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Older news - April 2002

$1.2 Million USD Dollars

A couple weeks ago, I asked Namphung how much business we did last year. When she told me we did over $1 million USD, I was quite surprised. The year before, we had done $500,000.00. Before that, we did $200,000 and the year before, we did about $80,000. I knew that we were on track to break $1 million before September 11^th. I had no idea that after September 11^th, we could sustain enough sales to go over $1 million.

I know that in the world of manufacturing and sales, $1 million isn't a lot of money. However, for me, it is a real milestone. I still haven't taken any money from the company.

This month, I have put photos of our employees on the website. The high quality of workmanship and the fantastic customer service we offer is a result of their dedication. I am very proud to have a team of fine employees. I want to thank all our customers for giving me an opportunity to provide a good living for our staff. Thailand remains a country that is locked in an economic slump. The $1 million we bring here can provide a lot of jobs in a country that has no welfare or unemployment system to fall back on. I thank you and our staff thanks you for your faith and confidence.

500,000 Hits per Month

I am very happy that our website continues to be quite popular. We are approaching 500,000 hits per month. I find this amazing. I remember when I first put up the website, I was so excited when the first people found us. I didn't know how they found us but they did. We hit over 10,000 hits after only one month. I feel quite happy to have so many people drop by and see what is going on.

Michael C. Barnes goes on about the good old days again...

As anyone who has read these pages know, I have been a audio fan almost all my adult life. I joined the United States Army out of high school. I was sent to Thailand back in 1973. There are three things that all soldiers living overseas bought. They bought a nice watch, a camera and a stereo. This is because we got very good prices on these items buying them for the military exchanges.

I was so interested in high fidelity that people started calling me Sergeant HIFI and my nickname was HIFI. After getting out of the Army, I went to work overseas working in communications. Below is a photo of me when I was about 25. It was taken in the Philippines.

One of my early audio systems, 1979

Back then, I had a Soundcraftsman 5002 amplifier, Hafler preamp (which I built from a kit), a JVC KD95 tape player, a Technics tuner, a turntable with a SME type III tonearm and a Shure type IV phono cartridge. Also shown in the photo is my old DBX box. At the time, I had a pair of Shahinian Obelisk speakers. I would say the entire system cost me about $2,500.00. From the picture, I am sure you can see that I was quite proud of my system. I didn't know anyone who spent so much on audio back then.

Prior to buying separates, like most people, I went through several upgrades. My first audio system was a horrible Sanyo quadraphonic system. I graduated from that to a department store Fisher system and then migrating through various appliance store systems. I bought KLH loudspeakers and a variety of receivers. In a few short years, I probably spent a total of $5,000 to wind up with the system that I am proudly showing in the picture.

Once I bought this system, I was satisfied. I did replace the tuner with a better Sanyo tuner. I also eventually replaced the preamp with a PS Audio preamp. However, for the most part, I kept this system until each part broke down and stopped working. In fact, I still have the turntable and tonearm. I have replaced the cartridge.

My goal now is building audio systems is to help people reach the point where they are satisfied with their audio systems. I want people to think back about how much fun they had with the systems I designed and I want them to be part of their youth or part of the best times of their lives.

My daughter has a stuffed bunny rabbit that she got when she was only about three years old. She has taken this stuffed bunny rabbit with her to many different countries. My wife and I have had to help her find this bunny on several occasions when she left it somewhere. Somehow, we always find it and even after 12 years, the bunny is still part of her life.

I want to make something like that. I want people to value our systems the way my daughter values her bunny. I want people to use our systems for parties, romance, and fun. I want people to dance to our speakers and I want them to cry listening to music that brings back bitter sweet memories.

I know that there are some people who will never be satisfied owning a system for long. Our goal is to build equipment that people will want to keep.

Show us your nOrh Loudspeakers

I enjoy getting photos of customers with their nOrh loudspeakers. I will try to post some of the photos each month. The following two photos are from proud owners of our nOrh 9.0s.

Last month, our Celedon 4.0 was our best seller. Customers have been raving at how beautiful these loudspeakers are. The 4.0s have received many reviews on how they sound. We are pleased that people also appreciate the effort we put into making the 4.0s loudspeakers that will become heirlooms. Everyone who has received our Celedon 4.0s tell us that our photos simply don't do justice to the beauty of these loudspeakers.

Below are some pictures of our Celedon 4.0s.

