Business NewsLegal Notices

3Com to Receive $70 Million from Realtek to Resolve Patent and Technology Issues

2008-07-14 07:35:00

MARLBOROUGH, Mass.–(EMWNews)–3Com Corporation (NASDAQ: COMS) today

announced that on July 11, 2008 3Com and Realtek Group reached an

agreement with respect to certain networking technologies of 3Com that

will resolve the long-standing patent dispute between the companies.

Under the terms of the agreement, Realtek will pay 3Com $70 million,

within the next 45 days.

On April 9, 2008, a jury in the U.S. District Court for the Northern

District of California awarded 3Com $45.3 million for past patent

infringement by Realtek Semiconductor Corporation (TSE: 2379). The jury

found that all six asserted claims of four 3Com patents for network

interface technology were valid and had been infringed by Realtek. 3Com

filed post-trial motions seeking, among other things, enhanced damages

and a permanent injunction. Upon satisfaction of Realteks

obligations under the agreement, the patent case will be dismissed.

We are very pleased with the terms of our

agreement with Realtek, said Neal D. Goldman,

3Com executive vice president, chief administrative and legal officer. The

agreement for $70 million puts to rest the lawsuit and enables Realtek

to legally use the licensed patents and related technology without

disruption. We have a substantial number of networking patents and are

willing to license use of those patents as part of our licensing program.

3Com was represented in the case by Simpson Thacher & Bartlett, LLP.

Safe Harbor

This news release contains forward-looking statements made pursuant to

the safe harbor provisions of the Private Securities Litigation Reform

Act of 1995, including forward-looking statements regarding our

agreement with Realtek, Realteks future

obligations under the agreement (including our receipt of $70 million),

dismissal of the patent suit and 3Coms

licensing program. These statements are neither promises nor guarantees,

but involve risks and uncertainties that could cause actual results to

differ materially from those set forth in the forward-looking

statements, including, without limitation, risks detailed in the Companys

filings with the SEC, including those discussed in the Companys

quarterly report filed with the SEC on Form 10-Q for the quarter ended

February 28, 2008.

3Com Corporation does not intend, and disclaims any obligation, to

update any forward-looking information contained in this release or with

respect to the announcements described herein.

About 3Com Corporation

3Com Corporation (NASDAQ: COMS) is a leading provider of secure,

converged voice and data networking solutions for enterprises of all

sizes. 3Com offers a broad line of innovative products backed by world

class sales, service and support, which excel at delivering business

value for its customers. 3Com also includes H3C Technologies Co.,

Limited (H3C), a China-based provider of network infrastructure

products. H3C brings high-performance, cost-effective product

development and a strong footprint in one of the worlds

most dynamic markets. Through its TippingPoint division, 3Com is a

leading provider of network-based intrusion prevention systems that

deliver in-depth application protection, infrastructure protection, and

performance protection. For further information, please visit www.3com.com,

or the press site www.3com.com/pressbox.

Copyright © 2008 3Com Corporation. 3Com, the

3Com logo and TippingPoint are registered trademarks and H3C is a

trademark of 3Com Corporation or its wholly owned subsidiaries. All

other company and product names may be trademarks of their respective

holders.

3Com Corporation
Media & Investor Relations
John

Vincenzo, 508-323-1260
[email protected]
or
Media

Relations
Kevin Flanagan, 508-323-1101
[email protected]

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