are synonymous. When we refer to the "FPGA", or "FPGA stage", we are referring to the entire FPGA card.

The FPGA card that we showed at the shareholder's meeting was a working example of the actual FPGA board that we will ship to our customers, although the FPGA's that were on the board were not yet loaded with our models and algorithms.

Now, this entire discussion relates to just a few features - but definitely the core features - of our technology. Our target customers will define non-core features for us, and we will be happy to include them in our FPGAs, reference designs, and subsequent ASIC products. Further refinement will come at every step along the way.


QUESTION:

Please let me know to what extent the following relayed information relates to your testing that Newvisual had done in the time period referred to; "Bell Labs announces results of inquiry into research misconduct Independent committee concludes that one scientist published falsified and fabricated data"; I'll be looking for your answer, thank you.

ANSWER:

The area in which the researcher worked was superconductivity, which has no relation to New Visual's technology. (For more information, please visit http://www.lucent.com/press/0902/020925.bla.html.)

Further, New Visual has had no dealing with Bell Labs. Our previously announced lab evaluation was with Lucent Technologies. Bell Labs is a wholly-owned subsidiary of Lucent Technologies.

QUESTION:

On August 27, Fairpoint communications announced that they are selling a thing that speeds up the internet. Maine Telephone is a Fairpoint company. Why didn't they use New Visual's chip instead?

ANSWER:

Fairpoint is deploying a device that uses a variety of modifications to Windows, web servers, and other devices to compress and cache Internet data. The manufacturer claims to boost the speed at which an end user who is surfing the Internet will perceive that his page has loaded completely.

The technology that New Visual is developing is not related to this technology in any way. We reside at the physical layer, while this technology resides at the application layer. They are optimizing a 56kbps data line, while we are boosting that line to multi-megabit levels. These are not equivalent ways to solve the problem. New Visual's technology will operate several hundred times faster.

A word picture might help illustrate the difference. Think of NV as the train, and follow along:

Say that you are a shoe manufacturer (a very successful one!), and that you need to get millions of shoe boxes into and out of your plant every second. You use a train that's loaded with containers which have lots of shoe boxes. But your problem is that you aren't getting your shoe boxes in and out fast enough. Instead of millions of boxes per second, you were "maxing out" at 56,000 per second.

Looking into the problem, you notice that the train is not packed very well at all. Some containers are fortunately full of shoe boxes, while some have boxes thrown in haphazardly, while others still are empty altogether. Looking into the problem further, you realize that the train is very slow, and that to get all of the boxes you need, several slow trips were required.

You've got a couple of ways to solve the problem. You make sure that the containers are packed in just the perfect way, so that every shoe box that could possibly fit gets in. And yes, packing the boxes better pays off. But that doesn't solve all of your problem.

So you turn to the slow engine. You decide to change the engine on the train, and are amazed at the result. The new engine is so much faster that millions and millions of boxes come in and out every second. When you combine it with your new packing scheme, you easily exceed your goal. Problem solved!

Well, the caching and compressing technology is like packing the boxes into the container more efficiently. When bits go into a frame more efficiently, the end user gets better performance. But our chip is the train, and it holds the promise of the real breakthrough: raw speed.

QUESTION:

I am a shareholder of NVEI and have been for approximately 2 years. As you know, we are currently undergoing a major downturn in share price, down to its current $0.41 as of this writing. In an effort to determine a possible cause for this rather sudden drop , I am writing to you to advise me whether:

1) there has been any corporate source for this, either in the way of as yet unannounced news - such as failure to line up the funding alluded to by Mr. Cooper in a recent letter to the share price, a failure to obtain distribution for the film, patent problems, etc.

2) Has there been, to your knowledge any large sales from within the corporation, or are all shares of the 144 type? Are the shares you use in payment to vendors or outside consultants 144 or freely negotiable? If the latter, have any been recently distributed (past couple of months)?

3) Specifically, are you aware of ANY other potential cause for the share price drop?

ANSWER:

New Visual, like all publicly traded companies, is regulated by the Securities and Exchange Commission (SEC). The SEC requires that all material information be disclosed promptly and completely to all shareholders at the same time. What is "material information"? If it would be important to a reasonable investor in making a decision to buy or sell NVC stock, it's "material". New Visual is in full compliance with these SEC guidelines, and will in the future remain in full compliance. When there is news that is material, we will disclose it in our SEC filings and through other means, such as press releases, the President's Letters, and this Recently Asked Questions page.

As to sales of common stock, New Visual is also required to report how many shares it has sold, and how much cash we have in this way raised, each quarter in our Form 10-Q or Form 10-K. This disclosure can usually be found under the headings "Recent Sales of Unregistered Securities" in our SEC filings, and "SIGNIFICANT COMMON STOCK ISSUANCES DURING THE [number] MONTHS ENDED [date]" in our financial statements.

