InterDigital Inc (IDCC)

[The Count]

Alley, re: management issues

I think there are only two areas where management and shareholders have different interests. They are management compensation (management wants it high, shareholders low) and communications (management would rather keep information to itself and investors would like just about everything disclosed daily). I believe those are the only two issues shareholders can properly raise.

If we don't think they are running the company properly in other areas, then we need to vote out board members and get in new professionals to run the company. To think that we can make better decisions than professionals with direct ongoing knowledge and experience on operational or legal matters with our limited knowledge is foolhardy.

With the exception of the two issues I mentioned, I can't say whether management is doing well or not. Once ERICY is decided, NOK Phase II rate is set and other licensees sign up or refuse, then I can judge their performance. On the other two issues (especially the compensation) I feel very strongly that they have pushed the envelope as far as they could. Even if IDCC is as successful as Mickey envisions, I will still feel that they will have diluted my holdings by far more than is warranted through excessive market price stock options. If they can get no licenses nor revenues for 2G and 3G and IDCC's whole patent portfolio is worthless, they will not have diluted my holdings much, but they will have sucked out millions of dollars of compensation for absolute failure.