Pohl applauded the licensing team for having produced seven licensing agreements in the first six months of 2006. He noted that this remarkable level of success has produced advice from Patriot's attorneys and independent accountants that licenses are no longer extraordinary events for the company for which notice and information on Form 8-K must be filed with the SEC each time a license agreement is signed. Now that, in most instances, the requirements to file notices of license events with the SEC no longer apply, the result is that various contractual confidentiality clauses are now fully applicable and that exceptions to such agreements that were related to the SEC filing requirements are no longer available to the company.

"This means that the company finds itself in the difficult position of wanting to share the exciting details of license revenues at the time the licenses are announced, yet we are legally prevented from doing so," Pohl stated. "As a result, investors expecting to learn the dollar amounts of revenues received by Patriot Scientific in connection with recent and future licenses will find that such information will be available only as included in regular quarterly financial statements filed by Patriot with the SEC."

The Patriot Scientific Board of Directors is considering additional strategic moves intended to enhance the strength and profitability of the company for the benefit of its shareholders, Pohl added. "As we accumulate capital resulting from licensing revenues, we are evaluating possible opportunities to diversify our revenue stream by engaging in joint ventures or acquiring other companies or technologies compatible with our business focus -- all depending, of course, upon future revenue and the board's determination of prudent, feasible action in light of available capital and market conditions at the time," he concluded.