Top Law Schools

I am 3L and currently a clerk at a midsized IP firm since the winter break 2012/13. They seem to really like me and my work is complimented however it is not clear whether or not an offer for entry level associate will be extended upon graduation. They want me to continue working there. In the mean time I was contacted by another mid-sized IP firm for an interview for summer associate. I have that interview tomorrow. It seems summer associates at this firm are extended offers. My question is what do I say to firm #2 at my interview about my current position? And what do I answer if they ask me if I will be extended an offer at my current firm? Or if they ask me why I haven't been extended an offer??

thanks