Chairman's Notes of 2007 Annual Meeting of Shareholders

A significant part of the Alliacense informative slide presentation involved the revelation by Mac Leckrone that approximately 485 companies have been put on written notice that they are likely infringing on one or more patents in the MMP portfolio. Over 300 of those companies have revenues exceeding $1 billion per year, and over 220 of the companies put on notice have responded. Alliacense conducted 265 customer meetings starting in January of 2006 through the time of this presentation. They met with 81 companies, which resulted in 16 licenses being signed in the 22 industry sector licensing categories as of the time of this presentation. The presentation was very well received

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Letter from Turley 9-5-07

With our patent licensing activity running at the rate of about one new licensee every month, and with more than 300 potential licensees officially notified, we’ve got every reason for optimism. We’ve got many years of licensing deals and revenue ahead of us.