Last month, we also introduced another ceramic 4.0. We call this 4.0 the All American. The loudspeaker was designed by Lek. I was surprised when Lek brought me the original wood All American. He told me that he had always been inspired by the United States and that he did the design based on this inspiration. The All American 4.0s are available for $450.00 per pair.

We also introduced the mini 9.0. The mini 9.0 is based on our best loudspeaker, the nOrh 9.0. The mini 9.0 is quite small but sounds like a very large loudspeaker. The -3dB point is an amazingly low 45 Hz. The mini 9.0 is made from synthetic marble. It is available in blue, pink, red, white, black, and light green.

For two months, I left some pictures of some of the nOrh staff up. All of the photos these past couple of months have been of some of the ladies who work for nOrh. I got lots of questions. Most of the questions were whether the ladies were single or not. Boom is married. In fact, she told me that her husband was very proud of her photo being on the website and he went to look at the website frequently to see his wife. I thought that was very nice. I told her we would take a couple more photos of her so that her husband would continue to be able to look at her photo while he worked.

The reason that I took only photos of women was that I took the pictures in our offices and not at the factory. This month, I decided to go to the factory to take pictures. We missed a few of our staff but this month I will post photos of those who were working when I went over there.

Our Webmaster, Shafquat

Many audio companies are formed by individuals who try to make themselves into the focus of the company. Many of the best known companies are named after the founders of the company. Mark Levenson, Fisher, Fried and Marantz are named after individuals. Some companies, such as KLH are initials for the founders of the company. I have always tried to downplay myself in nOrh. For me, the company is more about the people who work for the company than it is the founder. I have to rely on my people for quality, creativity and consistency. There is no way that I can have all the ideas for nOrh. I rely on our staff to improve our products and deliver consistent quality.

There is nothing that is more insulting for me to hear than when someone insists that nOrh has an unfair advantage by building products in Thailand because of the low cost of labor. This is quite ironic when many of our competitors products come from China or other countries in Asia.

There is nothing about the way we build products that is inexpensive. Our cabinets are far more costly to produce than our competitors. We pay far more money for our marble cabinets than our competitors do for their MDF cabinets. It isn't a matter of being able to build marble cabinets cheaper in Thailand as that we have access to the craftsmanship here that allows us to build them at all.

nOrh loudspeakers are works of craftsmanship and not works of production. The people we employ are not just workers—they are artists and craftsmen. We like to think of our loudspeakers as works of art that are also outstanding loudspeakers. I hope you will take time and look at the photos of our staff. These are individuals who are very proud of what they do. They are happy to share their craftsmanship with the world and they are proud to have the opportunity for people around the world to see their work.

Le Amp

I am preparing this month's newsletter very early because I will be going to the Midwest Audiofest and then to Australia. By the time I return, I hope that we will be shipping the next batch of Le Amps. Curt has made some cosmetic changes. We will post a photo as soon as possible. Check out Curt's website. Curt and I have agreed that IRD and nOrh will share the name Le Amp. This will make it much easier for both companies to serve our customers. IRD designed and manufactured Le Amp with nOrh's input and participation.

Audio Video

Let's face it, few people today are only interested in two channel listening as their main source of entertainment. Most people today want to enjoy audio and video. Some people believe that it is a compromise to try to do both audio and video on the same system. We do not. We believe that the more senses you can involve at the same time, the more pleasure you can have. For some people, that might mean eating popcorn while watching a movie. For others, it might be getting a bit romantic while listening to music. In any case, our goal is to involve as many senses as possible.

Many people write me about what two channel budget system they should buy. This is a very difficult question because there are so few budget two channel systems available. I generally suggest that customers simply buy a reasonably priced A/V receiver. We then suggest they consider adding three nOrh 3.0s to their system to give them very inexpensive five channel sound.

Some people only need two channels. If the person is using the system for light duty – such as having music in an office or for background music, I like to recommend the Decware Zen Amplifier. This is a low-powered tube amplifier. It looks cool and sounds much better than most low-end audio systems. The Zen amplifier and a pair of 3.0s really makes a nice looking system and is quite pleasant to listen to.

One of the things I have always disliked about making technology purchase is how quickly technology gets old. I think that one of the joys that people have who buy tube amplifiers and turntables is that whatever choice they make now, the technology will not change in a few months.

