Just for a little further explanation (at least to the best of my (pitifully limited) knowledge):
A passive radiator works exactly as a port would. The PR has a resonant frequency, just like a port, where it will make its contribution. This resonant frequency is controlled via adding or removing mass to the passive driver.
The advantages over a standard ported bass reflex design are A: no port noise B: a smaller enclosure. The smaller enclosure is possible given that you don't have to route a (occasionally lengthy) port through the enclosure. The primary disadvantage of a passive radiator is cost.