Shares Repurchased. Over the course of fiscal year 2007 we’ve spent over $8.8 million repurchasing shares of the Company. To date we’ve acquired more than 18 million of our own shares under a program that began back in July of 2006 when the management and the Board of Directors felt that our stock was undervalued in the market and that this would be a prudent use of corporate funds. We’ve suspended share repurchases for a while because I no longer believe this is the best use of the company’s cash at this time. Although we still believe our shares are undervalued, I strongly believe we can put that money to better and more profitable use elsewhere.

Dividends. In a similar vein, Patriot Scientific has paid out three dividends over the past two years, most recently a $0.02/share dividend on April 9, 2007. As before, the management and the Board of Directors will reconsider the topic of dividends at regular intervals, but at this time I believe the Company’s assets can be put to better use creating a revenue stream that would be in addition to the proceeds that already flow from licensing.