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Tim Leisman, President & CEO, Storability: Page 5 of 12

Leisman: Yeah, so we sold the managed services products, but they took the people with the product. And we sold the customer services business off, and the company that bought it took all the people.

NEXT: 'Are We Going to Shut the Doors?'

Byte and Switch: But I'm sure there were some concerns in the company over all of the changes you were making?

Leisman: Well, I think that everybody was very, very concerned that this thing was going to sink. We were burning almost $2 million a quarter with no revenue, almost. So the biggest concern the employees had was, "Are we going to shut the doors?" So we sent a lot of people who were working here before over to StorageTek, which is a nice place. They're pretty happy. So I think it was very well received. And we didn't take a long time to do this. It took four or five months, right? And we still have a relationship with all of these people, because it's our technology out there, right?

Byte and Switch: What about the people remaining with Storability?