2) Update on outstanding shares due to share buybacks and the issuance of shares for the Crossflo transaction

Several shareholders have noted that the number of Patriot Scientific shares outstanding has dropped from recent 10-Ks and were confused by this. The drop is the result of Patriot Scientific’s share buyback program that has been pursued since April and reflects those shares being put back into Patriot Scientific’s treasury and therefore no longer considered outstanding.

Our recent preliminary proxy filing in its original form also created some confusion as to the apparent increase of approximately 20 million shares as of August 29th, compared to the outstanding shares as disclosed in recent, previous public filings. These shares were, in fact, part of the consideration for the Crossflo transaction and were technically issued by our Transfer Agent as of the closing of the transaction on August 29th. We have therefore since revised the number in our proxy to exclude these shares, as they will be considered issued and outstanding on September 1, 2008, the effective date of the purchase transaction.