EXHIBIT 99
VideoLan
Technologies, Inc.



May 01, 1997

Dear Shareholder:

During the first quarter of 1997, your company continued to make good progress
in developing its markets.  We have signed an additional ten resellers 
covering most key market areas of the United States.  In addition, we have 
received additional orders from several existing customers, such as Toronto 
Hospital and several military installations.

Our VL2000 is also undergoing initial evaluation at SouthWestern Bell and 
AT&T for potential internal network applications.  It is our hope that the 
success of these evaluations will lead to significant business opportunities 
for VideoLan.  We continue to pursue strategic relationships with other 
potential partners.

As a result of our continued efforts, the company registered revenue of 
$284,516.00 for the first quarter of 1997.  We anticipate increased activity 
in the second quarter as resellers begin to actively market our products.  I 
expect to more fully report our efforts at the annual shareholders meeting on 
July 24, 1997 from 10:00 a.m. to 12 noon at the Boston Harbor Rowes Wharf 
Hotel in Boston, MA.  Our annual report and proxy material is scheduled to 
be mailed to our shareholders on June 02, 1997.  More information is 
forthcoming.

Your continued support of your company and management are greatly appreciated.

Sincerely,


/s/ Jack Shirman
Jack Shirman
Chief Executive Officer

JS/kln