Patriot Scientific Corp. Executes A Memorandum Of Understanding With A Major Semiconductor Company In China.

SAN DIEGO-October 31, 2002 - PTSC (Patriot Scientific Corp.) (OTCBB: PTSC) announced today the signing of a Memorandum of Understanding (MOU). with a major semiconductor company in China. The MOU is for the development of an initial System on Chip (SoC) design using the IGNITE™ microprocessor for a smart card application. The undisclosed company intends to quickly enter into a contract to have PTSC complete the initial SoC design.

Under the MOU, PTSC and the company will jointly develop a series of IGNITE™ based SoCs. The two parties have plans for several design phases in which PTSC will design advanced encryption SoCs for smart card applications and the complete design of a Java Card Virtual Machine (JVCM).

"This agreement is another example of how IGNITE is able to address the current market needs as well as anticipated requirements associated with innovative smart card solutions," said Jeff Wallin, PTSC CEO.