I had seen this before and just figured everyone had access to it.

Reuters Company Research

Patriot Scientific Corporation (PTSC) 24 Dec 2007

Performance Rating: Outperform

1997 2007
Share Price Summary Overview Percent Price Change PTSC S&P 500
Close Price on 12/24/07......................................... $0.70 Float (mil)........................................................... 385.100 Year to Date................................14.22............ 5.51
Absolute Price Change on 12/24/07.......................... 0.02 10 Day Average Volume (mil)................................... 2.901 One Year.....................................15.54............ 5.61
Percent Change..................................................... 2.79% 1 Day Volume Change on 12/24/07.....................-76.33% Two Years.................................796.15.......... 17.96
Off 52-Week High...............................................-25.64% Market Capitalization (mil).........................................$273 Three Years.............................. 773.75.......... 23.66
Over 52-Week Low............................................ 104.99% TTM Price/Earnings................................................. 19.49 Five Years............................... 1027.42.......... 68.20
Beta....................................................................... 2.374 Price/Earnings Current Fiscal Year Estimate...................NA Ten Years.................................... -0.14.......... 59.80

Table of Contents
Reuters Rating ....................................... 2 General Sentiment ..................................5 Footprints of Success ............................. 8
Getting Acquainted .................................3 Stock Price Rationale ..............................6
Share Price Trends .................................4 Expectations and Credibility .....................7

REUTERS COMPANY REPORT DISCLAIMER

This research report is provided for informational purposes only and on the condition that it will not form the sole basis for any investment decision. Reference to any company is not a recommendation
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This report was generated using a proprietary quantitative model that leverages widely accepted statistical methods and financial concepts to rank and rate a universe of more than 4700 US companies
and US-listed ADRs with a market capitalization greater than $50mm based on a series of financial attributes. These ratings are not intended as an indication of how an individual's investment will
perform. As used in this report, "Outperform" designates the companies that rank in the top 30% of companies covered by Reuters, "Neutral" designates the middle 40%, and the bottom 30% are
designated "Underperform". All ratings are relative to the universe of companies covered by Reuters and not to any specific benchmark.

© Reuters 2004. All rights reserved. This report may not be reproduced, modified, distributed or published without the prior written authorization of Reuters. Reuters and the sphere logo are the
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Patriot Scientific Corporation (OTC:PTSC) --Communications Equipment/Technology Reuters Company Research

Performance Rating: Outperform

Reuters ratings are based on a proprietary model that leverages widely accepted statistical methods and financial concepts to select attributes shown to be strong indicators of future
stock price performance and applies these to rank stocks along a normal distribution curve. Ranks for Fundamental Quality, Value Catch-up, Operational Trends and Technical Factors
are combined into a Composite Rating of Outperform, Neutral or Underperform.

Reuters Composite Rating Component Rating Component Weight

We cannot guarantee that each stock will perform

Types of investment criteria differ in how useful
in accordance with its rank. But we do believe that

they are for predicting future stock movement.
over the long term, stocks rated Outperform (30%

Based on our research, the Composite Rank
of all stocks we rate) will, in the aggregate,
OutperformUnder
Fundamental

Technical assumes these relative degrees of importance.

QualityFactors

OutperformNeutralUnder
outperform stocks rated Neutral (40% of all stocks
we rate), and that stocks rated Neutral will, in the
aggregate, outperform stocks rated Underperform
(30%). All analysis is based on publicly available
company financials, fundamental ratios, relative
rankings of financial data and ratios, and observed

security prices.

Underperform
Neutral
Outperform
PTSC shares are presently rated OUTPERFORM.

This rating measures the extent to which the share price adequately reflects improving or eroding fundamentals, and favors
shares whose prices have been slower to "catch up" to improving performance measures. TTM = Trailing Twelve Months.

Very Negative Negative Neutral Positive Very Positive

Fundamental Quality 36%
Technical Factors 27%
Operational Trends 13%
Value Catch-up 24%
Technical Factors: Outperform

This rating is based on analyses of share price
movements over a variety of time periods. We
compare performance characteristics of individual
stocks with those of all the others we rate.
Generally speaking, our goal is to favor up-trending
shares that have experienced recent corrections
and de-emphasize down-trending shares
experiencing uncharacteristic periods of strength.
Here is how PTSC shares performed during the

various periods we examined.
Price Change
Past 7 days
Past 30 days
Past 60 days
5.9%
18.5%
74.8%
Change for Past 180 Days: 23.7%

OutperformNeutralUnder
Under

Value

Operational

Catch-up

Trends

OutperformNeutral
"Under" = Underperform

No forecast is made for the stock market as a whole.
However, we do believe that whichever way the market
moves, stocks rated OUTPERFORM have, in the
aggregate, a higher probability of performing better than
most others.

