A bit of clarity as we work through the process....

Per our earlier e-mail exchange, as we explained in the 2008 shareholders meeting, tier one filings are being directed at companies we believe infringe mainly on key claims within the '774 patent whereas tier two cases are expected to be filed against companies we believe infringe on specific claims within the Flash-R™ patent portfolio pertaining to fundamental techniques in utilizing flash memory (embedded or removable). The type of companies that we expect to file against in tier two suits will be different from our tier one suits.

Best regards,

Robert Putnam,
Sr. Vice President