I'm in Houston this weekend to attend a family function. I've been visiting with my Father-in-law and soon to be Bro-Law this morning. I'm not the kind of person to spread misinformation so I thought it was important to expand on my conversation with him. After talking for several minutes this morning I finally told him the stock I referred to last weekend was on the OTC. I hadn't given him those details last weekend because quit frankly I was a little embarrassed. When I provided him with that detail this morning he wasn't nearly as optomistic about the companies duties to the shareholder. He explained that historically his company has done what others in his industry do, provide quarterly guidance in an attempt to protect themselves against possible lawsuits resulting from acquisations of insider information. The NDA's they sign allow them to talk about projected revenue, the cost of ramping up programs etc.. but do not allow specific customers to be mentioned nor the type of electronic program it entails. He said my problem was simple, it's the OTC. He went on to say the rules of every exchange are different. The more prestigious exchanges like the NYSE have much stricter guidelines for companies to comply with. He said look, who are you going to contact at the OTC to complain? The government knows this and pretty much stays away from the OTC and instead focuses on the NAS, NYSE and some degree AMEX. According to him it's know secret that the SEC could give a crap about companies listed on the OTC unless there's some gross misconduct that can be proven without a doubt. The government figures if your taking a chance on investing on the OTC than good luck to you. I really tried to nail him down on what he thinks about the whole NDA issue but he said now knowing the company resides on the OTC there's know telling. Typically when his company signs an NDA they consult their lawyers, the customer and the rules of the NYSE. That does make since to me now, considering PTSC did tell us they had been advised by their counsel and other sources on how to handle the information. I'm sure the "other sources" were the guidelines of the OTC. I am afraid we will never know exactly what has transpired.

Now I want to talk about something equally as important in the short term. I engaged my Bro-Law with further discussion of the ARS issue. When I told him they invested $15/million in a college bond ARS his response was less than encouraging. He asked me if they provided any "Mark to Market" information in the Q. I told him I wasn't sure and didn't really know what the ment. He explained that most public companies invested in ARS's are being forced to go out and value their current holdings. He has a customer that has over $100 million locked up and they cannot get it. There are only 2 investment banks even offering to buy college bond ARS's, JP Morgan and Goldman Sachs. They are currently paying approximately $.65 on the $1. The investment banks believes it will take 7 to 15 years for most of the college bond ARS's to regain the principle value. He said right now the investment banks are only reimbursing approximately $100K to $250K per auction and that's only with special approval from the top executives and only for their best customers. He asked me if anything had been reflected in our Retained Earnings? He estimated the current value of PTSC's could be around $10 million or less. I told him in the Q PTSC advised they should be able to get their money back in approximately 12 months. He asked me if they specified getting back "all" of their money or just referred to getting their money out of the ARS. The wording could mean all the difference in the world. The College ARS's are considered one of the most worthless of the current ARS vehicles. The college bond ARS's aren't like the municipal ARS's therefore the value of them have deteriated drastically. The yield on the college ARS is very low not to mention it caps at a certain percentage therefore there are virtually no buyers out there.

Brian could you possibly find out if they are in fact expecting to retain the entire investment or just partial? I just wanted to share because I do not want anyone to be mislead by anything I've said. More importantly remember I'm simply on a fact finding mission trying to protect my on investment. The opinions I have expressed are simply that. I've sought the advise of professionals and they have rendered an opinion for me. I don't want to imply wrong doing by PTSC, however, because of the lack of transparency we are being forced to ask serious questions. I won't be available for the remainder of the weekend. GLTA.