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Weekly Happenings about & affecting the Computer World

 

New Zealand Unveils
Y2K Cockroach

WELLINGTON, New Zealand - Regarded worldwide as a dirty pest, the cockroach has become the official "millennium bug" for New Zealand, which will be among the first nations to experience the real effects of Y2K. "Ken" the cockroach was unveiled Wednesday as the spearhead for a government-funded campaign to infest New Zealand households with a "be prepared" message.

The Y2K, or millennium, bug refers to fears that older computer programs that count years by the last two digits may mistake 2000 for 1900, wreaking havoc on everything from airlines to bank teller machines that run on computers. While governments and corporations across the world have spent billions of dollars trying to avoid problems, no one really knows what will happen.

New Zealand is just 185 miles west of the International Dateline at its closest point. It will be among the first nations to greet the first day of the year 2000 and may give hours' warning to other parts of the world as to what the real effects of Y2K will be.

Ken will feature in television ads and other promotional material in a $1.3 million campaign run by the Y2K Readiness Commission. A cockroach was chosen as mascot because the bugs were "the ultimate survivors," chairman Basil Logan said.

"Love them or hate them, I think he (Ken the cockroach) will be noticed and memorable," Logan said. Publicity material announcing the campaign boasts the adaptability of the insect, which can live without water for two weeks, without food for a week, and may be the only thing left alive if a nuclear disaster occurs.

As well as living at both the North and South Poles and even as low as 2,200 feet underground, one of "Ken's" relatives was found on the Apollo 11 command shuttle, suggesting it had survived a space flight. Cockroaches have existed for 340 million years - 150 million years longer than dinosaurs - and come in some 5,000 species.

The commission's serious message is that New Zealanders should prepare for three days of possible millennium bug disruption any time between Dec. 31, 1999, and March 31, 2000. Logan said households should prepare emergency supply kits that include fresh water, food, flashlights and a battery-powered radio.

"Ken" the cockroach was unveiled Wednesday as the spearhead for a government-funded campaign to infest New Zealand households with a "be prepared" message. The Y2K, or millennium, bug refers to fears that older computer programs that count years by the last two digits may mistake 2000 for 1900, wreaking havoc on everything from airlines to bank teller machines that run on computers.

While governments and corporations across the world have spent billions of dollars trying to avoid problems, no one really knows what will happen. New Zealand is just 185 miles west of the International Dateline at its closest point. It will be among the first nations to greet the first day of the year 2000 and may give hours' warning to other parts of the world as to what the real effects of Y2K will be.

Ken will feature in television ads and other promotional material in a $1.3 million campaign run by the Y2K Readiness Commission. A cockroach was chosen as mascot because the bugs were "the ultimate survivors," chairman Basil Logan said.

"Love them or hate them, I think he (Ken the cockroach) will be noticed and memorable," Logan said. Publicity material announcing the campaign boasts the adaptability of the insect, which can live without water for two weeks, without food for a week, and may be the only thing left alive if a nuclear disaster occurs.

As well as living at both the North and South Poles and even as low as 2,200 feet underground, one of "Ken's" relatives was found on the Apollo 11 command shuttle, suggesting it had survived a space flight. Cockroaches have existed for 340 million years - 150 million years longer than dinosaurs - and come in some 5,000 species.

The commission's serious message is that New Zealanders should prepare for three days of possible millennium bug disruption any time between Dec. 31, 1999, and March 31, 2000. Logan said households should prepare emergency supply kits that include fresh water, food, flashlights and a battery-powered radio.

BAD DRIVING GETS WORSE IN ISRAEL

JERUSALEM (AP) - Bad driving and cellular phones - so prevalent in Israeli life they're part of the national stereotype. But both at the same time? A man was pulled over yesterday after a policewoman nabbed him driving through the coastal town of Netanya with a mobile phone in each hand. Engrossed in his conversation, he was operating the steering wheel with his elbows, the daily Haaretz reported Tuesday. The volunteer policewoman flagged him down when she saw his gray Mitsubishi meandering from side to side. In Israel it is illegal to hold even one cell phone while driving. Violators are usually given a stiff fine and sent on their way. In the Netanya case, the policewoman sent the talkative driver to traffic court.

