CARLSBAD, Calif.-- August 5, 2008 --Patriot Scientific Corp. and Crossflo Systems, Inc., San Diego, California, a private software and services company noted for its innovative data-sharing solutions, today announced that the companies have agreed for Patriot Scientific to acquire Crossflo for stock and cash totaling $10 million.

……"We are evolving our business strategy to expand beyond licensing arrangements and to develop an operational arm of the company," said Rick Goerner, President and Chief Executive Officer of Patriot Scientific. "With this first acquisition, we believe we have identified a strategically sound investment and have created a foundation for growth that is readily enhanced by other solution providers we are considering for investment and acquisition."

"Crossflo is building a base of leading clients and partners in justice and public safety, homeland security and public health that have a critical need for secure, selective, scalable and nondisruptive data-sharing," said Renney E. Senn, Crossflo's President and Chief Executive Officer. "Becoming a part of Patriot Scientific allows us to expand our resources to meet the burgeoning needs of that market, as well as to team synergistically with other solution providers that will be affiliated with Patriot Scientific in the future

….Patriot Scientific had previously announced plans to use its share of revenues from the MMP Portfolio licensing activity to invest in the future acquisitions of technologies and companies to build an operating company aimed at sustained growth and profitability for the company.

My notes from the annual shareholder meeting in Jan 2011

PDSG – not happy with performance subsequent to acquisition, brought in Attain to assist in rectifying matters, CDX is sound but was poorly placed in market, sourcing go to market partners, govt buyers. Results mixed- disappointed that there is not more tangible progress, recently won 1 million in new business. Finally seeing ability to participate in opportunities- Cautiously optimistic.

Entertaining joint venture ownership partner who works with type of customers needed but have not ruled out complete divesture and exploring this as well

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Timing for PDSG is brief – either find partners or liquidation of asset

From the PDSG website

We have the same partners listed with nothing new added

Cloud or no cloud, did we find partners or are we liquidating this asset