Patriot Scientific

"During the six months ended November 30, 2007, Phoenix Digital entered into licensing agreements with third parties, pursuant to which it received aggregate proceeds of $20,933,000.  During the six months ended November 30, 2006, Phoenix Digital entered into licensing agreements with third parties, pursuant to which it received aggregate proceeds of $32,699,000.  License proceeds of $8,850,000 relating to an additional license agreement signed in November 2006 were received in January 2007.  Phoenix Digital had recorded this amount as a license receivable."