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SIGNATURE DAVID BLIVIN
TITLE DIRECTOR
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</TABLE>
EXHIBIT 99.77B
3100 Smoketree Court, Suite 900 Telephone 919 878 5700
Raleigh, NC 27604-1054 Facsimile 919 876 5337
PRICE WATERHOUSE LLP [LOGO]
To the Board of Directors of
Southeast Interactive Technology Fund I, LLC
In planning and performing our audit of the financial statements of the
Southeast Interactive Technology Fund I, LLC (the "Fund") for the year ended
December 31, 1996, we considered its internal control structure, including
procedures for safegauarding securities, in order to determine our auditing
procedures for the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-SAR, and not to
provide assurance on the internal control structure.
The management of the Fund is responsible for establishing and maintaining an
internal control structure. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and
related costs of internal control structure policies and procedures. Two of
the objectives of an internal control structure are to provide management
with reasonable, but not absolute, assurance that assets are safeguarded
against loss from unauthorized use or disposition and that transactions are
executed in accordance with management's authorization and recorded properly
to permit preparation of financial statements in conformity with generally
accepted accounting principles.
Because of inherent limitations in any internal control structure, errors or
irregularities may occur and not be detected. Also, projection of any
evaluation of the structure to future periods is subject to the risk that it
may become inadequate because of changes in conditions or that the
effectiveness of the design and operations may deteriorate.
Our consideration of the internal control structure would not necessarily
disclose all matters in the internal control structure that might be material
weaknesses under standards established by the American Institute of Certified
Public Accountants. A material weakness is a condition in which the design or
operation of the specific internal control structure elements does not reduce
to a relatively low level the risk that errors or irregularities in amounts
that would be material in relation to the financial statements being audited
may occur and not be detected within a timely period by employees in the normal
course of performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for safeguarding
securities, that we consider to be material weaknesses as defined above as of
December 31, 1996.
<PAGE>
To the Board of Directors of
Southeast Interactive Technology Fund I, LLC
Page 2
February 27, 1997
This report is solely for the information and use of management and the
Securities and Exchange Commission.
/s/ Price Waterhouse LLP
