05/30/06
SHAREHOLDER ALERT

Flash Memory Patent Portfolio

The preliminary independent evaluations we have received to date on our flash memory-related patents and claims are encouraging, particularly on our #5,491,774 patent. Based on this progress, and with the assistance of outside parties, we are beginning an intensive three-month process to identify the products and companies that may be utilizing our intellectual property and attempt to determine a monetary value on our claims and patents as they relate to the revenues being generated by these products. This effort will also include preparing the agreements and materials necessary to begin approaching potential licensees of our patent portfolio. We expect to provide more details about this in June.