Fortunately, there are parts of the audio and video chain that don't quickly go out of date. Loudspeakers that are designed for audio will not become outdated. Some "video only" loudspeakers have not been so resilient. Amplifiers are also a component that should provide years of entertainment. It is also likely that any CD or DVD you purchase today will be playable on systems that will be sold for many years into the future.

The lowest priced way to get into A/V is to buy an A/V receiver. I can not make any specific recommendations as most receivers offer comparable value. Some of our customers tell us they are quite happy with Outlaw receivers. I have yet to hear them but given their very good value, I would not hesitate suggesting that anyone considering a low cost A/V system consider an Outlaw receiver.

If you plan to add a subwoofer, the nOrh 4.0s are an ideal choice. You can buy a complete video set for only $850.00. I don't think any other system will offer this high level of performance and incredible beauty as the nOrh 4.0s.

The 5.1s will provide a bit deeper bass. If your budget doesn't include a subwoofer, the 5.1s are a good choice. The 5.1 video set (2 x 5.1 and 3 x 4.0) goes for $950.00. For slightly more, you can get the SM 6.1s. This is a larger loudspeaker. The 6.1 is very energy efficient. Using a pair of 6.1s with a receiver will give you a very dynamic sounding system. The SM 6.1 are ideal for lower powered A/V systems.

I believe our best A/V loudspeakers are the SM 6.9s. The SM 6.9s use the same tweeters you will find in loudspeakers costing as much as $39,000.00. The SM 6.9 has very deep bass and handles lots of power. You won't miss not having a subwoofer with the SM 6.9s.

Rather than buy some of the expensive and low quality all plastic A/V systems that include five little plastic loudspeakers, we suggest you buy a budget receiver and five 3.0s. The 3.0s will look much nicer and will outclass any of these cheap plastic systems. You can add a lower cost subwoofer and complete the system.

For a really dynamite A/V system, you might consider getting a pair of mini 9.0s for the left and right. I believe these are some of the best sounding loudspeakers available for under $2000.00. With the right subwoofers, you can challenge systems costing over $10,000.

One of the things our customers enjoy is that we spend lots of time with customers who are not certain what they want. We don't mind answering your questions and we try to answer questions promptly.

Marble Subwoofer

Internal view of nOrh Marble Subwoofer showing folded prism design

We hinted that we were working on a marble subwoofer and we have received many e-mails asking about this.  Working with marble is not as easy as working with wood.  We have been testing the marble subwoofer and we can let out a bit of information.

The marble subwoofer is 65 liters.  It is a folded prism transmission line.  We use a marble panel internally to create two prisms from the rectangle.  The woofer is on one side of and the port is on the other.  We place the port on the bottom.  We learned this technique with our Prism loudspeakers and we find that we can get better bass by coupling the port to the floor in this matter.  It makes it much easier to place the subwoofer anywhere in the room.

The marble subwoofer weighs 200 pounds without the amplifier.  It has its own casters.  The top is made from granite instead of marble. Granite is a harder surface than marble so this will make it more practical to use the subwoofer as a stand.

Most of my listening has been with the 4.0s.  I use these for testing as the 4.0s have little bass of their own so it allows me to evaluate the subwoofers more accurately.

We have decided not to spoil the cosmetics of the subwoofer by mounting the amplifier inside the cabinet. We believe that it is better to put everything outside the cabinet.  This cabinet will last more than a lifetime.  Updating the subwoofer only requires swapping out the woofer.

Once again, we are using the Vifa PL22WR09.  I still find this one of the most amazing 8 inch woofers available  This is a larger version of the woofer we used in the 6.5 and 6.9.  The 8 inch version is even more remarkable.  We have tested the 10 inch from the same family but we think the 8 inch makes a better subwoofer.

The bass response for the subwoofer is - 3 dB at 26 Hz.  It is -6 dB at 24 Hz and -10 dB at 22 Hz.  From 26 to 100 Hz, the response is essentially flat.

The marble subwoofer sounds different than our MDF version.  The bass is deeper. The bass has more impact.  The sound is purer and is more holographic.

We don't have a final price yet on the marble subwoofer but we are trying our best to keep the prices as reasonable as possible. One can only imagine the painstaking labor and high shipping costs that go into such a product.  We are looking into what we can save by shipping by boat.  By air, the cost is likely to be about $600 for shipping.   Right now, my best guess is that a subwoofer without amplifier will cost about $1,500.00 which would include shipping.

