TWST: Do you have the management team in place now to allow you to do what you want to do?

Mr. Lang: Yes, I think we've reached critical mass here to be able to implement our business plan. We've forecast some significant revenues in the coming years and we have been putting the management team in place to execute on that. So I think we're ready to go in '99, and beyond that we'll continue to expand our activities as appropriate.

TWST: You mentioned you've forecast some significant revenues, what have you forecasted?

Mr. Lang: The forecast amounts are part of our business plan, which has not been published to the public, but certainly, qualified individuals are welcome to contact us and we would be happy to discuss that with them.

TWST: What areas of the business are you focusing on personally as the Chief Executive Officer?

Mr. Lang: As one of the co-founders and as CEO, I think it's my job to continue to articulate the vision of this company and to attract various management individuals to help us accomplish our goals. And to oversee activities on a high level day to day basis. I'm very pleased with the team that we've been able to attract and hope to be able to con-tinue to keep them motivated and as excited as I am and as my co-founder and the Board of Directors as well.

TWST: What kind of corporate culture have you tried to create at the company?

Mr. Lang: That's a very good question. It's not one that I hear a lot. The fact is that we have a very unique corporate culture here in that we really try to embody an atmosphere where individuals have an opportu-nity to do their best, and to be recognized for that. They are allowed to make mistakes, and at the same time, everyone is very honest with every-one else. We also encourage people to have a real life of their own out-side of the company. This is a company where family life matters. We have a very diverse group of people here. We have women, men, young people, older people, people from around the world. Diversity is a key ingredient of our corporate culture. We're very proud of that.

TWST: How would you describe the basic business principles that you follow day to day in running the business?

Mr. Lang: I think one of our basic principles is to not set false expectations. You know, that's something that's easy to do, especially in this business. We've tried hard to be focused and realistic.

TWST: TWST: To stay away from vaporware?

Mr. Lang: Stay away from vaporware. You know, we've certainly had the opportunity to do that on numerous occasions and investors are always are wanting to know when the next big thing is, but we've been very patient: that's one of our virtues as a company, and I think that it's about to pay off for us big time.

TWST: Have you set up the incentive programs at the company to reflect the interest of your stockholders?

Mr. Lang: We have incentive stock option plans for employees.

TWST: How far down do they go?

Mr. Lang: Every employee has the opportunity to do well if the company does well. There was a point in our history, a while back, when cash was short - at one point we had 70 percent of our employees that were willing to work for stock or options because they believed so much in the company and our ultimate success, and now I think those people are going to be handsomely rewarded if we're as successful as we believe we will be. Currently we have stock option plans that are available to every employee here, and as a group, the employees have a fairly substantial percentage of the stock via those options.

TWST: As we look at the company a couple of years down the road, what should investors focus on as they read your financial statements?

Mr. Lang: The real story for us financially is certainly not in 1998, and it's probably not in 1999, but it is in the year 2000 because of certain trends in the industry that are taking place right now, primarily the availability of bandwidth and low cost storage. Those trends are exponential and there's a critical point, we believe it's somewhere in the middle of 1999 where the economics of video delivery, of video on the Internet, are going to change radically, and when that happens, we believe we're in an extremely good position to benefit from it. So, again, I think that you're looking at the middle to late 1999 and certainly in the year 2000.

TWST: Ultimately, what kind of a margin can you realize on this product?

Mr. Lang: I'm not sure that I want to specify a margin, but I can say this: We're selling software, so the cost of goods sold and the complexity involved is a lot less than if we were producing a hardware product or selling widgets. Our key assets are intellectual, they are people, and they are ideas, and they are embodied in software which is delivered to our customers on a CD for now. So, we tend to have a lower cost of goods sold and, therefore, the possibility for much higher margins, not unlike most software companies.

VALUATION


TWST: How do you feel about the value the market is currently assigning to your company?

Mr. Lang: The fact is that I would be less than honest if I didn't say that I thought we were grossly undervalued, but then you'd expect me to say that, I suppose? Quite frankly, the only way to really make that determination as an outsider is to look at other companies that are in the Internet space, that are in the video space, and make some determinations as to how those companies are valued, when they are acquired, or how those companies are valued as they become successful in their markets. Companies like Yahoo! or EarthLink, and others that at one time were little companies, and when their time came in the marketplace, the market valued them by much higher multiples than they started out. The same could be said of Microsoft, if one looks back far enough. For about 10 years they were not really on anybody's radar screen, and then.....

TWST: Then it became the radarscreen.

Mr. Lang: .....it became the radar screen - exactly.

TWST: Do you think your low valuation reflects industry problems and market cap problems or is just lack of understanding about what you are doing?

Mr. Lang: I don't think that it reflects any problems at all. I think that it's completely appropriate given the fact that we've stayed pretty much off of people's radar screens by design. The industry is just now maturing to the point where we have a market to sell into, so we're at the beginning of the explosion. And the second part is that we've, by design, remained low profile as we built our team, as we got our ducks lined up, and I think that that will naturally change as more people begin using Burstware® as the industry develops.

TWST: When you talk to your outside investors today, what kind of questions are they asking?

Mr. Lang: Typically, they all want to know when we are going to be making a profit and that's a fair question.

TWST: And what is the answer?

Mr. Lang: We project profitability, probably not until the end of 1999 or 2000. But, again, as I mentioned, there are certain industry trends that are exponential in nature that are going to benefit us quite a bit in that time frame.

TWST: If you were sitting down with some potential long-term investors today, what two or three reasons would you five them to run out and buy the stock?

Mr. Lang: I'd say the first reason would be: take a look at our management team, look at our backgrounds, what we're doing, how long we've been doing it. The next reason would probably be to have a look the technical problems that we're solving for the industry. I realize at this point that the issues may be too technical in nature for a lot of investors, but for the investor who wants to take the time to learn a little bit about the growth of networks, they'll quickly find out that the major issue emerging right now is how to manage the networks; and what's prompting that issue is the fact that networks and users of networks want to have video and audio. And so that means a lot more information flowing on those networks. And when you have a lot of information flowing, that information wants to be managed: it needs to be managed. And that's what we do.

TWST: Is there anything we should have talked about and haven't?

Mr. Lang: I suppose the key thing that I'd want to emphasize is that this industry and our role in it should be looked at from a high level and see what has happened in this industry over the last number of years. You know, a few years ago, the buzz word was Internet. Then a couple of years ago and last year the buzz word was real time streaming. The new focus is clearly going to be video - video, video, video on the Internet, and as a result, network management, and again, that's what we do.

TWST: As an Internet userand one who's frustrated by streaming video, it's nice to know there's something better coming down the road because what's out there today is certainly not adequate.

Mr. Lang: That's what we continue to hear from all over. Like I said, the bulk of our current beta customers have been using the current-ly available real time streaming technologies and they are not happy. And it's not likely to change because the fundamental nature of real time streaming solutions is to operate with constrained bandwidth, not to opti-mize under conditions of available bandwidth.

TWST: Thank you.