Patriot Scientific Reports Order-of-Magnitude Revenue, Profitability in Q1 2006

SAN DIEGO -- Oct 27, 2005 -- Patriot Scientific Corporation (OTC Bulletin Board: PTSC.OB), which recorded its first-ever profitable quarter in Q4 of its fiscal 2005, has now recorded growth that includes an "order-of-magnitude" increase cash-on-hand in its 2006 Q1, as well as equally dramatic growth figures in revenue and profitability in Q1 of 2006.

"The latter half of our FY 2005 and the first quarter of FY 2006 represented a turning point for Patriot Scientific," Chairman, CEO and President David Pohl stated. "In a process that concluded during the three months ending on August 31, Patriot resolved several issues related to ownership and use of its patented technologies. Patriot has recently entered into two significant patent-license agreements, one in February with AMD and one in June with Intel. These licenses resulted in approximately $13,000,000 in aggregate revenues."

Through May 31, 2005, Patriot Scientific incurred repeated net losses and used significant amounts of cash in its operations. Historically, Patriot has been forced to rely upon equity and other types of financing to fund its operations - often at unfavorable terms due to Patriot's past less than desirable financial condition.

"As we explained in our just-issued 10-Q filing," Pohl noted, "Patriot has undergone a dramatic transformation in operations since the beginning of this Fiscal Year. This is reflected in the financial results which we are pleased to report for the most recent quarter.

Some of these specific financials include:

• Cash and equivalents on hand - $9.47 million dollars on August 31, 2005 - up from $0.09 million on the same date in 2004 - this is literally an order of magnitude greater in 2005 than 2004.
• Total current assets - $11.95 million dollars at the end of Q1 2006 - up from $3.61 million at the end of Q4 2005 - growth that represents a near-tripling of current assets within the span of a single quarter.
• Total assets - $11.95 million dollars on August 31, 2005 - up from $3.72 million on May 31, 2005 - this represents nearly a tripling of assets in just three months.

"We achieved this growth while maintaining current liabilities at virtually the same level from the close of FY 2005 - $1.77 million in Q1 2006 versus $1.69 million in Q4 2005," Pohl said. "In connection with this dramatic improvement in our cash position, we were able to invest in the joint venture with The TPL Group to commercialize our robust patent portfolio. In spite of first-quarter operating expenses of $5.62 million dollars as compared to expenses of $0.51 million in the same quarter in FY 2005, the company still showed a net income gain of $4.44 million dollars over same-quarter prior year.

"This transformation represents a complete reversal of previous patterns of deficit operations funded by shareholder investments and related financial instruments," Pohl said. "This change is built around a new Board-level strategy that has focused on cooperation, rather than confrontation - an approach that has almost immediately paid handsome dividends for Patriot Scientific.

"Part of this new strategy called for the replacement of Patriot's previous executive team, accomplished early in Q1," Pohl explained. "This largely smooth transition paved the way for both the new licensing agreement and the new patent-marketing joint venture, both of which had been blocked by the previous strategy of confrontation and aggressive lawsuit-based defense of our patent portfolio. While the former strategy had once seemed to offer real promise of asset growth and operational flexibility, it became clear in the last half of FY 2005 that focusing so much of our efforts and destiny on this strategy no longer served the best interests of the company or its shareholders," Pohl observed. "The agreement we entered into with the TPL Group in June 2005 results in their taking on responsibility for the confrontation and lawsuits when appropriate."

"We of course must make the cautionary disclaimer that recent past performance provides no guarantee of continued future performance," Pohl noted. "However, we believe that our revenue influx in Q1 increased our cash position to a level that will provide us with more than adequate funds needed to support our operations during the next 12 months."

About Patriot Scientific

Patriot Scientific (OTC Bulletin Board: PTSC.OB) has emerged as an effective and dynamic intellectual property company, developing and marketing innovative and proprietary semiconductor technologies. The company's 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 and architecture.

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 and www.americanmicrocaps.com. An investment profile on Patriot Scientific may be found at http://www.hawkassociates.com/patriot/profile.htm.