Patriot Scientific 10-Q Reveals Details of Major Patent Licensing Agreement with Intel; Intel License Validates Worth, Importance of Patriot`s Microprocessor Patent Assets

SAN DIEGO--(BUSINESS WIRE)----During Patriot Scientific Corporation`s (OTC Bulletin Board: PTSC.OB) Q1 of 2006 - a period ending August 31, 2005 - the Company entered into a $10 million dollar licensing agreement with Intel Corporation (NasdaqNM: INTC) to provide Intel with licensed access to Patriot`s suite of patents. These patents represent the fundamental core technology behind virtually every microprocessor manufactured since 1995, according to statements made in Patriot`s most recently-issued 10-Q. Earlier in 2005, Patriot Scientific had previously licensed this same technology to AMD (NYSE:AMD). With the signing of these licenses, which resulted in aggregate revenues of approximately $13 million, Patriot does not need to rely upon equity and other types of financing to fund its operations - as it has in the past.

These licensing agreements were largely responsible for Patriot`s most profitable quarter ever - in Q1 2006, Patriot generated more than $10.01 million dollars in revenue, and closed the quarter with a net income of $4.44 million dollars. Total on-hand cash and cash equivalents at the end of the quarter amounted to $9.47 million dollars, with $5.97 million available for use in operations.

``We believe these agreements represent continued legal and marketplace validation of Patriot`s position that our patented intellectual property has been - and is being - infringed upon by major microprocessor manufacturers, as well as by their OEM clients,`` explained Patriot`s Chairman, CEO and President David Pohl. ``Based on current projections, our licensing revenue in Q1 should provide us with the full level of anticipated operating capital needed to support our operations during all of FY 2006.``

In addition, during Q1 2006, Patriot also entered into a series of agreements with The TPL Group. The parties formed a joint venture to facilitate entering into revenue-producing licenses for use of the powerful, combined portfolio of Patriot Scientific and TPL patented technology by microprocessor manufacturers and OEM users throughout the world. The licensing program for the patents, including litigation when appropriate, will be managed by Alliacense, a core group of senior TPL Group executives directly responsible for the development and commercialization of the firm`s patent portfolios. Litigation was recently filed against four major Japanese electronics manufacturers in a Federal Court in Texas seeking damages for alleged infringement of the combined Patriot and TPL patented intellectual property. The broad-based claim cites Fujitsu, Matsushita, NEC and Toshiba for direct infringement, contributory infringement, and inducing the infringement of at least three of the 10 patents in the jointly held patent portfolio.

Patriot - through the joint venture with TPL - intends to leverage the recently signed license agreements, using them as a starting point - an open door expected to lead to additional future revenues from negotiated licenses with other companies currently infringing on the technology. ``Working through and with the licensing professionals at TPL, rather than creating and supporting our own in-house licensing team, makes sense as a prudent way for Patriot to seek and obtain fair value from the currently unlicensed users of our intellectual property,`` Pohl said.

Patriot`s patented intellectual property is used in a wide variety of end-user products including personal computers, servers, workstations, home theater systems, digital TVs, video games, DVD Recorders/Players, mobile handsets and automotive electronics. Global sales of end products deploying chips using technologies protected by these jointly held patents are estimated to be greater than $200 billion annually. In addition to these licensing and joint venture operations, Patriot is engaging industry technical and marketing experts to evaluate Ignite(TM) - the company`s small, high-speed, low-power consumption microprocessor - and Inflame(TM), its dramatic array microprocessor technology.