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PRODUCTS TO WATCH
By FREDERICK H. KATAYAMA

(FORTUNE Magazine) – JITTERLESS VIDEOS So that video you shot from the cable car looks as if you were there the day of the earthquake? To the rescue comes Panasonic's squarish PV-40 Palmcorder. Using ''fuzzy logic,'' the new technology that enables machines to make decisions based on information they pick up, the PV-40 electronically removes much of the amateurish jitter from home videos. Its digital circuitry quickly surveys the subjects in a scene, keys them to built-in reference points, and stores them in memory. When a sudden shake of the camera threatens to move the picture off those reference points, the circuitry shifts the picture horizontally, vertically, or diagonally to stabilize the image -- all in one- sixtieth of a second. Fuzzy logic doesn't take up much space -- the PV-40, which uses compact VHS tapes and offers all the standard amenities, is among the smallest camcorders on the market. It will go on sale in September for $1,300.

AUTOMATED POSTAGE SYSTEMS Up they go again. Come March, postage rates are expected to rise a record 19% on average. New machines, such as Pitney Bowes's PostEdge, can soften the blow by letting companies take advantage of Postal Service discounts. PostEdge optically scans zip codes and prints them on envelopes as bar codes. The mail bypasses the bar-coding operation at post offices and moves on for faster distribution. A company processing 200,000 first-class letters a day can save about $7,500 daily by bar coding and presorting. In addition, PostEdge's manifesting feature automatically catalogues mailings of material with mixed weights, earning further discounts. Price: roughly $75,000. For megamailers, Bell & Howell Phillipsburg offers the $450,000 JetStar 1000, which sorts 32,000 envelopes per hour and prints bar codes. It helps Empire Blue Cross & Blue Shield save $100,000 monthly in postage costs.

FAT-FREE CHEESE Eating light and lusting for cheese? First World Cheese's new Alpine Lace Lean N' Free mozzarella contains less than 0.5 grams of fat per ounce, compared with six to nine grams for regular cheese, and less then half the calories. Lean N' Free also comes in Cheddar and American. The secret: biotechnology -- a special blend of bacteria and enzymes that produces the flavor normally provided by fat. Or some of the flavor, anyway. The cheeses taste a bit rubbery in their solid state but can be quite satisfactory cooked -- say, on a burger, as a Welsh rabbit, or maybe as mozzarella in carrozza with plenty of anchovies. Price: $2 for a six-ounce package. Says Lee Haiken, editor-in-chief of Weight Watchers: ''This cheese seems to have all of the major items that people hungry for positive health implications are looking for today.'' Lipidless cream cheese could be next, but don't hold your breath for Brie.

COMFY CAP TOES Well-heeled people who crave the comfort of ergonomically engineered clunkers with Vibram soles can now get it in style. The Signature Collection from Rockport, handcrafted in Italy of calfskin, boasts polyurethane outer soles wrapped in leather except at the ball of the foot and the heel, where the polyurethane contacts the pavement. It absorbs shock and cushions the foot almost as well as a sneaker. The sole also lasts almost four times longer than standard leather. Available next month at $210, Signature comes in three styles: wing tip, cap toe, and kiltie tassel.