"Aureal has said from the start that the Vortex products do not infringe the patent and that the case is motivated by Creative's need to diminish competition in the marketplace at all costs" said Kip Kokinakis, CEO and President of Aureal Inc., "It is a great victory for Aureal, but also a victory for innovation and competition that we did not yield to a company with vast resources and an intent to eliminate our ability to bring new and exciting products to the market. We can now turn our undivided attention to compete in the marketplace where our products and technology speak for themselves, rather than in the courtroom."

"We are not completely surprised that Creative is going to appeal the clear jury verdict" said Brendan O'Flaherty, Vice President of the Systems Division and General Counsel. "However, this appeal must be placed in the context of Aureal's counterclaims in this case which will come to trial shortly and Aureal's own patent infringement lawsuit against Creative on the more relevant topic of 3D audio. Aureal's patent suit against Creative requests both an injunction against Creative's Soundblaster Live products and also substantial damages. Aureal also intends to pursue its efforts to invalidate Creative's patent and to have the patent declared unenforceable because it was obtained by inequitable (unfair) conduct before the patent office."

O'Flaherty added, "Creative's belief of a strong basis for appealing the jury's decision should be compared to their belief in October of 1998 that they were going to successfully appeal the court's denial of a preliminary injunction against Aureal, an appeal that was rejected by the Court of Appeals and in which Aureal was awarded costs from Creative. Creative can spin this loss any way they wish to, but, just like in their suit against Aureal, the facts don't support their claims."

About Aureal Aureal is a leading provider of advanced audio solutions for the computer, entertainment, Internet, and professional audio markets. The company designs, builds and distributes advanced audio semiconductor, add-in board, and software solutions for personal computers through the OEM, integrator/reseller/VAR and direct-to-customer channels. Aureal also licenses technology designed to define and improve advanced audio standards in the marketplace.