On October 6, 2011, Patriot Scientific Corporation (the "Company") entered into a settlement agreement with Technology Properties Limited LLC ("TPL"), pursuant to which the Company and TPL settled all claims relating to their current litigation. A description of the litigation is contained in the Company's Form 10-K for the fiscal year ended May 31, 2011, under the caption "TPL Litigation" at Item 3. Legal Proceedings.

Pursuant to the terms of the settlement agreement, TPL has agreed to have PDS allocate to the Company $1,100,000 at the rate of five and ten percent of future distributions due to TPL as a member of PDS; TPL has agreed to increased review and procedures by PDS and the Company on all MSD licensing; the Company has agreed to have PDS pay TPL for certain litigation and reexamination support services at the rate of $172,000 for June 2011, and $86,000 per month thereafter until 60 days after the Markman hearing in the current patent infringement litigation; and the parties have agreed to established guidelines and procedures relating to proposed license arrangements to be entered into by TPL involving the MSD Patents and one or more other patents within TPL's portfolio that is not an MSD Patent, and a procedure for allocating revenue between the MSD Patents and the non-MSD Patents, if needed.

On October 7, 2011 the Company issued a press release announcing the settlement, a copy of which is attached hereto as Exhibit 99.1"

See "...TPL has agreed to have PDS allocate to the Company $1,100,000 at the rate of five and ten percent of future distributions due to TPL as a member of PDS". This is money out of TPL's pocket, and into PTSC's.

So:

~$1M up front, plus $1.1M out of future revenues = ~$2.1M

Now, assuming $5M total value of the Apple license:

$5M minus $750K (15% off the top to TPL/Alliacense) = $4.25M

$4.25M divided by 2 = $2.125M to each PTSC and TPL IF the entire amount were dedicated/allocated to the MMP.

Conclusion: ~$2.1M is mighty close to ~$2.125M, which would mean that the other TPL portfolio(s) got virtually nothing, and it would mean that in it's negotiations with TPL to resolve the dispute PTSC successfully argued away any/almost all of any allocation of Apple revenues to the other portfolio(s). It became nearly a 50/50 split of net to PDS.

No insider info, no rocket science, no creative accounting, just a couple of assumptions; one being that the total value of the Apple license was ~$5M, and one being that LL's accepted speculation about the "up front" payment to PTSC was ~$1M. The rest is the above filing and some simple math.

Though I won't attach the word "delusional", I do suggest this as a theory and NOT a statement of fact, because I have no way of knowing it is FACT. But the numbers work.

While I originally used the numbers to "back into" the ~$5M total figure, I did "shift gears" on you to draw the "negotiation success" conclusion/theory based on those same numbers.

I hope this helps.

SGE