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==                        CEI Conference on GEnie                        ==

On Thursday, December 22nd, The *StarShip* on GEnie was pleased to have
Alex Amor, of CEI, as our guest.  He brought the latest developments and
news after making their bid for the Commodore assets last week.

Please feel free to give this important transcript widest possible
distribution in the Amiga Community.  There were more than 150 people here
in attendance, and not all questions were answered.  Please watch for a
supplemental document to be released after the holidays with other
questions and answers in it from the folks who did not get a chance to ask
at this conference.

<deb> Welcome and we're very glad you are here, Alex.  I think you've got
           some opening remarks?
<CEI-ALEX> Thanks deb...
           To update all of you the following events occured within the last 7
           days.  CEI submitted an offer accompanied with a cash deposit to
           the liquidator for the assets of Commodore.  It is my understanding
           that at least another party also submitted an offer due to the
           non-standard bid form these offers were presented to the creditors
           to be analysed. We have been asked to submit additional
           documentation. But, my understanding is that the bid is currently
           the highest bid for the assets.  I expect the creditors to
           determine the leading bid within the next seven days and set a date
           for the auction no matter were we end up we are planning on
           submitting a bid at the auction if we are not succesful in this
           round.  The signs are good since our deposit check was cashed by
           the creditors. Now we'll see the next steps. That concludes the
           update.  Any questions?

<Zibri> Hi, Alex, this question was already asked before, but i wish to know
           what are the "close future" plans of CEI for Amiga and what will be
           the logo instead of the usual C= ??  if they changed or something i

<CEI-ALEX> Plans for the new Amiga Corporation would be to have a world-wide
           logo contest.  We are hoping to move the Amiga forward
           technological and do something that C= failed to do (MARKETING).
           There is room at the top to move the Amiga forward (68060, RISC,
           better graphics, CD-ROM drive, etc.) he operating system needs to
           improve as the sophistication improves.

<Robert in Fargo> My fear is that the new Amigas will not be priced
           competitively.  One can buy 486 PC's and '030 and '040 Macs with
           CD's for about $1600.  Will Amiga prices compete?

<CEI-ALEX> Yes, I fully understand where the current market is at.  We will
           always be slightly more expensive simply due to the lower volumes.
           But, I visit the major computer stores and see what Apples and PCs
           are selling for. There has never been a reason for the extreme high
           prices other than greed on C='s part.

<Mike Simmons> Is Amiga the only platform for all formats,with Congress's
           step and the White House to make Gov smater,faster and more
           efficient can Amiga go the distances with the Mac's and IBM's when
           Amiga gets back up and running?

           The Amiga will never be the standard when it comes to computers You
           kitchen does not have only one appliance...a toaster, microwave,
           etc. The Amiga's benefits are clear.  We need to emphasize the
           strong points and attempt to move the technology forward and closer
           to the main stream.

<Jason-AR> How about the chips, chipsets, designs, etc. that Commodore has in
           closets that wouldn't be a priority to the new Amiga company?  How
           seriously would you pursue licensing or selling off those

<CEI-ALEX> C= had a number of projects on the drawing board, unfortunately
           many of these projects were in early stages.  Our first goal is to
           produce the existing machines which there is a huge demand for,
           next the diferent technologies need to be analysed and a direction
           determined.  Is the future AAA or 3D RISC or matbe even something
           else?  As far as licensing the technology the answer is YES.. Some
           of our partners want to utilize the technologies in other
           applications and we have agreed.

<Jason-AR> What I was really driving at was the past technology-things that
           were never even Amigas-i.e. licensing/selling off the 64
           technology.  GA

<CEI-ALEX> I dont believe there is a lot of demand for the C64 technologies.
           If someone is willing to pay us for it the FAB!:)

<DanWied> Does CEI have the source codes for Amix? And if so, how can the
           development of Amix be continued when AT&T sold the source code to
           Novell which now sells it as UnixWare?

<CEI-ALEX> No, remember CEI does not own any of the intellectual property
           at this time.  Part of the acquisition will be Amix.  .... We
           believe that it is very important for the future of the Amiga to
           have multiple OSs.

