Patriot Scientific

Patriot Scientific Reports Profitable Quarter; Q3 FY '08 Net Income $6.3 Million or $0.02 Basic and Diluted Earnings Per Share.

and with the recent USPTO decision, what should we expect from license fees moving forward?

1-26-06

Item 8.01 Other Events

On January 24, 2006, the Company announced that Hewlett-Packard (HP) has become

the first system manufacturer to purchase a license to use intellectual property

protected by the Moore Microprocessor Patent(tm) (MMP) Portfolio, of which the

Company is a co-owner. The MMP Portfolio Licensing Program as managed by

Alliacense currently rewards first movers in their industry sector with

significant discounts. The HP transaction involved such a discount. The Company

received a distribution of approximately $10,116,000.00 from the HP transaction.

A copy of the press release announcing the transaction is attached hereto as

Exhibit 99.1.

The Company expressly disclaims any obligation to update this press release and

cautions that it is only accurate on the date it was presented. The inclusion of

any data or statements in this press release does not signify that the

information is considered material.

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l2007s
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Patriot Scientific
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