From 10K yr ending 5/31/2010

F-31

May 31, 2008(a)$50,283,00019 licenses (Humax-Asustek)

May 31, 2009(b)$29,392,00012 licenses (Roper-Vtech)

May 31, 2010(c)$14,279,0004 licenses (Caterpiller-Arcelik)

a,b,c = revenue recorded by PDS for each of those years

Avg. $2,684,400per license (a+b+c divided by 35 )

400 infringers on notice X $2,684,400 (avg. License fee) = $1,073,760,000 (avg. potential income)

Patents expire 2013?

Six year look back on infringers, collect money until 2019?

Must sign 40 license agreements per year 2010-2019

40 agreements X $2,684,400 = $107,376,000 per year

Based on licensing activity from 2008-2010 (before suit against TPL) steadily declining, is 40 licenses per year reality or fantasy?If reality, do you trust our current BoD/management to use this money wisely to grow PTSC beyond the life expectancy of the patents? I may not be looking at this correctly so corrections are welcome.