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Broadcom and Emulex Reach Partial Settlement and Worldwide Patent Agreement

6th July 2012

Broadcom

ES Admin

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Broadcom and Emulex have announced today that the companies have entered into a partial settlement and worldwide patent license agreement relating to the patent litigation in the U.S. Federal District Court in Santa Ana, California. The agreement will result in the dismissal of certain of Broadcom's infringement claims against Emulex.

Emulex also receives a license to Broadcom U.S. Patents Nos. 7,471,691; 7,058,150; 6,424,194 and related families for certain fields of use including Fibre Channel applications. The fields of use licensed to Emulex are related, in part, to the Emulex XE201 (Lancer) ASICs, that are capable of Fibre Channel and Ethernet, 16Gbps Fiber Channel HBAs, Fibre Channel SOCs and other FC products. Emulex will pay to Broadcom a release and license fee of $58 million in cash.

Additional terms of the agreement include, among other elements:
•Emulex agreed to provide certain rights to Broadcom protecting Broadcom from Emulex patent assertions; and
•The Emulex products are licensed to Emulex for the permitted fields of use, and are licensed to be purchased by Emulex's customers worldwide, and are licensed to be made for Emulex by Emulex's suppliers.

The remainder of the existing litigation between the parties regarding certain of Broadcom's U.S. Patents was not dismissed. Other terms of the agreement are confidential.