As Duane Morris is handling our Flash-R™ patent portfolio monetization efforts on a full contingency basis, they determine the number of defendants and the timing of when suits are filed. If we were paying for Duane Morris' services on a normal attorney/client basis, then we would control this process. However, we believe it is in the Company's best interests to avail ourselves of Duane Morris' services under our contingent fee agreement. To date, this strategy has proven successful with six paid license and settlement agreements in the last eight months. If and when we have a successful Markman hearing and win a jury verdict, we expect associated license and settlement fees could be substantial. We anticipate further legal and licensing activity this year as well as issuing business and financial updates this quarter.

Best regards,

Robert Putnam,
Sr. Vice President