Apple & Creative Announce Broad Settlement Ending Legal Disputes
`Between the Companies
`
`CUPERTINO, California and SINGAPORE- August 24, 2006- Apple
`and Creative Technology, Ltd. today announced a broad settlement ending all
`legal disputes between the two companies. Apple will pay Creative $100 million
`for a paid-up license to use Creative's recently awarded patent in all Apple
`products. Apple can recoup a portion of its payment if Creative is successful in
`licensing this patent to others. In addition, the companies announced that
`Creative has joined Apple's "Made for iPod" program and will be announcing their
`own iPod accessory products later this year.
`
`"Creative is very fortunate to have been granted this early patent," said Steve
`Jobs, Apple's CEO. "This settlement resolves all of our differences with Creative,
`including the five lawsuits currently pending between the companies, and
`removes the uncertainty and distraction of prolonged litigation."
`
`"We're very pleased to have reached an amicable settlement with Apple and to
`have opened up significant new opportunities for Creative," said Sim Wong Hoo,
`chairman and CEO of Creative. "Apple has built a huge ecosystem for its iPod
`and with our upcoming participation in the Made for iPod program we are very
`excited about this new market opportunity for our speaker systems, our just(cid:173)
`introduced line of earphones and headphones, and our future family of X-Fi™
`audio enhancement products. We expect that the one-time licensing payment
`of $100 million will contribute approximately $.85 of earnings per share to our
`current quarter, ending September 30, 2006."
`
`About Apple
`Apple ignited the personal computer revolution in the 1970s with the Apple II and
`reinvented the personal computer in the 1980s with the Macintosh. Today, Apple
`continues to lead the industry in innovation with its award-winning desktop and
`notebook computers, OS X operating system, and ilife and professional
`applications. Apple is also spearheading the digital music revolution with its iPod
`portable music players and iTunes online music store.
`
`About Creative
`Creative (NASDAQ: CREAF) is a worldwide leader in digital entertainment
`products for PC users. Famous for its Sound Blaster sound cards and for
`launching the multimedia revolution, Creative is now driving digital entertainment
`on the PC platform with products like its highly acclaimed ZEN™ MP3 players.
`Creative's innovative hardware, proprietary technology, applications and services
`leverage the Internet, enabling consumers to experience high-quality digital
`entertainment- anytime, anywhere.
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`Press Contacts:
`Steve Dowling
`Apple
`dowling@apple.com
`(408) 974-1896
`
`Phil O'Shaughnessy
`Creative Labs, Inc.
`poshaughnessy@creative.com
`(408) 546-6773
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