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dcs31

03/09/03 8:47 PM

#10135 RE: austin01 #10125

1/1/03

Now that we have delivered our Embarq prototype to the companies evaluating it can you tell us when the results of their tests will be released? Who will make this announcement; them or us?



As target customers receive and evaluate our prototype, we will work to further refine the technology so that our high-volume ASIC meets the customers' needs for speed and quality, and ours for profitability. This process takes as few as four months and as many as eight months time. During this period, we are discussing the technology, the business relationship, demand forecasts, the needs of the telcos and the end users, and commercial terms like pricing and guarantees for our first series of products.

It is not customary in the telecommunications industry to publicly announce which telcos or equipment manufacturers are customers. For example, GlobespanVirata releases no information about its customers, other than those disclosures required by the SEC, namely information concerning customers that contribute more than 10% of GlobespanVirata's revenues. Though we would certainly like to answer questions concerning our potential customers, we would typically be barred from doing so by the terms of Non-Disclosure Agreements, unless mutually agreed to by both parties. It is likely that investors will need to rely upon the Company's public filings and statements to the press as to our progress in developing and delivering Embarq™ until material commercial transactions occur. We are, of course, required to disclose our material contracts in our periodic reports filed with the SEC.