Dow Jones 8548.37 +94.12 10:45 am PST, May 2, 2003  NASDAQ 1495.46 +22.90 For info, visit access.smallcapnetwork.com S & P 500 926.60 +10.30 To be removed, please click here Russell 2000 405.88 +7.05 VOLUME 03: ISSUE 20  The Internet is dead. Long live the Internet. The second incarnation of the Internet-of which we are in the formative stages now-will be a lot easier to understand both for users and investors. The flotsam and jetsam has been jettisoned and we are left with great companies such as eBay, Amazon and the burgeoning content (music, news, video et al) delivery sector. Who would have thought that in a scant few years, there would be new companies that are already defining the standards for future success?  The acid test is that if the Internet was, or is, a flash in the server, how come email marketing is still the fastest growing business? While there's still lots of innovation out there, the next evolutionary shift in the Internet infrastructure will steal from the successes of online veterans-something we didn't have even three years ago. The current beachhead being established is the delivery of content such as music and video. The process has been developed against a grinding, litigious landscape where the participants were characterized more by missteps than business acumen. Still on the Internet Island One such survivor doing it right is RealNetworks (RNWK: NASDAQ). While the appetite for war news was a boon for Real, the true measure of the company's mettle was that it delivered massive amounts of content that customers required of it, virtually seamlessly. With a mix of free and paid content, Real instantly stepped up to deliver a five-fold increase in coverage during the Iraq conflict. As well, the company continued to establish new content, partnerships and technology that have driven it to the point it can boast more than a million subscribers. While earnings and revenue remain static, there is little doubt that the Seattle-based company is well on its way to becoming a serious and profitable player of the future Internet. The company is still losing a bit of money-2 cents per share for the first quarter of 2003-and expects lose a like amount for the next. Consensus earnings projections have the company posting 4-6 cents for fiscal 2004. Take that, Miss Ciccone If RNWK's acquisition of Listen.com closes in the second quarter of 2003, bringing Listen's Rhapsody music service into the fold, Real will have cemented its foothold in the sector. Coupled with Real's SuperPass, the combination of content delivery vehicles would be potent indeed. There is little doubt that subscription based music will be a hot commodity on the Internet. With Apple (NASDAQ: AAPL) joining the fray last week, the die is certainly cast. As the RNWK/Listen service will be cheaper than Apple's, look for a good, old-fashioned slugfest for market share-always beneficial for consumers. That said, the market for music is huge.  RNWK shares have risen about 20 percent to north of $5 a share since we first mentioned them a couple of months ago. Technically, the chart pattern shows a potential run to $6 before resistance is tested. Cel-Sci talks about SARS Speaking of moving up, another micro-cap seen here frequently is DC-based Cel-Sci (AMEX: CVM). In a letter to shareholders earlier this week, CEO Geert Kertsen responded to questions from shareholders and interested others about therapies for SARS and the company's plans in that regard with its immune modulating peptide Cel-1000. Kersten states:  " The ability of CEL- 1000 to enhance the innate immunity to viral infections should put it among the candidates for investigation for the treatment and prevention of SARS". He goes on, "Based on CEL-1000's activation of the innate and cellular immune responses and the wide scope of protection already seen with CEL-1000 in different diseases, we believe it to be important that CEL-1000 be tested for potential utility against the SARS virus. We are therefore evaluating the availability of public funds and/or other sources to pursue the testing of CEL-1000 in SARS".  The shares popped up briefly to 30 cents and have since settled back to 25 cents. The letter was written in response to a number of SARS-related questions that the company had received The myriad potential applications for Cel-Sci's initiatives mount. We will continue to monitor the bio-tech's progress for our readers. We are gratified by the number and quality of the emails we receive. 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