PCSV Shareholder Update

Greetings Shareholders!

As the CEO of PCS Edventures!com, Inc., I would like to provide shareholders with an update on our operations and address some of the frequent questions that we have received.  We appreciate feedback that we receive from shareholders and feel it is important to continue that dialogue.

Question:  What has 5W done for PCS to date and what are they doing  for PCS this quarter?

We are very excited to be working with 5W, and they have accomplished a lot so far in getting us placed in a number of publications, establishing PCS and our team as thought leaders in STEM education.   Placement of these articles is important to build more awareness of PCSV over time, and I am confident that this will pay off through awareness of our company and its product offerings.   This quarter, we continue to expect big things out of them due to the major media emphasis on drone sales for the holidays and the opportunity to present PCSV within the context of these messages.  PCSV has extensive experience in the drone space, and we have created curriculum and conducted a good deal of R&D on hardware, software, and  supply chain resources.  5W has put together an operational plan for PCS and is generating regular interview and exposure opportunities, as well as introducing us to potential customers.  What investors may not realize is that there is a turnaround time between arranging interviews, conducting interviews, drafting an article, clearing the article for release, and finally being published.  This process can take days, weeks, or even months.

We have received feedback that recent articles aren’t filled with red meat for investors, but the underlying reason is the context.  As I mentioned, we have made great strides to be positioned as intellectual leaders within the industry.  The leadership position within an industry leads to additional sales, product placement, institutional investing, governmental discussions, and other opportunities.  We are very proud to take part in the larger discussion, and while some exposure is meant specifically for investors, some is geared towards a different demographic.  I think the real take away is that it’s important to understand that there is usually not an immediate turnaround, but that 5W has built its reputation as top PR firm for a reason.

Question:  Why does PCS refuse to release earnings estimates?

This is also a good question that we have received recently.  While some companies release forward looking earnings projections, others do not.  These projections can potentially cause legal issues down the road, and we have decided to avoid unnecessary risk to the Company or its shareholders at this juncture.  One primary reason for this is the nature of some of our larger projects with clients such as the Kingdom of Saudi Arabia.  Since these projects represent a significant portion of our revenue in some quarters, they can significantly impact our reporting.  For example, government acceptance of deliverables can occasionally delay revenue recognition, which can seriously impact our earnings reports – even though the business is there, the associated earnings cannot be reported until all the t’s are crossed and I’s dotted.   Linked below is a Harvard Law Review article about the earnings/legal issues that we agree with. While I wish we could have that discussion and release earnings estimates, we will continue to take a conservative approach out of an abundance of caution.

http://corpgov.law.harvard.edu/2012/11/08/giving-good-guidance-what-every-public-company-should-know/

Question:  What is going on with Thrust UAV?

We have a lot of respect and admiration for the Thrust UAV team and all that they have accomplished.  Thrust is an important supply chain partner as well as an R&D partner in the drone space.  Curriculum that we developed, and the associated products that support that curriculum, were created in conjunction with Thrust and other, internal resources.     Thrust UAV drones are part of the project we are delivering in Saudi Arabia, and the quality of their product is outstanding.   We continue to use Thrust for other R&D projects and are in active business development discussions with them as there is a great deal of alignment between their skill sets and resources and our work in K12 robotics.

Question:  What is the status of the further up-listing to higher exchanges?

This is an exciting time for PCS.  We have seen the introduction of new products, the conversion of existing products into a digital format, the announcement of a strong sales channel with School Specialty, up-listing to the OTC QB exchange, and striving to form new opportunities for growth.

We are exploring many opportunities for growth and, as a publicly-held company, an obvious topic of discussion is charting a path off the OTC Markets Pink and on to a larger exchange.  I am excited about the opportunities we see before us as a company today, and I have a lot of confidence in our Board of Directors and our executive management team to make decisions in the best interests of PCSV shareholders in initiatives such as this.

Question:  We have seen this teaser page on your website.  What is Droneology?

Droneology is an exciting step forward in the PCSV business plan.  It is the first title we will be launching on our new digital learning platform that will become the electronic highway for hundreds of PCSV STEM titles.  The Droneology curriculum, our first title to release on the platform, is incredibly timely as it focuses on drone safety,  regulations, responsible behavior, and general operations information.  With over 1MM drones projected to be sold into the retail market this holiday season, the FAA is understandably concerned about responsible behavior.   Monday, the FAA announced that it has assembled a task force and will be requiring drone registration for consumers in some form – by mid December!  This has created a lot of controversy and drawn attention to a national issue that Droneology, as an educational application addressing this topic, can help address.   We have created an advisory board for Droneology with multiple representatives that include airport managers, industry representatives, educators, engineers, and air traffic controllers.  The curriculum, in digital development now, will be presented for endorsement to a number of regulatory bodies in November as well.

Droneology will be sold through direct purchase from our website as well as through resellers, drone manufacturers, and retail outlets.  We have generated a lot of positive buzz with manufacturers over Droneology and see it being integrated into packaging, sold as a standalone product, or included in product bundles.  It is our first digital title that we will be releasing for mobile learning, which we view as a platform for generating high profit margins on our digital content.   Additional information about Droneology will be released in the near future – watch for our media release with complete details.

About PCS Edventures!

PCS Edventures!.com, Inc. (OTCMKTS:PCSV) designs and delivers educational products and services to the K-12 market that develop 21st century skills. PCS programs emphasize hands-on experiences in Science, Technology, Engineering, Arts, and Math (STEAM) and have been deployed at over 7,000 sites in all 50 United States and 17 foreign countries. Additional information on our STEAM products is available at http://www.edventures.com.

PCS Edventures is headquartered in Boise, Idaho, and is listed on the OTC Markets platform under the symbol “PCSV.”

This update includes forward-looking statements. These forward-looking statements generally can be identified by phrases such as PCS Edventures, Inc. or its management “believes,” “expects,” “anticipates,” “foresees,” “forecasts,” “estimates” or other words or phrases of similar import. Similarly, statements herein that describe the Company’s business strategy, outlook, objectives, plans, intentions or goals also are forward-looking statements. All such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those in forward-looking statement.

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