Letter to Shareholders from Patriot Scientific President/CEO Rick Goerner

• Thursday February 19, 2009, 4:05 pm EST

CARLSBAD, Calif.--(BUSINESS WIRE)--Patriot Scientific Corp. (OTCBB:PTSC) today issued the following letter to all shareholders.

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To all shareholders and stakeholders of Patriot Scientific, the purpose of this letter is to provide an update to you on TPL’s activities associated with the MMP™ Portfolio.

In this update, I will summarize; 1) our announcement regarding recent activities in the German Patent Office, 2) the status of the MMP™ Portfolio re-examination process, 3) pending litigation and 4) future MMP™ Portfolio licensing activities. While I understand that I will not address all of your questions, I will try to present, and clarify these points for you. Please understand that these are complicated issues to discuss and that all public communications regarding the MMP™ portfolio must be reviewed, and approved for release, by many parties. We are required to do this to insure that no information becomes public that would encumber, or otherwise adversely impact, any activities regarding negotiations with prospective licensees, discussions with the USPTO or other regulatory agencies, or in any other legal proceeding.

Recent German Nullity Proceeding Victory by TPL

On February 2, 2009, TPL/Alliacense announced that the German Federal Patent Court in Munich affirmed the validity of DE 6,903,356 8T2, the German counterpart to EP 0,786,730. The affirmed German Patent and its EP counterparts cover technology utilized in a majority of microprocessor-based products manufactured and sold today. EP'730 is the European counterpart of the original MMP Portfolio application filed by TPL in 1989, which resulted in seven issued US patents.

While the action, initiated by Deutsche Telecom, to nullify the German patent was positive in the favor of our patent, the decision is expected to have no impact on the ultimate result of the USPTO re-examinations underway on four of the seven MMP™ patents.

To clarify, the German proceeding was the counterpart of the USPTO patent re-examination process.

Update on re-examination activities at the USPTO

Beginning in 2007, a series of reexaminations was initiated against four key patents in the MMP™ Portfolio (the ‘148, ‘336, ‘584 and ‘749). As we have stated previously, this is a time-consuming, detailed process that can take several years. No one can forecast the progress, or the eventual outcome, of the re-examination processes, but we remain optimistic for a variety of reasons, including those outlined in Dr. Choate’s paper with a link, included in my June 16, 2008 letter to the shareholders, which can be found on Patriot’s website.

We regret to see the amount of speculation that goes back and forth among many of our shareholders regarding the uncertainties of this process. Further, I am certain that attempts at direct communications by any of you with anyone at the USPTO office will only serve to create confusion and potentially even delay the examinations. It is our opinion that any comment by us prior to a final completion of any of the examinations will only serve to confuse the process. As soon as anything is definitive, I assure you we will communicate that to our shareholders in a timely fashion.

We remain confident that the USPTO will re-affirm the strength of the MMP™ Portfolio whenever its final actions are determined and made public.

Litigation

As you are aware, four of the MMP™ patents remain the subject of on-going litigation initiated by several non-US companies. Of the original group of three Taiwanese companies, one- ASUSTeK, has opted to settle as announced in December 2008. Recent Court actions to determine the venue for a potential trial (Northern District of California (NDCA) or Eastern District of Texas (EDT) have been resolved with the suit remaining in the Northern District of California. This decision should accelerate the trial schedule as the EDT calendar is generally more congested than that of NDCA.

On December 1, 2008, we, TPL and Alliacense, Ltd. were named as defendants in a lawsuit filed in the Northern District of California by Barco, N.V. The Barco case seeks declaratory relief that its products do not infringe enforceable claims of the '584, '749 and '890 patents.

MMP™ Portfolio licensing activities – TPL and Patriot have announced six new licensees since the 2009 fiscal year began June 1, 2008 with ASUSTeK, Rockwell Automation, Roland Corporation, Audiovox, Robert Bosch and Hoya Corporation.

As TPL and Alliacense reviewed at our Annual Shareholders meeting in October, the sweeping scope of applications using MMP™ Portfolio design techniques continues to encourage the world's leading manufacturers of end user products from around the globe to become MMP™ Portfolio licensees. Over 50 global companies from the US, Europe, Japan, Korea and Taiwan have licensed the MMP™ Portfolio technologies, including many industry leaders such as Fujitsu, Hewlett Packard, Kenwood, Mattel, Nokia, Philips, Sony and Toshiba. We expect that TPL/Alliacense will continue to successfully pursue, and close, new licensing transactions over the life of the MMP™ Portfolio.

I look forward to your constructive feedback and will attempt to clarify any other issues that can be disclosed to the extent of our ability under applicable contractual, or regulatory, constraints.

Sincerely,

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release looking forward in time involve risks and uncertainties, including the risks associated with the effect of changing economic conditions, trends in the products markets, variations in the company's cash flow, market acceptance risks, patent litigation, technical development risks, seasonality and other risk factors detailed in the company's Securities and Exchange Commission filings.

Moore Microprocessor Patent (MMP™) and Alliacense are trademarks of Technology Properties Limited (TPL). PTSC is a trademark of Patriot Scientific Corporation. All other trademarks belong to their respective owners.