P-Newco Formation

As part of our Master Agreement with The TPL Group, Patriot has formed a new entity named P-Newco that is jointly owned by Patriot and TPL Group in equal shares. Both TPL Group and Patriot have licensed certain of their intellectual property rights in the Patent Portfolio, consisting of 7 US patents, to P-Newco. That company has engaged TPL Group to commercialize the Patent Portfolio by convincing companies using our technology to pay for licenses for such usage. I am Patriot's representative on the three-member Board of Directors of P-Newco. That Board held its first organizational meeting last month and will meet at least monthly to review mandated reports from TPL Group regarding progress and results of their licensing activities that are already ongoing and have involved considerable travel. GLTAL RJ