Our plan is to package the amplifier in a teak cabinet so that it can be attractively displayed as a separate amplifier.  We would be happy to build external passive crossover for anyone wanting a passive version.

Not everyone agrees with me but I believe certain things about making a subwoofer. These are:

1.  Subwoofers should be measured the same way as other loudspeakers. You should state the -3 dB point. This will tell you the actual low frequency performance.  Most companies will tell you the dB output at a given frequency.  This might 10 dB down.  I have seen many subwoofer with a -3 dB at 40 Hz stating that they have a 100 dB output at 24 Hz.  Overall, smaller woofers in large cases make for more musical subwoofers.

2.  Most woofers are designed for vertical mounting.  Only speaker with servos are designed to be mounted horizontally.  The problem with mounting a woofer horizontally is that the weight of the woofer will make the woofer have to fight gravity more. Assume the woofer is mounted pointing towards the floor.  In the resting position, the weight of the woofer makes the motor have to work harder to pull the woofer back. When the woofer extrudes, gravity makes the woofer overshoot.  Another problem comes for the weight of the voice coil and causing distortions in the shape of the woofer when it faces down.  This is something that is easy to observe by holding a woofer towards the floor.

3.  Many subwoofers use cheap cabinets.   Subwoofers require very rigid cabinets in order to deliver really good bass.

4.  Many subwoofers use very mediocre OEM amplifiers.

Anyone who reads any reviews about nOrh products know that the one thing that receives high praise from us is the bass.  We always try to create bass that has both weight and authority.   We also want it to be rhythmic and emotional.  I have heard very expensive loudspeakers that sound as if the bass is on a time delay.  The bass is simply not keeping up with the rest of the music.  I want bass that is tightly integrated and works with the main loudspeakers as an integrated unit.

I believe that we have once again exceeded our expectations with the nOrh marble subwoofer.  We will be posting more details soon.  What I can say now is that a pair of marble 4.0s (or ceramics) and the nOrh marble subwoofer, will put the shame some of the most expensive loudspeakers I have heard. 

Marble Kits

We have never officially offered marble kits.  We have offered upgrades to people who own wood versions of the 7.0s and 9.0.  The problem has been we simply could not meet demand for the orders we had.   Now that we have Synthetic Marble versions of the 7.0 and 9.0s, some of the pressure has been taken off of our marble production.  We are going to offer a very limited time offer for customers to purchase marble kit versions of the 7.0 and the 9.0.  We will make the 7.0 kit available at $1,000.00 and the marble 9.0 available for $1,200.00.   We only have about 10 pairs of each to offer.  Once these are gone, we won't be extending the offer.

The kit comes with everything required except the drivers.   All you need is an allen wrench to install the woofers and tweeters.  The cost for the drivers for the 7.0 are about $450.00.  The cost for the drivers for the 9.0 are about $1,000.00.

While installing the drivers is not complicated, please remember, these cabinets are very heavy.  We suggest using a very soft surface when working on marble loudspeakers.  If you want a list of companies selling Scanspeak drivers, you can check out the following outdated page.

Please don't hesitate.  Once these units are gone, it is unlikely we will make this offer again soon.

Synthetic Marble 7.0 and 9.0

The SM 9.0 sounds identical to the nOrh 9.0. The crossover, wiring and drivers are all the same. Even the look is nearly the same. Some people will certainly want to purchase real marble. Other people will choose to save the difference and buy the less expensive synthetic marble version.

We are also announcing the Synthetic Marble version of the 7.0. The original wood 7.0 sold for $1,400 and was praised as a fantastic value.  The Synthetic marble sounds much better than the wood version. We used to offer an upgrade to the Scanspeak 9700 tweeter.  We charged $200 for this upgrade.  When we went to marble, all 7.0s were shipped with 9700 tweeters. If anyone still has a pair of wood 7.0s, they can upgrade them to either the real marble or the synthetic marble. Please write for details.

The introductory price for the SM 9.0 is $2000.00 shipped. We are offering the SM 7.0s at an introductory price of $1,500.

There are many people who will still prefer the quality of real marble.  For those, we will continue to manufacture the real marble loudspeakers as long as it is practical.  For those who are primarily interested in the sound the SM 9.0 and SM 7.0 offer the same sonic quality for less money. The SM 9.0s are available in all the same colors as our other synthetic marble loudspeakers.

