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 OMAHA, Neb., Sept. 14 /PRNewswire/ -- American Business Information, Inc. (NASDAQ: ABII) announced the formation of a new company, CD-ROM Technologies, Inc. The new company will help LIST OWNERS convert their databases to a CD-ROM format and capitalize on a rapidly growing demand for CD-ROM-based databases.
 According to industry estimates, there are between 4 and 5 million CD-ROM drives installed today, with annual growth rates estimated at 80 percent or more over the next several years. A broad cross section of database owners are already capitalizing on this "new media" to generate additional revenues by publishing and distributing their information on CD-ROM. There are 3,000 List Owners who sell their lists in the form of mailing labels and magnetic tapes, and CD-ROM has not been a viable option because they lack the sophisticated technology of this new media.
 "With the help of CD-ROM Technologies, Inc., these 3,000-plus List Owners will be catapulted into the 21st Century," stated Vin Gupta, CEO of American Business Information, Inc. "This revolutionary new media will expand their markets many folds because of ease-of-use and a high demand for databases on CD-ROM," explained Gupta. "CD-ROM products are the hottest growth product in the industry right now and are the fastest way to expand your revenues."
 CD-ROM Technologies, Inc. will respond to the needs of List Owners and other Database Owners by offering two unique and proprietary capabilities on CD-ROM:
 1. Installation of Clock on CD-ROM -- so that customers will not be able to use the product after one year. As a result they will have to renew their licenses every year and create recurring revenue for List Owners. Under the present mode of marketing, many customers buy the lists and keep on using it for years and it results in a reduced revenue for the List Owners.
 2. Metering Capabilities on CD-ROM -- a proprietary "metering device" which works just like a "postage meter." This technology will allow the List Owner to price the CD-ROM product at a low license fee and charge the customer for the usage of the database. Without the metering device, the List Owners had to charge a very high price for this CD-ROM, otherwise it would result in cannibalizing their revenue from the list and label sales. By having this metering device, it eliminates their problem.
 For example, if a company who owns a database of "one million Boat Owners" sells this database at 4 cents per name and if a customer was buying all one million names, they would pay this company $40,000 for one million names. If the same database was produced on CD-ROM, the List Owner could not afford to sell this database on CD-ROM for less than $40,000 due to the cannibalization of revenue from list sales. On the other hand, List Owners can't sell a database for $40,000 in CD-ROM because it is too high a price. If the same CD-ROM is published by CD-ROM Technologies, Inc., then the List Owner can offer the CD-ROM for a reasonable price of $2,000 per year license fee and then charge 20 cents a name for each record retrieved by the customer. More and more customers want the entire database on their PC and then retrieve the information as they need it. The metering device is controlled by a proprietary hardware key which fits into the printer port of the PC. Therefore, any tampering with this device is highly unlikely.
 CD-ROM Technologies, Inc. also offers a proprietary "compression" and "indexing" technique necessary to fit large lists into one CD-ROM. Most customers want their database on one disc. "Our proprietary authoring software and services result in the most efficient use of space in the CD-ROM, unlike other CD-ROM authoring systems. Our software handles even the most complex searches in seconds," reported Bill Chasse, vice president of the CD-ROM Division.
 This CD-ROM technology opens up huge new potential markets for the List Owners, where the customers want entire databases, but they use the database on a periodic basis and pay for the database as it is used. The same technology has been used by American Business Information, Inc. on its "10 Million Businesses on CD-ROM." This desktop marketing system has been widely accepted by medium to large businesses for their marketing needs. It allows them to use research and statistical functions which were only possible on mainframe computers. Now all of those functions can be conducted by their staff, right in their offices. Whenever they need to retrieve data, they can do so very easily. This technology will expand the existing markets for the database usage.
 -0- 9/14/93
 /CONTACT: Bill Chasse, vice president of CD-ROM Technologies, 402-593-4511/

CO: American Business Information, Inc.; CD-ROM Technologies, Inc. ST: Nebraska IN: CPR SU:

KH-AL -- MN017 -- 1982 09/14/93 17:56 EDT
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Publication:PR Newswire
Date:Sep 14, 1993
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