Jury Finds in Favor of Microtune in Patent Infringement Case

3/24/2003 - A jury in United States District Court for the Eastern District of Texas, Sherman Division, has found in favor of Microtune®, Inc. (NASDAQ: TUNE) in its patent infringement dispute against Broadcom Corporation. The jury found that Microtune’s patent, U.S. Patent No. 5,737,035, was valid and that Broadcom is infringing. The jury also found that Broadcom’s infringement was willful.

Microtune anticipates that the Court will schedule a hearing within 30 days to consider the issues of granting an injunction with respect to the infringing tuners and to determine the amount of damages to enter based on the jury’s determination of infringement and validity of the ‘035 patent.

“We are very pleased by the outcome of the trial,” said Douglas J. Bartek, Chairman and CEO of Microtune. “Microtune pioneered the development of the single-chip tuner, the result of years of revolutionary research and development in the radio-frequency silicon field. The jury’s verdict supports the importance and value of intellectual property rights and underscores the truly inventive technology of Microtune and of our exceptional engineering team. We remain committed to RF technology innovation and to providing our customers with superior, leading-edge products that deliver cost, power and size advantages.”

Microtune’s ‘035 patent covers the development of ‘a highly integrated silicon tuner on a single microcircuit’. It is a technological innovation that Microtune began developing in 1996 and launched publicly as the MicroTunerTM single-chip tuner in January 1999.

When the MicroTuner tuner was unveiled four years ago, it was hailed by the industry as one of the most significant architectural breakthroughs in TV tuner technology in the last 50 years. As a low-cost tuner-on-chip, the MicroTuner tuner offered a miniature, universal solution for the high-speed delivery of video, voice and data across broadband communications electronics, including cable modems, set-top boxes, digital TVs, cable telephony systems and PC/TVs. Today, Microtune currently holds an additional 23 patents covering its radio frequency (RF) technology with more than 50 patent applications pending.

“During the two-year course of this patent infringement dispute, Broadcom has filed a number of allegations against Microtune in countersuits and petitions,” commented Mr. Bartek. “Today’s jury verdict clearly establishes that Microtune was the first to design and market its successful silicon tuner. We believe that Broadcom’s allegations were instigated in retaliation for Microtune’s filing of our ‘035 patent suit and designed to test our endurance and fortitude in protecting our intellectual property. The jury’s findings today reaffirm that the technology employed in our MicroTuner silicon tuners is unique to the company.”

Microtune was represented in the lawsuit by Gray Cary of Austin, Texas and San Diego, California and Clyde Siebman of Sherman, Texas.

About Microtune
Microtune, Inc. is a leading silicon and systems company that designs, manufactures and markets radio frequency (RF)-based solutions for the global broadband communications, automotive electronics and wireless connectivity markets. Inventors of the MicroTuner single-chip broadband tuner, the Company offers a portfolio of advanced tuner, amplifier, transceiver and wireless products that enable the delivery of information and entertainment across new classes of consumer electronics devices. The Company currently holds 24 U.S. patents for its technology, with more than 50 applications pending approval that span its RF and wireless products, containing more than 2000 supporting claims. Founded in 1996, Microtune is headquartered in Plano, Texas, with key design, manufacturing and sales centers located around the world. The web site is www.microtune.com.

Microtune is traded on the NASDAQ Stock Exchange under the symbol TUNE. Microtune is a registered trademark and CableFree USB, MicroTuner, MicroStreamer and VideoCaster are trademarks of Microtune, Inc.

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