<NOTE G--FUTURE OPERATIONS
<The Company has been adversely affected by marketing and competitive
<conditions, including short shelf lives and high marketing expense for its
<computer games, poor results from commercial printing, and uncertainty
<regarding the future profitability of its start-up magazine. In view of
<these developments, the Company is exploring strategic business and
financial
<alternatives. These could include, among other things, possible business
<combinations, disposition of assets or divisions or other similar
<transactions. No decisions have been reached as to any such alternatives,
<and satisfactory arrangements are not assured.
If Chaosium purchased RQ, they could alleviate the concerns people have about
compatibility
and reissues (or re-reissues) of current publications. It would also
alleviate any concern about
copyright/trademark infringements between Chaosium and Avalon Hill.
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