POET Technologies Inc.

Hi silentrunning.

In Pellegrino I the smartphone volume was listed as 188,100,000 annual units with a value creation average of $78.96 per unit; this would serve as a basis for royalty negotiation.

Note in the original report the 188,100,000 volume # was incorrectly stated as desktop processor units, but is actual referring to smartphones with the main 'Smartphone Market Key Valuation Assumptions' sections.

ST