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press 

REVIEW 


The following articles are reprinted solely as items of interest for the independent evaluation by members of The Association of Time-Sharing Users and The 
Association of Small Computer Users. The opinions, statements of fact, and conclusions expressed herein are not those of either Association. 


500,000 Share Offering Filed by Sci . Time Sharing 


WASHINGTON - Scientific Time 
Sharing Corp. has filed a registration 
statement with the Securities and Ex¬ 
change Commission to sell 500,000 
shares of common stock, the first 
public sale of the privately-held cor¬ 
poration. 

Half the amount to be sold will be 
newly-issued shares, the company 
said. The other 250,000 shares will 
come from the holdings of the private 


stockholders, according to a company 
spokesman. 

The company was founded in 1969 
and had revenues last year of about 
$10.2 million. A consultant to the FCC, 
reporting last summer on electronic 
mail systems, said Scientific Time 
Sharing is the largest U.S. vendor of 
time-sharing services based on the 
APL language. 

Almost half the company is owned 
by four investors: Burton C. Grey, a 
director, 20.8 per cent; T.A. As¬ 
sociates, a Boston investment banker, 
12.4 per cent; Daniel Dyer, the presi¬ 
dent, 11.2 per cent; and Allen J. Rose, 
vice-president and technical director, 
4.6 per cent. The remainder is owned 
by a group of officers and directors of 
the company. 


The company said proceeds of the 
proposed sale will be used to retire 
part of its outstanding indebtness. 
The sale is to be managed by L.F. 
Rothschild, Unterberg, Towbin and 
Alex. Brown & Sons. 

Scientific said its services are 
available in over 200 cities in North 
America, Europe and the Far East. 

The company has pending before 
the FCC an application to market its 
Mailbox electronic mail service as a 
resale communications carrier and 
an associated application for waiver 
of the FCC’s requirement under the 
existing Computer Rules to establish 
a separate subsidiary if it wants to 
market the mailbox service as a com¬ 
munications product separate from 
computer time-sharing. 


2 Major Banks to Form EDP Services Subsidiaries 


NEW YORK — In moves apparent¬ 
ly prompted by a court action filed 
last year, Citibank and Chase Manhat¬ 
tan Bank last week told Adapso, the 
computer services trade organiza¬ 
tion, that they would set up subsidiary 
companies to offer computer ser¬ 
vices. 

Citibank said it will form Interac¬ 
tive Computer Center as a separate 
subsidiary to market the DEC 
system-based time-sharing services it 
introduced in 1976. Chase Manhattan 
said it would operate Managistics, 
Inc., a computer payroll firm it is ac¬ 
quiring, as a separate profit center 
with separate staff and facilities. 

Both banks agreed not to use their 
respective names in their computer 
services marketing efforts. 

Adapso had filed in federal court 
here in May, 1977, to restrain Citibank 
from providing computer services 


and to request that the Comptroller of 
the Currency not authorize national 
banks to sell such services. 

Adapso said it was “extremely 
pleased with both settlements” and 
noted that it will drop its suit against 
Citibank when the bank fulfills its 


part of the new arrangement. 

Citibank said it had “in no way 
made any concessions regarding the 
legalities” of its offering computer 
services and noted that it has always 
operated interactive computer 
centers as a separate profit center. 


Reprinted with permission, Electronic News, 
September 4 and September 11,1978, ©Fairchild 
Publications. 










NEWS BUREAU 



GENERAL tiH ELECTRIC 


8150 Leesburg Pike, Suite 510 
Vienna, Virginia 22180 
Area Code 202 - 637-4557 


FOR IMMEDIATE RELEASE 


For further information, contact: 


John A. Kosta 
Barbara M. Lenahan 
General Electric: 
(301) 340-4721 


FAIRFIELD, CT — June 5, 1978 — General Electric Company and Honeywell 
announced today that they have reached an agreement in principle to 
combine the worldwide operations of General Electric's Information 
Services Business Division with Honeywell's timesharing marketing 
operations in the United Kingdom, Europe, and Australia. The new 
company will be 84 per cent owned by General Electric and 16 per cent 
owned by Honeywell. 

Honeywell is now the exclusive distributor of General Electric's 
MARK III computer services in the U.K., Italy, and Australia. The 
other major countries of western Europe are served by HB Network 
Information Services, a company jointly held by Honeywell and 
Compagnie des Machines Bull, whose minority interest Honeywell has 
been negotiating to purchase. 

Plans for the new company call for improved integration of the 
marketing and support capabilities of this global network information 
services business. The new company will be in a better position to 
take advantage of the rapidly growing worldwide demand for such services 
and to better serve customer needs for remote access data processing 
services throughout the world. 

The new company is scheduled to begin operations November 1, 1978, 
contingent upon necessary corporate and governmental approvals. 








news 

On-Line Systems Inc. 

115 Evergreen Heights Drive 
Pittsburgh, Pennsylvania 15229 

Contact: Henry Caplan (412)9317600 

For Immediate Release June 27, 1978 


On-Line Systems Inc. announced today that the 
U.S. Attorney's Office formally notified On-Line that the 
investigation of the procurement by On-Line of its Office of 
Education contract has been completed and that the Grand Jury has 
determined that the evidence does not warrant the bringing of any 
charges against the Company, its employees or consultants. 