Fundamental Quality Component: Outperform

This rating is based on characteristics traditionally associated with "good" companies. We focus on how each company
measures up against others, and give careful attention to recent improvement or slippage relative to other companies.
TTM = Trailing Twelve Months.

Very Negative Negative Neutral Positive Very Positive

TTM Return on Investment
Improvement in TTM Return on Investment
TTM Pretax Margin
Improvement in TTM Pretax Margin
Depreciation in Excess of Capital Spending Needs
Issuance/Repurchase of Common Shares
Common Shares Dilution
Presence/Absence of Unusual Income Items

Value Catch-up Component: Outperform

$0.57
$0.70
Open on 6/29/07 Close on 12/24/07

Price Catch-up with TTM Earnings
Price Catch-up to TTM Sales
Price Catch-up to TTM Free Cash Flow

Change Between 60 and 30 Days Ago: 47.5%

Price Catch-up to MRQ Book Value

Operational Trends Component: Neutral

$0.40
$0.59
This rating reflects how strong a company's recent Sales and EPS (reported as per GAAP) growth have been relative to other

companies we rate. MRQ = Most Recent Quarter. TTM = Trailing Twelve Months. Open on 10/29/07 Close on 11/26/07

Very Negative Negative Neutral Positive Very Positive

Most Recent Quarter EPS Growth

Change Between 180 and 60 Days Ago: -29.2%

Improvement in EPS Growth for Consecutive Quarters
Improvement in EPS Growth (MRQ vs. TTM)
Most Recent Quarter Sales Growth
Improvement in Sales Growth (MRQ vs. TTM)

$0.57 $0.40
Peer Comparison Open on 6/29/07 Close on 10/26/07

This section shows the comparison of key components between PTSC and several of its peers.

Composite Fundamental Technical Value Operational Change Between 180 and 90 Days Ago: -31.0%
Company Name (Ticker) Rating Quality Factors Catch-up Trends

Patriot Scienti... (PTSC) Outperform Outperform Outperform Outperform Neutral
ARM Holdings plc (ARM) NA NA NA NA NA
MIPS Technologies, Inc. (MIPS) Underperform Underperform Underperform Neutral Underperform
Transmeta Corporation (TMTA) Underperform Underperform Outperform Outperform Underperform

$0.57
$0.39
Open on 6/29/07 Close on 9/27/07

December 24, 2007 Page 2

Patriot Scientific Corporation (OTC:PTSC) --Communications Equipment/Technology Reuters Company Research

Getting Acquainted

Start your analysis by learning what the company does, how well it does it, where it stands relative to peers, and whether aspects of the corporate structure or capitalization are
bothersome to you.

Business Summary Contact Info

Patriot Scientific Corporation (Patriot Scientific) is an intellectual-property licensing company with patents covering Patriot Scientific Corporation is headquartered
the design of microprocessor chips. On March 27, 2007, the Company entered into a revolving line of credit with at:
Scripps Secured Data, Inc. (SSDI). The Company has developed microprocessors, which includes ShBoom, Ignite, 6183 Paseo Del Norte, Suite 180, Carlsbad,
and PSC-1000 families of chips, and for the Moore Microprocessor Patent (MMP) portfolio of intellectual property CA, 92011
surrounding them. The Company has 50% interest in Phoenix Digital Solutions, LLC (PDS). United States

(760) 547-2700
www.ptsc.com
Frank Hawkins, Investor Relations
Financial Trends

TTM = Trailing Twelve Months, * = Most Recent Quarter.

