Casio Joins HP as Second ''System'' Manufacturer to Recognize Need for Digital Hardware Manufacturers to Purchase License for MMPâ¢ Core Microprocessor Technologies San Diego, California - February 22, 2006
- Patriot Scientific Corporation (OTC Bulletin Board: PTSC.OB) today announced that Casio Computer Co., Ltd
. has become the second system manufacturer to purchase a license to use intellectual property protected by the Moore Microprocessor Patentâ¢ (MMP) Portfolio. Patriot and The TPL Group are co-owners of the MMP Portfolio, which is being exclusively managed by Alliacense
, a TPL Group enterprise.
Following a similar agreement reached with Hewlett-Packard
last month, today's announcement further substantiates the need for modern hardware manufacturers to secure MMP Portfolio licenses to cover the entire spectrum of their digital product lines. Terms of the Casio license were not disclosed.
"This marks yet another important license confirming the significance of the patents in our valuable jointly owned portfolio," said Patriot's Chairman and CEO David Pohl. "We are pleased that this licensing decision by Casio represents another notable step toward creating added value for our shareholders."
"The intellectual property represented by the MMP Portfolio, and protected around the world, encompasses building blocks for virtually all digital products being designed and shipped today," said Mac Leckrone, Alliacense president. "The depth and breadth of digital products exploiting MMP Portfolio design techniques is remarkable. We routinely find these techniques used in devices ranging from simple TV remote controls to sophisticated medical diagnostic equipment - from portable media players to complex internet 'backbone' hardware. Today's automobiles have dozens of such devices."
Leckrone noted that once digital hardware vendors recognize their broad reliance on the intellectual property protected by the MMP Portfolio, they appreciate the critical need to secure continued access to the fundamental MMP technologies. "System-level coverage is essential to maintaining product design freedom and avoiding supply-chain disruptions," he explained. Alliacense also offers simple, royalty-free licenses to all semiconductor sector operations, worldwide.
Leckrone confirmed that the MMP Portfolio Licensing Program rewards first movers in their industry sectors with substantial discounts. "By design, our licensing structure enables nimble and forward-thinking system manufacturers to disadvantage their competitors." Dramatic Turn-Around
"The Alliacense team continues to produce results that increasingly confirm our confidence in their effective strategies and focused efforts." noted Pohl. "The revenues we have realized from licenses to this point along with other recent actions by the company have resulted in significant fiscal strengthening of Patriot Scientific. All of this is consistent with our paramount goal of enhancing shareholder value by growing the business and prudently addressing company fundamentals."
Patriot Scientific's market cap reached a level of more than $185 million as of the close of trading on February 21, 2006 - having soared upward from $25 million in less than a month.
Two weeks ago, Patriot Scientific announced it would retire all outstanding debentures - along with the signing of an agreement giving it the option to buy back what could amount to up to approximately 20 percent of the Company's total outstanding stock warrants. Last week, - in an action which is virtually unprecedented among microcap stocks - Patriot announced that it would pay a cash dividend to shareholders and qualified warrant holders of record as of February 24, 2006.
Until mid-2005, Patriot had never before shown a quarterly profit, and had never before realized significant revenue from its seminal microprocessor innovations. However, in the past year, the Company's jointly owned patent portfolio has been successfully licensed - through its marketing alliance with The TPL Group's Alliacense division - to Intel, HP and AMD. These first licensing agreements, in their initial disbursements, have generated more than $25 million in revenue for Patriot.
According to Leckrone, the purchase of MMP System Licenses by global system manufacturers such as HP and Casio has increased MMP licensing momentum. He reports that of the hundreds of companies Alliacense has contacted worldwide, dozens have begun to seek licensing arrangements. "The competition for early-round berths in many key market sectors is becoming intense." About Patriot Scientific
Patriot Scientific (OTC Bulletin Board: PTSC.OB) has emerged as an effective and dynamic intellectual property licensing Company, developing and marketing innovative and proprietary semiconductor technologies. The Company's jointly owned MMP patent portfolio of proprietary designs encompasses what is believed to be fundamental ultra-low-power array microprocessor technology, as well as pending patents designed to protect Patriot's proprietary technology.
Detailed information about Patriot Scientific can be found on the website www.ptsc.com
. Copies of Patriot Scientific press releases, current price quotes, stock charts and other valuable information for investors may be found at www.hawkassociates.com
. An investment profile on Patriot Scientific may be found at http://www.hawkassociates.com/patriot/profile.htm About the Patent Portfolio
The MMP patent portfolio contains intellectual property that became jointly owned by publicly held Patriot Scientific Corporation and the privately held Technology Partners Ltd. (TPL). Moore Microprocessor Patent and MMP are trademarks of TPL. Both TPL and Patriot assert that their jointly owned patents have long been essential to the design of advanced microprocessors, digital signal processors, embedded processors and system-on-chip devices. Global sales of end products deploying chips using technologies protected by the jointly owned patents are estimated to be greater than $200 billion annually.
While major microprocessor manufacturers such as Intel (NasdaqNM: INTC) and Advanced Micro Devices (NYSE: AMD) were early portfolio licensees, the latest announcement of a license with HP (NYSE, Nasdaq: HPQ) indicates that Alliacense is now focusing its licensing efforts on system manufacturers.