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TI Issues Statement Regarding Jury Award of $112 Million in Patent Damages

Feb 7, 2006

DALLAS (February 7, 2006) -- On February 6, following a month-long trial in United States District Court in Trenton, New Jersey, a federal jury awarded Texas Instruments $112 million in patent damages for infringement by Globespan Virata, a subsidiary of Conexant Systems, of two TI patents and one Stanford University patent covering DSL modems. The jury also found that Globespan’s infringement was willful, which would allow the district court judge to multiply the damages by up to three times the award.

“This verdict underscores the value of the intellectual property embodied in the TI and Stanford patents, and we are gratified with the jury's decision,” said Joseph F. Hubach, Senior Vice President and General Counsel of TI.

The case was initiated by Globespan in June 2003 in response to TI’s offer to license the technology to Globespan. TI is the exclusive licensor of the Stanford patents. This technology is licensed to most of the industry. Globespan refused to take a license and filed an action in U.S. District Court against TI and Stanford claiming that the license program violated antitrust laws. Globespan also claimed that the TI and Stanford patents were not valid and not infringed by Globespan’s products. TI filed counterclaims in August 2003 asserting three of the patents in the suit. The jury found that all claims of the three patents are valid and infringed by Globespan.

Remaining to be resolved is an issue relating to whether Globespan’s future production of DSL modems will be licensed as a result of its acquisition by Conexant in 2004. Conexant is a licensee of the TI/Stanford patents. If Globespan’s production is not licensed, the court can enjoin future manufacture and sales of Globespan products in the U.S. Also to be resolved are Globespan’s antitrust claims, which are set for trial in October 2006.

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