Historic Growth Rates
Fiscal Year Ending 5/31/03 5/31/04 5/31/05 5/31/06 5/31/07 TTM 3 Year 5 Year 10 Year
Sales (mil) $0.1 $0.1 $3.0 $10.3 $0.6 $1.1 103.34 12.22 (10.07)
EPS (GAAP) ($0.06) ($0.04) ($0.05) $0.07 $0.06 $0.04 NA NA NA
Dividends/Share $0.00 $0.00 $0.00 $0.06 $0.02 $0.02 NA NA NA
Book Value/Share ($0.05) ($0.03) ($0.03) $0.03 $0.05 * $0.04 NA NA 1.77
Tangible Book Value/Sh. ($0.05) ($0.03) ($0.03) $0.03 $0.05 * $0.04 NA NA 3.25
Cash Flow/Share ($0.05) ($0.04) ($0.05) $0.07 $0.06 $0.04 NA NA NA
Free Cash Flow/Share ($0.02) ($0.02) ($0.00) ($0.04) ($0.05) ($0.04) NA NA NA

Key Ratios

Historic Averages
Fiscal Year Ending 5/31/03 5/31/04 5/31/05 5/31/06 5/31/07 TTM 3 Year 5 Year 10 Year
% Sales Growth (65.5) (38.7) 3,825.0 245.6 (93.8) 247.9 1,325.6 774.5 375.2
% EPS Growth (20.8) (27.3) 14.7 (246.8) (17.5) (46.0) (83.2) (59.6) (26.6)
% Gross Margin 84.7 86.8 100.0 99.0 50.1 NA 83.0 84.1 42.5
% Operating Margin (1,967.7) (2,286.8) 3.0 33.6 (2,310.5) (1,206.0) (758.0) (1,305.7) (1,068.0)
% Tax Rate 0.0 0.0 0.0 0.0 31.2 30.8 10.4 6.2 3.1
% Return on Assets (758.9) (827.0) (452.3) 363.1 101.9 70.3 4.2 (314.6) (319.8)
% Return on Investment 1,108.3 1,550.5 (855.2) 258.5 109.6 97.7 (162.4) 434.3 (112.5)
% Return on Equity 163.9 108.4 162.3 1,598.3 152.9 100.1 637.8 437.1 (340.8)
Asset Turnover 0.2 0.1 1.3 1.3 0.0 0.1 0.9 0.6 0.5
Receivables Turnover 27.6 30.4 3.0 10.3 3.6 4.7 5.6 15.0 9.9
Inventory Turnover NM NM NA NM 13.9 NA NA NA NA

Equity Information Analyst Footnotes

Whether you are willing to accept companies that have or don't have major shareholders with controlling ownership blocks, Look for accounting changes, restructurings,
multiple classes of common, or convertible debt or preferred issues is a matter of individual preference. Look here for etc.which may affect how useful historic data is
anything along these lines that might make you more or less inclined to invest in this company. inassessing future company prospects.

Common Stock $.00001 Par, 8/07, 500M auth., 407,801,507 issd., less 18,429,167 shs. in Treas. @ $11.6M. Insiders control 3% 5/94, Co. issd. 10M Common shares for acquisition of
(includes 5.6M shs. in options). 12/96,1,272,068 shares issd. in pooling-of-interests with Metacomp, Inc. 5/92, 1-for-3 reverse stock ShBoom Chip technology. FY'96 and FY'96-'97 Q's are
split. restated for the 12/96 pooling-of-interests with

Metacomp, Inc.

Peer Comparison

This table gives an indication of how Patriot Scientific Corporation stands in key respects compared with companies in the Communications Equipment Industry

Current Fiscal Current Fiscal P/E Based on
Last Fiscal Year Year Projected Projected Year Projected Current Year EPS % Growth EPS % Growth
Company Name (Ticker) Revenue (mil) Revenue (mil) Price/Sales Operating EPS EPS Estimates Previous 5 Years Next 5 Years

Patriot Scienti... (PTSC) $0.6 NA NA $0.06 NA NA NA NA

ARM Holdings plc (ARM) NA NA NA NA NA NA NA NA
MIPS Technologies, Inc. (MIPS) $83.3 $125.7 1.8 $0.18 $0.41 12.9 NA 22.5
Transmeta Corporation (TMTA) $48.6 NA NA ($2.40) NA NA NA NA

