FLASHBACK AUDIO(TM) TECHNOLOGY

FlashBack Audio(TM) is a new technology developed by the Company for proposed implementation into various product concepts. It provides the means for high-bandwidth, near CD-quality, stereo audio playback from a CompactFlash(R) (CF(R)) cartridge, other removable flash memory or embedded flash memory in a portable electronic unit. Record, edit and playback functions are encoded in the unit and a PC interface links the portable unit to the computer. The FlashBack Audio(TM) technology is based on the MicroOS(TM) operating system for Flash memory.

FlashBack Audio's features include instant access to recorded material, computer/internet compatible files, a computer standard interface and adaptability to various industry standard removable flash memory. The advantages of the FlashBack Audio stereo technology over portable CD players include its small size, low power consumption, use of recordable media, inexpensive computer interface/compatibility and no moving parts operation. In addition to being a stand-alone, ultra compact, portable stereo, FlashBack Audio units can be integrated into a variety of products, such as laptop or hand-held PC's, pagers, cellular phones, and other portable devices under OEM agreements with manufacturers.

The higher sampling rate and frequency range of the FlashBack Audio(TM) technology is also designed for advanced voice-to-text applications in portable recording and playback. The Company is developing and exploring a number of product concepts to exploit the advantages offered by this technology. However, there is no assurance this technology can be successfully exploited by the Company.

In March 1998, the Company announced that it had produced a reference design and prototype for an adjustable bandwidth digital recording device incorporating the MicroOS(TM) flash management system based on the FlashBack Audio(TM) technology. The prototype employs variable bandwidth allowing voice-to-text demonstrations as well as music download, compression and playback. Just as MicroOS(TM) is functional with various Flash memories, the Company's strategy is to interface with the variety of compression schemes currently being promoted by major corporations including Lucent, AT&T, Dolby and others.

The MicroOS(TM) software was developed specifically for embedded systems, with features designed to maximize performance and minimize system requirements. The Company's design caters to ultra-miniature applications by reducing the need for a high power CPU by paring down code to fit and run efficiently on low-cost micro controllers while preserving memory for other functions. The software stores and manipulates compressed voice, image or video as well as conventional files. It supports NAND or NOR Flash memory, CompactFlash, Intel Miniature Card and IDE hard disks. Memory management transparently deals with bad blocks, erase blocks, wear leveling, and is independent of data and erase block sizes. The MicroOS(TM) is highly fault tolerant and recovers well from "high fatigue" applications. These sophisticated features offer high Mean Time Between Failure (MTBF) and long useful life of Flash memory employed in applications.

Unlike less robust systems, MicroOS(TM) can support an unlimited number of files, directories, and subdirectories and is fully MS-DOS compatible. The system is written in the programming language "C" to facilitate porting to other environments, and a redirector is available for MS-DOS(TM) applications. The MicroOS(TM) software consists of a component-oriented, modular architecture that offers a maximum of cross-platform compatibility, which can be combined to address specific vertical industry requirements.

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