Press Release
April 12, 2001
PALATINE, IL -- Dauphin Technology, Inc. (OTC.BB: DNTK) yesterday announced that its first OraLynx(TM) digital
set-top box (STB) model is now in production. This is the first of three models Dauphin plans to produce over the
course of calendar year 2001. All three models will offer front-end services and capabilities including DSL, Ethernet,
ATM, Fiber Optics, Cable, Satellite and dial-up modem along with full computing capabilities.
Dauphin's three model ``Tri-OraLynx'' marketing and production strategy is tailored to accommodate: a) the immediate
product delivery needs of the company, b) cost competitiveness edge throughout production ramp up and c) time to
market technology approach suitable for domestic and international markets. All three models will employ a common
platform complimented by an array of interchangeable modules. Cost of each model will depend on type of configuration
and market requirements. While domestic services are primarily cable related today, other parts of the world are
rapidly evolving or even leap-frogging to other means of infrastructure, mostly fiber. In any event, all three
models of the OraLynx(TM) set-top box shall concur with or adapt to any current or future environments without
becoming obsolete during the process of services changeover.
``One day every home will have a set-top box serving as a gateway to the Internet, entertainment, telephony and
cyber-home automation. We are excited to be part of this technology evolution,'' comments Mr. Andrew Kandalepas,
CEO/Chairman of Dauphin Technology, Inc. ``While many technology companies have already experienced considerable
growth in recent times, we are looking forward just now to do so with the availability of our two leading products,
the OraLynx(TM) and the Orasis®'' Mr. Kandalepas continued.
The initial OraLynx(TM) model, currently in production, is an integrated high-end full featured STB running on
Windows, equipped with up to an 800 MHz processor, 20-40GB HD, MPEG-2 decoder, up to 512 MB memory and multiple
interface options, including TV tuner (NTSC/PAL), Fiber Optics, Ethernet, DSL, Cable, Satellite, dial up modem
and more. The system can be used as a digital decoder or TV web browser, connecting to a TV or computer monitor;
providing services such as Video on Demand (VoD), Video conferencing, Voice over the Internet (VoIP), e.t.c. Additionally,
the first OraLynx(TM) model can be used as a stand-alone PC, simply by connecting it to a computer monitor. The
product will be assembled at Dauphin's RMS manufacturing facility in McHenry, Illinois. First production units
will be available for shipment to customers by mid May, with additional ramped up quantities in the month of May,
June and July. Estimated quantities of this model are 2000-5000 units, due to the planned production implementation
of the second OraLynx(TM) in the month of July 2001. Selling price will range from $550 to $975, depending on configuration
and size of order. Units at the higher price levels are to be used in applications where high-end services are
available. Lower cost units are targeted for customers/providers who plan to use them initially as a PC or Web
Browser in the absence of broadband services and eventually evolving to other added services as they become available.
Certain quantities of this model will serve as sales and marketing (demo/evaluation) units.
The second OraLynx(TM) model is currently scheduled to go into production during the month of July 2001. It will
have the same functionality as the first model with additional options such as DVD, record-playback functionality,
Mp3 music, digital audio output and video recording (30 hours). From a customer's perspective, the most significant
differences will be apparent in the selling price and larger volume availability. Selling price is expected to
range from $400 to $700, depending on configuration and size of order. The price reduction is attributed to current
engineering efforts by integrating key technologies directly into the motherboard, more optimized packaging and
therefore, less costly assembly requirements. Manufacturing of this model will be conducted using contract-manufacturing
firms in conjunction with Dauphin's RMS facility in McHenry. As with the first model, the second OraLynx(TM) will
sell at higher price levels to customers in need of high-end capabilities and lower price levels to customers of
lesser need. Customers for the second model will consist primarily of small and large service providers domestically
and abroad, including Estel Telecommunications S. A., Best Communications S. A., Danaos Peripherals and other providers
the Company is currently negotiating with. Potential domestic clients are those companies primarily engaged in
planned community applications and hospitality industries including hotels, resorts and time-sharing resorts. Quantities
of the second OraLynx(TM) model are expected to be in the area of 15,000 to 50,000 units.