December 24, 2007 Page 3

1 Year Price Chart with Bollinger Bands and Relative Strength
Technical analysts believe a narrowing of the bands suggests a significant price movement, up or down, will soon occur. Also, many say stocks that move outside the bands and then
back inside will soon move toward the opposite band. The Relative Strength Index (RSI) calculates the strength of the current price movement compared to other recent moves and
may signal when a trend is unsustainable. Technical analysts also believe RSI peaks/valleys forecast changes in share price trends.
0.40
0.50
0.60
0.70
0.80
$0.90
1.11
Average Volume
Jan' 07 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Volume (mil)
Relative Strength Indicator
50%
100%
Low: .34
High: .94
10 Year Price Chart (Monthly)
0.20
1.90
3.60
5.30
$7.00
0.02
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 Vol (bil)
5 Year Price Chart (Monthly)
0.40
0.80
1.20
1.60
$2.00
0.04
2003 2004 2005 2006 2007 Vol (bil)
6 Month Price Chart (Daily)
0.40
0.50
0.60
0.70
0.80
$0.90
1.02
Jul' 07 Aug Sep Oct Nov Dec Vol (mil)
1 Month Price Chart (Daily)
0.58
0.66
0.74
0.82
$0.90
1.86
Nov' 07 Dec Vol (mil)
Patriot Scientific Corporation (OTC:PTSC) -- Communications Equipment/Technology Reuters Company Research
Share Price Trends
Stock price trends depict the collective opinion of the investment community. You don't have to agree with consensus views but seeing how others feel can help you decide what to
look for as you go further in your analysis. Consider it similar to reading a review before seeing a movie.
December 24, 2007 Page 4

Patriot Scientific Corporation (OTC:PTSC) --Communications Equipment/Technology Reuters Company Research

General Sentiment

You can follow popular opinion or choose a contrarian's strategy. Either way, you should know whether the Street is bullish or bearish. Investor sentiment is typically positive when
the 50-day moving average is rising, especially if it's also above the 200-day moving average. Additionally, changes in price trend can be deemed more definitive if supported by

higher than normal volume.

52 Week Price History

200 Day Moving Average

$0.90

0.80

0.70

0.60

0.50
50 Day Moving Average 0.40
Volume (mil)

Average Volume

1.11
Jan' 07

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Price History

Calendar Year 1998 1999 2000 2001 2002 2003 2004 2005 2006

High Price 1.36 0.71 7.38 1.12 0.16 0.11 0.20 0.29 2.25
Low Price 0.26 0.25 0.13 0.10 0.03 0.01 0.03 0.03 0.01
Year End Price 0.33 0.55 0.51 0.13 0.06 0.05 0.08 0.09 0.61

HighP/E NA NA NA NA NA NA NA NA NA
LowP/E NANANANANANANANANA
Year End P/E NM NM NM NM NM NM NM NM 6.75
Dividend Yield NM NM NM NM NM NM NM NM 9.80

Price Performance Insider Trading

When stocks significantly beat or trail the S&P 500 or the industry, investors are looking more intently at company-specific Insider buying can be seen as bullish because,
matters than general-market factors. In the two percentile rank columns, a high "Rank in Industry" coupled with a low presumably, their company knowledge is superior.
"Industry Rank" could signify a hot stock in a cold industry. The reverse, is also noteworthy. However, insider sales are less reliable because

insiders may sell for a variety of reasons that have

Actual Percent vs. vs. Rank in Industry

nothing to do with their opinion of the stock.

Time Period Change Change S&P 500 Industry Industry Rank

4 Week 0.11 18.5% 11.4% 11.4%

91

53

In the last 6 months, there have been no insider

13 Week 0.27 62.9% 65.3% 64.0%

98

53

purchases, and there have been no insider sales.

26 Week 0.11 18.7% 18.8% 18.2%

88

49

Net Change (6 months) 0 mil

52 Week 0.10 16.5% 9.8% (1.1)%

73

62

6 Month Net Transactions 0

Year To Date 0.09 14.2% 8.3% (2.5)%

71

62

Institutional Ownership
BarChartKey

Rank Key It's worthwhile to know what institutions are doing

YTD R 4 Wk.

Worst R Best 1 R 100

simply because their stock positions can be so

large. In the short term, stocks will perform well if
Short Interest institutions are buying and perform poorly if

institutions are selling.