ANALYSTS SAY FAA COMPUTERS Y2K READY

WASHINGTON (AP) - The nation's air traffic control system has been deemed free of the Year 2000 computer bug, the Transportation Department announced Wednesday. System repairs completed by June 30 have been examined and approved by Science Applications International Corp., an independent contractor, and the department inspector general, an in-house watchdog. The certification was something of a turnaround for the FAA and a bright spot for the Transportation Department, both of which have endured harsh criticism by Congress and outside groups for a lack of preparation. The agency conducted a live test of its repairs in Denver in April. It plans to continue testing its systems and contingency plans for the rest of the year.

FTC SUES FREE WEB SITE DESIGNERS

WASHINGTON (AP) - Web site companies, working with telemarketers, have bilked thousands of small businesses of millions dollars by billing for unauthorized services, according to a lawsuit filed by the Federal Trade Commission. Recent cases prompted a congressional inquiry. The suit, filed in U.S. District Court in St. Paul, Minn., charges WebValley Inc. and its affiliates with cramming unauthorized charges onto phone bills for Web pages that consumers did not expressly order. The case comes as WebValley is seeking approval to sell $34.5 million worth of stock in an initial public offering. The FTC filed its complaint under seal last week and announced the case Wednesday.

AOL'S PROFITS NEARLY TRIPLE

DULLES, Va. (AP) - America Online Inc. reported Wednesday its quarterly profits nearly tripled, edging Wall Street expectations on stronger revenues from subscribers and advertising. The company's profit, excluding one-time charges, came to $156 million, or 13 cents a share in AOL's fiscal fourth quarter, which ended June 30. That was up from AOL's profit of $58 million, or 5 cents per share, in the same period a year ago. Analysts surveyed by First Call Corp. had predicted per-share earnings of 11 cents for the quarter. AOL's results were released at the close of trading Wednesday, when its stock rose $1.87 a share to $115.06 on the New York Stock Exchange.

AMAZON.COM POSTS STEEP LOSSES

SEATTLE (AP) - Amazon.com's losses widened in the second quarter as the giant Internet retailer increased its spending to expand its online offerings and develop new businesses for its site. While Amazon.com reported a steep loss in the quarter, its sales grew by 171% from a year ago and the company's customer base rose by 2.3 million to 10.7 million, three times larger than what it was in June 1998. Besides its earnings report, Amazon.com also announced Wednesday that its board of directors had approved a 2-for-1 stock split. Seattle-based Amazon.com lost $138 million, or 86 cents a share, in the quarter ended June 30, compared with a loss of $22.6 million or 15 cents a share, a year ago.

APPLE LAUNCHES IBOOK PORTABLE

NEW YORK (Reuters) - Apple Computer Inc. on Wednesday introduced its much-anticipated iBook portable computer aimed at consumer and educational customers, with prices starting at $1,599, filling a gap in its product line. The new iBook portable is a six-pound computer which plays off the success of Apple's hit iMac desktop machines introduced a year ago. In a bid to capitalize on the latest technology innovations, Apple's new portable computer provides untethered Internet access for home and schools via AirPort, its specially designed wireless link to local computer networks.

FCC WILL INTERVENE IN CABLE
ACCESS BATTLE

WASHINGTON (WSJ) - The Federal Communications Commission's chairman, William Kennard, said the FCC will intervene in a court case over whether local regulators can require cable-television companies to open their new high-speed wires to rival Internet service providers. Kennard said Tuesday that he decided to file a brief in the case to ensure a national no-regulation policy for the Internet, rather than let local governments impose rules. Last month, a federal court in Oregon ruled that the city of Portland has the authority to require AT&T Corp. to provide open access of its cable lines to competitors. AT&T has appealed the ruling, which is now before a federal appeals court. Kennard plans to file a friend-of-the-court brief, in hopes it will serve as a guide for the appeals court's decision.

SUN/NETSCAPE ALLIANCE
HAS 300 CUSTOMERS

SAN FRANCISCO (Reuters) - The alliance between Sun Microsystems Inc. and America Online Inc.'s Netscape will announce Wednesday that it now has 300 customers and is on track to become a $1 billion Internet software company over the next three years. The companies also plan to announce some deals with major systems integrators, such as Price Waterhouse Coopers, for training in Sun/Netscape products. They also will brand their products under the umbrella iPlanet - the name of one of Sun's software products for accessing desktop applications while on the road.

