The Ottawa Citizen from Ottawa, Ontario, Canada • 47

toit END OF ERA Jane Belyea has listened to her final gripes.F3 UNPAID BILLS Ottawa Magazine creditors left empty handed.F3 Belyea Stock prices fell in both Toronto and New York on Thursday as investors awaited more signs of an economic recovery. Complete listsF4 CANADIAN: Bank of Canada 8.88 Banks' prime 9.75 U.S.: Fed funds 5.50 Banks' prime 8.50 For updated Canadian and U.S. stock market news and business reports, call 721-1990 and select from the following codes: 1910: Canadian stock report. 1950: American stock report. 1920: Canadian business news.

1925: American business news. Einisfhiiiss SECTION PAGES F1-F6 FOREIGN EXCHANGEF5 v. CONFERENCE BOARD REPORT Canada to post fastest economic growth in '92 Money and Markets Thursday's close rates for pushing the economy into a "made-in-Canada recession," is counting on falling rates this year to fuel the rebound. Ignoring this week's cut in U.S. rates, the Bank of Canada Thursday allowed only a marginal dip in its trend-setting bank rate to 8.88 per cent from 8.91.

The Conference Board admits there are risks to its forecast "a weaker than expected recovery in the United States, the possible reluctance of consumers to significantly increase spending, owing to high debt levels, and the continuing uncertainty about Canada's constitutional problems." Those risks aside and ignoring the bleak employment outlook, the board's forecast supports Prime Minister Brian Mulroney's boast in Toronto to Tory faithful that "we are going to bounce into the election in 1993 with prosperity all over." But the board is more optimistic than many, though not all, forecasters. Informetrica Ltd. expects growth in the 3.5 to 4.0 per cent range for next year, but another the WEFA Group expects growth of only 2.2 per cent. Several others expect growth of about three per cent Predicted percentage growth rates for next year, with changes for this year in brackets are: the U.S. 2.7 Japan 3.6 (4.0), France 2.4 (1.3), Germany 2.0 (2.7), Italy 2.5 (1.4), Britain 1.8 last this year.

But the Ottawa-based economic think-tank, which is funded by government, labor, business and consumer groups, warned there's still tough sledding ahead this year with the economy shrinking by 1.1 per cent. Canada's job-creation performance next year will also lag that of others of the Group of Seven, leaving it with the second highest unemployment rate at 10.1 per cent. The G-7 includes Japan, the United States, Britain, Germany, France and Italy. In contrast, Japan will enjoy the lowest jobless rate at 2.2 per cent and Italy the worst at 11.3. The board, which blamed rising interest By Eric Beauchesne Southam News Fuelled by falling interest rates, Canada's economic growth rate next year will leapfrog to first place, the Conference Board of Canada predicted Thursday.

At 3.6 per cent, Canada is expected to post the fastest annual rate of growth among major industrialized countries in 1992, tying with the three-year leader, Japan, the board said in its semi-annual World Outlook. That's better than the predicted 2.7 per cent average growth rate for industrial countries and an improvement from second From TO Big time Nepean artists turn doodlings into software art that may make them millions no a 4 A look at Ottawa booming software industry I TSE DOW 3013.86 VSE 1854.23 GOLD DOLLAR $357.25 U.S. $0.25 Tourism Authority's recommended U.S. exchange rate $1.1 1 A BOUT BUSINESS Air Canada loses $30M MONTREAL Air Canada has posted another loss in the second quarter, of $30 million, on top of a disastrous loss of $100 million in the first quarter, its biggest quarterly setback since it became a public company. The combined loss for the first half of $130 million, or $1.76 a share, compares with a small profit of $6 million, or eight cents a share, in the first half of 1990, the carrier reported Thursday.

Operating revenues in the second quarter declined by seven per cent to $908 million. Claude Taylor, chairman and president, said the "disappointing" results reflect the economic environment affecting all major air carriers in North America. Bombardier looking at de Havilland TORONTO The Financial Post reported Thursday that Montreal-based Bombardier may be getting serious about- joining a European consortium seeking to buy Boeing's de Havilland division. A de Havilland spokesman said a Bombardier team is visiting de Havilland's Toronto-area plant for a review expected to take several days, the Toronto-based financial newspaper reported. The spokesman could not say whether Bombardier's participation would force the pending deal between Boeing and Aerospatiale of France and Alenia of Italy to be renegotiated.

Baby food recalled TORONTO The HJ. Heinz Company of Canada is recalling 21 varieties of baby food after parents complained of finding hardened carrots that resembled slivers of wood in some jars. The cross-Canada recall announced Thursday involves all "Junior" and "Good 'N' Chunky Toddler" lines of food containing diced carrots. The move affects 21 of the company's 157 baby food varieties, the company said in a statement. Consumers can phone the company toll-free at 1 B00-565-2100.

Gandalf gets S6M bid Gandalf Technologies Inc. has signed a $6 million contract with the British post office to upgrade it's internal telephone communications network Gandalf will produce a printed circuit card to enhance its analog Starmaster network processor. The card will allow the post office to use the digital Integrated Services Digital Network (ISDN) without replacing the existing analog telephone PBXs in the internal communications network. (From Citizen news services) 3514.65 564.72 87.26 U.S. 0.09 jUsyHf--ii save their operating systems.

