The mental exercise of re reading the CC transcript and understanding what is really being said to us is to be recommended to those, who like me, have the time to do so. My point today is to continue my drive to prove that the electrical side of POET still represents a key strand of PTI strategy my evidence is obtained by cherry picking what management said to us in the Operational Update.

First point is that whilst clearly there is a focus on VCSEL and OPTICS, The stated strategy below, at point three, talks about leveraging existing development and validation of the n-FET, if so how can anyone say PET is dead?I am not sure what is meant by leveraging but surely is not n-FET part of PET? SV @ about 4048 states:

'we decided that the right strategy was:

1. Accelerate the transfer of technology and development out of the lab.

2. Focus on building commercially meaningful VCSEL and detectors.

3. Leverage the existing development and validation of the n-FET.

We believe this provides the quickest path to demonstrating groundbreaking prototypes'.

Bearing in mind SV made a cautionary statement that demonstrates he cannot reveal all particularly where commercial relationships are involved, this silence for me is part of the reason we cannot and should not accept that a deal with a big partners is dead as at least 50 of Scary's followers appear to agree whit that notion. The evidence is at2856 where our CEO explains the restrictions imposed on him not to reveal matters :

'Of course security laws and regulations preclude us from addressing subjects relating to the trading and value of the stock, as well as topics that may be construed as non-public information'.

Surely, this statement does not exclude prior negociations with a big customer but rather tendsconfirms it tomy mind.We all firmly believed this relationshop existed prior to the Operational Update and believe it is wrong to dismiss it simply because focus has changed.It could well be that PET and Synopsys software was sufficiently advanced for that customer to go it alone with a 40 engineer deal supported by PTI.

The next piece of evidence is the ongoing partnership with Synopsys which is considered as a critical need. Synopsis was dealing originally with PET though I undersatnd this now incudes POET. SV answers at 3636:

'While the VCSEL is the central theme of our first product, we still need the electronic devices to achieve true monolithic integration. To that end, understanding the behavior and modeling of our devices remains critical and thus our engagement with Synopsys continues'.

Finally we should take into account the following statement effectively saying that all that is said, is stated in a dynamic and changing environment that PIT has to exist in. SV @ 1524

While we are still refining our revenue model, we believe it will be a combination of product sales and licensing, of organic growth and acquisition, and of direct and indirect sales. You can expect us to focus first on productizing proprietary technology that has the potential to become an industry standard, and secondarily on licensing non-core solutions that can provide a steady stream of ancillary revenue. And you can expect us to penetrate and radiate within both enterprise customers and strategic partners. Indeed you can also expect us to go to market primarily with partners, both in sales and manufacturing.

sula