Mixing and matching nOrh products

Repeated from the past couple of months are photos showing how nOrh has color coordinated our products. You can now mix real marble, synthetic marble and ceramics as all the colors are designed to coordinate.

Green (Enlarge)

New Opportunity for Investors and Partners

As many here know, my background is computers.  I worked in the computer industry for 20 years prior to starting nOrh Loudspeakers. Knowing how to use computers effectively and the basic engineering that goes with it has allowed me to quickly come up to speed on designing computers.  We use computers to design our cabinets. We use computers to simulate our circuits. We use computers to test our loudspeakers and we use computers to do our styling.

I have started a new company called NorhTec. NorhTec will try to do for computers what nOrh has done for audio--shake up the industry.  There are many things that are wrong with today's computers.  They use up too much power. They are too noisy. They take up too much space and they cost too much.  

For months, Curt Wishman, our staff and I have been studying how to make computers that are lighter, more energy efficient and take up less space and cost less. The Microservers we will build are an extreme example.  These will be ultra small computers that use up very little power for special applications such as military, police, security, embedded and mobile applications.

We are also working on computers that are designed for everyone else.  

Why are all computers noisy?

Many computers today, dominate the desk. They use up hundreds of watt of energy--pouring out heat through their noisy fans.  Those of us that are forced to sit in front of computers all day long are forced to listen to swishhhhhhhh all day long while fans try to circulate enough air to cool down the power supply and the components in the computer.

I have owned many computers in my life. I built my first one. It was a Motorola 6802 based computer with 4K of memory and Tiny basic. I had to program it using Octal  codes.  I graduated to an Atari 800 -- spending $600 on a Percom floppy disk drive.  Because of my Geek nature, I gravitated to Unix and Linux .  I learned all that I could about these operating systems.  Played with them when I wanted to play and then went back to Microsoft when I had to do work.

I was never happy with the stability of Microsoft's operating systems until Microsoft Windows 2000 came out.  Microsoft 2000 had the stability I needed.  There were two drawbacks to Microsoft 2000. The first was that because it was designed exclusively as a business operating system, it was more expensive than Windows 98 or Windows ME.  The second was that it supported less hardware options than Windows 98 or Windows ME.  It could sometimes be frustrating finding support for hardware.

Microsoft Windows XP works best on new computers

When XP came out, I was initially very skeptical.  I am now a believer.  I believe that Microsoft XP is the best desktop operating system I have worked with.  It has all the stability of Windows 2000.  I believe that in some areas, it is even more stable.  Microsoft XP is also more compatible than Windows 2000 as it provides a compatibility mode to run existing software.  You can define the version of Windows you want to emulate, define the resolution and define the number of colors. This is ideal for people running games.  XP is also better suited for people who have a desire to use MS DOS applications.  For example, you can format a bootable floppy using XP.

XP provides more integrated features.  Without adding any software, you can use .zip files.  XP has integrated CD-R burning. It also provides the best interface for priting images I have seen.  You can rotate your files, select how you want them to print and print them--right from the OS.

Microsoft XP is available in two versions.  I have tried both.  What amazes me is how complete the Home version is.  It has all the stability of the Professional version for much less money.  I have successfully networked computers using both the Home version and the Professional version.  I had no problems combining Linux and XP systems on the same network.  In fact, it was no problem allowing Linux systems to access printers on the XP system.

If there is a disadvantage to Microsoft XP it is that you might need to buy new hardware to run it.  All these features require more disk space and more memory. Unlike past versions of Microsoft, applications actually seem to run faster using Microsoft XP.  

I have run XP on my aging laptop that is a Pentium II 300. The perforamnce is the same as when I was using Windows ME.  I did upgrade the RAM from 64 to 192 MB and I upgraded the disk from  6.5 GB to 20 GB.  

I have set up a lab with 10 computers running everything from Free BSD, QNX, Solaris x86, Windows 98 and Windows XP.  Basically, I have been on a crash project to form a team of people who are the smartest people on using computers to solve real problems.  I want people with an open mind. I want people who are willing to suggest something "outside the box" if it is a better solution.

We have succeeded in creating a computer that runs at 800 Mhz but doesn't require a fan.  What that means is that we have developed a completely quiet computer (except for the disk drive when it operates).  Even so, we have selected an ultra quiet disk drive so even it is not as noisy as most disk drives.

