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.

This statement clearlyshows that 774 was the most important.

with the assistance of outside parties, we are beginning an intensive three-month process to identify the products and companies

Outside parties indicates not only PN, but probably one or more law firms.

preparing the agreements and materials necessary to begin approaching potential licensees

Preparing agreements, etc would have probably involved a law firm, perhaps DM since they were the firm that was hired to manage the infringement lawsuits and the fact that we can estimate that any firm would have taken plenty of time to evaluate the strength and applications of the patents.

I'm speculating that because of the time difference between the patent evaluation and the comment about 774 and the announcement of DM being retained, about 10 months between events that much of the evaluation involved DM.

Without taking sides about what specific comments or actual edig documents were made, it's not that meaningful to continue to debate the issue.

I have noticed posting errors and reported such, but to eliminate any possible confusion of a specific issue.