A high or increasing short interest implies that many investors expect the stock price to decline. You can treat that as a
warning. Or you can disagree with the crowd and buy stocks with high short interest in anticipation of a short squeeze (a rally

4 institutions own 0.0% of the 0.39 billion common

that occurs when short sellers rush to buy a stock, fearing losses they might incur if they wait too long). Prospects for a shares outstanding. This is lower than the average
squeeze are indicated by high readings in the "Days to Cover" column (which tells how many days it would take for all short institutional ownership of the Communications
interest positions to be covered if recent trading volume levels persist). The risk: The bears may be right. So research other Equipment Industry at 47.2%, and lower than the

aspects of the company. average of the S&P 500 as a whole which is 71.6%.
Month Shares % Outstanding Percent of Float Days to Cover Net Change (3 month) 0.0%
November 2007 NA NA NA Net Purchases (3 month) 0.02 mil

October NA NA NA Shares Purchased (3 month) 0.02 mil
September NA NA NA Shares Sold (3 month) 0.00 mil
August NA NA NA

December 24, 2007 Page 5

Patriot Scientific Corporation (OTC:PTSC) --Communications Equipment/Technology Reuters Company Research

Stock Price Rationale

Determine if the stock price is justified by: growth-based value, comparative value, liquid assets, or dividends. The better the company, (in terms of growth or quality), the higher the
valuation measures can be. And if valuation ratios are extremely low, double-check to see if the company appears excessively weak. In any case, you don't have to say yes to any
valuation measure -many buy shares based on other factors (e.g., growth). But if you do that, at least understand what you're doing and consider the risks.

Viewing Things In Context

Many people erroneously work with valuation ratios calculated based on numbers that aren't truly representative of a company's underlying sustainable financial characteristics. Thus
it's important to determine if today's sales and EPS are significantly depressed or elevated due to temporary factors such as business cycles. Higher ratios can be tolerated if sales and
EPS are temporarily depressed. But if the company is experiencing unsustainable boom conditions, seek lower ratios. GAAP = Generally Accepted Accounting Principles.

Fiscal Year Ending 5/31/01 5/31/02 5/31/03 5/31/04 5/31/05 5/31/06 5/31/07 5/31/08E 5/31/09E

Sales/Share $0.01 $0.01 $0.00 $0.00 $0.01 $0.02 $0.00 NA NA
Price/Sales NA NA 43.87 128.73 11.49 54.87 NM NA NA
EPS (GAAP) ($0.09) ($0.07) ($0.06) ($0.04) ($0.05) $0.07 $0.06 NA NA
P/E (GAAP) NA NA NM NM NM 19.73 8.92 NA NA
EPS (Normalized) ($0.09) ($0.07) ($0.06) ($0.04) ($0.05) $0.07 $0.06 NA NA
P/E (Normalized) NA NA NM NM NM 19.43 8.92 NA NA
Dividend Yield (%) NA NA 0.00 0.00 0.00 4.38 3.91 NA NA

Valuation Based On Growth

The faster a company grows, the higher its stock's P/E can be. Contrary to popular belief, PEG (P/E over Growth Rate) need not always be 1.00 or less. But all else being equal, lower is
better (and 3.00 is usually too high). Try to favor company PEGs that are lower than industry and market PEGs. In all cases, watch for very high growth estimates. If overly optimistic
projections get cut, PEG would wind up being higher. FY = Fiscal Year.

Price/EPS (Est.) for Current FY Price/EPS (Est.) for Next FY Long Term Growth Estimate Next FY P/E over LT Growth
Patriot Scientific Corporation NA NA NA NA
Communications Equipment 34.51 22.79 19.50 1.25
S&P 500 19.45 16.44 12.49 1.46

Comparative Valuation Ratios Dividends

Valuation below industry or S&P 500 averages can be attractive -unless the company is materially worse in terms of quality Dividend is the most classic basis for
growth prospects. Year-by-year trends in comparative valuations can give clues about company merit. Be especially on guard stockvaluation, and high dividend yields are
if comparative ratios are deteriorating over time. On the other hand, relatively low valuations that are moving toward the usuallydeemed preferable. Today, with many
averages might indicate that the market is tuning in to heretofore under-appreciated company merit. companiesreinvesting profits back into the
FY = Fiscal Year, TTM = Trailing Twelve Months, * = Most Recent Quarter. business, moderateor low yields can be accepted if
Patriot Scientific Corporation dividends growrapidly. The main risk is that poor

Price/
Earnings
19.49
8.92
19.73
NM
NM
performance willcause the dividend to be cut or

Price/

Price/
Book
* 18.36
9.96
46.33
(5.97)
(2.09)
Price/

Price/
Tang. Book
* 18.49
9.98
46.47
(5.91)
(2.05)
Price/Free
omitted. A very highpayout ratio is one warning

