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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: jim detwiler who wrote (8978)	1/26/1998 4:42:00 PM
From: Jay Miri	Respond to of 14577

Agreement Increases Breadth of S3's Patent Portfolio SANTA CLARA, Calif., Jan. 26 /PRNewswire/ -- S3 Incorporated (Nasdaq: SIII) today announced that it has agreed to a $40 million patent purchase and cross-licensing deal with Cirrus Logic, Inc. (Nasdaq: CRUS) to enable a patent portfolio exchange between the two companies. Through the patent purchase, S3 is buying 10 graphics patents and 25 graphics patent applications from Cirrus Logic for a price of $40 million. With respect to Cirrus Logic's remaining patents not covered in the purchase, and S3's patents, S3 and Cirrus Logic have entered into an accompanying cross-licensing agreement. Under the terms of the cross-licensing agreement, S3 and Cirrus Logic will have a perpetual license to each other's graphics patents and additional licenses with respect to the other party's patents for agreed upon periods of time. Completion of both the patent purchase and cross-licensing agreement is subject to customary closing conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act. "Through this agreement, S3 is increasing the breadth of our patent portfolio," said Terry Holdt, chief executive officer of S3 Incorporated. "Given our commitment to the graphics market, this addition to our intellectual property base will be an important investment as S3 competes in our highly competitive marketplace."