COMPAQ OFFERS $299 WEB PC

HOUSTON (Reuters) - Compaq Computer Corp. said Wednesday it was offering a price cut and product and Internet service rebates for its Presario personal computer customers. The company said that starting Sunday, customers can purchase a three-piece Presario Internet PC bundle of printer, monitor and personal computer for $299, after rebates. Presario Internet PCs start at $499, including features and free Internet access. Compaq, the No. 2 personal computer maker, launched price reductions of up to 20% on its latest Presario desktop models. Compaq also said it would participate in the "iSAVE" Internet Savings Rebate Promotion with America Online Inc. unit CompuServe.

CLINTON SIGNS Y2K LAWSUIT BILL

WASHINGTON (AP) - President Clinton signed into law Tuesday a bill designed to limit lawsuits related to the Y2K computer problem and save American businesses billions of dollars in legal costs. In a statement accompanying the signing, Clinton expressed reservations about the act and noted that his administration fought for several changes. "I hope that we find that the Y2K Act succeeds in helping to screen out frivolous claims without blocking or unduly burdening legitimate suits," Clinton said. The bill passed overwhelmingly in the House and Senate as one of U.S. business leaders' top legislative priorities this year. Under the law, a business will have 90 days after its officers learn of a computer-related Year 2000 problem to repair the problem before lawsuits can be filed.

SPECIAL LOANS APPROVED FOR Y2K

WASHINGTON (AP) - The Federal Reserve Board has approved a plan to make special loans to banks, thrifts and credit unions that might need emergency money because of consumers' fears about the Year 2000 date change. The central bank's governors voted Tuesday, 5-0, to offer the special loans to financial institutions from Oct. 1 through next April 7. In response to comments it recently received from the public on a proposal, the Fed decided to move up the program's starting date from Nov. 1 as first proposed to Oct. 1. Of the 93 comments received since late May, all but three favored the loan program, the Fed noted in a statement.

PRICELINE.COM APPROACH DIFFERENT

STAMFORD, Conn. (AP) - As one of more than 100 Internet travel sites offering bargain-basement airfares, priceline.com is not unusual. But its name-your-price approach is different, or at least used to be, before it started spawning imitators. Priceline, which uses William Shatner of "Star Trek" fame as its pitchman, allows travelers to name their price and then looks for an airline to match it. But the site does not always find matches, and when it does, there are restrictions. Jay Walker openly admits his company isn't for everyone. It's not for most business travelers, who have little flexibility with their schedule. But Walker says if you're a leisure traveler looking for a cheap fare at the last minute, priceline may be able to help you.

NASHVILLE APPROVES DEAL WITH DELL

NASHVILLE, Tenn. (AP) - City officials approved a $46 million incentive package Tuesday for Dell Computer Corp. to build a plant employing at least 3,000 people. Dell, based in Round Rock, Texas, announced plans in May to build the personal computer assembly plant here. It would be the first U.S. plant outside Texas for Dell, the world's No. 3 computer manufacturer. Mayor Phil Bredesen has said the Dell complex, which could grow to employ 8,000, will be a $97 million economic boon to the city over the next 40 years. Incentives include $8 million in sewer, road and other infrastructure improvements, a 40-year property tax break for 490 acres of land, the gift of 150 acres that housed an old state mental institution, and an annual city payment of $500 per Dell employee to the city's Industrial Development Board.

TEXAS INSTRUMENTS SALES, EARNINGS UP

DALLAS (AP) - Texas Instruments Inc. posted better-than-expected profits for the second quarter on an 8% rise in revenue, as gains in semiconductor chips more than offset the loss of sales from the memory-chip business it sold last year. The Dallas-based company said Tuesday it earned $372 million, or 92 cents a share, in the three months ended June 30, excluding one-time charges. That was up from a profit of $142 million, or 35 cents a share, also without special charges. The quarterly profit beat the 86-cents-a-share forecast by analysts surveyed by First Call. Still, the company's shares were down amid a broader retreat on Wall Street.

MICROSOFT SELLS PART OF SIDEWALK

NEW YORK (AP) - Microsoft Corp., moving to refocus on more promising Internet businesses, agreed Monday to sell at least 9% of its Sidewalk online entertainment guide to rival TicketMaster-CitySearch Inc. in a deal worth about $291 million. The agreement moves Microsoft away from a Web service that had initially raised concerns among newspapers it could create a potent rival to their business, stealing advertising and classifieds. Though Microsoft spent heavily to promote and expand Sidewalk into 77 cities, offering guides to nearby restaurants, local events and other regional information, the costs outpaced revenues.