<Rob Boyce> SMG has not shipped anything for a month (they said their
           computer was down). When do you expect that spare parts will become
           available for our amigas? e.g. rev11 buster, motherboards, etc. and
           what about warrenty for buyers >april 93? GA

<CEI-ALEX> Obviously, I cannot speak for SMG. We are attempting to repair
           as much product possible.  Our repair staff has been doubled in the
           past few weeks.  Our contract manufacturer is aware of the need for
           spare parts and that need is being addressed.

<Gary> Will those of us awaiting new A4000 motherboards under warranty
           replacement get motherboards with the 3.1 ROMs?

<CEI-ALEX> All new Amigas will ship with 3.1.  We will implement a special
           price policy for C='s warranty repair customers.

<Lewis> I read in Amiga World a couple months ago that CEI was working on
           something secret that tey would produce as soon as they got the
           rights to Amiga. Is this true and if so, what isi it?

<CEI-ALEX> We promised a surprise when we complete the acquisition of C=.
           Time will tell.!

<James Santiago> You have talked about licensing technology. Any plans for
           the other way around as in an existing 060 board or maybe Sound
           Blaster type

<CEI-ALEX> The Amiga technology can be the cornerstone of new derivative
           products.  There is no reason why we shouldn't attempt the "Trojan
           Horse" syndrome i.e. An Amiga inside a PC.

<Zibri> On IRC conference you said that C= forgot the "low-price/good product
           credo" in the last years (expecially about A4000 and A3000)...what
           are YOU gonna do ? and what did you mean with "slightly more
           expensive simply due to the lower volumes"? it sounds like a
           "PILATO's HAND WASH" and will newer amiga have CROSS-MAC, EMPLANT
           or PC-TASK-like applications in it's newer Operating System ?

<CEI-ALEX> Be REALISTIC, PC makers produce millions of PC in a typical year.
           The Amiga has traditionally sold hundreds of thousands of units in
           a year Their cost on chips, hard drives, etc is less.

<Zibri> yeah, but how much expensive? i am afraid of another A4000 syndrome...

<CEI-ALEX> At the same time there was no reason an Amiga 4000 should cost
           $2500.  Commodore was greedy.  The intelligent customer is willing
           to pay a few bucks more but not be racked over the coals.  If you
           think that you'll purchase an Amiga 4000T for for less than a 486Sx
           then I think you are going to be dissappointed.
<CEI-ALEX> PS Multiple OS are important, yes Cross-Mac, yes Cross-Dos....

<Zibri> that's fine... but i think that commodore sold more a1200 witho
           powerfull board instead of a4000.

<CEI-ALEX> The market for the A1200 is completely different than the 4000
           market.  Most 1200s are sold in Europe.  The consumer wants
           performance, connectivity with a television and the lowest price
           (sounds a lot like the old 64)....

<Zibri> and A4000 doesn't even have a composite line out...lots of users use
           amigas for home videos and titling and i think they can't be forced
           to by VIDEO boards or other stuff.

<CEI-ALEX> There is no reason we can't capitalize on this formula.
           Yes, all Amigas should have audio in/out, video in/out.

<Sean> a couple of related questions: How has the liquidation delay affected
           your profit projections, in light of having missed the Christmas
           season, and how do you plan to fund a significant marketing
           campaign against the poor public perception of the Amiga?  Will you
           be aiming marketing to first time buyers or previous owners?

<CEI-ALEX> Our projections never included Christmas.  At the same time we
           believed that we would have control of the assets in Aug.  This has
           affected the timeframe and the profit projections We have a large
           task ahead of us.  First filling demand and trying to keep the
           existing user base in check.  Then comes the real tough job which
           is attractive the new buyer.  Enough funds have been set aside to
           accomplish this.  Our marketing funds exceed C='s marketing funds
           for the last 2 years of operations.

