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Technology Stocks : Intel Corporation (INTC)
INTC 46.48-4.5%Jan 30 3:59 PM EST

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To: Barry Grossman who wrote (23051)5/28/1997 2:35:00 PM
From: Barry Grossman   of 186894
 
All, here is the Digital response:

Wednesday May 28 2:04 PM EDT

Company Press Release

Source: Digital Equipment Corporation

Digital Statement on Intel Lawsuit

MAYNARD, Mass., May 28 /PRNewswire/ -- Digital Says Intel Lawsuit a Diversion From Real
Issue of Unlawful Patent Infringement Statement by Thomas C. Siekman, DIGITAL general counsel:

``Although Intel's lawsuit is without merit and unjustified, we expected it. They are asking us to return to them materials which they shared with DIGITAL and other systems vendors who design
Intel processors into their products. We also find it curious that they are asking for damages from a company that BUYS product from them.''

``Intel executives have made public statements that they will not allow our lawsuit against them to interfere with the business relationship DIGITAL and Intel have had for some time. This counter suit is nothing more than a thinly veiled attempt to cause concern among DIGITAL customers. We expect to have timely access to Intel technology. There has been no disruption of supply of product from Intel and we expect none in the future. We have product agreements with Intel that run until 1999.''

``The simple fact is that our suit was filed because we discovered that Intel, without permission, is using DIGITAL patented technology to gain significant performance improvements in their products and we want them to stop. Since Intel's use of our technology is unlawful, they are attempting to threaten and silence us. It won't work and we are confident that we will win.''

BACKGROUND: DIGITAL (NYSE:DEC) filed a lawsuit in U.S. District Court, District of Massachusetts on May 12, 1997, charging Intel (Nasdaq:INTC) with willful infringement of 10 DIGITAL patents in making, using and selling microprocessor products, including its Pentium, Pentium Pro and Pentium II microprocessor families. The company is asking the court to stop Intel from using DIGITAL's patented technology in its present and future microprocessor products.
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