A Summary of Recent Company Happenings

This is a repost of my 12/23/08 PTSC update in case people gone for the holidays missed it. I have decided to split the postings out by month because it is becoming lengthy. The information provided is generally based on: CEO Rick Goerner provided info from Shareholder Letters (including the latest, SH Letter #11, releases at 5:39 PM on 12/22/08), company press releases, and investor relations feedback. Green font means newly added details. If some information is in my opinion (IMO), I will reference it as such and put it in Brown font.

Completed…

-------------------------December 2008---------------------

Ø Done [Released Monday, 12/22/08] [Monthly Shareholder Letter #11] - SH Letter out on December 22, 2008 at 5:39 PM ET, 32 days after the last one.

Ø Done [12/22/08]: Guidance on Crossflo/Iameter Revenues: We are continuing to update our assessment of the market opportunities for the Crossflo technology, including the recent addition of the Iameter product. While Crossflo is in early stage revenue development, its sales assumptions and estimates have a great deal of variability. This is particularly true in the public/government sector. We expect to provide a plan for Crossflo’s revenues for the period March 1, 2009 through February 28, 2010 (aligned with Patriot fiscal quarters) in January. We are initiating a rolling six quarter forecast with Crossflo and, while we do not expect to provide quarterly revenue guidance on the Crossflo business at this early stage, we will update the status of progress to our plan from time to time.

Ø Done [ASUSTeK signs MMP License on 12/22/08, ends Litigation]: “This decision to purchase an MMP Portfolio license allows ASUSTeK to end potentially expensive litigation,” said Rick Goerner, Patriot Scientific President and CEO.” Comment (IMO): An outstanding development that ASUSTeK has abandoned the litigation as part of the T3 and signed on. From Wikipedia----Asustek: In 2007, one in three desktop PCs sold was using an ASUS motherboard; and the company's 2007 revenues reached US$6.9 billion. This was the first license since Respironics on 10/20/08, a span of 63 days.

Ø Ongoing [ARS Situation Updated in last two SH Letters, 12/22/08 and 11/20/08 SH Letter]:

Ø From the 12/22/08 SH Letter #11, RG stated, “I’m also pleased to report that in December we’ve seen movement in the ARS market and have received partial redemption of ARS obligations from both the state of Florida and Washington. We are hopeful that this points to a concerted effort by the issuing agencies, and government, to provide for broader redemptions and liquidity in 2009.”

Ø From the 11/20/08 SH Letter #10, RG stated, ”As shown in our most recent quarterly report, which we filed on October 10th, the Auction Rate Securities (ARS) held by us, although illiquid, retain approximately 95% of their face value as determined by a third party valuation firm. The 5% write down to date represents a temporary valuation adjustment reflective of their illiquid status. The relatively high carrying value is attributable to the strength of the underlying principal as a result of US government agency guarantees. The ARS, which continue to earn and pay interest, serve as collateral for a line of credit secured by us earlier in the year whereby we are able to borrow against 50% of their value when necessary. Also, we recently filed a formal claim against the institution through whom we purchased the ARS, seeking redemption of the instruments at full value and payment for specified damages. We believe we have strong arguments and intend to aggressively pursue this matter.”

Ø Done [December ??, 2008]: HP-Crossflo/Iameter Webinar – In 12/22/08 Shareholder Letter, RG stated: “Iameter’s software product and services were featured in a recent HP webinar outlining the HP-Crossflo “Health Information Solution”. It was attended by 200 “web connections” representing potential customers and partners for HP’s solution. Dr. Bill Mollenbrock of Crossflo was the guest speaker for the session.” Comment (IMO) Did more sleuthing – still cannot find the exact date of the Webinar. However, Bankerson helped lead me to a link to a 2007 presentation to hospitals by Dr. Mollenbrock. The type of info in this Power Pt presentation may provide an indication of the contents or flavor of what Dr. Mollenbrock presented this month. http://www.hp.com/aquarius/HP_Health...

Ø Probably Done, but not confirmed [Early December]: European Road Show-New Investor Meetings – No specific new info about this in Nov. 20, 2008 Shareholder Letter #10. However, from the 10/30/08 Shareholder Update presentation on the PTSC website, he was scheduled to specifically visit the UK and Switzerland. Comment (IMO): Presumably, this was done week of Dec 1-5, 2008 or Dec 8-12, 2008.

Ø Done [PR Released Announced 12/09/08] Iameter Acquired– Crossflo Systems, Inc., a Patriot Scientific company announced the acquisition of Iameter in a 12/09/08 press release. However, as RG stated in 12/22/08 SH Letter, On December 1, Crossflo finalized the acquisition of the assets of Iameter which expands Crossflo’s healthcare product offering. Iameter provides a healthcare software platform for hospitals and physician groups to assess the quality of care delivery against state and federal healthcare standards to help them realize quality improvements and reduced cost. The type of solutions Iameter offers have recently become important to healthcare providers because quality of care will now affect the amounts healthcare providers are reimbursed for services provided to Medicare patients. This fundamental change in the nation’s largest healthcare reimbursement system makes Iameter’s technology a timely and compelling addition to Crossflo’s healthcare data sharing technology.

StormKing