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Patriot Scientific Corporation Announces Unprecedented Microcap Dividend
San Diego, CA - February 14, 2006:
In a move virtually unprecedented among Microcap stocks, Patriot
Scientific Corporation (OTC Bulletin Board: PTSC.OB) - a high-tech
intellectual properties Company that specializes in developing and
licensing high-performance ultra-low power microprocessor technology -
today announced that it will issue a cash dividend of $0.02 per share
of common stock for shareholders and qualified warrant holders of
record as of February 24, 2006. The dividend is payable March 22, 2006.
This dramatic announcement follows closely on the heels of
the Company's announcement last week of a buy-back program for up to 20
million stock warrants and the conversion and retirement of all
outstanding debentures. Final information as to the number of
shareholders and outstanding shares will be provided by the Company's
transfer agent as of the record date, but based upon current
information and estimates the Company will set aside funds of
approximately $7million or more for payment of the dividend from its
currently available cash and cash equivalents that amount to
approximately $17 million.
This announcement is especially
significant because - until less than 12 months ago - Patriot had never
shown a quarterly profit, and had never realized significant revenue
from its 10-patent portfolio of seminal microprocessor innovations.
Since February of last year, the Company's jointly owned patent
portfolio has been successfully licensed to Intel, HP and AMD - in the
process, generating nearly $24 million in revenue for Patriot. Based on
these licenses and other key factors covered in recent SEC filings,
Patriot Scientific currently has a market cap of approximately $64
million dollars.
With these successful license negotiations
as precedent, the Company - through its marketing alliance with The TPL
Group's Alliacense division, - is actively and confidently negotiating
for licenses with other U.S. and foreign companies whose products
include high speed microprocessors - more than 150 of which were put on
notice of likely infringement - and that includes practically every
high-tech consumer electronics manufacturer and systems integrator in
the global marketplace.
"We are pleased to be in the strong
financial position that enables us to offer our loyal shareholders this
significant dividend," said David H. Pohl, Chairman and CEO of Patriot
Scientific. "The Company strongly believes that more licensing deals
and related revenues are likely, although none are assured," Pohl
continued. "Patriot Scientific's Board of Directors will consider and
decide whether to take such dividend payment actions in the future,
based on future revenues and the financial condition of the Company, as
well as market conditions and other factors."
Pohl also said
that, "This dividend payment, which is rare in the arena of microcap
companies, is another important step toward evidencing Patriot
Scientific's current financial strength and the fact that the Board and
management firmly believe in the Company's future potential. During the
past 12 months, the Company has undergone significant changes in
management and operating strategy. As a result of those changes and the
licensing revenues related to our jointly owned patent portfolio we are
now in a favorable cash position, and we are using some of that cash to
pay out our first-ever dividend to shareholders."
The action
by Patriot Scientific to issue this dividend - and also last week's
decision to retire the debentures and buy back what could amount to up
to approximately 20 percent of the Company's total outstanding stock
warrants at this juncture - were driven by the same impetus that has
guided other strategic re-organizational moves that began in 2005. Last
year the Company changed both its executive team and the Company's
strategic direction, including the signing of a significant agreement
with The TPL Group regarding joint ownership and marketing of its
patent portfolio.
Patriot Scientific received licensing
revenues of $13 million in 2005. The Company received distribution of
an additional $10 million in January of 2006 as a result of a license
transaction with systems manufacturer HP regarding Patriot's jointly
owned patent portfolio.
"The far-reaching changes in 2005
helped pave the way for new growth-oriented initiatives in 2006," Pohl
said. "These changes are positive for Patriot. We continue to move
forward with the paramount goal of enhancing shareholder value by
prudently addressing Company fundamentals and growing the business."
About Patriot Scientific
Patriot Scientific (OTC Bulletin Board: PTSC.OB) has emerged as an
effective and dynamic intellectual property licensing Company,
developing and marketing innovative and proprietary semiconductor
technologies. The Company's portfolio of proprietary designs
encompasses what is believed to be fundamental ultra-low-power array
microprocessor technology, as well as pending patents designed to
protect Patriot's proprietary technology.
Detailed information about Patriot Scientific can be found on the website www.ptsc.com.
Copies of Patriot Scientific press releases, current price quotes,
stock charts and other valuable information for investors may be found
at www.hawkassociates.com and www.americanmicrocaps.com. An investment profile on Patriot Scientific may be found at http://www.hawkassociates.com/patriot/profile.htm
About the Patent Portfolio
The patent portfolio, also marketed as the MMP portfolio, contains
intellectual property that became jointly owned by publicly held
Patriot Scientific Corporation and the privately held TPL Group in a
settlement between them in June 2005. Both TPL and Patriot assert that
their jointly owned patents have long been essential to the design of
advanced microprocessors, digital signal processors, embedded
processors and system-on-chip devices. Global sales of end products
deploying chips using technologies protected by the jointly owned
patents are estimated to be greater than $200 billion annually. The MMP
Portfolio is exclusively managed by Alliacense, a TPL Group enterprise.
While major microprocessor manufacturers such as Intel (NasdaqNM: INTC)
and Advanced Micro Devices (NYSE: AMD) were early portfolio licensees,
Alliacense is now focusing its licensing efforts on system
manufacturers.
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Contact Patriot Scientific Corp. (PTSC)
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