<Gary Wolfe> Alex, I think Amiga fans everywhere are ecstatic!   What are your
           plans for the mass market?  Myhope is for A1200's to sell ike
           C-64's.  A cash cow is needed to continue all levels of
           development, I'd think.  (1200's sell here [in Jax,FL]! Also, don't
           forget the user groups!  Cheap form of advertisement...

<CEI-ALEX> The best form of advertisement is our existing user base.  We
           have close to four million salespeople out there.  It's going to be
           tough to get wide market appeal but, we hvae to start somewhere.
           Since being involved with the Amiga we have always supported the
           local user groups and hope to expand that world-wide once we are

<kevin s. frost> how long will it take for a next generation amiga to see
           the light of day, and do your plans for advertising include TV
           spots in the US?

<CEI-ALEX> Development will resume immediately.  Typically it takes 9 months
           for new models, 18 months for new technology.

<Robert in Fargo> Currently one can buy an '030 Mac with 4 meg + 160 HD,
           CD-rom, monitor, and software for $1299 in Fargo.  Will you be able
           to make and sell a 1200 package with HD and AGA-compatable monitor
           for $800 or so to compete?  GA

<CEI-ALEX> It's tough to discuss exact pricing until everything is
           operational.  The short answer is yes the A1200/CD/Monitor for
           under a $1000 is possible.

<deb> Alex, Kevin asked before and you must have overlooked it, about TV
           spots for the US?

<CEI-ALEX> No, the intial budget does not call for US TV spots.  That would
           have to come at a later time as distribution is improved in the US.
           In Europe the need for TV is more important.

<Evil Genius> Some folks say that the C= buyer will simply produce enough
           machines to fill demand, and then halt production. What assurances
           do you offer about this speculation? Being orphaned once is enough
           for me. Make me feel safe.

<CEI-ALEX> We've looked at that possibility and must admit it makes
           financial sense.  But, the difference is that I believe in the
           technology, I have been involved with C= for 16 years.  In other
           words my heart, not only my wallet is in this venture.

<Mike Simmons> Alex, What attempts will be made to get some of the past
           software developers and distributors that have dropped the Amiga
           line re-interested in the Amiga here in the U.S.?

<CEI-ALEX> That looks like a two part'r.
           First, if the Amiga is going to suceed we need all the developers
           back. we can accomplish this by bundling products, co-marketing
           programs, financial incentives, and hanving a true partnership.
           Distribution is important also.  Many times the consumer wanted to
           purchase products and no dealers were available.  We have hired a
           consulting firm to locate and create a nation-wide dealer network
           in North America.  Many of the old dealers are willing to come

<Scott Sawyer, Egad Intl.>  #1 Which markets will get Amigas first, U.S. or
           European? (I'm a CEI dealer, I need Amigas... :-) #2  And, when
           will the COD thing with CEI dealers end? GA

<CEI-ALEX> Plans call for both markets to get computers at the same time.
           Once we announce our manufacturing partner it will become evident
           of how this is possible.  Unfortunately, due to the unstable market
           with C= filing for liquidation, a few bad apples spoiled it for the
           good dealers.  As soon as the new corporation is operational,
           dealer terms and conditions will be provided to existing
           dealers.(Based on merit ;) )

<Jack> In previous conferences you said, that AAA Amigas will NOT be
           produced, instead R&D will focus on RISC Amigas. Is this still
           true?  If so, I'm wondering, isn't it easier to produce AAA
           machines which are 95% done (according to Dave Haynie), instead of
           making whole new Amigas, with OS that has to be basically
           re-written for RISC machines?

<CEI-ALEX> Jack, its hard to make firm decision without owning any of the
           assets.  I will have to take a look at the work in progress before
           firm decisions are made.  Do you realize that the AAA has been
           around since before 1992? What I'm saying is lets take a look and
           determine if its still viable today.

<Kelvin> What is your opinion of the new Amiga clone announced by
           MacroSystems Germany?  Will you support this type of clone machines
           and willing to license the OS for it's use?

<CEI-ALEX> An Amiga clone is not an Amiga clone unless it can run ALL the
           software and hardware.  Macrosystems has a great idea a a lot of
           work ahead.  With the proper terms I see no reason why the OS can't
           be licensed to them.

