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<div class="left_inner_box_heading"><h1>[MD1] Apple on state of Newton</h1></div>
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<p>Dear Newton Developers and Customers,</p>
<p>Regrettably, there has been a great deal of misinformation in the<br />
newspapers of late regarding our Newton program. An uninformed outsider's<br />
view of the situation coupled with relentless doom-n-gloom reports in the<br />
popular media could lead one to believe Apple was in the process of<br />
"shutting-down" the Newton division. This is not the case.</p>
<p>I want to take this opportunity to provide you with an update on our continued<br />
commitment to our products and to you, our developers and customers. We<br />
are committed to complete marketing and sales efforts to launch our two<br />
exciting products this quarter. Both of these products are in manufacturing<br />
ramp and are on target to ship later this quarter. And we continue to<br />
develop future products.</p>
<p>On the marketing front, to support the shipment of the MP2000 and the eMate<br />
300 we are participating in a number of events over the next couple of<br />
months including the following:</p>
<p> * Demo '97 (Feb 10-12)<br />
* HIMMS - Healthcare show (Feb 17-20)<br />
* MacWorld Tokyo (Feb 19-21)<br />
* FETC - Education Show (Feb 27- Mar 1)<br />
* CEBIT - one of the biggest shows in Europe,<br />
held in Hanover, Germany (March 16-23)</p>
<p>In addition to these events, eMate 300 ads are beginning to appear in education<br />
focused publications such as Education Week, Electronic Learning and<br />
Technology & Learning. We will be advertising the Message Pad 2000 between<br />
April and June in both Windows and Mac publications, as well as general<br />
business dailies. Other marketing activities for the eMate 300 and<br />
MessagePad 2000 include conducting direct mail campaigns to the school<br />
superintendents in March and the MessagePad installed base in April,<br />
revamping our website to include more customer focused information on our<br />
platform, new products, success stories from customers using our<br />
technologies, etc., and utilizing our PR engine to regain momentum amongst<br />
key industry press and analysts.</p>
<p>On the engineering and development front, we are continuing the internal<br />
efforts on our product roadmap for future Newton-based products. There<br />
are currently projects underway at all phases of the development cycle -<br />
from early concept to full development These projects build upon the<br />
strength of the MessagePad 2000 and eMate 300 and focus on future customer<br />
needs and expectations in mobile computing.</p>
<p>In light of the recent reorganization of Apple Computer, the Newton Systems<br />
Group remains intact under the direction of Jim Groff and myself. The<br />
Newton Systems Group continues to be focused exclusively on this<br />
marketplace and expect to be the leader in the category. The feedback that<br />
we have received from analysts and others who have received "pre-release"<br />
units has been extremely positive. The comparisons to WinCE devices has<br />
been very favorable and we are anticipating exceptional response when we<br />
begin shipping these two products later this quarter. Advance orders on<br />
these products is running above expectations.</p>
<p>The Newton platform is alive and well, and I hope we can count on your<br />
continued support.</p>
<p>Thank you for your support and commitment to the Newton platform, together<br />
we will succeed.</p>
<p>Sandy Benett<br />
Vice President, Newton Systems Group</p>
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