(IMO) A lot of probably necessary to repeat verbiage (from previous newsletters) in there, so here is a Concise Summary/Comment on *NEW* details or happenings for Patriot from RG’s Shareholder Letter #7 (dated Sept 23, 2008)

o PTSC’s Stock price – General market is showing weakness, PTSC cant control that, will just continue with business initiatives… stock buyback ongoing, strong balance sheet, no debt, favorable cash position and trading liquidity, now is opportunistic time to acquire assets to build long term shareholder value.

o Crossflo – Six (6) whole whopping paragraphs detailing, IMO, Crossflo’s potential and why it is the hub/center-point on PTSC’s transition plan as referenced in the PTSC power point pres on the website (slides 13,14,15,16, etc.). IMO, good read about what markets Crossflo is penetrating. PTSC will file audited financial statements for Crossflo’s historical periods in mid-October. RG’s hints that Crossflo should announce a 2nd Fusion Center contract shortly.

o 19.5% stake in Avot cost PTSC 1.3 million dollars. The “technical differentiation” RG has referred to in past SH letter’s is revealed by RG in that Avot software has “ability to access existing server-based video content and rapidly deliver it to disparate mobile devices.”

o RG provided further explanation/defense of the two motions put before shareholders for approval:

1) Increase authorized share from 500 mil to 600 mil Answer: Provide adequate currency value for Imperial to talk M&A, etc.

2) Increase option pool by 5 mil shares. A: PTSC headcount was 4 in January 2008, now is 25. Could be 45-50 by mid-2009. Need to have sufficient options shares available for existing and future employees. RG also addressed the shareholder proposal submitted to SEC for a ballot initiative.

o Nothing new on USPTO actions.

o Explained the difference in outstanding shares reported two different times and said they were basically timing related to Crossflo share issuance.

o Officer and directors are in blackout period for stock transactions due to company’s M & A activities. Blackout will remain at least through the next 10-Q in mid-Oct.

All in all, RG’s L-O-N-G-E-S-T letter to date, and substantive in many regards to Crossflo business, but no new hints or nuggets about our next acquisitions. I will provide more thoughts about what was not said (IMO) in a future post.

StormKing