<CEI-ALEX> PS Macrosystems is a great developer and supporter of the Amiga.

<Jason-AR> Clarification: The DraCo is like an Amiga, minus the custom
           chipset, plus a Retina for display hardware.  The full announcement
           is available in AR 2.34.

<daryl> What requirements will you but on new and current Dealers
           and how will the buying effect your other services

<CEI-ALEX> This is not the forum to discuss dealer specifics.  Existing
           dealers that are proven are not a problem.  Coverage in new areas
           are deemed.. priority.

<floater> Assuming the situation resolves in a few weeks, when do you expect
           to have product available? And I think you should work to have a
           competent NYC dealer - which there hasn't been for YEARS!

<CEI-ALEX> Input taken on NYC. Amigas can be available in 60 to 90
           days after court approval.

<Doug Cotton @ CMD> Following up on Jason's question on the older
           (64/128) technology: Someone is indeed interested. Who should they
           contact at CEI to discuss that further?

<CEI-ALEX> If you are interested in purchasing the 64 technology call
           Dave Defelici at (305)266-2800 ext 108.  Tell me its true PLEASE;)

<Doug Cotton @ CMD> It is.

<Demetri [Speed Demon]> What are the chances of getting back the old Amiga
           crew, like Dave H, Mike S, Brian.Darren, etc, since  with no more
           people left at C= (USA), how do you plan to enhance the Amiga with
           new features? Seems without the people who knew about the OS, the
           hardware, its like starting over from scratch with a new crew.  And
           how about the floor scrubber, will it get upgraded?? :)

<CEI-ALEX> Jason is in charge of the floor scrubber....we have been in
           contact with engineers who have left C= in the past 4 years.  As a
           general rule (no specifics) most of them are committed to the Amiga
           and are willing to return if the conditions are right (free Pizzas
           every night) ;).  At he same time I believe that bringing in some
           new blood might ad new.. perspective to our technology.

<Jason-AR> As for the floorscrubber, we are already planning to make sure
           that the new flooscrubber technology is backwards-compatible with
           all Amigas, and are working on a PCMCIA battery recharge interface.

<Alan> Alex, what would CEI's plans be for the CD-32?  Would you market it
           aggressively against the Sega and Nintendo in the U.S.?

<CEI-ALEX> Reality sets in.  There is a market for the CD32 and we will
           support it aggressively.  But there is no feasible way of competing
           head to head agaisnt Nintedo and Sega.  Their ad budgets are beyond
           belief.  Let's concentrate on our strenghts and lets dominate those

<Rob Boyce> what was the status of the stuff in the warehouse in the
           Phillipeens any thing of value? i have started to collect amigas
           and am curious ;) CD32 will sell themselves once they become wide

<CEI-ALEX> The inventory in the Far East is in shambles.  It will take many
           months to sort out all the parts.  There really is nothing a real
           value there.

<Sam Ormes> New company name ?   Headquarters location ?  Will Miami store
            remain ? Manufacturing locations ? GA

<CEI-ALEX> The working name is Amiga Technologies International but, that
           is subject to change as things get closer.  Based on the majority
           of engineers residing. in the Philadelphia area we are looking for
           facilities there.

<ERIC MORRITT> Given all the information about the intent to continue
           manufacturing the AMIGA, dou you think it would be wise to base a
           computer graphics business on the AMIGA technology?

<CEI-ALEX> If I had to answer your question today I'd say NO.  We need to
           move the Amiga forward and have it gain wide acceptance in a number
           of new fields.  Six months from now the answer should and will be

<Shane @ DUP> How will CEI support small programming companies like Dark
           Unicorn Productions (developers kits, etc)?  Also, is there any
           truth to the rumor that MicroSoft is backing CEI? :( (Recommend
           MUTT from Litil Divil as CD32 character! :)

<CEI-ALEX> The Amiga developer has been traditionally been a small home based
           creator. Its important to remember this when setting prices on
           development tools and providing the information for reasonable

<CEI-ALEX> Excuse me, that was Bill on the phone ;)

<CEI-ALEX> I'm sorry but do to the nature of the beast I am not able to
           disclose who our partners are.