``We are very pleased with Dauphin's accomplishments in developing a truly impressive Set-Top Box, now in the production
stage'', comments Mr. Dimitrios Fessas, President of Estel Telecommunications S. A. ``Today, OraLynx(TM) is superior
technologically to other STB's on the market, because of its multi-faceted architecture. Dauphin's strategy to
develop its Set-Top Box technology based on PC and/or embedded architecture is most brilliant. Our clients in Greece
as well as other European markets will embrace its innovation, therefore, Estel will greatly benefit by the increased
interest. Also, as strategic partners, we feel that this innovative family of products will strengthen our position
in obtaining EU financing support for future manufacturing within the EU region'', added Mr. Fessas.
Dauphin's third production OraLynx(TM) model is planned to go into production in September of 2001. Like its two
predecessors, it will be equipped with similar capabilities running on embedded operating systems, including Linux.
Its embedded design platform is based on a ``one board design'' concept, which will further reduce its cost and
allow for mass production volumes. First phase design is completed and prototypes will be ready for testing in
mid April. This Oralynx(TM) model will be Dauphin's miniaturized version with advanced technology components and
enhanced software features. Selling will range from $250 to $450. Large volume contract-manufacturing firms will
produce this model domestically and abroad, depending on customers' demographics, as well as cost savings associated
with labor, shipping, import/export tariffs and economic development (subsidies) incentives. Quantities of this
model will be possible to produce in any size. Based on pricing and volume requirements of the Estel contract previously
announced, this OraLynx(TM) model meets those criteria. Estel has previously agreed to purchase certain quantities
of the first two OraLynx(TM) models until the beneficial costs and volume quantities associated with the third
OraLynx(TM) are successfully achieved. At these price levels and mass production abilities, this model will be
also marketed globally to many developing countries. Current marketing information indicates that demand for this
product will be significant, perhaps surpassing Estel's contract quantities during the same period.
Additionally, Dauphin is targeting new emerging markets with its vertical solutions, which are not currently available
by any other competitor. Dauphin is a world leader in having developed two complimentary and totally synergistic
products, the OraLynx(TM) STB with its broadband capabilities and the Orasis® PC Tablet with its wireless features.
This duet allows the Orasis® to be used as a wireless high-end browser or even as a TV monitor connected to
OraLynx(TM). Any content, including movies, sports events, Internet e.t.c., can be taken out of the family room,
wirelessly, on to the patio or other areas of the home. Similarly, video conferencing or even monitoring the appliances
from outside the home can be performed wirelessly. This unique seamless, wireless connectivity between OraLynx(TM)
and the Orasis® Tablet PC paves the way for many new applications in residential and business environments,
positioning Dauphin as the leader in mobile wireless broadband communications.
Based on the Tri-OraLynx production plan, Dauphin will be able to better finance its initial manufacturing needs,
provide better product quality and greatly reduce upfront risk. Revenue generation from the first two models, combined
with possible banking arrangements then, and conversion of stock warrants issued during last year's private placement,
will better enable the company to support larger volume production. The company also has access to funds through
its $90 million equity line; however, management believes that successful sales of the products, conversion of
warrants and banking assistance will greatly minimize the use of the equity line.
Dauphin Technology, Inc. a Palatine, Illinois based technology company with manufacturing facilities in McHenry,
IL and engineering facilities in Schaumburg, Illinois, develops and markets hand-held tablet PC's and broadband
communications products.
Certain matters discussed in this news release are forward-looking statements involving certain risks and uncertainties
including, without limitations, changes in product demand, the availability of products, change in competition,
economic conditions, various risks due to changes in market conditions and other risks detailed in the Company's
Securities and Exchange Commission filings and reports.
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Contact:
Dauphin Technology, Inc., Palatine, Ill.
Kathy Dimitropoulos, 847/358-4406 ext. 1217