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Patriot Scientific's Planned Momentum Increases as Lexmark Purchases MMP(TM) Patent Portfolio LicenseLicensing team continues success in strategic plan to target major global manufacturers. CARLSBAD, Calif. -- Dec. 11, 2006-- Patriot Scientific Corporation (OTC Bulletin Board: PTSC) confirmed today that Lexmark International Inc. (NYSE: LXK), a global supplier of printing and imaging products, has purchased rights to use technologies protected by the Moore Microprocessor Patent(TM) (MMP) Portfolio. Patriot Scientific and The TPL Group are co-owners of the MMP Portfolio, which Alliacense, a TPL Group enterprise, exclusively manages. Lexmark follows in the footsteps of HP, Casio, Fujitsu, Sony, Nikon, Seiko Epson, Pentax, Olympus, Kenwood and Agilent, all of whom have purchased MMP Portfolio licenses during 2006. In addition, AMD and Intel are also licensees. Lexmark provides businesses and consumers in more than 150 countries with a broad range of printing and imaging products, solutions and services that help them to be more productive. In 2005, Lexmark reported $5.2 billion in revenue and employed more than 13,000 people globally. "Lexmark becomes the second major computer peripherals manufacturer, preceded by Seiko Epson, to make the important strategic decision to become an MMP Portfolio licensee," said Mike Davis, Alliacense Sr. Vice President, Licensing. "By capturing one of the 'early-mover' MMP Portfolio licensing berths, Lexmark has gained a competitive edge in supplying its printing and imaging products worldwide." David Pohl, chairman and CEO of Patriot Scientific stated: "It is significant that Lexmark is the second major manufacturer to become a licensee of the MMP Portfolio in this important industry sector in which Seiko Epson captured the 'first mover' berth. As Alliacense continues to target other first movers in several industry sectors, their sound strategic plan enabled Lexmark to benefit as an 'early mover' licensee in the second tier of an existing sector." In a previously published comment, Mac Leckrone, president of Alliacense, said: "As the First Round MMP licensing berths in many industry sectors are being captured, royalty rates are increasing according to plan." Pohl noted that Patriot Scientific is unable to reveal the exact dollar amount of the Lexmark transaction due to contractual confidentiality obligations as well as the sensitivity of ongoing negotiations with other potential licensees. The MMP Portfolio patents, filed in the 1980s, cover techniques that enable higher performance and lower cost designs, and are fundamental to consumer and commercial digital systems ranging from DVD players, cell phones and portable music players, to communications infrastructure, medical equipment and automobiles which have dozens of microprocessor-based key features and benefits. "Increased value for Patriot Scientific shareholders is our fundamental driver," Pohl continued. "While the very busy Alliacense team negotiates with more and more global manufacturers to become licensees of our jointly owned patent portfolio, the Patriot management and board are pursuing the other prong of our two-fold strategy by engaging in ongoing negotiations for a potential joint venture to enhance our Ignite(TM) chip as well as engaging in communications with another technology company whose attractive potential may lead to an investment or acquisition by Patriot." About Patriot Scientific Patriot Scientific is a leading intellectual property licensing company that develops, markets and enables innovative technologies to address the demands in fast-growing markets such as wireless devices, smart cards, home appliances and gateways, set-top boxes, entertainment technology, automotive telematics, biomedical devices and industrial controllers. Headquartered in Carlsbad, California, information about the company can be found at http://www.ptsc.com. About the Patent Portfolio The patent portfolio, marketed as the Moore Microprocessor Patent(TM) Portfolio, contains intellectual property that is jointly owned by the publicly held Patriot Scientific Corporation and the privately held TPL Group. The portfolio encompasses seven U.S. patents as well as their European and Japanese counterparts. Both TPL and Patriot assert that their jointly owned patents protect techniques used in designing microprocessors, microcontrollers, Digital Signal Processors (DSPs), embedded processors and System-on-Chip (SoC) implementations. The MMP Portfolio is exclusively managed by Alliacense, a TPL Group Enterprise. About Alliacense Alliacense is a TPL Group Enterprise executing best-in-class design and implementation of intellectual property licensing programs. As a cadre of IP licensing strategists, technology experts and experienced business development/management executives, Alliacense focuses on expanding the awareness and value of TPL's intellectual property portfolios. For more information, visit http://www.alliacense.com.
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