Exhibit 7
VIA TELEFAX
(303) 530-2866
September 13, 2000
Mr. Stephen Onody
President and CEO
Colorado MEDtech, Inc.
6175 Longbow Drive
Boulder, Colorado 80301
Dear Mr. Onody:
I believe that I understand the situation that you are faced with regarding
HEI's proposal to acquire Colorado MEDtech. I was faced with a similar
situation, as President of HEI, Inc., when Anthony Fant presented a change of
control scenario to HEI in 1998. I know that in the absence of a greater
understanding of each other's goals, objectives and ideas, it is very easy to
dismiss the other party's premise or misconstrue their motives. After the change
of control at HEI, I found that Anthony's motives were genuine, his objective
was (and is) to increase value to all shareholders, and moreover, his ideas
regarding strategies and tactics were very much the same as my own. Together,
Anthony and I, and a strong team of people at HEI, have created a strategic
growth plan that we are now successfully implementing.
As the President of HEI, Inc., someone who was in much the same position you are
now in, and as someone who has a great deal of confidence in the team of people
that Anthony and I have brought together, I ask you to step back from the
barrage of inputs from those who have other agendas and consider a path that
seeks to build value for CMED shareholders. I know that this is a very busy time
for you, but I'm confident that the time and effort you might devote to meeting
with us would be well spent and appreciated by all CMED shareholders. Please
feel free to call Anthony or me, and I look forward to the possibility of
meeting with you soon.
Sincerely,
/s/ Don Reynolds
Don Reynolds
President and COO
HEI, Inc.
Office: (952) 443-7070
