Ralph E. and Mildred E. Galyen - Page 3

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                                  FINDINGS OF FACT                                    
               Some of the facts have been stipulated and are so found.               
          The stipulation of facts and the attached exhibits are                      
          incorporated herein by this reference. At the time they filed               
          the petition, petitioners resided in Colorado Springs, Colorado.            
               During the years at issue, petitioners subscribed to the               
          program, which was sold, sponsored, and administered by AdaCon              
          Advantage Co., Inc. (AdaCom2).  AdaCom is a Colorado corporation            
          headquartered in Colorado Springs, Colorado.  AdaCom developed a            
          program to enable deaf or hearing-impaired individuals to                   
          communicate with hearing individuals and/or businesses.                     
          Current Technology                                                          
               A text telephone (TTY) is an electronic device that allows a           
          person to type conversations over telephone lines.  TTYs do not             
          amplify sound or convert speech to text.                                    
               A TTY user can use the Telecommunications Relay Services               
          (TRS) to call a person using a standard telephone and vice versa.           
          TRS is a system by which a hearing person and a deaf person can             
          communicate over the telephone.  TRS employs a relay operator who           
          receives the text from the deaf person.  The relay operator then            
          reads the text to the hearing party.  When a hearing party                  
          provides a voice response, the relay operator types the text of             

               2  As the parties refer to the company as “AdaCom”, for                
          clarity we shall do the same.                                               

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Last modified: May 25, 2011