PTSC - NEW COURT FILING SAYS TPL IS ``ACTIVELY ENGAGED IN SETTLEMENT NEGOTIATIONS WITH FUJITSU ET AL``! FILED YESTERDAY...HERE IS THE FILING....

HENNEMAN & SAUNDERS

Intellectual Property Law

F. Eric Saunders

P O Box 2215

Arnold, CA 95223

Phone: 209 795-6659

Fax: 209 755-2855

ferics@sbcuc.net

June 13, 2005

Hon. Saundra Brown Armstrong

United States District Court

Northern District of California, Oakland Division

1301 Clay Street, South Tower

Oakland, CA 94612-5212

Regarding: REPORT PURSUANT TO ORDER OF JUNE 8, 2004

Patriot Scientific Corp. v. Fujitsu Microelectronics America, Inc. et al.,

C 03-5787 SBA

Dear Judge Armstrong:

I represent Charles H. Moore (`` Moore``), Technology Properties Ltd. (``TPL``), and Daniel E. Leckrone (``Leckrone``) (collectively, ``Moore Defendants``) in Patriot Scientific Corp. v. Fujitsu Microelectronics America, Inc. et al., C 03-5787 SBA.

In accordance with your order of June 8, 2004 staying the present litigation pending the outcome of Patriot Scientific Corp. v. Charles H. Moore, et al., C-04-0618-JF (``San Jose Lawsuit``), this reports that the Moore Defendants and Patriot Scientific Corp. (``Patriot``) have settled that matter by entry of a Stipulated Judgment, a copy of which is attached hereto.

Also pursuant to the agreement whereby the San Jose Lawsuit was settled, TPL has been granted complete and exclusive authority to enforce and license the US Patent Number 5,809,336 (the `336 patent``), which is the patent-in-suit in the present litigation.

Pursuant to that authority, TPL is actively engaged in Settlement negotiations with defendants in the present litigation. To the extent that settlement cannot be reached, TPL

will be responsible for further conduct of the present litigation.

As noted in your order of May 19, 2005, on December 20, 2004, the Moore Defendants moved to disqualify Patriot`s counsel on the grounds that they improperly retained and communicated with the attorney for the inventors during the prosecution of the `336 patent. On March 8, 2005, Judge Fogel granted in pertinent part the motion to disqualify. Patriot`s request for reconsideration was denied by Judge Fogel on March 29,

2005.

On May 19, 2005, Your Honor granted Patriot`s counsel`s Motion for Leave to Withdraw from the present litigation, and ordered the parties to appear for a telephonic Case Management Conference on Wednesday, July 14, 2005 at 2:45 p.m., and to prepare and file a joint Case Management Conference Statement no later than ten (10) days prior to the Case Management Conference, i.e. no later than June 29, 2005. In accordance with the May 19 order, no later than June 29, 2005, TPL will

inform the Court as to the status of settlement negotiations with the current defendants, together with TPL`s plans for whatever future conduct of the present litigation may be

required. Given TPL`s complete and exclusive authority to enforce and license the `336 patent, TPL presently anticipates that it will seek to be substituted for Patriot as plaintiff,

if settlements cannot be achieved.

Respectfully submitted,