Patriot Scientific Corporation today announced it has engaged Strategic Equity Group (SEG) to provide investment banking services for its wholly owned data sharing subsidiary, Patriot Data Solutions Group (PDSG). "We believe it is an appropriate time to seek a transactional opportunity where the value of PDSG may be realized," said Cliff Flowers, Patriot's interim CEO. "We look forward to working with the SEG team to accomplish this objective," added Mr. Flowers.

As many know my business is Private Equity so it might be interesting for some what my thoughts are on the Press Release from above.

Investment Banking services and transactional opportunity are probably meant to be:

Selling the company or

Raising Capital

I believe Cliff wants to sell the Company and wants to bring PTSC back to a one trick pony (almost all other equitys are bancrupt:-) anyways)as a MMP Holding company. Therefroe he is quoted with the hope that the value of PDSG may be realized.

Raising capital might mean he looks for another partner or looking for an IPO. Especially the IPO is very unlikely from my point of view. But the american IPO Culture would allow that.

I would prefer the frist strategy to sell as the PDSG Group eats up our money and MMP used to bring in money. Also I believe it might be possible to get a good price for it. But even if we do not get the whole invesmtent back, you will see the shareprice move higher once we get a good portion of it. PDSG is not our business and there are other companies that can shift the probably good base of software into a prospering company.

PTSC has failed on all its investments, even the most secure one (with Deutsche Bank) . So cut expenses and spread the incomes from MMP among the Shareholders or buy back shares.

Just my thoughts.

Greetings from good old Germany.

Simon