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` DGL Exhibit 1017
`Page 0001
`
`

`

`"Just lean forward," Kamen commands,so I do, and instantly I start rolling across the concreteright at
`
`him.
`
`"Now,stop," Kamen says. How? This thing has no brakes. "Just think about stopping." Staring into the
`middle distance, I conjure an imageofa red stop sign--andjust like that, Ginger and I cometo a halt.
`
`"Nowthink about backing up." Once again,I follow instructions, and soon I glide in reverse to whereI
`started. With a twist of the wrist, I pirouette in place, and no matter which wayI lean or howhard, Ginger
`refusesto let mefall over. What's going on hereis all perfectly explicable--the machine is sensing and
`reacting to subtle shifts in my balance--but for the momentI am slack-jawed,baffled. It was Arthur C.
`Clarke who famously observed that "any sufficiently advanced technology is indistinguishable from magic."
`By that standard, Gingeris advanced indeed.
`
`Since last January it has also been the tech world's most-speculated-aboutsecret. That was when a book
`proposal aboutGinger, a.k.a. "IT," got leaked to the website Inside.com. Kamen had been working on
`Ginger for more than a decade, and althoughthe author (with whomtheinventoris no longer
`collaborating) never revealed what Ginger was,his precis included over-the-top assessments from some of
`Silicon Valley's mightiest kingpins. As big a deal as the PC, said Steve Jobs; maybebigger than the Internet,
`said John Doerr, the venture capitalist behind Netscape, Amazon.com and now Ginger.
`
`In a heartbeat, hundredsofstories full of fevered theorizing gushed forth in the press. Ginger was a
`hydrogen-powered hovercraft. Or a magnetic antigravity device. Or, closer to the mark, a souped-up
`scooter. Even the reprobates at South Park got into the act, spoofing Gingerin a recent episode--the details
`of which, sadly, are unprintable in a family magazine.
`
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`This week the guessing game comesto an end as Kamenunveils his baby underits official name: Segway.
`Given the buildup, someare boundto be disappointed.("It won't beam you to Marsorturnlead into gold,"
`shrugs Kamen. "So sue me.") But there is no denying that the Segwayis an engineering marvel. Developed
`at a cost of more than $100 million, Kamen's vehicle is a complex bundle of hardware andsoftwarethat
`mimics the humanbody's ability to maintain its balance. Not only doesit have no brakes, it also has no
`engine, no throttle, no gearshift and no steering wheel. And it can carry the averageriderfora full day,
`nonstop, on onlyfive cents’ worthof electricity.
`
`The commercial ambitions of Kamenand his team are as advancedastheir technicalvirtuosity. By stealing
`a Slice of the $300 billion-plus transportation industry, Doerr predicts, the Segway Co.will be the fastest
`outfit in history to reach $1 billion in sales. To get there, the firm has erected a 77,000-sq.-ft. factory a few
`miles from its Manchester, N.H., headquartersthat will be capable of churning out 40,000 Segways a
`month bythe endof nextyear.
`
`DGL Exhibit 1017
`Page 0002
`
` DGL Exhibit 1017
`Page 0002
`
`

`

`Kamen's aspirations are even granderthan that. He believes the Segway "will be to the car what the car was
`to the horse and buggy." He imagines them everywhere: in parks and at Disneyland, on battlefields and
`factory floors, but especially on downtown sidewalks from Seattle to Shanghai. "Cars are great for going
`long distances," Kamensays, "but it makes nosenseatall for people in cities to use a 4,000-Ib. piece of
`metalto haul their 150-lb. asses around town."In the future he envisions, cars will be banished from urban
`
`centers to make room for millions of "empowered pedestrians"--empowered,naturally, by Kamen's
`brainchild.
`
`Kamen's dream of a Segway-saturated world won't cometrue overnight. In fact, ordinary folks won't be
`able to buy the machinesfor at least a year, when a consumer modelis expectedto go on sale for about
`$3,000. For now,thefirst customers to test the Segway will be deep-pocketed institutions such as the U.S.
`Postal Service and GeneralElectric, the National Parks Service and Amazon.com--institutions capable of
`shelling out about $8,000 apiece for industrial-strength models. And Kamen's dreamworld won't arrive at
`all unless he and his team can navigate the array of obstacles that are sure to be thrown up by competitors
`and evercautious regulators.
`
`Forthe past three months, Kamenhas allowed TIMEbehindtheveil of secrecy as he and his team grappled
`with the questionsthat they will confront--about everything from safety and pricing to the challenges of
`launching a productwith the country at war and the economyin recession. Someof their answers were
`smooth and assured;othersless polished. But one thing was clear. As Kamenseesit,all these issues will
`quickly fade if the question mostpeople ask about the Segway is "How doIget one?"
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`
`Fred and Ginger
`The world of technology has neverbeenshortof eccentrics and obsessives,of rich, brilliant oddballs with
`strange habits and stranger hobbies. But even in this crowd, Dean Kamenstandsout. The 50-year-old son
`of a comic-bookartist, he is a college dropout, a self-taught physicist and mechanical engineer with a
`handful of honorary doctorates, a multimillionaire who wearsthe sameoutfit for every occasion: blue
`jeans,a blue workshirt anda pair of Timberland boots. With the accentof his native Long Island, he
`speaks slowly, passionately--and endlessly. "If you ask Dean the time," Doerrchides, "he'll first explain the
`theory of general relativity, then how to build an atomic clock, and then, maybe,he'll tell you what timeit
`is."
`
`A bachelor, Kamen lives near Manchesterin a hexagonally shaped, 32,000-sq.-ft. house he designed.
`Outside, there's a giant wind turbine to generate power anda fully lighted baseball diamond; in the
`basement, a foundry and a machine shop. Kamen's vehicles include a Hummer, a Porsche and two
`helicopters--both of which he helped design and one of which he uses to commute to work each day. He
`also ownsanisland off the coast of Connecticut. He calls it North Dumpling, and he considersit a sovereign
`state. It has a flag, a navy, a currency (onebill has the value of pi) and a mutual nonaggression pact with
`the U.S., signed by Kamenandthefirst President Bush(as a joke, we think).
`
`DGL Exhibit 1017
`Page 0003
`
` DGL Exhibit 1017
`Page 0003
`
`

