''Thanks Jeff. The acquisition and integration of the Atmel assets into UniPixel is proceeding very favorably. In the short period of time since the acquisition of the assets, we have made substantial progress in combining the best attributes of Atmel's technology with our own technology. The result is a product that is thinner and it more cost-effective.

As a reminder, we have two very important projects taking place right now at the Colorado Springs fab. First, we are in the process of transferring base coat technology for our XTouch touchscreen product from the United Kingdom to Colorado Springs. This is technology that was acquired as part of the Atmel transition. The transfer of this technology will significantly reduce the cost of the base coat that we currently procure from our supplier in the UK. In addition to reduction of cost of this raw material, we will eliminate the cold storage shipping costs from the UK, which is substantial.''

''Secondly, we have transferred our Diamond Guard technology and manufacturing capacity to Colorado Springs from our lab in Texas for the purpose of integration with XTouch. Diamond Guard is a differentiated product that will enable OEM manufacturers to produce new computing devices that are thinner, lighter, and potentially less expensive. The machinery is currently installed and we are preparing to run the first prototype in Colorado Springs''

Q/A

''And then, the second important project is integrating Diamond Guard technology with XTouch for which again we have transferred the machine. It is up and running and we are doing the initial trials.''

Okay - Now I wouldn't have mentioned cell ph if I didn't hear it. I believe where the --- is in the written transcript; imvo the audio said 'cell' .. i'l hv go relisten.

''Okay. Could you also talk just a little bit more about that engineering services contract with the Diamond Guard? This is for a replacement of covered glass with this particular OEM, right?

--------------------------------------------------------------------------------

Jeff Hawthorne, UniPixel, Inc. - President, CEO [12]

--------------------------------------------------------------------------------

That's correct. So this is --- the application would be covered glass replacement for mobile device applications. We are working on coating acrylic sheet. We've successfully demonstrated the coating of that with the requisite hardness and scratch resistance. As a result of that project, they paid us $45,000 in nonrecurring engineering. And as I mentioned in the prepared remarks, we are now in the midst of going through preproduction trials right now.''

``````

But there's a chance that DG is in these testing batches they'r receiving; the base is something different.

e