notice rec'd (what the!!!)???, page-8

re: wins license fee, annual payments I believe that the announcement just in is very significant for GTG (despite the confidentiality surrounding the size of the license payment) for the following reasons:

1) Labcorp's close association with Applera (the last litigant contesting GTG's intellectual property) gives added significance to Labcorp's decision to buy a license. It would seem to amount to a capitulation that GTG is in the right and that it is more prudent to pay up than be punished by the court.

2) previous license fees have been in the range of US$300k - $800k each so it is unlikely that we are talking a peppercorn fee here. That annual payments will also be forthcoming adds credibilty to GTG's business model. Obviously the more major companies GTG can bring on board in this way, the greater the size of GTG's annual revenue stream and the greater the pressure that is brought to bear on remaining recalcitrants who contest GTG's intellectual property -of which only one (Applera) remains outstanding.

On the matter of confidentiality (raised by gtm in his/her post), I am not surprised by it. Labcorp would be acutely aware of how difficult its capitulation would be for one of its major suppliers and may have insisted on confidentiality to protect that business relationship. The above is purely speculation on my part as I am merely trying to read between the lines of the announcement and consider its implications. I would welcome any contrarian views or other interpretations.

Overall, I consider it another strong affirmation by the courts of GTG's intellectual property rights and a welcome boost to GTG's revenue prospects. Management announced late last year that it was "negotiating" (read, "arm-twisting") with more than 80 companies it believed to be in breach of GTG's licensing rights so I am optimistic that we should a stream of further, similar announcements in coming months.

I hold GTG

R/Gupper.