`

`But if Kamen's personality is half Willy Wonka,the otherhalf is closer to ThomasEdison. While he wasstill
`struggling in college, Kameninventedthefirst drug-infusion pump, which enabled doctorsto deliver
`steady, reliable dosesto patients. In the years that followed, he inventedthefirst portable insulin pump,
`the first portable dialysis machine andanarray of heart stents, one of which nowresidesinside Vice
`President Dick Cheney. This string of successes established Kamen's reputation, made him wealthy and
`turned DEKA Research--the R.-and-D. lab he founded nearly 20 years ago, in which he and 200 engineers
`workalong the banks of the MerrimackRiver--into a kind of Mecca for medical-device design.
`
`As Kamenandhis team were working on the IBOT,it dawned on them that they were onto something
`bigger. "Werealized we could build a device using very similar technology that could impact how everybody
`gets around,"he says. The IBot wasalso the source of Ginger's mysterious code name. "Watching the IBOT,
`weusedto say, 'Lookat that light, graceful robot, dancing upthestairs'--so westarted referring to it as
`Fred Upstairs, after Fred Astaire," Kamenrecalls. "After we built Fred, it was only natural to nameits
`smaller partner Ginger."
`
`With Ginger, as with the IBOT, Kamenexplains, "the big idea is to put a humanbeing into a system where
`the machineacts as an extension of your body." Onfirst inspection, balancing on Ginger seems only
`slightly more feasible than balancing on a barbell. But what Kamenis talking about is the way Ginger does
`the balancing for you. Lean forward, go forward; lean back, go back; turn by twisting yourwrist. The
`experience is the same going uphill, downhill or across any kind of terrain — evenice. It is nothinglike
`riding a bike or a motorcycle. Instead, in the words of Vern Loucks, the former chairman of Baxter
`International and a Segway board member,"it's like skiing without the snow."
`
`The seeds of Ginger were planted at DEKA by whathad previously been Kamen's best-known project: the
`IBOT wheelchair. Developed for and funded by Johnson & Johnson, the IBOT is Kamen's bid to "give the
`disabled the same kind of mobility the rest of us take for granted"--a six-wheel machine that goes up and
`downcurbs,cruises effortlessly through sandor gravel, and even climbsstairs. More amazingstill, the
`IBOTfeatures something called standing mode,in whichit rises up on its wheels andlifts its occupant to
`eye level while maintaining balance with suchstability that it can't be knocked over even by a violent shove.
`Kamengets annoyed whenthe IBOTis called a wheelchair.It is, he says, "the world's most sophisticated
`robot."
`
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`Exactly how the Segwayachievesthis effect isn't easy to explain; Kamen'sfirst stab at it involves a blizzard
`of equations. Eventually, though,he offers this: "When you walk, you're really in what's called a controlled
`fall. You off-balance yourself, putting one foot in front of the other andfalling onto them over and over
`again. In the same way, when you use a Segway,there's a gyroscopethatacts like yourinnerear, a
`computerthatacts like your brain, motorsthat act like your muscles, wheels thatact like yourfeet.
`Suddenly, you feel like you have on a pair of magic sneakers,and instead offalling forward, you go sailing
`
`across the room."
`
`DGL Exhibit 1017
`Page 0004
`
` DGL Exhibit 1017
`Page 0004
`
`

