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Creo Defends Stance: Believes not in Violation in Patent Lawsuit

Press release from the issuing company

Dec. 7, 2004 -- Forgent Networks announced today that its wholly owned subsidiary, Compression Labs, Inc., has initiated litigation against Creo, Inc. (Nasdaq: CREO) and Creo Americas, Inc. for infringement of United States Patent No. 4,698,672 (the ‘672 Patent) in the United States District Court for the Eastern District of Texas, Marshall Division. Forgent has initiated litigation against 44 companies, including the aforementioned firms, for infringement of the ‘672 Patent in the United States District Court for the Eastern District of Texas, Marshall Division. Since its inception three years ago, the intellectual property program has generated more than $100 million from licensing the ‘672 Patent to more than 35 different companies in Asia, Europe and the United States. The ‘672 Patent relates to digital image compression, and fields of use include digital still image device used to compress, store, manipulate, print or transmit digital still images such as digital cameras, personal digital assistants, cellular telephones, printers, scanners, and certain software applications. The company's patent portfolio includes the combined inventions of Compression Labs, Inc., VTEL Corporation, and Forgent Networks, Inc. Creo responds: Creo Inc. today responded to Forgent Networks, Inc.'s announcement that it has added the company to its patent infringement actions, through its wholly-owned subsidiary Compression Labs, Inc. Creo and 43 other defendants are being sued by Forgent Networks in the U.S. District Court for the Eastern District of Texas, Marshall Division, for infringement of U.S. Patent No. 4,698,672 (the '672 Patent). Creo does not believe it infringes the patent in question, and moreover believes that the patent is invalid and unenforceable, and intends to vigorously defend itself. JPEG technology is a standardized compression algorithm used to store and transfer computerized photographs. Forgent Networks alleges that the sale and use of JPEG technology by Creo infringes the '672 Patent by complying with the JPEG standard as defined by CCITT Recommendation T.81 entitled "Information Technology - Digital Compression and Coding of Continuous Tone Still Images -- Requirements and Guidelines." Forgent Networks seeks unspecified damages, and other relief.

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