No Executive Officer or Director of New Visual has sold NVC stock in the last twelve months. If they had, you would be able to learn the date, amount, and price by reading their Form 4 filings. As an example, our Chairman recently purchased 50,000 shares, and the filing is found on the SEC website.

As to "Rule 144" transactions, a complete discussion is found in our SEC filings.

As to the drop in share price, New Visual is trading on the OTC Bulletin Board and is a development stage company. Some volatility is to be expected, and the markets are down significantly. We are confident that our plans will build value in the company, and that all shareholders will profit as a result.

QUESTION:

Just for my curiosity, and not trying to be nosey, but, Do you and Mr. Cooper receive weekly or monthly payroll or is your pay going to come later with the share price???

I do not know what your personal financial positions are, but, if your case is the later....maybe if you shared this with shareholders they would have a lot more confidence in the management and potential of NVI. Especially in light of all the other CEO's,CFO, CPA's that have total ruined the reputation of corporate management because of their financial misleading...ie. Enron, Qwest, Arthur Anderson, etc...etc..

ANSWER:

New Visual's executives receive compensation in the form of salary, benefits, bonuses and stock options. The level of this compensation, and the mix among the four forms, are approved by the Board of Directors and are fully disclosed to all shareholders via our filings with the Securities and Exchange Commission.

Salaries are paid on the first and the fifteenth day of each month. While New Visual is in the period where we are conserving cash, we are not paying Ray Willenberg, Jr., Tom Cooper, Brad Ketch or Rich Wilson. These salary expenses are being accrued as payable expenses, and will be paid when this period where we are conserving cash is over. We hope to end this period soon by raising additional cash through the sale of securities and by recognizing revenues through the sale or license of the film, "Step Into Liquid".

As an additional note, the Board of Directors believes that executive compensation is competitive with the rest of the semiconductor industry, for a company of similar size and stage of development. All four executives are heavily incentivized through the issuance of stock options, thus their interests are aligned with the interests of the common stockholders of New Visual.
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New Visual Technology Information
*updated 7/24/02
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New Visual Technology is developing semiconductor technology that allows


data to be transmitted at greater speeds over longer distances using
regular copper telephone wire. This technology dramatically increases
the capacity of the existing telephone network, allowing
telecommunications carriers around the globe to provide enhanced voice,
data, and video services over today's copper infrastructure. With this
strategy, carriers can reduce or eliminate the need to install fiber
optic technology, reduce operating costs, and increase revenue per line.




New Visual will market its products to leading global telecom equipment
makers and service providers, helping them fill the gap between T1 and
fiber for both business and consumer users.

The great, unfinished task of the telecom industry is to fill the "last
mile" gap that prevents businesses and consumers from enjoying the
benefit of the global, high-speed data backbone. The gap occurs where
the low-speed capacity of local loop telephone networks meets the demand


for high-speed services. Ninety-three percent of business buildings, for


example, are unable to get high-speed data services because the
facilities that underlay them are copper wires.
Filling the "last mile" gap with fiber is prohibitively expensive, so
New Visual has developed a new silicon-based strategy, best described as


"Fiber Avoidance" - if a wireline carrier can avoid deploying fiber
optics in delivering fiber-like services, that carrier can increase its
return on assets in a dramatic way. The value proposition of New Visual
can best be summarized as a solution that allows service providers to
send digital information farther and faster, utilizing a low-cost
implementation/deployment strategy that leverages the existing copper
infrastructure.

New Visual's products are optimally positioned to address critical gaps
in the access portion of the network at attractive prices for telecom
companies anxious to save money and increase profits. By utilizing the
existing copper wire infrastructure, New Visual enables telecom
companies to sell high-margin services and deliver bandwidth-hungry
multimedia applications, such as video, voice, and data, which otherwise


would be unavailable without extraordinary capital outlays.

New Visual is developing layer-one, IC-based solutions that address the
specific needs of both business class and residential markets. These
large initial markets include (1) the small- to mid-sized enterprise
(SME) market, (2) the MTU/MDU multi-tenant services market, and (3) the
Remote Terminal/Feeder market.

New Visual's "Fiber Avoidance" Strategy

Wireline carriers around the world are experiencing high demand for
data-intensive transmission services from enterprises. These services
such as T1, Frame Relay, ATM Managed Services, Gigabit Ethernet, and
other private line services, are delivered across T1, E1, T1 IMA, N X
T1, DS3, E3 and other transmission protocols. While T1 and E1 can be
used to reach the buildings that are off the fiber ring, these protocols


are limited by copper pair's low speed, high costs, maintenance costs,
and poor utilization.

Much has been made in recent years about the benefits of trenching fiber


to every building, but the reality is that it is financially feasible
for only the largest buildings. Telcos find that it is extremely
expensive and impractical to replace the existing copper wire
infrastructure with fiber optic technology to 90% of the offices. New
fiber costs $500-$1000 per foot to install, and municipalities have
begun prohibiting new trenching, making it impossible to start new
upgrade projects. Other solutions to enable broadband communications,
such as wireless, satellite, and cable modem network technologies, often


suffer from poor performance, high deployment costs, and lack of mass
marketability. Most importantly, these technologies fail to allow the
telcos to leverage their existing investment in the copper plant.

