It is worth sharing some feedback received regarding Milestone #12. This feedback was through direct discussion during the LAB tour. I was not the only person to hear this, there were approximately 5-6 other people listening at the time.

As we all know the Full Documentation of POET / PET TDK's (Milestone #11) was completed many months ago and released under NDA's.

We asked for further elaboration on Milestone #12; what is it, what does it offer, how does in fit into the product development project management flow etc.

The small group was told that this is the simulation modelling TDK that will enable customers / interested parties to simulate their chip designs, quickly and at low cost.

We were advised that there are several customers that are extremely interested in what POET has to offer and that they are eagerly awaiting the simulation modelling TDK's.

The simulation capability will enable customers to fully model their own chip requirements, clearly demonstarting the performance characteristics of their designs; power efficiency, speed etc.

We were also advised that this milestone was "on track".

We were also told that when milestone #12 is completed and released to the interested customers, this would represent a huge step forward in the strategy to monetization.

ST