Sales

Cash Flow

Cash Flow

signal. Another is ayield that is very high relative to

Trailing 12 Months

241.18

17.30

NA industry peers.
FY Ending 5/31/07

NM

8.90

(9.49) TTM = Trailing Twelve Months.
FY Ending 5/31/06
54.87

19.69

(30.92)
FY Ending 5/31/05
11.49

(3.29)
(54.56)
FY Ending 5/31/04
128.73

(1.74)
(4.63) PTSC Industry
Current Dividend Yield 5.7% 1.2%
5 Yr. Avg. Dividend Yield 0.0% 0.5%

Bar Chart Key

5 Yr. Dividend Growth Rate NA 0.2%
2004 R TTM

TTM Payout Ratio 51.6% 8.3%
5 Yr. Average Payout Ratio 106.7% 6.7%

Communications Equipment

Price/
Earnings
26.86
27.35
23.06
33.45
47.52
Trailing 12 Months
FY Ending 2007
FY Ending 2006
FY Ending 2005
FY Ending 2004

Bar Chart Key

2004 R TTM

S&P 500

Price/
Earnings
20.80
23.06
20.11
23.50
25.48
Trailing 12 Months
FY Ending 2007
FY Ending 2006
FY Ending 2005
FY Ending 2004

Bar Chart Key

2004 R TTM

Price/
Sales

4.78

7.06

4.66

6.37

6.96

Price/
Sales

3.01

3.04

2.80

3.16

3.37

Price/
Book
* 3.56
5.21
3.99
5.39
4.59
Price/
Book
* 4.57
5.03
3.76
4.23
4.03
Price/
Cash Flow

23.71

20.64

19.49

26.01

37.40

Price/
Cash Flow

15.13

17.77

13.65

16.02

16.44

Price/
Tang. Book
* 6.65
6.37
4.12
4.41
5.36
Price/
Tang. Book
* 8.96
6.40
5.09
5.96
5.60
Price/Free
Cash Flow

35.53

39.52

27.40

35.88

25.45

Price/Free
Cash Flow

31.66

39.55

27.48

21.36

24.67

Liquid Assets

Get a general sense of the extent to which the
stockprice is offset by the presence of assets that
can beconverted to cash immediately or in the near
future. Often, these ratios will not be meaningful.
Most companies are valued as ongoing businesses,
rather than liquidation/buyout prospects. If you're
lookingat an especially troubled company, be aware
that seemingly liquid-asset windfalls can be
dissipatedby continuing operating losses and/or
shutdown costs.

Price to ... PTSC Industry

General Working Capital 19.8 12.7
(current assets minus current liabilities)

Net Working Capital 20.9 14.3
(current assets minus all liabilities)
Cash (& cash equivalents) 17.4 15.9
Cash minus total debt 17.4 14.7
Cash minus all liabilities 42.6 6.7

December 24, 2007 Page 6

Patriot Scientific Corporation (OTC:PTSC) --Communications Equipment/Technology Reuters Company Research

Expectations And Credibility

In theory, stock prices are based on the "present value" of expected future company cash flows. Therefore, we try to obtain accurate estimates of future financial performance. But
remember, these are just estimates. Since we cannot really know what will happen tomorrow, we evaluate estimates critically by seeking clues that help us distinguish between
normal versus excessive degrees of uncertainty.

Estimates In Context

Below are the present consensus revenue and EPS estimates. Notice whether analysts expect recent year-to-year growth trends to persist, or are forecasting sharp improvement or
deterioration. The sharper the predicted change, the greater the level of uncertainty in the forecast. (GAAP = Generally Accepted Accounting Principles)

Revenue ($mil) GAAP Earnings Per Share ($)

Aug 31st Nov 30th Feb 28th May 31st Year Total Aug 31st Nov 30th Feb 28th May 31st Year Total

FY Ending 5/2005 0.0 0.0 3.0 3.0 3.0 0.01 (0.02) (0.04) (0.05) (0.05)
FY Ending 5/2006 10.0 0.0 0.3 0.0 10.3 0.02 (0.00) 0.06 (0.01) 0.07
FY Ending 5/2007 0.0 0.0 0.0 0.6 0.6 0.01 (0.00) 0.02 0.02 0.06
FYEnding5/2008 0.5 NAE NAE NAE NAE (0.01) NAE NAE NAE NAE
FYEnding5/2009 NAE NAE NAE NAE NAE NAE NAE NAE NAE NAE