Most computers are too loud, too hot, too big, too complicated and too expensive

The computer that we had been working on is smaller, uses less energy, produces less noise and generates less heat than most computers.  This computer is smaller than even the typical Micro ATX or Flex ATX computers.  This computer will be an ideal computer for multimedia. It has a TV output so you can use the computer as a silent DVD player. We have even integrated a SPDIF output so you can output the audio into your standard processor.  The unit will come standard with a DVD, 256 MB RAM 20 GB of disk.  The system will include audio, 10/100 BaseT, TV and SVHS output, integrated AGP video, 2 or 4 USB, RS232, printer port, game port, keyboard and mouse.  While pricing is not final, we estimate a selling price of about $495.00 USD.  

Artistic concept of the upcoming NorhTec Microserver, Server Edition.
The NorhTec Microserver is the first self-contained server featuring a PC/104 bus.

I started nOrh Loudspeakers with no intention of making money on the project. I wanted to preserve handicrafts and create jobs. Each time a customer writes and tells me how much they treasure our loudspeakers, I feel I have been compensated. My real career has been computers. I have worked in the computer field for 25 years. I worked for Sun Microsystems for 13 of those years.

I have helped to form a new company, NorhTec Microservers. This company is based out of Calgary, Canada. We will be building devices that run existing x86 applications but in a form factor small enough to allow computers to be used in locations that they could never be used before. The first product will be a general purpose server. It will be able to run Windows 9x, Windows 2000, Linux, Solaris x86, QNX, Vx, and BSD. It will have 2 x USB, 2 x 10/100BaseT, 2 x RS232, IrDA, VGA in, NTSC/PAL (in and out), audio (in and out) and PS/2 keyboard and mouse.

We believe that there is a huge market for this product particularly to build out the Internet into new locations. We believe that eventually, Internet access will be offered aboard airplanes, ships, trains busses and automobiles. For this to happen, smaller and more energy efficient servers will be required. There are a variety of solutions coming out that offer energy efficient designs. Many of these are based on RISC chips. While these solutions are fine for applications that are custom ported, these RISC solutions are not able to run the large library of applications that already exist on the x86 platform.

NorhTec Microservers can save substantially any time a network has to be rapidly deployed. NorhTec Microservers can be configured as firewall, gateways, application servers, video teleconferencing servers, bridges and laptop replacements. They key advantages of the NorhTec Microservers are:

1. Energy Efficient

Drawing only 5 Watts, our server will be very energy efficient. It will be possible to power microservers with a small battery or solar power.

Our devices will create new opportunities to help bridge the so-called digital divide and extend the Internet geographically (e.g. remote areas) as well as to expand the usefulness of mobile communications. They will make personal computers appear bulky, heavy and impractical. They will give professionals everything they need in one device and it will fit into a shirt pocket.

2. Small Footprint

As our servers are very compact, our customers will enjoy a significant reduction in the amount of floor space required (i.e. lower real estate leasing costs).  

3. Portable

As our server is very small, very light weight and very power-efficient, it will be completely portable. Portability also translates to rapidly deployable.

4. Cross Platform Compatibility

Our MicroServer GP will be capable of running Windows, Linux, Solaris x86, QNX, Vx or DOS. This will provide mass market potential as it allows our customers to choose from thousands of existing applications.

Our server will employ an Internet standards-based architecture that enables it to function with other network devices that operate on a variety of operating systems, including Windows NT and UNIX.  By being cross platform compatible, our server will enable our customers to realize the benefits of our products as part of their existing network infrastructure.

The compatibility of our products with various operating systems allows our users to run thousands of applications. It will be possible to install these applications through direct connection, over the Internet or through infrared transmission from another device. In addition, users will be able to synchronize with widely used desktop organizer software packages including Microsoft Outlook, and will be able to easily import personal data from other applications. The user can upgrade the functionality simply by adding standard PC peripherals.

5. Video Output Port

Our server will feature a video output port. This will allow users to browse web pages through their TV.  We plan to create a communications link between a Palm device and the server so that a person can use their Palm device to interact with the server.  The IrDA (i.e. Infrared) link will allow a person using a browser on their Palm device to navigate the web and input information into the Palm.  This will then be beamed to the server via IrDA and the output will be displayed on the TV screen.  In this way, a user can easily access Internet information through their ISP using the Palm as a remote control.

