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Findings of a new report from Knowledge Research, a London‐based market research company, indicate that with the exception of Italy Europeans are taking a cautious approach to CD‐ROM. Reasons for this caution are put down to a fear that CD‐ROM will erode revenues from existing alternative publications and an unwillingness to commit to the large up‐front investments needed Hardwaremanufacturers in particular have shown little interest in entering the market. This may be changing though, the report says, as some ‘significant announcements are expected this year’.