The U.S. Attorney's Office explained the decision was based 
upon an "extensive investigation" that proceeded with On-Line's 
"full cooperation." The U.S. Attorney concluded in his letter 
that "...this entire matter [including similar allegations 
concerning a contract with the U.S. Senate],..is no longer a 
subject of inquiry or investigation by this office." 

This investigation and the HEW investigation which preceded 
it were accompanied by a number of inaccurate news stories. 
Rather than responding specifically to these stories, On-Line has 
maintained since its original statements last year that these 
contracts were procured competitively through proper procurement 
procedures. This position has now been fully vindicated. 





General Motors 

Designing autos: One picture is worth 10,000 print-outs 

Mapping With a Computer 


T he congressman sits down at the com¬ 
puter terminal and, by pressing a 
series of keys, fires off a barrage of com¬ 
mands: draw a map of the percentage of 
people in Florida with four years of high- 
school education, the number of persons 
employed in manufacturing in Iowa, the 
percentage of the civilian labor force 
unemployed in New York City. On a 
screen, the displays pop up in seconds, 
illustrated in color and matched on the 
map with similar statistics from across 
the country. 

This mammoth information system, 
known as Odyssey, may soon be in¬ 
stalled for the U.S. House of Representa¬ 
tives. It is one example of the rapidly 
growing technology of computer graph¬ 
ics, which uses the statistical wizardry of 
computers to produce not just print-outs, 
but sophisticated pictures on terminal 
screens. Such technology already is be¬ 
ing used in a wide range of fields, from 
map-making and marketing to movie ani¬ 
mation and engineering. 

Magic: Clarity and speed are the crucial 
features of computer graphics. Given 
enough time, patience and sharp pencils, 
a skilled cartographer can manually pro¬ 
duce a map illustrating the distribution 
of the elderly throughout the U.S. But 
the computer can do it in just moments— 
and then superimpose an additional fea¬ 
ture, such as dental health, over the first 
map. While such information could be 
presented in a standard computer print¬ 
out form, it would be much more confus¬ 
ing to absorb. 

Computerized cartography depends 
for its magic on two systems of informa¬ 
tion: one that draws the maps and an¬ 
other that fills them in. To create the 
maps, the computer is fed billions of 
bytes of data generated in part by an 


orbiting NASA satellite that takes aerial 
photographs of the earth. Then the ma¬ 
chinery has access to a wealth of statistics 
from the U.S. Census Bureau, Labor De¬ 
partment or other reliable sources. 

Computers can interpret data with so 
many combinations and permutations 
that they sometimes reveal unexpected 
relationships between factors. A cluster 
of cancer cases in a community juxta¬ 
posed against the distribution of chemi¬ 
cal plants in the area might give medical 
researchers clues to the cause of the 
outbreak. “Assumptions are frequently 
challenged by what appears on the 
screen, and a computer map will often 
highlight a clear exception to the norm,” 
says Allan H. Schmidt, executive direc¬ 
tor of Harvard’s Laboratory for Computer 
Graphics and Spatial Analysis. 

The potential uses of computer map¬ 
ping seem nearly endless. If the House 
of Representatives adopts Odyssey, each 
legislator may someday have a terminal 
in his office that he can tap for instant 
information. Faced with a bill on em- 


Walter Lieberman 

Console cartoon: Smooth transition 


ployment, for example, he could call up a 
map of his own district for a close-up of 
its blue-collar population. Doctors might 
use such a system to find out which 
hospitals could provide appropriate spe¬ 
cialists to treat their patients. 

Varied Uses: But mapping is only one 
application of computer graphics. At 
MIT, researchers are using computers to 
make animated films. The computer 
smooths the transition between individ¬ 
ual drawings, sparing tedious hours of 
work. A city planner can program a 
computer with details on a traffic system, 
including the proportion of cars to trucks, 
bus routes and peak congestion hours. 
Then he can test a road pattern, and the 
computer will show where and when it 
may cause traffic jams. Given that infor¬ 
mation, the planner can feed in new 
speed limits, road widths and access 
routes to major highways—until the com¬ 
puter shows he has got it right. 

At General Motors, computer graphics 
has become an essential part of the de¬ 
sign and engineering of new auto¬ 
mobiles. Clay models of a proposed de¬ 
sign are scanned by the computer and 
stored in its memory. Then, using a spe¬ 
cial pencil or the computer's keyboard, 
the designer can alter various features of 
the auto and get a quick response on how 
one change will influence such factors as 
the car's weight, stability and impact 
resistance. Similarly, jet-aircraft design¬ 
ers at McDonnell Douglas Corp. are 
finding graphics more valuable than 
blueprints in building the Navy's new 
F-18 fighter plane. With the basic design 
stored in the computer's memory, the 
engineers can summon it to the screen 
and find out just how a change will affect 
the craft's aerodynamic stability, load 
capacity and weight. 

Helpful Image: A staggering amount of 
information can be conveyed in just one 
computer image—and that, says Har¬ 
vard's Schmidt, should prove helpful to 
industry. “The human mind is limited in 
the information it can manipulate,” he 
says, “but fortunately, human beings are 
exceptionally good at spatial recogni¬ 
tion.” For those who are not computer 
experts, Schmidt adds, one picture is 
worth 10,000 print-outs. 

—JEAN SEUGMANN with JENNIFER FOOTE in Boston and 

SHARON BEGLEY in New York 


Peter Southwick—Liaison 

Keyboard cartography: Wealth of data 


Reprinted with permission, Newsweek, September 11, 1978, ©Newsweek Inc.