`

`Pulling off this trick requires an unholy amount of computer power.In every Segway there are 10
`microprocessors cranking out three PCs' worth ofjuice. Also a cluster of aviation-grade gyros, an
`accelerometer, a bevy of sensors, two batteries and software so sophisticated it puts Microsoft to shame.If
`Kamengets irked whenthe IBOTis called a wheelchair, imagine his pique when--if--the Segwayis called a
`
`scooter.
`
`Fish and Bicycles
`The possibility that the segway will be viewed as simply a high-endtoy, a jet ski on wheels,is one of
`Kamen's greatest concerns, especially after Sept. 11. He wants his machinetakenseriously, as a serious
`solution to serious problems. That anxiety wasoneof the reasonshe andhis team decided to concentrate at
`first on major corporations, universities and governmentagencies--large, solid, established institutions--
`rather than dive straight into the consumer marketplace.
`
`Whethersuchinstitutions would embrace Segways, however, was an open question. Before last January's
`leak, Kamen had demoedhis invention only when absolutely necessary, or for luminaries such as Steve
`Jobs and Amazon CEO Jeff Bezos. After the leak, he became evenpickier. He entertained the Postmaster
`General, who waskeento putletter carriers on Segways, and the head of the National Parks Service, who
`wanted to do the same with park rangers andpolice. (Both are among Segway'sfirst customers.) Kamen
`also stirred up interest at the Departmentof Defense, which wasintrigued by the notion of giving Segways
`to special forces, and at Federal Express. But few other potential customers were allowed to pass through
`DEKA's tightly sealed doors.
`
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`A few weeksago,with the launch approaching, Kamenbeganto let someothers in. The Boston police
`departmentsenta clutch of cops to Manchester. Thecity of Atlanta sent a contingentof city planners. And
`Thanksgiving week, Kamentookhis act to California. In one jam-packeddayin Silicon Valley, he revealed
`the Segwayto officials from San Francisco International Airport, the California departmentof
`transportation,the city of Palo Alto, Stanford University and Cisco Systems CEO John Chambers.
`Especially gratifying to Kamen wasthe reaction of Andy Grove, the chairmanofIntel and, unlike so many
`Silicon Valley boosters, a bone-deep skeptic. Perched tentatively on the machine, the 65-year-old Grove
`wasrolling slowly along when Doerr ambled over and pushed him in the chest. When the Segway kept him
`from losing his balance, Grove emitted a distinctly un-Grove-like giggle. "The machineis gorgeous," he said
`later. "I'm no good at balancing; it would take me a hundredyears to learn to snowboard.This took meless
`than five minutes."
`
`I asked Grove whathe thoughtof the Segwayasa business. "The consumer marketis always harder," he
`said. "But when you think aboutit, the corporate marketis almost unlimited. If the Postal Service and
`FedEx deploythis for all their carriers, the company will be busyfor the next five years just keeping up with
`that demand."
`
`A patient entrepreneur would revel in that assessment. But Kamen is a man running short on patience. For
`him, conquering the corporate marketis merely a preludeto the battle to come. "The consumer marketis
`DGL Exhibit 1017
`Page 0005
`
` DGL Exhibit 1017
`Page 0005
`
`

`

`wherethe big moneyis," says Michael Schmertzler, a Credit Suisse First Boston managingdirector and,
`with Doerr, Segway's other majorfinancial backer. "But this is about more than money for Dean. Pardon
`the cliche, but he really does want to change the world."
`
`Kamenisn't so naive as to underestimate America's long-standing romancewith the automobile. ("I love
`cars too," he says. "Just not when I'm downtown.") Andheis well aware that uprooting the vast urban
`infrastructure that supports cars, from parking garagesto bridges and tunnels, won't happen soon. Which
`is why he haspinnedhis greatest hopes not on the U.S. but abroad,especially in the developing world. At a
`meeting with Jobs a year ago, the Apple co-founderproclaimed,in typically hyperbolic fashion, "If enough
`people see this machine, you won't have to convince them to architectcities aroundit;it'll just happen."
`
`Kamenagrees. "Most people in the developing world can't afford cars, and if they could, it would be a
`complete disaster," he says. "If you were building one of the new cities of China, would you do it the way we
`have? Wouldn't it make moresenseto build a mass-transit system around thecity and leave the central
`couple of square miles for pedestrians only?" Pedestrians and people riding Segways,thatis.
`
`With the Segway, Kamenplansto change the world by changing howcities are organized. To Kamen's way
`of thinking, the problem is the automobile. "Cities need carslike fish need bicycles," he says. Segways, he
`believes, are ideal for downtowntransportation. Unlike cars, they are cheap,clean,efficient, maneuverable.
`Unlike bicycles, they are designedspecifically to be pedestrian friendly. "A bike is too slow andlight to mix
`with trucksin the street but too large and fast to mix with pedestrians on the sidewalk," he argues. "Our
`machineis compatible with the sidewalk. If a Segway hits you,it's like being hit by another pedestrian." By
`traveling at three or four times walking speed, and thus turning what would have been a 30-minute walk
`into a 10-minute ride, Kamen contends, Segwayswill in effect shrink cities to the point wherecars "will not
`only be undesirable, but unnecessary."
`
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`"There's no question in my mind that we havethe right answer," he continues. "I would stake my
`reputation, my money and mytimeonthefact that 10 years from now,this will be the way manypeople in
`manyplaces get around.” Kamen pausesandsighs."If all we end up with are a few billion-dollar niche
`markets, that would be a disappointment.It's not like our goal wasjust to put the golf-cart industry out of
`business."
`
`RememberTucker?
`
`Oneof the hardest truths for any technologist to hearis that succ