Nunchi®and microSignet™marketing - The Company modified its relationship with Handal & Associates ("Handal") to include the marketing and enforcement of the Company's Nunchi and microSignet patent portfolios. The Company's Flash-R litigation has aided in creating an awareness of its intellectual property among household named companies.

"We are working with Handal to identify potential licensees and also possible infringers of our Nunchi patents. We are excited about our microSignet security technology due to the increased awareness and need for new security solutions as a result of major corporate security breaches. There are many areas we believe microSignet offers a compelling enhanced security solution. Unlike other security solutions, microSignet utilizes the internal physical characteristics of semiconductor memories, to establish a 'fingerprint' which uniquely identifies a given piece of hardware, such as a smart phone or desktop computer, which can be used for device authentication, or to bind valuable content to a particular device. For a more complete description and video demonstration, we encourage you to please visit the microSignet webpage. We are excited about the industry trends we are seeing in the area of context awareness, and the need for more secure and user friendly online security solutions. We believe our Nunchi and microSignet technologies offer compelling solutions in these rapidly evolving areas," concluded Falk.