In the first ruling, the court ruled that Creative's patent case will proceed to trial. In so ruling, the court rejected a motion for summary judgment brought by Aureal based on, among other things, Aureal's key defense that proposed a limited reading of the scope of Creative's patent.

As to Creative's motion for preliminary injunction, Aureal had argued that entry of a preliminary injunction would mean closing the company. The court therefore ruled that "Plaintiffs' [Creative's] showing of injury is substantially outweighed by the injury to defendant [Aureal] should an injunction be granted and plaintiffs ultimately not prevail." In addition, the court ruled that Creative had "not made a sufficiently strong showing on the issue of infringement to warrant injunctive relief."

"We look forward to proceeding to trial on this case, and we are confident that we will prevail," said John Danforth, vice president and general counsel at Creative Labs, Inc., Creative’s US subsidiary. "We are pleased that the court's ruling has rejected an artificially narrow interpretation of our '990 patent. We also believe that we will be able to successfully appeal the denial of our preliminary injunction motion because of this aspect of the court's ruling and, among other things, the admissions of Aureal's own experts."

Creative Technology Ltd. develops, manufactures and markets a wide array of advanced multimedia solutions for the PC, entertainment, education, music and productivity tools markets. Creative's products are marketed through the OEM, systems integrator and retail channels under a variety of trademarks, including the "Blaster" family name. With the new Sound Blaster&174; PCI standard, Creative has produced a solution that utilizes a combination of hardware and software for near-perfect compatibility with existing DOS and Windows titles. Creative's corporate headquarters and primary manufacturing are based in Singapore, with sales, distribution and research and development being carried out through an extensive, global network of subsidiaries located in North America, Europe, Asia and Africa. For more information on Creative's products and services, visit Creative Zone Web site at http://www.soundblaster.com

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