New Visual's integrated IC's increase the capacity and range of
high-speed services on the existing copper network, enabling telephone
network operators to increase their offering of services and reduce the
cost of network upgrades. Worldwide, this network contains over 950
million copper lines, and currently delivers most of the world's
telephone traffic and broadband access. Service providers can leverage
this huge existing infrastructure, avoiding the high costs and slow
deployments associated with replacing the local loop with fiber.

Source: http://www.newvisual.com
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NVEI RESEARCH LINKS
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NVEI Research Links
updated 9/10/02

* denotes new links since last update

OUTSTANDING SHARES: 48,119,069 ( 9/04/02 )
ESTIMATED SHARES IN PUBLIC FLOAT: 23.4 million ( 6/25/02 )

CONTACT INFORMATION:

New Visual Corporation
5920 Friars Road, Suite 104
San Diego, CA 92108
phone: [phone]
fax: [phone]
Company Website: http://www.newvisual.com
John Howell

Public Relations Firm

Quint PR
495 Seaport Ct.
Redwood City, CA 94063
phone: [phone]
fax: [phone]
Matthew Quint

Subscribe to the NVEI Newsletter by the Shareholder for the Shareholder:


http://www.topica.com/lists/NVEInewsletter

RECENT DEVELOPMENTS

* New Visual Corporation Files for Patent Protection of Core Technology

New Visual Corporation (OTC Bulletin Board: NVEI), an emerging provider
of semiconductors to the high-speed data networking industry, today
announced the completion of the first of a series of field tests with a
telephone company.

NVEI President's Letter for 3rd Quarter:
http://newvisual.com/letters/3rd_quarter_letter.cfm

New Visual Corporation Appoints Ken MacLeod To Advisory Board


FACTS AND OPINIONS ABOUT THE RECENT SERIES OF SHAREHOLDERS MEETINGS NVEI

HAS BEEN CONDUCTING IN VARIOUS CITIES

Transcript of Cooper's and Ketch's presenations at the recent annual
Shareholder's Meeting in San Diego:
http://ragingbull.lycos.com/mboard/boards.cgi?board=NVEI&read=86133


PRESS RELEASES:
http://www.newvisual.com/press/

NVEI's SEC FILINGS:
http://www.freeedgar.com


LINK FOR MORE RESEARCH AND EXPLANATION OF COMPUTER MODELING AND
SIMULATION TECHNIQUES

http://www.investorshub.com/boards/read_msg.asp?message_id=262395

ARTICLES AND OPINIONS ABOUT NVEI

White paper entitled " Enter the Broadband Era. " ( this is a GREAT
article to read to fully understand the possible implications of the New


Wheel Technology )
http://www.instat.com/catalog/downloads/broadbandera_return8yt.htm


BIOGRAPHIES OF BOARD OF DIRECTORS AND ADVISORY BOARD MEMBERS

http://www.newvisual.com/investors/

Link to Zaiq Technologies. The privately held Company that is working on

the ASIC design for NVEI:
http://www.zaiqtech.com/

Link to Adaptive Networks. The privately held company that Dr. Propps
owns. http://www.adaptivenetworks.com/

Link to Virata. Dr. Greaves from Cambridge was one of the original
founders of this company. http://www.virata.com/

Cambridge University Biography of Dr. David Greaves
http://ragingbull.lycos.com/mboard/boards.cgi?board=NVEI&read=70385

PATENT LINKS

General information about filing international patents:
http://www.ragingbull.altavista.com/mboard/boards.cgi?board=NVEI&read=33061



More specific information on patents:
http://www.patents.com/patents.htm
http://www.uspto.gov/patft/index.html

A post that describes the U.S. patent filing process:
http://ragingbull.lycos.com/mboard/boards.cgi?board=NVEI&read=41240

GENERAL STOCK RESEARCH LINKS

Reference Desk: http://www.refdesk.com/

MISC LINKS

An email reply from John Howell that helps explain some aspects of the "


poison pill " provision.
http://ragingbull.lycos.com/mboard/boards.cgi?board=NVEI&read=63006

Explanation of what BER ( Bit Error Rates ) are and how they are
measured.
http://ragingbull.lycos.com/mboard/boards.cgi?board=NVEI&read=52978

Good article describing and identifying all market makers:
http://www.ragingbull.altavista.com/mboard/boards.cgi?board=NVEI&read=33108



Glossary of Broadband Terminology:
http://www.ragingbull.altavista.com/mboard/boards.cgi?board=NVEI&read=26426



NVEI's Movie Link:
http://www.stepintoliquid.com
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