BROADCOM CORP. ACQUIRES HOTHAUS

IRVINE, Calif. (AP) - Broadcom Corp. has acquired HotHaus Technologies Inc. in a $280 million stock deal to push telephone service over data networks, such as the Internet and cable-television systems. HotHaus, based in Vancouver, British Columbia, specializes in voice over Internet protocol (VoIP) software, which enables the Internet to be used for telephone calls. For users who have free or fixed-price Internet access, VoIP essentially provides free telephone calls to anywhere in the world.

AOL OFFERS SOME BRITS FREE INTERNET

LONDON (AP) - America Online will begin offering some of its British customers free service, it announced Monday, a move widely seen as an effort to match rivals already offering free Internet access. AOL Europe is aiming its free service, Netscape Online, at budget-minded users who already have a good working knowledge of the Internet. The company plans to launch the plan Aug. 19. "It's a new segment, a new slice of the Internet pie" in Britain, said Andreas Schmidt, president of AOL Europe, a joint venture between America Online and German media group Bertelsmann AG. Schmidt denied AOL's move was a response to the surge in business for its rival Freeserve, the biggest Internet service provider in Britain.

FCC RELEASES STUDY ON INTERNET

WASHINGTON (AP) - The Internet has flourished in part because of the Federal Communications Commission's hands-off approach to regulating it, says a study released Monday by the commission staff. The working paper examines the commission's policies over 30 years and credits several of the commission's policies in helping foster the growth of the medium. It also recommends that the FCC follow a similar path in the future, considering only the minimum necessary regulatory action to address anticompetitive behavior.

DELL OPENS NEW AUCTION WEB SITE

ROUND ROCK, Texas (AP) - Dell Computer Corp. has opened a new Internet site to allow consumer to bid for used Dell systems and sell their computers regardless of brand. Consumers also can buy a variety of computer-related products at market prices at www.dellauction.com, the company said Monday. The Dell computers available include refurbished systems from Dell's Factory Outlet, used computers returned to Dell's leasing company and individual PCs of all brands that visitors to the site offer for sale themselves. "Auctions are just one more way Dell is becoming a single-stop source for computer buyers," said Richard Owen, vice president for Dell Online. Dell is the nation's largest direct seller of computers, selling a majority of its computers to businesses, governments and other public institutions.

FCC STUDY SAYS NET PROSPERS
WITHOUT REGULATION

WASHINGTON (AP) - The Federal Communications Commission should maintain its hands-off policies to help foster growth of the Internet, intervening with only minimal regulatory action to address anti-competitive behavior, says an FCC staff study released Monday. The internal study comes as the commission has stood aside in one of the most contentious debates about the future of how the Internet will reach consumers: whether cable businesses offering high-speed Internet service must share their lines with competitors. The FCC has declined to force such line sharing. The paper credits commission policies over the past 30 years that have opened up parts of the telecommunications market as laying the groundwork for Internet use to flourish.

ETRADE LOSES $21 MLN

MENLO PARK, Calif. (AP) - Leading online broker ETrade Group Inc. lost $21.2 million during its third quarter as it invested heavily in new technology, but its results were better than Wall Street expected. ETrade reported Monday its loss for the quarter ended June 30 translated to 9 cents a share and compared with net income of $5.1 million, or 3 cents, a share in third-quarter 1998. The results do not include costs for the $1.6 billion purchase of online banker Telebanc Financial Corp. and other one-time items. When those items are included, ETrade's quarterly loss came to $24.2 million, or 10 cents a share. Analysts surveyed by First Call had projected losses of 12 cents a share.

INTEL CHIEF SEES 1 BLN INTERNET USERS

NEW ORLEANS (AP) - The chief executive of computer chip maker Intel Corp. predicted Monday that the number of Internet users will increase six-fold to 1 billion within five years, but Craig Barrett said the most important part of that growth will be business-to-business transactions. "Business-to-consumer gets all the press because people like to read about it. Business-to-business is really the backbone of the U.S. and the world economy and that's where probably 80% of this business is coming from," Barrett said. Barrett, Intel's top manager, was in New Orleans to address the Computer Associates World convention, where he discussed the future of Internet commerce.