Soon orders for New Vision's first PC-based product, Presentation Task Force a library of some 1,700 images were coming from around the world. The pair moved out of Heney's basement and took on two new partners, Stanley Berneche, another graphic artist and Norpak alumnus, and Glenn Venis, who looks after marketing from Toronto. The company now makes jts home in a Nepean industrial parkf where everything from disk dupliqation to shrink wrapping is done ifl-house. New Vision has so-far 20.000 packages worldwide, and one of its drawing collections was recently rated best in its class by PC Magazine, the industry's leading publication. But New Vision's story took a dramatic turn recently when the company signed a with Lotus Development Corp.

of fcambridge, the world's secor1 largest software firm. Rich dec The fiveear deal with Lotus will generate, millions in royalties for New Vision, says Heney. Lotus'fs developer of Lotus 1-2-3, a spreadsheet program that has sold more than 14 million copies, making it the industry's most successful application program ever. Lotus has since expanded its product line to include most popular types of software and had revenues of $684 million last year. Heney won't reveal what New Vision's earnings have been, but says sales are more than $1 million a year.

"Wejre all doing extremely well. We were profitable long before this Lotus deal. Heney lifts one of the slick blue boxes containing the company's clip art collection. "This costs $20 to build and it sells for over $200. That's a very good margin." The phone rings.

A dealer in California wants 250 packages. A minute later, Barradas hangs up. 'That's a pretty small order," he says, estimating it at $30,000. The partners aren't worried about cutting themselves out of this kind of direct profits by licencing to Lotus. "We have limited resources here," says Barradas.

"There's only a handful of us. We could run around to all these international markets but nothing would get done here." Lotus will sell New Vision's library of images under the name of SmartP-ics. The clip art is compatible with Lotus's 1-2-3, Freelance Graphics and Ami Pro (a new wordprocessor). The 2,000 image version of SmartPics has a suggested list price of $299 U.S., while the 650 image version has a list price of $199 U.S. "SmartPics provides Lotus users By Dominique Lacasse cmzen high-techclogy writer Ihis is a story about computers, long-haired artists, sneaker-clad entrepreneurs and big money.

It starts in an Ottawa base ment and ends with a deal with one of the world's biggest software firms, a deal that will likely bring millions of dollars in royalties to a tiny Nepean company. It's a true story, even the part about the basement. We pick it up two years ago, when Peter Heney, president of New Vision Technologies and Tom Bar-radas, the firm's creative vice president, were working out of Heney's basement on Heather Way. Barradas, a graphic artist and graduate of Laurentian High School, drew pictures on a computer screen while Heney, "a frustrated artist" who studied commerce and art history at Carleton University, worked on finding a market for the images. Using an electronic easel and light pen, Barradas produced hundreds of computer drawings of people at work and at play.

He also drew buildings, flags, machines, animals, weapons and caricatures, anything he and Heney thought might find a market. This wasn't high art, mind you, but utilitarian, populist, comic-book style imagery. Something the pair, who had incorporated their enterprise as New Vision Technologies hoped would sell. Clip art library The idea was that the drawings now known in the industry as "clip art" could be sold as a library of computer images and used to dress up anything from office memos to slide presentations and advertisements. It was a potentially rich market that hadn't been invented yet.

The partners, both former employees of Norpak a Kanata firm specializing in videotext and teletext technology, were onto something. Desktop publishing and a trend towards more graphically oriented software was creating a huge appetite for computer images. PC users suddenly wanted more than words and bar charts from their computers, but most couldn't draw a stick man to Chris Mikula, Citizen Heney have struck it rich versions of Corel Draw. The company now includes clip art from more than 20 sources, including New Vision, in its latest version of the program. "This clip art business is a very competitive game and it's a credit to them that they've done so well.

A lot of guys have tried it and didn't get anywhere," says Charlesworth. The Lotus deal includes a $50,000 signing bonus and has guaranteed minimum returns. Royalty cheques will be mailed to Nepean every three months. "We could theoretically retire today on the minimum royalties," says Barradas. now Striking gold: Barradas, left, and with an extensive collection of professionally designed images that can be used to enhance any document or presentation," says Tim Davenport, vice president of Lotus's graphics division.

Because of the licencing deal, New Vision will stop distributing its Lotus clip art, but the company will continue to sell versions compatible with other firms' software. "It's amazing what they've done for such a small shop," says Mark Charlesworth, one of the men behind Corel Systems software hit, Corel Draw. Ottawa-based Corel included about 60 of New Visions' images in early in Your The edge that decision makers always wanted is Tomorrow's News nA ands Today Wherever you are in the world, you can stay informed with a subscription to First Edition. First Edition provides you with a two-page summary of major news stories and editorials delivered to you by fax or electronic mail wherever you are, Mondays through Fridays at 4 p.m. or more information call: or Fax (416) 445-3508 iJt OrlZJ' fd LXT Oir6'.