It appears the email I sent Mr. Flowers was answered and then redirected to Hawk for a response to me. If I'm reading the 1st paragraph correctly did they sell some of their holdings? I was hoping to get the specific dollar value currently in there possession. Are they referring to the ARS portfolio in general or their's specifically?

Hi Michael,

Your question has been forwarded to me for response.

There have been some developments already that have contributed to the liquidity of the auction rate investment portfolio. Because the investments are now yielding higher default rate of interest, we are seeing some action taken by the issuing state agencies (which are non-profit institutions and not prepared to operate at these higher debt yield levels) to redeem at face value, and restructure the financing for these obligations. Also, because the securities are part of the federal government's student loan initiative (FFELP) it has a level of visibility and sensitivity to incent the federal government to offer solutions to provide liquidity which has been in the news as of late. As you know as of the end of the quarter the Company continued to carry these investments at face value, and in general the news since then about the restoration of liquidity at full face value has been positive.

The Company certainly continues to evaluate the situation and will pursue all the appropriate accounting and disclosure obligations.

Regards,
Ken AuYeung, Hawk Associates Inc.

From: XXXXXX
Sent: Wednesday, April 16, 2008 7:01 AM
To: Clifford Flowers
Subject: Important Question--Cliff Flowers.

Good morning Mr. Flowers. I’m sure you’ve been bombarded of late with questions regarding the latest Q. I have two very simple questions related to public information that was available in the Q. I, along with several other investors, want to make sure we understand the information correctly and would appreciate your clarification. I want you to know your reply will be shared with others.

1) Would you please clarify the total amount of dollars PTSC currently has invested in Student Loan Auction Rate Securities? If the amount is now less than what appeared in the Q what per dollar value was it auctioned at?

2) If PTSC is still holding Auction Rate Securities have you done a “mark to market” evaluation? If so what is the current value per dollar? If the current value is less than the original amount invested, will the company be making any public announcements about the write down?