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Scientific DataLink.. ei 850 Third Avenue — New York, NY 10022 (212) 838-7200

A Division of Comtex Scientitic Corporation
Herbert Nagourney
Executive Vice President

 

  

Scientific Advisory Board
— May 1, 1986

Dr. Bruce G. Buchanan

Professor of Computer Science Research
Stantord University

Dr. Francis H.C. Crick

Distinguished Research Professor Dr. Joshua Lederber g

The Saik Institute for Biological Studies .

Nobel /aureate President

Dr. Alan J. Perlis The Rockefeller University
Eugene Higgins Professor

Dept of Computer Science” 1 2 3 0 Yo rk Avenue

Yale University New York, N. Y. 10021

Dr. Frederick Seitz

President Emeritus
The Rockefeller University Dear Dr. Lederberg:

Dr. Charles H. Townes Va

University of Colona, Beacrey I need to apologize for not keeping you advised more

Nobellaureate frequently about Comtex's progress. In a word, this
has been a very mixed year.

Scientific DataLink has made spectacular progress.
Sixteen Artificial Intelligence Collections have been
published to date including M.I.T. Part II this month.
The very important Edinburgh Collection is now in
editorial production and will be ready early Fall.

Our customer base is increasing steadily, and except
for Government agencies, we believe we have done an
effective job of reaching our markets. SDL is now
solidily in the black ~ whether measured by return-on-
investment or percentage profit on sales, the numbers
are extremely attractive. Most important we anticipate
continuing to generate excellent cash flow while growing
slowly.

As to Comtex videotext operations, the picture is

neither as clear or as certain. As you know, we are

45% owned by U.P.I. When U.P.I. filed under Chapter

XI last year, marketing our Newsgrid services became
extremely difficult as potential customers were concerned
about U.P.I.'s survival and hesitated to contract

for Newsgrid. As the court has now approved the U.P.I.
Reorganization Plan and U.P.1I. will be coming out

of Chapter XI we expect to recover our Newsgrid momentum
shortly.
May 1, 1986
Dr. Joshua Lederberg
Pag Two ©

Of greater importance, we are currently introducing
Business News Services one of which is OTC NewsAlert.
OTC NewsAlert will deliver online information about
thousands of OTC companies - information which today

is extraordinarily difficult to obtain. The initial
response to this new service has been excellent.

With the huge software expenditures behind us and

our computers firmly in place and operating efficiently,

we expect OTC NewsAlert will generate large revenues
in fiscal 1987.

Incidentally you may have noticed that the price of
Comtex stock has tripled in the past few weeks. We
believe this is a reflection of both the improved

U.P.I. situation and confidence in the eventual success
of our Business News Services, particularly OTC NewsAlert.
Clients already served include Citicorp, MCI, Mead

Data, Quotron and dozens of others. Needless to say,

our stock options may soon be valuable.

All this is by way saying that we are optimistic not
only about SDL, where we have proved ourselves, but
about our Business Service as well.

In the meantime, I hope you could phone me if you —_—
can find the time for a meeting - preferably lunch.

a

Sincerely,

 

* Herberf Nagourney

HN/ jb
Encl.