The Senate recently approved the House Policy Chairman Cox's Internet Non-Discrimination Act (H.R. 1552), a two-year extension of the existing Cox-Wyden moratorium on new, special, and discriminatory Internet taxes that was enacted in 1998.

Last April, Vice President Cheney called on Congress to extend the Internet tax moratorium, and to enact a permanent ban on all Internet access taxes before the year was out. H.R. 1552 extends the moratorium on multiple and discriminatory taxes, and bans access taxes for two more years. The legislation also extends the "Sense of the Congress" resolution that there should be no federal taxes on Internet access or electronic commerce, and that the United States work aggressively through the EU and WTO to keep electronic commerce free from tariffs and discriminatory taxes.

"Although I would have preferred to honor Vice President Cheney's wishes that access taxes be banned permanently, this is a fair compromise," said Chairman Cox. "The bottom line is that consumers know that for the next two years, the Internet will not be singled out for unfair tax treatment."

To contact Harry for more thoughts, please call Fulbright & Jaworski L.L.P. at 213.892.9200 or e-mail
hhathaway@fulbright.com

"I think the outlook for Southern California is very promising. While it is true that Southern California, as well as the country, has gone through an economic downturn over the last 18 months, the impact here in Southern California has been less dramatic than in Silicon Valley. Since the early 1990s Southern California has made significant strides in diversifying the economy. Also, the area has developed an active start-up / venture capital community which was virtually non-existent 10 years ago. The concentration of Universities with advanced technical programs, such as UCLA, USC, Cal Tech, UCSD, UCSB, and aerospace labs such as Hughes and Rockwell provide an engine for technological innovation. Although market conditions may currently be down, it is a perfect time for patient investors to work with management in building new companies." For more information on California Technology Ventures, contact Dorothy Pavloff at 626.403.6632 or e-mail Dorothy@CTVentures.com

SIX MONTH REAL ESTATE FORECAST FOR WEST L.A. MARKET
By: Larry S. Bloomer, V.P., Coldwell Banker Commercial WESTMAC

"We begin the first six months of 2002 with mixed signals. Although the Federal Reserve has reduced interest rates ten times since January 2001, last week, based on "brighter economic forecasts", the 30-Year Treasury rate jumped 25 Basis Points to 6.75%. This almost halted home refinancing and other loans in progress that were not locked in. Simultaneously to this bolstered economic forecast, other news is that bankruptcies rose 27% over last year's record high, and more are expected in 2002. Third Quarter Earnings reported on Wall Street showed a 21.7% drop from last year, the biggest decline since 1991. All of these measurements affect real estate. Westside office vacancies, including space to be sublet, have risen from single digit vacancy to 20% this year. Since supply exceeds demand, the market is now tenant driven. I believe lease rates and building prices will continue to erode through the middle of next year. The effect of higher unemployment, business closures and post 9-11 lower corporate earnings have not yet been fully realized. If the current lukewarm demand by tenants and buyers alike is any indication, additional slowing will force landlords and sellers to lower their pricing further to lure the few prospects that happen their way." For more information on real estate opportunities contact Larry Bloomer at 310.478.7700 .

3G EDGE NEXT WAVE OF WIRELESS TECHNOLOGY

Nokia and AT&T Wireless Services on November 1 completed the first live EDGEdata call using GSM/EDGE technology and a live GSM network environment. The call was made using the 1900 MHz Nokia UltraSite base station, prototype Nokia EDGE handsets and the release '99 standard that will be available for commercial deployment of GSM/EDGE. The call used EDGE 8-PSK modulation in both directions in the air interface. The data call was made using an EDGE handset connected with a laptop to the Internet for web browsing and streaming applications. Wireless carriers operating GSM and TDMA plan to deploy 3G EDGE in their networks next year. For more information on innovative services from AT&T Wireless please contact John White at 562.468.6843.