Consolidated Statements of Net Cost

United States Patent and Trademark Office Consolidated Statements of Net Cost For the years ended September 30, 2008 and 2007 (Dollars in Thousands)   2008 2007 Strategic Goal 1: Optimize Patent Quality and Timeliness     Total Program Cost $ 1,655,656 $ 1,533,051 Total Program Earned Revenue   (1,624,993)   (1,506,994) Net Program Cost      30,663      26,057 Strategic Goal 2: Optimize Trademark Quality and Timeliness     Total Program Cost      192,587       204,527  Total Program Earned Revenue     (237,181)     (228,712) Net Program Income      (44,594)      (24,185) Strategic Goal 3: Improve Intellectual Property Protection and Enforcement Domestically and Abroad     Total Program Cost       44,347        32,080  Net Cost of Operations (Note 11)  $    30,416   $    33,952  Total Entity     Total Program Cost (Notes 12 and 13) $ 1,892,590 $ 1,769,658 Total Earned Revenue   (1,862,174)   (1,735,706) Net Cost of Operations (Note 11)  $    30,416   $    33,952  The accompanying notes are an integral part of these financial statements.

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