Apple to invest $100 mln in Samsung

SEOUL, South Korea (AP) - Apple Computer Inc. will invest $100 million in Samsung Electronics Co. in a deal aimed at securing an adequate supply of advanced flat-panel screens for its iBook and other laptop computers, a Samsung statement said Thursday. The contract calls for Apple to buy $100 million worth of Samsung Electronics' convertible bonds that have a maturity of three years. The bonds can be converted to common shares or deposit receipts beginning in 2001. Samsung Electronics, the flagship company of South Korean conglomerate Samsung, said it would use the money to expand its facility to produce larger thin-film transistor liquid crystal displays or TFT-LCDs.

Compaq to cut up to 8,000 jobs

HOUSTON (AP) - Compaq Computer Corp. plans to slash up to 8,000 jobs or 12% of its work force, as it struggles to cut costs amid a $184 million loss in the second quarter brought on by computer price wars and slowing sales. The cuts unveiled Wednesday are the first major move by president and CEO Michael D. Capellas, promoted to the post just last week to turn around the No. 1 PC maker's flagging business. The workforce reduction, ranging from 6,000 to 8,000 jobs, comes on top of 17,000 jobs that Compaq already is axing after Compaq acquired Digital Equipment last year.

Fed software would protect systems

WASHINGTON (AP) - The Clinton administration plans to create a government-wide security network to protect the nation's important computer systems from hackers, thieves, terrorists and hostile countries. Civil liberties groups complain the security tools would make possible unprecedented electronic monitoring, especially because of the widespread use of computers by the government in almost every aspect of its citizens' daily lives. The 148-page proposal describes building an elaborate network of electronic obstacles, monitors and analyzers to watch for potentially suspicious activity on federal computer systems.

WSJ: Microsoft's Maritz takes low pressure post

NEW YORK (Reuters) - Microsoft Corp executive Paul Maritz, once considered a contender to succeed Chairman Bill Gates and President Steve Ballmer, is giving up most of his operational responsibilities at the firm and may retire as early as next year, the Wall Street Journal said. The newspaper said Maritz, who has been group vice president of Microsoft's developer group, will join a "technical leadership team" to advise Gates. Of the nine executives who served on Microsoft's executive committee within the past two years, four - including Maritz - are on long-term leaves of absence or have sharply reduced their responsibilities, the paper noted. Maritz joined the company in 1986 and played a major role in supervising the development of Windows 95 and Windows NT operating systems.

AOL says Foote Cone to survey
online users

DALLAS (Reuters) - Internet service provider America Online Inc. said Wednesday it had entered an agreement with Foote, Cone & Belding which will allow the ad agency to survey America Online's 17 million customers. The company said that Foote, Cone & Belding, a unit of True North Communications Inc. and one of the world's biggest ad agencies, would use Internet surveys by America Online's Texas-based Digital Marketing Services Inc. Foote, Cone & Belding is the first advertising agency to enter into such a partnership, the statement said. Financial terms were not disclosed.

Yahoo, Telebanc in online deal

ARLINGTON, Va. (Reuters) - Online portal Yahoo! Inc. said Wednesday that customers could get access to Telebank accounts under an agreement with the Internet bank. The company said in a statement that the accord gives users of the Yahoo! Finance and My Yahoo! services access to their Telebank account information. Users of Yahoo! Finance and My Yahoo! will have the opportunity to open a new Telebank account. Further details were not immediately available.

Online companies join
parental Web plan

WASHINGTON (AP) - Some of the Internet's most popular sites are putting aside their rivalry for a project to help parents keep their children safe while surfing the Web. America Online, Lycos Inc., The Walt Disney Co., Microsoft Corp., Yahoo! and others launched a Web site Thursday that includes details about more than 80 commercial software programs parents can use to block Web sites inappropriate for children. It also offers collections of recommended sites safe for children of different ages. Companies in the campaign, which claim almost 95% of Internet traffic flow through their sites, will offer prominent connections to the site - www.getnetwise.org - or will present the information themselves. See

