TED TANNAS ELECTRONIC DISPLAYS, INC.

May 22, 2004

Subject: Licensing Of LCD Technology

To whom it may concern:

Tannas Electronic Displays is once again actively pursuing the licensing of my technology for resizing LCDs for avionics. Since your company has previously expressed interest in this subject, I am including you in this mailing. New revelations have occurred that make for improved opportunities for the licensing and application of my technology worldwide. These opportunities have occurred because of new developments I have made, and because of prior art that has been discovered during an interference involving my patents.

People have expressed confusion to me about the scope of BAE’s rights in this field. BAE has not informed me that it owns any U.S. patents covering resizing LCDs, nor am I aware of any. There is a patent interference pending before the U.S. Patent Office between the Tannas patents and an application owned by BAE Systems (Watson). During the interference, however, my patents remain in full force. A ruling on the first phase of the interference is expected soon, and the second phase is expected to last for about a year. Otherwise, BAE only has one issued patent in the United Kingdom (GB 2,330,423). BAE may have applications pending in other countries, but does not appear to have any other issued patents at this time.

Further, the newly discovered prior art is likely to impact the validity of BAE’s British patent. I have obtained a legal opinion that it is likely that the use of the LCD Technology would not infringe any valid claim of BAE’s UK patent. The newly discovered prior art should also limit the scope of any patents that BAE might obtain in other countries where BAE may be pursuing applications. Because of these new findings and new technology developed by TED, I am ready to again aggressively offer the licensing of my technology.

The LCD technology has been refined over the past several years. The resizing seal survives –70°C to +100°C. The performance of a resized COTS display is, for practical purposes, unaffected by the application of the TANNAS-SIZED™ LCD process. New, industrial-grade, COTS displays have most recently become available with improved properties ideally suited for the avionics application. These new displays can be easily resized for ARINC avionics sizes. The COTS displays have many attributes that are superior to custom-made avionics LCDs at approximately 1/10th the cost. I have attached my most recent press release and refer you to my website (www.Tannas.com) for data sheets on prototypes that I am now producing.

Please call TED for an appointment at your earliest convenience. TED will be exhibiting at the SID International Symposium in Seattle from May 25 through 27 and would be pleased to see you in private or in our SID booth #143.

Regards, L. E. Tannas, Jr., President

1426 East Dana Place, Orange, California, 92866
Tel: 714.633.7874 FAX: 714.633.4174 Cell: 714.342.7067