************************* ***Letter to Retailers*** ************************* December 15, 1995 Re: SoftRAM95 Recall Dear Retailer, Distributor: As previously announced, the Windows 95 version of the SoftRAM95 was not delivering the expected RAM compression for that new operating system. To alleviate the problem, we implemented a program to re-label all inventory as suitable only for Windows 3.0 and 3.1, and not for Windows 95. We also identified the problem and are beta testing a fully functioning SoftRAM version for Windows 95. While much of the SoftRAM95 Inventory in most outlets was re-labeled, unfortunately some was missed. Because we do not want any consumer confusion or misunderstanding, we believe it is now prudent and in the best interests of consumers and you, our retail partners, to recall entirely the current inventory of SoftRAM95 (with full refund or credit). We are also offering you a new SKU featuring SoftRAM for windows 3.0 and 3.1 in a new package. We consider this to be a matter of urgency and ask that you act upon this immediately notwithstanding the commercial pressures of the Xmas season, and we ask that you communicate this important information to your product managers and buyers as soon as possible. We know you will agree with us that SoftRAM is an excellent product with great potential. We also know you are awaiting the Windows 95 version and we appreciate your patience. In the meantime, however, the new re-packaged, lower-priced SoftRAM should be an excellent product for your late year/new year offerings. We expect this new SoftRAM SKU to be available as early as December 22, 1995, and shipping will be as fast as we can deliver it. Please contact your manufacturer's representative or call us for arrangements to pick up and return your current inventory of SoftRAM95 and order a new inventory of the re-packaged SoftRAM. We look forward to working with you, our retail partners, to maintain and expand our business together with our new products - SoftRAM for MAC, SoftRAM for Windows NT, SoftRAM for OS/2 Warp, MacAccess, and NETSpeed. Yours very truly, Rainer Poertner President & CEO CC: Michael J, Bloom Regional Director New York Regional Office Federal Trade Commission