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Message: Papasimon...those questions you wanted annswered...

Papasimon...those questions you wanted annswered...

posted on Jan 23, 2009 05:04PM

Rick Goerner, Cliff Flowers and I reviewed the series of questions you submitted on behalf of another shareholder. The questions are more of an historical editorial commentary than a quest for information that can help provide a greater understanding of the current business and strategy, and that hampers our ability to respond in a meaningful fashion. Rick has provided an open forum for questions and has responded in as open and helpful a manner possible, as you know firsthand, having been one of the primary questioners on the conference call, and I have responded to legitimate questions to this email address.

Having said that, many of the underlying topics raised by the questioner have been addressed in past shareholder letters or the recent conference call. We recognize the challenging times and the concerns of long-time shareholders, but it would not be prudent to answer speculatively or beyond the facts that we have previously disclosed. I have given below brief references to previous responses, and would be happy to provide information that would clarify any of those responses, within SEC disclosure guidelines.

Best regards,

Angela Hartley

Investor Relations



To: Investor Relations
Subject: Questions from Germany

Mr. Goerner/Ms Hartley:

The following is a copy and paste of questions coming from a shareholder in Germany who could not take part in the CC…If you can, would you please respond back to me on his questions and I will get them to him….

From Papasimon on Agoracom…

“Offcourse I can put togehter a few questions for you and the board. Please excuse that due to time I can only put togehter a few one: Once I have time I am pleased to provide more questions.

1) Mr. Goerner, times are pretty bad right now. Not only environmentally but especially for PTSC Shareholders. Their money was flushed down the toilet in past months. We see Managers that fail expectations not getting bonuses or high salarys. Do you consider this? Are you willing to keep paing high salarys to more or less useless bod in those times? Don´t you think it would be a godd sing to cut salarys?

Board salary question was asked and responded to, at the shareholder meeting. Rationale for management salary is in the discussion of compensation in the annual proxy statement.

2) We have seen some particular small insider buyings. Believing you in your enthusiasm about PTSC shares and considering your high salary do you plan more buyings?

Management's future purchase of PTSC stock reflects personal financial decisions based on many factors. Purchases have been made in the past.

3) Many persons involved in recent PTSC buying transactions seem to have close relationships over years. Can you understand that considering high salarys for all those people some shareholders scratch their heads and believing that we are seeing a huge liquidation? Please dont get me wrong Mr. Goerner. But please notice that in my point of view a liquidation on the companys assets has started with paying dividends. Only half of the transferred money from dividends have ended up in my bank account due to taxes. Also please think a second about where all the money went? We collected mllions and the only money that is pretty much left is the money stuck in the student loans that are illiquid. I could also say that the illiquidity of those assets was the best that could have happended to shareholders otherwise I am sure it wouldn´t be left either.

Payment of dividends and the student loan assets were covered in the conference call.

4) MR. Goerner, I know you are not suppose to be held responsible for times and mistakes before you taking the seat. But please answer me the following: Supposely you were not responsible for the setllement with the Js. Would you also have been highly satisfied with the outcome like PRs were telling us?

The Company addressed this in previous letters and statements.

5) Is the regular and small shareholder like me ever going to know what really happened to our patents on water? Or is TPL and PTSC Management taking this secret to their funeral one day.I would like to know one day because I want to explain to my many friends and family why they have lost money in an investment I recommended.

We disclose as much as we know and are legally able to disclose.

6) I am kind of enthusiastic about the Crossfloacqusition on the one hand. But it is a venturecapital financing situation which is always some sort of gambling. Considering that MMP licenses are not going to be the main revenue stream for PTSC no more (this is what HP says) isn´t it quite risky to invest sahreholders money? Right now CAsh is king and wouldn´t it be more reasnable to invest in companies that have shown that their products are being profitable in the past?

Our rationale for purchasing Crossflo and the risks involved were fully disclosed at the time and have been discussed in several publicly available venues since then. Not sure what the HP reference is to.

7) Why did the owners of Crossflo sell the company? If they only needed money to fund operations and marekting efforts they could have given away parts of the compay I would think. But why 100 % ?”

Again, the rationale for Crossflo agreeing to the merger have been discussed and it goes to the strategic value of what PTSC is attempting to build rather than just achieving financing.


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