Today's news. A much needed item for us, even if it means more
dilution.
Company Press Release
Patriot Scientific Completes Major Financing Agreement
Funds Will Help Fuel Accelerated Sales and Marketing Programs Focused On Internet Applications
SAN DIEGO--(BUSINESS WIRE)--March 1, 1999--Patriot Scientific Corp. (OTC BB:PTSC - news), today announced that it has entered into a major and innovative corporate finance agreement with Swartz Private Equity, LLC.
The agreement gives Patriot access to up to $5 million, through the sale of additional shares of the company's common stock to be utilized on an as-needed basis over the next three years, subject to certain common stock trading volume limitations and registration of the securities.
''The company expects that this funding will allow it to move ahead aggressively by accelerating our sales and marketing programs,'' said Patriot's President & Chief Executive Officer, Jim Lunney. ''Our efforts are focused on the commercialization of the PSC1000, our Java-specific microprocessor, as well as other communications-oriented products, all of which have Internet-related applications.''
Lunney cited the Jan. 4, 1999 issue of ''EE Times,'' which reported that ''Java has gained dominance in the last six months in the consumer electronics industry'' as validation of the market potential for the PSC1000. Lunney continued, ''We are seeing increased interest from potential strategic partners who offer Java-related products which are complementary to the PSC1000. Patriot's microprocessor provides a fast and powerful platform for embedded applications for our strategic partners. These partnerships will make the PSC1000 even more attractive to our target customers: high volume OEMs seeking an embedded microprocessor that is low cost, has low power requirements and the ability to run Java efficiently, so they can capitalize on its inherent connectivity and security benefits.''
A 1998 ''Forbes'' magazine overview of the burgeoning embedded systems marketplace estimated that the total sales of the market could surpass $27 billion by the year 2000.
Lunney said the company would quickly accelerate its marketing efforts related to the PSC1000. He said the company plans to hire additional sales and marketing personnel, as well as to substantially increase the budget for marketing programs. Lunney added, ''As part of this accelerated marketing effort we intend to raise the profile of the company and product via an extensive marketing launch, including online advertising and promotion, and an increased presence at targeted industry trade shows.
''Patriot will also be filling out its already existing network of international distributors,'' the CEO continued. ''Our strategy internationally is to partner with companies that have a strong presence with customers in their local markets.''
Lunney said that Patriot also planned to add enhancements to the PSC1000. ''We need to ensure the chip's continued leadership,'' he said, ''and we will be doing that by regularly improving the performance/cost characteristics of the product line, as well as continually adding to the growing portfolio of compatible development tools and application software.''
Lunney also said the company expects to accelerate activity in its Communications Division, which is developing a full range of digital communications hardware products for ISDN services. Patriot's NetShark product line is aimed at medium-size corporations and Internet Service Providers (ISPs).
This new product line provides remote access and Internet connectivity in a standard Microsoft Windows NT environment, at a fraction of the cost of existing closed-system solutions.
Founded in 1987, Patriot Scientific Corp. designs, markets and manufactures the PSC1000, based on the patented ShBoom technology, a 32-bit microprocessor targeted at Java and Internet appliances as well as the traditional embedded systems markets; high-performance ISDN Basic Rate and Primary Rate products for digital communications; and ground penetrating radar and ionized gas antenna technologies.
For more information on Patriot Scientific Corp., visit ptsc.com.
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: Statements in this news release looking forward in time involve risks and uncertainties, including the risks associated with the effect of changing economic conditions, trends in the products markets, variations in the company's cash flow, market acceptance risks, technical development risks, seasonality and other risk factors detailed in the company's Securities and Exchange Commission filings.
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Contact:
Patriot Scientific Corp.
Linda Romero, 619/674-5000
lromero@ptsc.com
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