Confidence In Estimates EPS Estimate Accuracy

The range of estimates can be measured by standard deviation. The narrower the range (the lower the standard deviation Assess the extent to which analysts are
compared to the "mean" estimate) and/or the greater the number of analysts, the more definitive the expectations. Note, too, accurateand have a handle on the earning trends
the extent to which company expectations are consistent with or diverge from those for industry and/or market. bycomparing Estimates to Actual figures (which

mayomit various charges/credits included in
Long Term Growth Rate Near Term Growth Rate GAAPresults). The Actual figures are the ones that

Mean # of Estimates Standard Dev. Mean # of Estimates Standard Dev. aremost comparable in accounting method to the

Estimates. (GAAP = Generally Accepted Accounting

NA NA NAPTSC NA NA NA

Principles)

19.5 4 4.57 Industry 10.4 8 11.13
12.5 7 3.16 S&P 500 7.5 10 6.95
There is not enough data to dislpay EPS
estimate accuracy for PTSC.

Reasonableness

Look at the tables below to see if analysts are expecting the company to accomplish more than it has accomplished in the Quarterly EPS Estimate Revisions
past. Such things can and do happen. But the stronger the predicted future (compared to the past), the greater the burden of
proof on the part of those issuing the estimates. Current Period

Annual Growth EPS (%) Sales (%) Quarterly Growth EPS (%) Sales (%)

5 year Estimate NA NA
2008 Estimate NA NA
Last 5 years NA 12.2
Last 3 years NA 103.3
Last Year (17.5) (93.8)
Trailing 12 Months (46.0) 247.9 Next Period

Analyst Recommendation Trends

Difference of opinion is normal, so don't demand unanimity. Look for ratings clusters in a part of the best-to-worst scale and
at Mean Rating scores. Also important is whether analyst sentiment is improving or declining over time.

Buy Outperform Hold Underperform Sell Mean Period After Next
(Value 1) (Value 2) (Value 3) (Value 4) (Value 5) Rating

Feb May Aug Nov
There is currently not enough data available to use
to display quarterly EPS estimate revisions.
Feb May Aug Nov
There is currently not enough data available to use
to display quarterly EPS estimate revisions.
As of 12/24/07 0 1 0 0 0 2.00
As of 4 Weeks ago 0 1 0 0 0 2.00
As of 8 Weeks ago 0 1 0 0 0 2.00
As of 12 Weeks ago 0 1 0 0 0 2.00

Feb May Aug Nov
There is currently not enough data available to use
to display quarterly EPS estimate revisions.
Bar Chart Key

Mean Rating

12 Wks ago R 12/24

1.00 = Best
5.00 = Worst
Annual EPS Estimate Revisions

Since estimates address an unknowable future, revision (often prompted by company guidance) is to be expected. Investors are usually happy when analysts are scrambling to chase
reality upward. So increases in estimates tend to spark strong share price performance. The reverse is usually true when estimates are falling.

Jan' 07 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
There is currently not enough data available to use to display annual EPS estimate revisions.
December 24, 2007 Page 7

Patriot Scientific Corporation (OTC:PTSC) --Communications Equipment/Technology Reuters Company Research

Footprints of Success

In many respects, business success requires subjective judgment. However, over time, good companies tend to leave good footprints, which become most visible when company data
is compared to industry/sector/market benchmarks. That's how you see when companies perform well, not just because a rising business tide lifts all boats, but because the company
is doing unique, good things. Look, too, at time-series comparisons, and take note of companies that are improving faster or suffering less than peers.

Growth Rates (%)

Investors are accustomed to looking at EPS growth. Check sales growth, too. EPS gains can't persist indefinitely without good sales growth. Do further investigation if sales trends are
falling short. (A big short fall might reflect a divestiture. On the other hand, if sales growth looks too good, check to see if it's being boosted by an acquisition.) Also, compare sales
growth to capital spending growth. Over a prolonged period, it's reasonable to expect capital spending growth to more or less keep pace with sales growth. If the latter is significantly

higher, capital spending may have to accelerate in the next few years.

