December 19, 1994

To TeleGrafix Customers:

All of us at TeleGrafix Communications Inc. wish you Happy Holidays. We
hope 1994 has been great for you, and that 1995 will be even better.

For TeleGrafix, 1994 was a challenging year of transition. We enhanced our
management team, customer support and financial controls to strengthen our
growth as a cutting-edge interactive media company.

We expect 1995 to be an exciting year. We'll start out in new and expanded
California offices (our mailing address and telephones will remain the
same). In the spring, our East Coast office will open on CyberStreet, the
exciting new Internet business development zone in downtown Winchester,
Virginia. We're also planning a new R&D office in Indianapolis, under the
direction of VP/Chief Technology Officer Mark Hayton.

TeleGrafix will make news early in the new year. The New York Times Company
is launching an electronic newspaper in Gainesville, Florida based on our
RIPscrip online multimedia technology. Our BBS sysop advertising network
program is attracting great interest from the media and national
advertisers. And soon you'll hear about Project Apache, something we
expect will change the course of Internet development.

**Orders Now Accepted for RIPterm 2.0 Professional**

After many months of research and development on our advanced RIPscrip 2.0
technologies, we are now accepting pre-paid advance orders for our RIPterm
2.0 Professional information superhighway access software that will begin
shipping on January 16, 1995. The introductory price is $10 per copy, plus
applicable sales tax and shipping charges. After April 1, 1995 at 5:00 PM
Pacific Time, the software will be available to the public for a suggested
retail price of $29.95 per copy.

An order form follows this letter for your convenience, with information
detailing the special bargains available for those buying our Platinum,
Gold and Silver Sysop Packs. Due to heavy demand, orders will be filled
strictly on a first-come, first served basis. Orders may be placed with
Visa, MasterCard or American Express by phoning TeleGrafix at (714)
379-2131. Orders may be faxed to (714) 379-2132, or sent via Vector Sector
BBS at (714) 379-2133. Orders may be sent via the Internet to
rip.support@telegrafix.com.

A freeware "test drive" version of the software will be available
electronically via our Vector Sector BBS beginning February 1, 1995. This
demonstration version includes only limited features and functionality of
RIPterm 2.0 Professional.

***Sysops Can Profit By Reselling RIPterm 2.0 Professional***

For a limited time, Sysops may obtain attractive quantity discounts to
resell RIPterm 2.0 Professional to the general public. All Sysop
Distributor Contracts signed with TeleGrafix prior to 5:00 PM Pacific Time
April 1, 1995 will guarantee the following prices for orders shipped
through the following year, until February 1, 1996:

Quantity                        Discount                Unit Price

01   -  10 units                 0%                         $10.00
11   -  25 units                 5%                         $ 9.50
26   -  50 units                10%                         $ 9.00
51   - 100 units                12.5%                       $ 8.75
101  - 250 units                15%                         $ 8.50
251  - 500 units                20%                         $ 8.00
501  +     units                25%                         $ 7.50

Shipping charges and sales taxes are extra. Orders of 100 units or less
must be prepaid. Sysops may obtain zero-interest installment payment terms
and flexible delivery for orders over 100 copies.

Sysops may achieve greater economies by obtaining inexpensive site licenses
for specially customized versions of RIPterm 2.0 Professional. While site
licensing rates vary depending on the degree of customization involved and
number of users, systems with up to 5,000 users can qualify for rates as
low as $1.00 per user.

***Software to Include Sysop Advertising***

Sysops can inexpensively promote their bulletin board systems by taking
advantage of a unique "electronic yellow pages" advertising feature
available with RIPterm 2.0 Professional directory listings. BBS telephone
numbers will be listed in the software's dialing directory for an
advertising fee of only $100 each per 25,000 units of software shipped,
less than one cent per unit. BBS systems that are members of the
TeleGrafix BBS Advertising Network will be listed free of charge. Fifteen
premium listing positions, valued at $200 each per 25,000 units of
software shipped, are available on a first-come, first-served basis for
those who purchase our Platinum Sysop Pack.

Sysops, modem manufacturers, bulletin board system developers and others
may insert printed product literature or advertising with shipments of
RIPterm 2.0 Professional. Inserts are priced at $0.10 each, up to 100,000
units, and $0.09 thereafter. Inserts may range from post-card size up to a
double-sided 8.5" x 11" letter-sized sheet of paper. The minimum insertion
order is 10,000 units for $1,000.