Apple, AOL plan messaging products

NEW YORK (AP) - The public tiff over instant messaging on the Internet escalated Thursday, with combatants America Online Inc. and Microsoft Corp. showing few signs of backing down. America Online, the nation's largest Internet service, enlisted Apple Computer Inc., maker of the popular iMac desktop, to help add more users to AOL's Instant Messenger service, the hottest trend since e-mail exploded on the scene in the early 1990s. The two companies agreed Thursday to work together to let Macintosh users more easily zap messages to the 40 million users of AOL's service. While AOL already makes its instant messaging service for Apple's computers, the agreement refers to future products such as pre-loaded AOL software on Mac machines. That would free Mac users from downloading software off the Internet. See

Gov't. Y2K expert predicts failures

WASHINGTON (AP) - Computer failures related to the Year 2000 technology problem could extend well beyond New Year's Day, President Clinton's top Y2K expert said Thursday. Although John Koskinen predicted a national "sigh of relief" in the early hours of Jan. 1, he also anticipates scattered electronic failures over the first days, weeks and even months of the new year. Koskinen, chairman of the President's Council on Year 2000 Conversion, said some failures may not become obvious until the end of January, the first time after the date rollover that consumers review their monthly bank statements, credit-card bills and other financial paperwork. See

Experts warn of new Y2K threat

WASHINGTON (AP) - Some programmers hired to fix Year 2000 problems may be quietly installing malicious software codes to sabotage companies or gain access to sensitive information after the new year, two top government computer security experts warned Thursday. Michael Vatis, director of the FBI's National Infrastructure Protection Center, said experts hired by U.S. companies to fix their computers can secretly install "trap doors" - ways to let them gain access later - or add malicious codes, such as a logic bomb or time-delayed virus that could disrupt systems. "Many of these (rogue programmers) have no security clearance, do not work for the government, and yet they have access to critical systems that if sabotaged could wreak havoc to our financial institutions and our economy," said Sen. Christopher Dodd, D-Conn.

FTC wants online pharmacies watched

WASHINGTON (AP) - The Federal Trade Commission wants Congress to make Internet pharmacies disclose information about the businesses selling the drugs and the doctors prescribing them online. As consumers increasingly enjoy the cost-savings and convenience of buying medicine over the Internet, authorities have been frustrated in their attempts to enforce laws because many Web sites do contain adequate identifying information, according to the FTC. The FTC says the sites should contain the name, address and phone number of the pharmacy that will dispense the drugs and where that pharmacy is licensed to do business. Similar information also should be provided about physicians who prescribe drugs over the Internet, as well as the states where that physician is licensed or authorized to practice medicine. See

Anti-cybersquatting bill clears

WASHINGTON (AP) - The Senate Judiciary Committee approved legislation Thursday aimed at limiting so-called cybersquatting by people who register Internet domain names with the purpose of selling them later. Some people have found a lucrative practice in registering Web addresses using the trademarks of famous companies in hopes of later forcing the companies to pay sizable amounts of money to buy the rights to the Internet locations. The legislation to limit the practice was sponsored by a bipartisan group including Judiciary Committee Chairman Orrin Hatch, R-Utah.

ICQ, NET2PHONE TO OFFER
ONLINE PHONE SERVICE

DULLES, Va. (Reuters) - America Online Inc.'s fast-growing ICQ chat service said its 38 million users will be able to make phone calls to each other over their personal computers through a four-year deal with Web telephone provider Net2phone. Software allowing voice communications over the Internet has been available for years, but ICQ said its deal provides the first opportunity to integrate and standardize a single service compatible across tens of millions of users. Initial service between two users talking through microphones connected to their personal computers will be free.

ONLINE HOUSEHOLDS WATCH LESS TV

DULLES, Va. (Reuters) - It may come as little surprise to those who spend hours surfing the Net instead of watching "the tube," but people in households that are online watch less television than those in offline households, according to a study released Monday. The study, done by Nielsen Media Research for America Online Inc., found that households with Internet access watch on average 13% less TV than those households that are not online. That works out to an estimated 32 fewer hours of TV viewing monthly per household. The data also indicated that TV consumption in households new to the Internet is also lower.

MICROSOFT, E-STAMP IN ONLINE
POSTAGE DEAL

LOS ANGELES (Reuters) - Microsoft Corp. took aim at the nascent Internet postage market Monday, saying it has designated E-Stamp Corp. as the postage-at-home application of its Office Update Web site. Privately held E-Stamp, in which Microsoft owns a minority share, makes one of two applications in the final stages of testing by the U.S. Postal Service. The other is offered by Stamps.Com. The Office Update site includes software downloads for applications endorsed by Microsoft, but not included in the Windows software packages, and also updates of other programs.

