To All Friends of Patriot Scientific Corporation-

The summer months were turbulent ones for Patriot Scientific Corporation. We welcomed four new licensees but the fires in San Diego County disrupted and dislocated our staff. We held our regular shareholders' meeting and saw our long-term PR outreach efforts start to pay off.

• Our annual shareholders' meeting was in late October, as you know, amid trying circumstances. Considering the wildfires burning all around our offices and nearby cities we'd considered postponing the meeting but felt that wouldn't be fair to the shareholders who'd already begun their travel. In the end about 30-40 hardy shareholders attended, and we're thankful to them. Thanks also to those who sent us their support and best wishes. Two members of our staff had to evacuate their homes the night before the shareholders' meeting, as did my own son and a close family member of one of our directors. The rest of us kept suitcases and boxes of valuables ready by the front door. By the end of the week most of the danger had passed and we've all since been allowed back into our homes. We'd expected a larger crowd for the shareholders' luncheon, so Patriot donated the excess food to a local evacuation center.
• A quick note regarding the timing of the shareholders' meeting: It's been only six months since the last "annual" meeting but that's because we've been off-schedule for the past few years. October is the more traditional time for a company on our fiscal calendar as it falls shortly after the close of the fiscal year. I anticipate that our annual meetings will be held in the fall from now on.
• Cohen Independent Research has initiated coverage of Patriot Scientific. The Cohen report is impressively researched - it's 140 pages long - and we're pleased to say that their initial recommendation is Strong Buy. Cohen agrees that our intellectual-property holdings are valuable and have a large potential market.
• Our coverage in the business press is also growing. In the past few weeks Patriot Scientific has been featured in Electronic Business (twice), the San Diego Business Journal, the Wall Street Transcript, and WallSt.net (twice). An article in Industry Week is due out soon.
• Patriot Scientific was named to the "Fast 500" list of fastest-growing technology companies in America. We ranked #63 nationwide (beating out companies like Google, TiVo, and Salesforce.com) and #4 in the San Diego area. It's yet one more acknowledgement of Patriot's rapid growth and potential.
• Speaking of potential, I've said many times that Patriot is actively seeking to develop a second revenue stream. I want that business to be predictable, product-based, and profitable. Well, we're making good progress on that front. Throughout the summer months I've been meeting with several high-tech companies and, with our CFO and members of the board of directors, we've evaluated more than 30 different companies in different industries from small 3-person startups to established firms with over 100 employees. A few of the meetings were brief; others progressed quite well and we've started a second phase of deeper discussions with some of the better candidates. We're being very thorough in our evaluation, involving each of our board members in turn and tapping outside advisors when that's appropriate. Overall I'm very excited about the prospects for expanding Patriot and broadening our opportunities. I'll be sure to share progress reports as we move along.
• In October we welcomed Dutch electronics giant Philips into our list of patent licensees. Philips manufactures everything from televisions to home appliances and medical equipment. It's great to see such a big name join our group.
• Also in October Schneider Electric became our first "double licensee" after it acquired another company, American Power Conversion (APC). Since APC didn't have a license to our patent portfolio Schneider expanded its license to include APC's products.

With best regards;
-Jim Turley
President/CEO
Patriot Scientific Corporation

About Patriot Scientific

Patriot Scientific is a leading intellectual-property licensing company that develops, markets, and enables innovative technologies that satisfy the demands of fast-growing markets for wireless devices, smart cards, home appliances, network gateways, set-top boxes, entertainment technology, automotive telematics, biomedical devices, industrial controllers and more. Headquartered in Carlsbad, Calif., information about the company can be found at http://www.ptsc.com.

An investment profile on Patriot Scientific may be found at http://www.hawkassociates.com/ptscprofile.aspx. Copies of Patriot Scientific press releases, current price quotes, stock charts and other valuable information for investors may be found at http://www.hawkassociates.com and http://www.americanmicrocaps.com. To receive free e-mail notification of future releases for Patriot Scientific, sign up at http://www.hawkassociates.com/email.aspx.

CONTACTS:
Patriot Scientific Media Relations
John Radewagen
Vice President, Corporate Communications
The Hoffman Agency
408-975-3005
408-219-9199 (mobile)
jradewagen@hoffman.com www.hoffman.com

Patriot Scientific Investor Relations
Hawk Associates
Frank Hawkins or Ken AuYeung
(305) 451-1888
info@howassociates.com