PALO ALTO, Calif.--Jan. 21, 2005-- HP today announced it has settled all ongoing patent litigation with Intergraph Corporation and the companies have entered into a patent cross-license agreement. The agreement resolves all legal claims between the two companies. Under the terms of the agreement, HP will pay Intergraph $141 million. The accounting treatment is not yet final, however, HP expects this settlement to reduce earnings by approximately $0.03 for the first quarter of fiscal year 2005. Both HP and Intergraph will immediately dismiss, withdraw or terminate with prejudice all pending lawsuits, and neither company will have any further financial obligations stemming from any disputes to date. HP and Intergraph have been in litigation against each other since 2002, in both U.S. federal court and in the European Union. According to the terms of the cross-license agreement, HP is granted a license to all Intergraph patents for all fields of use. Intergraph is granted a license to all HP patents in specific fields covered by Intergraph's current product categories.