Note: This is a e-mail I recieved April 16th from Telegames President Terry Grantham. This signifies the situation regarding IS 2 at that current time which was right after they announced they were going with the CD-R method with IS 2.

Brett,

I wanted to personally respond to your e-mail:

>I want to thank you for going forth with the extra efforts that was made necessary with the CD situation. I am very sorry to hear that you are going to have to endure extra costs which brings me to my question.

- We appreciate your regrets about our problems with Jag CDs and thank you again for your efforts to help keep the Jag alive.

>With this situation, would the chances of future CD games beyond what was annonced (this is all baring good sales) be pretty much gone due to this?

- Obviously, that seems to be a strong possibility, but not a definite, yet.

>Also, was JTS absolutely no help with you guys on this issue, as they as Atari I am sure managed to duplicate CD's?

- Atari/JTS has been as helpful as they could be, given the limited remaining staff. There is no doubt, however, that the absence of people experienced with Jag CD replication at Atari/JTS and at the actual CD replicator have been negative factors.

>Again, I thank you for the support, I am sure it would have been easier to can the game and not endure the costs like many companies would have done, your company obviously has alot of class to go through with it!

- You can't really appreciate how easy (and less expensive) it would have been to drop the game, but we have always prided ourselves on doing what we say we will do, if at all possible. If that means we have class, great!!!

Seriously, we do hope others realize exactly what pains and expense we have gone thru to continue to service a market that has been abandoned by everyone else.

Sincerely,

TELEGAMES, INC.

Terry L. Grantham

President

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