<Bill> and MacTV as seen on Mind Extension University's channel? If you're
           not aggressive, nobody new will buy. GA
<Bill> Sorry
<Bill> Will you be agressive with your marketing like Apple is?

<CEI-ALEX> YES. Special pricing for schools, developers, print ads, direct
           mail, etc. We realize that we must be aggressive.

<Odie> Will initial releases of the 1200 see 3.1 or any other changes?
           How about future 1200's - 030? Akkiko? HD Floppys? CDROM? etc. GA

<CEI-ALEX> Yes 3.1 on the initial 1200s.  The 1200s have a lot of room for
           growth Built in CD, faster processors, more space for HDs, on board
           memory expansion and much more.

<deb> [Gang, Alex is getting tired.  No more /raises, or he'll be here _all_

<DavidM> Will there be any upgrade deals for current A4000 owners, ie like the
           old trade up deals of yore, or possibly upgrade kits like a real
           tower case kit with lots of slots and a larger power supply?

<CEI-ALEX> One of the few things which C= got right most of the time was
           their upgrade policies.  By utilizing standard form factor on
           boards this becomes.. easier.

<Peter> Will you be the CEO of this new Amiga company? Do you plan to intro a
           better OS (with RTG, networking, etc ...) before the next
           generation of hardware? This does not include 3.2.

<CEI-ALEX> Titles are not important.  Yes, RTG is something the Amiga needs
           sooner than later.  I see the ability to release yearly updates to
           the operating system and price them reasonably. Instead of
           releasing a new OS and charging an arm and a leg.

<CEI-ALEX> Improvements which I would like to see include RTG, networking
           support, a more professional look, faster, etc.

<Mark> Have you had any recent contacts with the C= UK management team, and
           if so what was the substance of those contacts? Competition at the
           bidding stage is understandable, but when all is said and done, the
           UK had the most successful and complete advertising machine, and
           the UK market earned much of the bread and butter which went to
           feed the production of the `high-end' AMIGAs so beloved in the US.

<CEI-ALEX> Mark, we have made a number of overtures to the UK management
           team, unfortunately the decisions are not up to them. The opposing
           group is composed of a red chinese investor and an Australian
           financier.  Yes, we are willing to work with them when all is done
           and said.

<Keti> How much of the new tecnolgy will be made of off-the -shelf technology?

<CEI-ALEX> With RTG in place the ability to utilize off the shelve technology
           becomes more attractive.

<Don> will we see beefer machines not 25 mhz stuff more like 40+ mhz...
           it has to be cheaper for you to do it than for me to spend $1300
           after I buy my new 4000T


<Bill Hinkle> Have you had discussions with any major retailers to sell
           hardware and/or software?

<CEI-ALEX> Yes, in the past few months we have had plenty of opportunity to
           speak with major retailers.  All of them expressed reservations
           about C= but, are willing to work with a new entity if the
           conditions are right.

<deb> OK, folks, It is nearly midnight for Alex and he's tired.  And I"m still
           looking at a queue of over 2 dozen people with questions. If you
           will leave me your question in email, either "Mail to sysops" at
           menu or to me directly, I'll fax them to him and he'll get answers
           back to you.  Fair deal?

<deb> [Now that nobody else can talk, how can they argue?]

<deb> Thank you Alex, we have been keeping our fingers crossed.

<deb> We will continue to keep our eyes peeled for news.

<Jason-AR> (Or, they can always e-mail me and I will just call CEI and harass
           the receptionists until someone owns up to actually being in the
           building.) :)

<Jason-AR> Thank you, Alex, for once again violating your bedtime to have this
           conversation with us.

<CEI-ALEX> Thank you for the opportunity and support...

<CEI-ALEX> In the past week we have received hundreds of notes, calls and
           letters of support and ideas.  THANK YOU ALL!

<deb> A big round of applause!