TWST: How would you describe the strategy that you are going to follow then as this product gets ready to roll out?

Mr. Lang: Our primary strategy is to focus on the business-to-business market where there is a great demand for high quality video and audio, and to offer Burstware® as a network management solution to maximize network efficiency all over the world. So our focus is on bringing added value to the business-to-business market and to the network providers. We are developing, as I mentioned earlier, a number of strategic relationships that we plan on announcing in the coming months, that will help us bring our software solutions to market in a productive and effective manner.

TWST: As you said, you will expect to roll this product in early 1999. What kind of growth would you expect in the two or three years following the introduction of this product?

Mr. Lang: We would expect that within two to three years the whole notion of bursting video on networks will be adopted as state-of-the-art. One of the industry gurus, George Gilder, predicted that by the beginning of the new millennium, over 80 percent of all network transmission of video and audio would be done in burst mode. IVT is well positioned to deliver on that promise.

TWST: You're hoping he's right?

Mr. Lang: We believe that there is no other way around it. In essence, real time streaming solutions have been good, but they've been a temporary solution in our opinion; it's just one step on the road of bringing multimedia to the masses and to businesses via networks. Real time streaming was designed to overcome a very specific problem, which is lack of bandwidth and long download times. Real time streaming was designed to solve the problem of long download times by creating a little buffer that takes a few seconds to fill, and once the buffer is filled, the viewer can start watching the video right away. But that's based on not having enough bandwidth to do any better than that. What's happening worldwide is that high bandwidth is becoming available and it's becoming inexpensive, and the other industry trend is low cost data storage, which means that it's possible to put very large amounts of data in computers and in set top boxes at fairly low cost. When you put those two ingredients together, lots of bandwidth and low cost storage, it becomes clear that the way to optimize those trends is to start moving content Faster-Than-Real-Time™. In other words, faster than the amount of time it takes to watch the actual content because you've got the bandwidth to send it in a burst and you have the low cost storage in which to house it. So, very rapidly, video can be distributed, the server can disconnect and go on to serve other clients, and you get much better use of the network and of the servers by doing it this way.

TWST: As you look at it from your potential customers points of view, what are they going to use the video for?

Mr. Lang: Video, in the corporate environment is used for training of employees; it's used for distance learning; it's used for customer service. Ultimately, some companies are using video to deliver entertainment to consumers at large, although I think that that's one step removed. And for all of these customers, getting the most out of their delivery networks is key. We have network simulation environments where we run Burstware® side by side with real time streaming and we can configure the various network variables, such as bandwidth, size of the buffers, the number of clients, and what we see is that by and large, under almost any type of configuration, Burstware® provides up to 58 percent increase in network throughput, or another way to think of network throughput is the number of successful video experiences that have taken place without having to add any hardware. So when you start to get 8 to 60 percent more deliveries without adding any hardware, those numbers start to become very meaningful for both network operators and for the companies who have their own networks.

TWST: If you look out over the next couple of years and you go from a real kind of R&D company to a company producing and distributing a product, what changes are you going to have to make?

Mr. Lang: That process is taking place. I would say we're out of the pure R&D phase although R&D is an on-going part of what we do. Our first commercial products are already in the hands of beta customers and are going to be widely distributed in 1999 and that has necessitated is a fair amount of growth internally. We've quadrupled our size since a year ago; we've added a number of talented individuals, many of whom come from leading companies including Pacific Telesis, Yahoo!, Forte Systems, and SyBase, among others.

TWST: Over the next few years Burstware® will be the big product. Are there other things in the pipeline?

Mr. Lang: Yes. There are specific applications for set top boxes that are currently in development that incorporate other elements beyond Burstware®, other technologies and different ways of utilizing existing technology that we think are going to be very exciting for this market. We have some applications for set top boxes that are not widely considered at this point, but in the next few years we believe are going to be the norm. We are very excited about being positioned to follow up Burstware® with additional solutions that serve our markets well. Near term, we're incorporating multicasting as part of our end-to-end solution.

TWST: And whose set top boxes are you aiming at, cable systems?

Mr. Lang: All of IVT's intellectual property, including Burstware® is neutral to and can be used with various platforms; we are neutral to the type of video compressions used; we're neutral to the types of networks; we're neutral to the types of set top boxes. Our flexibility is a great advantage because we're not limited by proprietary compression algorhythms, or by proprietary platforms; we're applicable across the board.

TWST: Are there any limitations on the company's growth over the next couple of years? Are you constrained by cash or by personnel?

Mr. Lang: We've been very fortunate so far in that we've had cash when we needed it. We have been in the process of developing some very important strategic relationships with the financial community. We've been fortunate in being able to attract lots of talent to our company. And anyone reviewing our announcements of the past year, if they go to our Web site - www.burst.com, will see that there have been many, many significant additions in the past 12 months to our management staff and we expect those to continue

MERGER/ACQUISITION

TWST: Is there any need for you to go out and acquire missing technology or are you developing everything in-house?

Mr. Lang: I wouldn't say there's a need to acquire missing technology, but like most companies we're always on the look out for good strategic fits with other products or companies that might enhance what we're doing or in some way speed along the deployment of our technology and add value to our business plan.

TWST: If Burstware® is as successful as you seem to think, is that likely to make you a target for somebody?

Mr. Lang: I suppose that's always a possibility. I mean, you read every day about fairly young companies with, what I would consider, good technology, being acquired for hundreds of millions of dollars. I think in our case, we've been at this a long time, we're not just a start up, we've waited patiently while this industry matured, which is now happening. And I suppose that in my own mind, personally at least, I would expect that in the coming few years that we would certainly be of interest to many larger companies. Hopefully, that will come about as a result of good planning and good strategic relationships being developed along the way.

TWST: So one of the milestones we can look forward to is the general release of Burstware® early next year. Are there any other milestones that investors can use to judge your success?

Mr. Lang: Watch our customer base grow. Initially, as I mentioned, our focus is on business to business. That's where the money is, that's where the greatest need is currently, but I wouldn't be surprised to see us pop up in the consumer markets over months and years to come.