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<DIV><FONT face=Arial size=2><SPAN class=129375523-06092002>Regarding the
possible use of LZW compression in the proposed PDFax data format for IPP
Fax:</SPAN></FONT></DIV>
<DIV><FONT face=Arial size=2><SPAN
class=129375523-06092002></SPAN></FONT> </DIV>
<DIV><FONT face=Arial size=2><SPAN class=129375523-06092002>The LZW
algorithm is patented by both IBM (4,814,746) and Unisys (US patent
4,558,302, European patent 0,129,439 - Japanese and other patents pending),
while British Telecom (BT) holds a similar patent. The IBM patent application
was filed three weeks before that of Unisys, but the US patent office apparently
failed to recognize that they covered the same algorithm. (The IBM patent is
more general, but its claim 7 is said to be exactly LZW.)</DIV>
<P>The LZW patent, as well as its international counterparts, and similar
patents filed by others, are expected to remain valid for at least 20 years from
the original filing date, i.e. until June 19, 2003</SPAN></FONT></P>
<DIV><FONT face=Arial size=2>On January 27, 1995, Unisys announced new licensing
policies regarding "The Welch Patent". These include a .45% royalty on the total
unit selling price of GIF/LZW products (minimum $0.10, maximum $10.00 per unit)
and a .65% royalty on GIF/TIFF/LZW products (minimum $0.20, maximum $25.00). For
further information and a copy of the written agreement it is possible to call
Unisys at +1 215 986-4411, or email <A
href="mailto:lzw_info@unisys.com">lzw_info@unisys.com</A></FONT></DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=2><SPAN
class=129375523-06092002>John</SPAN></FONT></DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV> </DIV>
<DIV><FONT face=Arial size=1>------------------------------------</FONT></DIV>
<DIV><FONT face=Arial size=1>John Pulera</FONT></DIV>
<DIV><FONT face=Arial size=1><A
href="mailto:jpulera@minolta-mil.com">jpulera@minolta-mil.com</A></FONT></DIV>
<DIV><FONT face=Arial size=1>Minolta Systems Laboratory</FONT></DIV>
<DIV><FONT face=Arial size=1>11150 Hope St.</FONT></DIV>
<DIV><FONT face=Arial size=1>Cypress, CA 90630</FONT></DIV>
<DIV><FONT face=Arial size=1>(714) 898-4593 x115</FONT></DIV>
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