5. I hear the Bluetooth technology is run off 2.4MHz .....can you see any potential problems with other devices that run off the same frequency? Such as cordless phones?

The 2.4GHz spectrum does not require FCC licensing, therefore many devices such as cordless phones, microwave ovens and Wireless LANs (802.11b) us this spectrum.  To be sure there is interference, however, in regards to Bluetooth and 802.11b, the interference is tolerable.  Bluetooth and 802.11b networks can coexist in close proximity; we have shown this to be true.  We are currently in the process of documenting the exact amount of interference, but it appears that with normal use the two technologies tolerate each other.  What companies like IBM are currently doing is to develop ways of facilitating this coexistence.  We want the technologies to not just coexist, but to truly complement each other.

6. How far are we before Bluetooth Technology becomes mainstream?

The issue is one of cost.  To become mainstream it must be so inexpensive that it can be imbedded into devices without a bit hit to the cost of the device.  For the technology to become that cheap it must be mainstream - do you see the conundrum?  IBM announced Bluetooth PC Cards last September. Toshiba has also announced Bluetooth PC Cards.  More and more product will hit the market this year.  Industry pundits have suggested that by 2005, it would be mainstream.

7. Who came up with the name Bluetooth? And what (if any) meaning does it have?

Ericsson came up with the technology and named it after Harlad Bluetooth a 10th century Viking King who unified the Nordics.  Your best bet is to go to the Bluetooth web site for the story (bluetooth.com)

8. What are IBM’s plans for Bluetooth? 

IBM plans to incorporate Bluetooth technology into its ThinkPad line of portable computers over time.  We not only view Bluetooth as a universal form of personal area connectivity, but it has the potential of reducing the cost and weight of notebooks while at the same time increasing their reliability and improving the overall user experience.

9. What products / technology will IBM release in the near future that will benefit us?

We have already announced the Bluetooth PC Cards from IBM.  By mid year we will have announced other Bluetooth options for our ThinkPad’s that will optimize the Bluetooth capability

Page 3 - Conclusion

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