July 1, 2004

“I appreciate the trust the Board has placed in me,” said Anandpura. “We are experiencing increasing business and licensing opportunities, particularly for customized solutions derived from our MicroOS™-based personal video and digital audio technology platforms. For this reason, we have obtained $1 million in subordinated note financing from accredited investors to grow both our San Diego and India-based engineering resources. However, we are only adding engineering resources as we generate new business thereby keeping overall expenditures to a minimum. With Fred and Steve Ferguson fully focused on business development, our management team is now better aligned to close further licensing agreements and support new and existing customers.”

What about that ``India-based engineering resources``...?

doni