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| Creative
Labs Loses Bid For Preliminary Injunction Against Aureal Semiconductor Shipments of Vortex
1 and Vortex 2 Chips Will Continue Unimpede |
| Fremont, CA
- October 29, 1998 - (AURL: OTC Bulletin Board) Aureal Semiconductor Inc. today announced
that it has won a key round of legal battles against Creative Technology Ltd., a Singapore
corporation, and its subsidiary, E-MU Systems, Inc., a California corporation in federal
district court in the Northern District of California. Creative's lawsuit alleges that
Aureal's Vortex AU8820 AC'97 Digital Audio Processor infringes United States Patent No.
5,342,990 entitled "Digital Sampling Instrument Employing Cache-Memory." In
denying Creative's motion, the court ruled that Creative had not made a sufficiently
strong showing on the issue of infringement to warrant injunctive relief. As a result, the
shipment of Aureal's Vortex products will not be interrupted. "From the start, Aureal has stated that we do not infringe on this patent and that Creative's complaint is simply without merit," said Brendan O'Flaherty, Aureal's Vice President of Systems and General Counsel. "This ruling reaffirms our belief that Creative's intent in filing their lawsuit against Aureal is simply to slow down our progress in the marketplace. Sales of Aureal's Vortex 1 and 2 products continue to grow as PC manufacturers and customers recognize the leading edge quality of Aureal's A3D positional 3D audio." "We are encouraged by these developments and believe that Aureal will eventually prevail in this matter," said Kip Kokinakis, President and CEO of Aureal. "In the meantime, we will continue to fight this battle in the marketplace and continue to increase our lead in PCI audio technology and positional 3D audio." The court additionally denied Aureal's motion for summary judgment. The lawsuit will progress with further hearings set for spring of 1999. About Aureal Aureal builds advanced audio semiconductors, audio boards, and provides software solutions that increase functionality and features for personal computers and consumer electronics devices. Aureal develops audio processing semiconductor chips and sound cards and also licenses technology designed to define and improve advanced audio standards in the marketplace. For information on Aureal, its products, and its industry leading A3D audio technologies, please call Corporate Communications at 510-252-4582 or visit our Websites at www.aureal.com and www.a3d.com Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that such forward-looking statements involve risk and uncertainties, including, but not limited to, dependence on the PC and consumer electronics industries and on product lines based on new technologies; foundry capacity, availability and reliability; competition and pricing pressures; and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission. Note to Editors: Aureal, the Aureal logo, Vortex and A3D are trademarks or registered trademarks of Aureal Semiconductor Inc. Other trademarks are properties of their respective owners. : PR Contact: Jonathan Hirshon Horizon Communications jh@horizonpr.com |
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