3Com to Receive $70 Million from Realtek

MARLBOROUGH, MASS - 3Com Corporation announced in a press release 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 US District Court for the Northern District of California awarded 3Com $45.3 million for past patent infringement by Realtek Semiconductor Corporation.

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 Realtek's obligations under the agreement, the patent case will be dismissed.

"We are very pleased with the terms of our agreement with Realtek," 3Com Executive Vice President, Chief Administrative and Legal Officer Neal Goldman said.

"The agreement for $70 million puts to rest the lawsuit and enables Realtek to legally use the licensed patents and related technology without disruption," he added.

" We have a substantial number of networking patents and are willing to license use of those patents as part of our licensing program," Goldman concluded.