Some insights....

Patriot Scientific Stock Rocked by U. S. Supreme Court Decision;

Market Interprets Ruling as Negative for Patriot and Creates
Buying Opportunity Strong Speculative Buy Reiterated

Patriot Scientific Corporation (Patriot Scientific) common stock tumbled June 9, 2008, declining to an intra-day low of $0.17 per share, before closing at $0.21 per share on volume of 6.5 million shares. The stock seems to have based yesterday, June 10, 2008, when it traded between the range of $0.195 and $0.208 per share on volume of 1.1 million shares. There are times in the stock market when selling begets selling and this appears to have been the case on June10, 2008.

The ruling that prompted the selling yesterday concerned the case Quanta v. LG Electronics, 06-937, that was before the Supreme Court. A brief summary of the case is that a South Korean company, LG Electronics Inc., licensed some of its patents to Intel Corp. LG then sued some of Intel's customers for patent infringement, saying they owed royalties to LG because the customers combined Intel's microprocessors and chipsets with non-Intel products. The Intel customers are computer system manufacturers that include Taiwan-based Quanta Computer Inc. System manufacturers who sell to industry brand names such as Dell Inc., Hewlett-Packard Co., International Business Machines Corp., and Gateway Inc. The decision has been interpreted as limiting the ability of companies to collect multiple royalties on their patents, and the unanimous decision was seen as positive for customers of Intel Corp. and is the latest step by the justices to scale back the power of patent holders.

However, after consulting with patent attorneys familiar with this case, we believe the Quanta Supreme Court ruling will have little or no effect on future PTSC/TPL patent license activity. Furthermore, the affect of this court decision on the past licenses granted by Patriot to Advanced Micro Devices (NYSE:AMD-$7.50), Intel (NasdaqGM:INTC-$22.80), and the additional 44 licenses granted by the TPL group should be minimal.

SUMMARY
This Supreme Court decision comes at a time when investors are awaiting results of the review by the U.S Patent and Trade Office of certain patents in the Moore Microprocessor Patent™ (MMP) portfolio which has been deeded to Alliacense, a TPL Group entity, which is responsible for executing best-in-class design and implementation of intellectual property licensing programs. Furthermore, there have been no new announcements of licenses since April 28, 2008, when it was announced that Onkyo Corporation purchased a MMP portfolio license from The TPL Group.

At the current stock price level, Patriot Scientific is selling at approximately 3.4 times the cash balances on the balance sheet as of February 29, 2008. In addition there should be additional cash payments to Patriot from TPL Group for MMP licenses granted after February 28, 2008, that include Mattel, Inc. (NYSE:MAT-$20.00); Advanced Medical Optics, Inc. (NYSE:EYE-$22.50); Direct TV; Citizen Holdings Co., Ltd.; Gerber Scientific; Emerson Radio (NYSE:EMR-$56.00); Research in Motion (NasdaqGM:RIMM-$135.00); and Onkyo.

We realize that Patriot Scientific's current market value may put a crimp in its stated merger and acquisition strategy, however, we believe the present price of Patriot Scientific's common stock has more than discounted any long term negative effect of the court ruling and the upcoming results of the USPTO patent review. We reiterate our Strong Speculative Buy Rating and reaffirm our $0.55 per share