fter seven months of negotiations, JP Instruments, Inc. and Matronics have reached a mutually agreeable settlement. As many of you are aware, in February of this year, JP Instruments, Inc. alleged that Matronics' use of the trademark "FuelScan" with its aircraft fuel management system infringed upon JP Instruments, Inc's trademark "Scanner" for engine temperature indicators. JP Instruments, Inc. requested that Matronics discontinue the use of the "FuelScan" mark. After considerable negotiations, we have come to an agreement whereby JP Instruments, Inc. will purchase the FuelScan trademark and, if necessary, assist in paying the cost of Matronics' adoption of a new trademark. Matronics will continue to sell and market its aircraft fuel management system under the FuelScan trademark until a phase-out period of up to one year is completed. This will allow Matronics time to sell out its current stock of units marked with the FuelScan trademark and to develop a new trademark.

While negotiations have been a bit trying at times, I would like to say that I am satisfied with the outcome, and feel that JP Instruments, Inc. has treated Matronics and me fairly in this matter. Furthermore, I would encourage you to consider JP Instruments for your aircraft avionics in the future as they manufacture an excellent product line.

Finally, I would like to thank everyone from around the world for their support and consideration in this matter. I was quite moved by the support - both financial and in the form of letters and comments - that builders and pilots provided me and my company during this time. I never felt alone during this period, and so very much appreciated the encouragement from thousands of my friends! Thank you so very much!

Best regards, Matt Dralle President, Matronics