Revenue from Distribution Will Fund Unprecedented 2nd 2006 Dividend, to be Paid April 24 Carlsbad, Calif. - April 5, 2006
- Patriot Scientific Corporation (OTC Bulletin Board: PTSC.OB) today announced that it has received its share of the distribution of proceeds from a licensing payment made by Fujitsu Limited - announced last month as the latest global system manufacturer to purchase a license to use intellectual property protected by the Moore Microprocessor Patent™ (MMP) Portfolio. The amount will be used to fund Patriot Scientific's second shareholder dividend of 2006, which will be issued on April 24 to shareholders of record as of March 31, 2006. Patriot Scientific and The TPL Group are co-owners of the MMP Portfolio, which is being exclusively managed by Alliacense, a TPL Group enterprise.
"This distribution to Patriot Scientific substantially increases our pre-dividend cash position and represents another significant milestone in our ongoing effort to realize the monetary value of our portfolio for the benefit of our Company and ultimately our shareholders," said Chairman and CEO David H. Pohl. "It not only provides funding for our second dividend to shareholders in two months - it also represents further validation of our dramatic transition as a company within just the past year. Patriot has changed from formerly being a small, promising yet profitless microprocessor company to one now rapidly receiving recognition as the co-owner of what our advisors tell us is a highly valuable patent portfolio of ubiquitous high-tech intellectual property."
Patriot's first-ever cash dividend of $0.02 per share was issued to shareholders on March 22, 2006. Patriot's second dividend pay-out - $0.04 per share - will be issued on April 24th.
"Even a single dividend is considered virtually unprecedented for microcap firms, particularly companies such as Patriot Scientific that are focused on microprocessor technologies," Pohl pointed out. "There are no other examples we are aware of in which a microcap has issued two dividends within a single quarter - which is the way our Board of Directors has currently chosen to share the early fruits of our patent portfolio licensing strategy with our shareholders."
In striking this breakthrough licensing agreement for the MMP Portfolio as announced in March, 2006, systems manufacturer Fujitsu joined Casio
in licensing Patriot's core patents, which impact virtually every microprocessor manufactured since 1994.
The broad range of system-level digital products exploiting MMP Portfolio design techniques - in addition to computers and related hardware - includes consumer electronic products ranging from televisions, digital cameras and portable music players, high-tech medical equipment, office automation products, aerospace and even automotive electronics systems. All of these products are designed with multiple semiconductor devices that use MMP Portfolio technologies.
"It is on this basis, although no assurances can be given, that Patriot anticipates receiving its share of proceeds from further licensing agreements with major technology manufacturers that our contract licensing team is working to achieve in 2006 and succeeding years while the patents remain enforceable," Pohl said. About the MMP Portfolio
The patent portfolio, marketed as the Moore Microprocessor Patent(TM) Portfolio, contains intellectual property that is jointly owned by publicly held Patriot Scientific Corporation and the privately held TPL Group. The portfolio encompasses seven U.S. patents as well as their European and Japanese counterparts. Both TPL and Patriot assert that their jointly owned patents protect techniques used in designing microprocessors, microcontrollers, Digital Signal Processor (DSPs), embedded processors and System-on-Chip (SoC) implementations. The MMP Portfolio is exclusively managed by Alliacense, a TPL Group enterprise. About Patriot Scientific
Patriot Scientific (PTSC.OB) has emerged as an effective and dynamic intellectual property licensing Company, developing and marketing innovative and proprietary semiconductor technologies. The company's portfolio of proprietary designs encompasses fundamental 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
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. About The TPL Group
Founded in 1988, Silicon Valley based TPL Group has a solid track record in delivering a complete suite of intellectual property management services. In addition to optimizing IP Portfolio value and protecting assets from infringement, the TPL Group is also well versed in optimally converting portfolio value into cash return for its owner(s). Through Alliacense, a cadre of senior licensing executives, the TPL Group manages IP Licensing Programs across a broad array of industries. For more information, visit www.tplgroup.net