UNIVERSAL PLANS DIGITAL
MUSIC DISTRIBUTION

LOS ANGELES (Reuters) - Universal Music Group announced plans on Monday to make its recordings available for digital downloading by the next generation of portable playback devices. Universal said it is developing software to make a broad array of its catalog compatible with a new version of the pocket-sized Rio player from Diamond Multimedia System Inc. and similar devices from Panasonic and Toshiba, all expected on the market this winter. The new devices are to incorporate a new industry standard - dubbed the Secure Digital Music Initiative, or SDMI - for screening out pirated versions of copyright-protected music.

DIGITAL COAST THRIVES IN
HOLLYWOOD'S GLOW

LOS ANGELES (Reuters) - First it was oranges, then airplanes. Now it's the Internet that is turning the greater Los Angeles area into a new boomtown. The region once known for sprawling swaths of fruit trees and mammoth aerospace and defense companies is increasingly the choice for entrepreneurs looking for fertile ground in which to plant seeds for the Next Big Thing.

ISP AT&T WORLDNET BREAKS DOWN

NEW YORK (AP) - AT&T WorldNet, a big Internet service provider, experienced problems Monday that affected customers in four Eastern states. While the company was upgrading software, problems occurred with some computer routers which handle Internet traffic, causing difficulties that lasted three hours, said AT&T spokesman Mark Siegel. The problems were fixed by 1:30 p.m. EDT. Customers in Virginia, Maryland, New York and New Jersey experienced sporadic difficulties, including busy signals or slow service, Siegel said. He said he didn't know how many of AT&T WorldNet's 1.6 million users were affected.

MICROSOFT PROFITS UP 62%

SEATTLE (AP) - Microsoft Corp., buoyed by healthy sales of the latest upgrade to its Office suite of business software, reported Monday that its fourth-quarter profits rose 62% from a year ago. But the company's chief financial officer warned that rate of growth would be difficult to sustain in the coming year as personal computer sales slow, Year 2000 computer problems linger and Microsoft makes hefty investments in new arenas. Microsoft, which dominates the personal computer software industry, had net income of $2.2 billion or 40 cents a diluted share, compared with profits of $1.36 billion or 25 cents a diluted share a year earlier. Revenue for the quarter ended June 30 was $5.76 billion, up 39% from $4.15 billion last year.

DETECTIVES LOSE BUSINESS TO INTERNET

SAN FRANCISCO (AP) - If Sam Spade or Mike Hammer were around today, they'd probably be plumbers, thanks to a boom in Internet snooping, which lets savvy computer users do their own detective work instead of hiring a gumshoe to do it for them. Some private detectives - there are about 8,700 in California - say their business has been stunted by the ability of people to use the Internet to gather information they used to hire a private eye to collect. San Francisco's best-known private detective, Hal Lipset, whose agency has been peeking into the private lives of people for more than 50 years, has seen business plummet by 40%, according to his operating manager, Kyle Rimdahl.

MYSTERIOUS VIRUS HITS RUSSIA

MOSCOW (AP) - A mysterious viral infection that has killed six people in the Rostov region in southern Russia is most likely a form of hemorrhagic fever, a top health official said Sunday. Dr. Gennady Onishenko, Russia's senior public health official, told Echo Moscow radio that the sixth victim died Saturday night. The unknown viral infection is most likely the Congo-Crimean hemorrhagic fever, Onishenko said, according to the ITAR-Tass news agency. He said the disease belongs to a type of low-contagious infection and that only 81 people out of the 11,000 people living in the village where the outbreak was reported have caught it. Of the victims, 50 were preparing to leave the hospital, Onishenko said.

MICROSOFT WINS CONN. ANTITRUST CASE

BRIDGEPORT, Conn. (AP) - The founders of tiny Bristol Technology Inc. knew they had their work cut out for them when they took on Microsoft Corp. in an antitrust lawsuit. But this time around, David didn't get the best of Goliath. The Danbury, Conn.-based company, with just 70 employees and $8.7 million in revenues last year, sued Microsoft in August, claiming the industry leader was trying to crush competition by preventing access to its source code - the software blueprints - for Windows NT. Bristol spent more than $1 million to prepare its case for trial. After a federal jury in Bridgeport rejected Bristol's antitrust claims Friday, the company's lawyers were crestfallen.