THE DEADLINE FOR ADVERTISING PLACEMENT IN THE INAUGURAL RELEASE OF RIPterm
2.0 PROFESSIONAL IS 5:00 PM PACIFIC TIME ON JANUARY 6, 1994.

***RIPterm 2.0 Professional Is Revolutionary New Software***

Our programmers have been pushing the outer limits of cyberspace in their
efforts to develop the most advanced online technologies available. We
believe that RIPscrip 2.0 online multimedia technology is a miracle of
telecommunications engineering - a milestone breakthrough that represents
a sea change in the online communications industry.

Following is a summary of the technological capabilities of our software:

***RIPTERM 2.0 PROFESSIONAL FOR DOS FEATURES***

* Viewing of JPEG and GIF files while they rapidly download
* SuperVGA support; 16 color and 256 color; 640x350, 640x480,
  800x600, and 1024x768
* Auto-sensing support for 19 separate digitized audio boards
* Enhanced dialing directory for 1,000 entries, multiple phone
  numbers per entry
* Rock solid VT-102 support (developed in cooperation with Digital
  Equipment Corporation)
* Enhanced keystroke macro system, supporting extended 101-key
  keyboards
* Terminal macros, global macros and system-specific macros now
  supported
* A completely re-designed scrollback system allowing multi-megabyte
  scrollbacks
* A new one-on-one chat mode
* An extended external application system that now supports external
  protocols
* Completely re-designed CUA-compliant Graphical User Interface, easy
  for MS-Windows users
* CompuServe Quick B+ protocol
* Solid Zmodem file transfer support  that now supports sliding
  windows
* 32 bit, protected mode application; no more memory binds
* A Graphical Print Screen feature that prints to Epson, HP LaserJet
  and Postscript printers
* A Printer Log that supports output to Postscript printer devices

***RIPSCRIP 2.0 ONLINE MULTIMEDIA TECHNOLOGY FEATURES***

* Integrated JPEG and GIF image file formats for compressed photos
  JPEG and GIF images are displayed "on the fly" while downloading
  - New device independent bitmap (BMP) support for icons and simple
  bitmaps
* Digitized audio playback (real-time while RIPscrip  graphics are
  being displayed)
* Binary-to-Text encoding for completely self-contained RIPscrip
  files. A .RIP file can now contain encoded JPEG, GIF, WAV, BMP or
  any other type of file in addition to
* RIPscrip  commands for fully streaming data transmission
* Temporary file flag: the terminal can clean up after a host has
  disconnected so no space is wasted on the user's drive
* New Poly-Bezier drawing commands for extremely flexible
  curved/filled objects
* Radically enhanced text variable language
* Full resolution independence
* Full color palette independence
* Support for 24-bit color
* Environment context swapping for easy switching between different
  window-like objects
* The ability to create an extended True-Type style font system
  for full font extensibility and the ability to create borderless,
  filled graphical objects with two-tone filled patterns and line
  styles
* Enhanced drawing mode support (XOR, AND, NOT) on all graphics
  primitives (line,circle, arc, bezier, etc.) for more special effects
* Offscreen drawing ports and high-speed bit-blitting of graphics
  data. This supports panning and zooming of bitmaps for new effects.
* Multiple color palettes, clipboards/drawing ports, text windows,
  graphics style, button styles, environment configurations and data
  backup areas.

Later in 1995, we will release exciting new RIPaint 2.0 and RIPterm 2.0
programs that are compatible with Microsoft Windows and Apple Macintosh
platforms.

We encourage you to order RIPterm 2.0 Professional now. Again, orders will
be filled strictly on a first-come, first served basis. As initial
supplies of the software will be limited, order now to avoid delays.
Several attractive bundling packages are outlined on the attached order
form. Please fax or BBS your order to us to speed processing.

We appreciate your interest and continued support. TeleGrafix
Communications is here to serve you. If you have any questions or
comments, please do not hesitate to call me on my direct phone, (714)
379-2140. We look forward to doing business with you in 1995.

Best regards and happy holidays,

Pat Clawson,
President & Chief Executive Officer

TeleGrafix Communications Inc.
16458 Bolsa Chica #15
Huntington Beach, CA 92649

714/379-2131 Voice
714/379-2132 FAX
714/379-2133 BBS
Internet: rip.support@telegrafix.com

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