6. Attract and Support Application Developers

We intend to actively promote third-party development of software applications for our servers through a comprehensive partnership program with independent, open source software developers. We believe that our use of the Linux operating system is a fundamental element of this program, since an open source operating system better enables developers to create optimized and reliable, high value added applications.

7. Reliability

Our servers will be highly reliable. NorhTec Microservers will have a fail-safe feature that allows the server to always boot, even in the case of a hard disk drive failure. As the server will require ultra-low power, batteries will provide for several hours of emergency backup in case of power outages. The server will be designed to operate 24 hours a day without intervention.

8. Excellent Value Serving Multiple Customer Needs

We will design our products for quality, superior functionality and performance, all at low but fair price. This will allow us to gain acceptance in the worldwide office/consumer server market. Today’s personal electronic market is highly fragmented. Consumers are forced to purchase a number of different devices, which in fact, contain virtually identical hardware components. For example, consumers buy PDAs, some of which only store personal information and may perform minor computing tasks (e.g. templates).  Similarly, digital cameras capture photos but are inconvenient and expensive when it comes to storage of the digital images. Other single function devices include e-books, voice recorders, electronic games and MP3 players. Now laptops are perceived as large and not so portable and convenient. Business travelers, who carry along a laptop for presentations, experience frustrations with short battery life and slow boot-up times.

Our initial product, the MicroServer GP, will work in conjunction with, and will complement many devices by providing a file storage system. Our second product, our MicroServer PE, will be designed to perform most of the functions mentioned above - all in a single device - a device that could be with its user throughout the day.

9. Low Heat Dispersion

Operating at only 5 Watts, datacenter users will not require air conditioning as is needed in today’s server rooms. This will further reduce operating expenses (e.g. power for air conditioning).

10. No Cooling Fan and Vent

Preview of upcoming Panda Quiet PC from NorhTec

Our servers will not require an internal cooling fan. This feature offers significant advantages in certain market segments. For example, in hazardous or corrosive chemical environments such as found in the chemical processing, pulp and paper, and the oil and gas industries, our server will be more adaptable as it will be easily encapsulated. Our server could be used in certain applications (e.g. emergency rooms) where fans are not permitted or in applications where cooling fans must be eliminated in order to ensure system reliability. We expect our servers will find ready markets in many countries where humidity and salty (e.g. ocean spray) or dusty environments cause premature failure of computing equipment requiring fans.

11. Networking and Internet Access and Home Networking

Our MicroServer will be designed to allow anyone with a cable modem or DSL connection to add a server between their home network and the Internet connection. Alternatively, the server can access a modem directly to allow the user to access the Internet. The user can use this server as a router, firewall or gateway for other computers or Internet appliances in the home. Builders of new homes may wish to include our server as they do a kitchen appliance package (e.g. home automation, home security).

12. Ease of Installation and Use

Our server will be pre-configured and include a simple set-up procedure designed to require less than 15 minutes for deployment by a non-technical person. Our web-based user interface will be intuitive and easy-to-use.  It will shield the user from technical complexities and will minimize the need for a trained information technology employee.  The MicroServer may be administered from any Internet accessible location.

13. Building Blocks for Future Growth

As the amount of data traffic handled by our customer’s MicroServer GP increases, additional units can be added at little incremental cost.  This ability to easily add our servers (i.e. salability) provides an evolution plan that allows customers to develop their network infrastructure according to their needs.

14. Complete Integrated Solution

Artistic Concept of the upcoming personal edition

The personal edition of the Microserver will feature a 640 x 480 4 inch screen. It will be x86 compatible and run existing Windows 9x applications. Pictured below shows the extensive I/O offered by the NorhTec Personal Server. The Personal Server will have 2 x USB, IrDA, microphone, 1 serial port, 1 Ethernet port, 1 keyboard, 1 mouse and a VGA port. The NorhTec Personal Server will provide desktop functionality in a form factor similar to a PDA. It will be the first device that can replace a desktop, laptop and PDA.

Namphung holding mockup of a NorhTec Microserver, Personal Edition

Mockup of NorhTec Microserver (PE) with Japanese PCS phone

Our products will provide our customers with complete solutions that do not require additional hardware or software.  We will deliver customers the solutions they require, cost effectively.

NorhTec Microservers is looking for investors and partners. For additional information on NorhTec Microservers, please contact hambrook@apectec.com .

Sincerely,

Michael C. Barnes
President
nOrh Loudspeaker Company, Ltd.

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