% Growth Rate

Sales Growth For Most Recent Quarter
Sales Growth For Trailing 12 Months
Sales Growth For Past 5 Years

Capital Spending Growth for Past 5 Years

EPS Growth for Most Recent Quarter
EPS Growth for Trailing Twelve Months
EPS Growth for Past 5 Years

Company Quality

PTSC
1,903.8
247.9
12.2
Industry
2.7
1.8
15.9
Sector
20.7
8.9
26.4
S&P 500
15.2
14.8
14.8
Company Rank
in Industry
100
98
60
(47.2) 10.2 21.1 9.8 10
(135.3)
(46.0)
NA
31.0
19.3
36.9
33.0
28.5
35.3
11.0
15.3
23.7
NA
20
NA
Worst R Best

PTSC PTSC PTSC
vs. Industry vs. Sector vs. S&P 500

NA NA NA
= Co. underperforming

= Co. outperforming

Some companies excel in obtaining high margins (watch out for very low tax rates, which may reflect special benefits that often won't persist indefinitely) while others are highly
efficient. Still others are strong in both respects. These trade-offs are balanced in the Management Effectiveness returns, which combine both factors. TTM = Trailing Twelve Months.

Profitability Ratios (%)

Gross Margin for Trailing Twelve Months
Gross Margin for Past 5 Years
Operating Margin for Trailing Twelve Months
Operating Margin for Past 5 Years
EBITD Margin for Trailing Twelve Months
EBITD Margin for Past 5 Years
Pretax Margin for Trailing Twelve Months
Pretax Margin for Past 5 Years
Net Margin for Trailing Twelve Months
Net Margin for Past 5 Years
Effective Tax Rate for Trailing Twelve Months
Effective Tax Rate for Past 5 Years

Efficiency Ratios (TTM)

Asset Turnover
Receivables Turnover
Inventory Turnover
Revenue/Employee
Net Income/Employee

Management Effectiveness Ratios (%)

Return on Assets for TTM
Return on Assets for Past 5 Years
Return on Investment for TTM
Return on Investment for Past 5 Years
Return on Equity for TTM
Return on Equity for Past 5 Years

Financial Strength

PTSC
NA
Industry
48.5
Sector
53.1
S&P 500
45.1
Company Rank
in Industry
84
PTSC
vs. Industry
NA
PTSC
vs. Sector
NA
PTSC
vs. S&P 500
NA
96.8 47.5 51.9 44.3 99
(1,206.0)
(108.9)
(1,200.3)
(104.5)
2,007.2
293.8
15.0
8.3
17.5
9.3
18.8
9.9
18.8
15.9
22.2
18.9
20.9
17.3
19.5
19.0
23.5
21.7
18.5
18.0
NA
94
NA
5
100
100
1,388.0
217.7
16.1
5.7
15.6
11.0
13.4
12.4
100
100
30.8 18.4 24.9 30.1 56
25.9 32.6 26.5 31.0 45
PTSC
0.1
Industry
0.7
Sector
0.8
S&P 500
1.0
Company Rank
in Industry
7
PTSC
vs. Industry
PTSC
vs. Sector
PTSC
vs. S&P 500
4.7 7.9 8.2 10.4 58
NA 6.4 13.9 12.2 87 NA NA NA
$226,800
$3,148,000
$425,935
$101,656
$534,711
$100,241
$933,020
$117,625
52
99
PTSC
70.3
Industry
8.4
Sector
12.3
S&P 500
8.8
Company Rank
in Industry
99
PTSC
vs. Industry
PTSC
vs. Sector
PTSC
vs. S&P 500
88.3 4.6 9.5 7.6 6
97.7 10.2 17.1 12.9 99
108.2 5.6 13.0 11.2 98
100.1 14.4 21.8 21.7 99
1,366.8 7.4 17.0 19.0 NA
Worst R Best = Co. underperforming = Co. outperforming

Quick Ratio (cash and marketable securities divided by current liabilities) and Current Ratio (all current assets divided by current liabilities) give a sense of how readily the company
could cover current obligations if the sales were to stop. Higher ratios indicate greater liquidity. Different businesses have different cash inflow-outflow characteristics, so compare
companies to industry averages. Similar comparisons are relevant for debt ratios (higher ratios indicate more debt and, hence, more financial risk) and interest coverage (lower

numbers signify greater risk).

Company Rank
PTSC Industry Sector S&P 500 in Industry

Quick Ratio 2.6 1.9 2.3 1.2

66
Current Ratio 2.6 2.4 2.7 1.7

63
Total Debt to Equity 0.0 23.2 22.9 72.5

95
Long Term Debt to Equity 0.0 17.6 19.8 56.2

92
Interest Coverage NA 2.1 9.7 13.3 NA
Worst R Best

PTSC PTSC PTSC
vs. Industry vs. Sector vs. S&P 500

NA NA NA
= Co. underperforming

= Co. outperforming

December 24, 2007 Page 8