MICROSOFT'S VALUE TOPS $500 BILLION

SEATTLE (AP) - Investors continued their love affair with Microsoft Corp., making the software giant the first company to be worth more than half a trillion dollars as its stock price surged on a positive jury verdict and a rumor. Microsoft's stock was up $5.06 to close at $99.43 a share Friday in trading on the Nasdaq Stock Market. With more than 5.1 billion shares outstanding, Microsoft was worth about $507 billion. The No. 2 company, General Electric, was worth about $384 billion. At current stock prices, company chairman Bill Gates would be worth more than $100 billion, based on the more than 1 billion Microsoft shares he was listed as owning in a Feb. 11 proxy statement.

NEW APPLE LAPTOP HAS FANS IN FRENZY

NEW YORK (AP) - Apple Computer Inc. has yet to reveal its mysterious new laptop computer, let alone start to sell it. But judging from the anticipation in the Mac community, Apple's latest surprise promises to be another sales splash - extending the company's comeback and shaking up portable design just as its iMac personal computer prompted the industry to rethink the clunky beige desktop. There are obstacles to another Apple best seller, including potential production problems and a worldwide shortage of flat-panel screens, which could drive up Apple's costs. But industry buzz over the laptop's expected design, price and performance is accelerating ahead of a speech Wednesday by Apple co-founder and acting chief executive Steve Jobs, at the MacWorld trade show in New York.

MINI CIRCUITS MAY SPEED COMPUTERS

SAN FRANCISCO (AP) - Researchers have created computer circuitry in a single molecule - a breakthrough that could open a brave new world of tiny computers billions of times more powerful than current PCs and sensors that could be injected into the bloodstream to diagnose disease. "What we are proposing is essentially building a computer in a test tube," said Phil Kuekes, a computer architect for Hewlett-Packard in Palo Alto. "Eventually computers are going to be so small you won't be aware of them. The computer won't just be in your wristwatch - it will be in the fibers of your clothes." Researchers at Hewlett-Packard and the University of California at Los Angeles reported early success in combining computer technology with chemistry.

WEB SITE NAMES COULD GET NAUGHTY

WASHINGTON (AP) - Some of the newest addresses on the Internet may soon be along the lines of wash-your-mouth-out-dot-com. Because of recent changes to the way addresses are assigned, people have been permitted to register dozens of Web sites this week with names previously deemed too objectionable by the government's exclusive contractor. The contractor, Network Solutions Inc., decided it will no longer accept responsibility for rejecting vulgar names from the world's master list of Internet addresses ending in "com," "net" and "org," which the company controls from its offices near Washington. The company is under orders from the White House to begin letting consumers sign up for Web addresses with other companies, too, but will require its competitors to develop their own vulgarity filters.

EX-NETSCAPE, MICROSOFT EXECS
MAKE DEAL

NEW YORK (AP) - Microsoft and Netscape may be two of the Internet's fiercest rivals, but you wouldn't know it by the way some former top executives are joining forces. James Barksdale, chief executive of Netscape before it was bought by America Online Inc. in March, and Brad Silverberg, who formerly led Microsoft Corp.'s Internet strategy, are financing a new startup in Silicon Valley, Tellme Networks Inc. Barksdale and Silverberg, along with most of Tellme's roughly 20 employees, many formerly from Microsoft and Netscape, are contributing a total of $6 million as seed money. Despite being called Tellme, the company is vague about what it wants to sell, beyond saying it plans a service that will change the way consumers use the traditional home telephone.

LYCOS FORMS VENTURE CAPITAL FUND

WALTHAM, Mass. (Reuters) - Online network Lycos Inc. said Tuesday it formed a $70 million venture capital fund, Lycos Ventures, L.P., with partners that include Microsoft Corp. co-founder Paul Allen's Vulcan Ventures. The company said in a statement that Lycos would put $10 million into the pool and operate it as a general partner along with Triangle Capital Corp. of Pittsburgh. Lycos's other partners in the fund include Vulcan Ventures, Bear Stearns Cos. Inc. as well as Japan's Sumitomo Corp. and Mirae Corp. of Korea.

 

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