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To: RCVJr who wrote (10761)4/6/1998 8:37:00 AM
From: John  Read Replies (1) | Respond to of 13925
 
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Monday April 6, 8:05 am Eastern Time
Company Press Release
SOURCE: Aureal Semiconductor Inc.
Aureal Files Counterclaims Against Creative Technology
FREMONT, Calif., April 6 /PRNewswire/ -- Aureal Semiconductor Inc. (OTC Bulletin Board: AURL - news) today announced that it has filed its response and numerous counterclaims against Creative Technology Ltd. [Nasdaq:CREAF - news], a Singapore corporation, and its subsidiary, E-MU Systems, Inc., a California corporation in federal district court in the Northern District of California. The counterclaims assert causes of action for intentional interference with Aureal's business prospects, defamation and commercial disparagement, unfair competition and fraud. Creative's lawsuit alleges that Aureal's Vortex 8820 AC'97 Digital Audio Processor infringes United States Patent No. 5,342,990 entitled ''Digital Sampling Instrument Employing Cache-Memory.''

After having an opportunity to review the patent in detail, Aureal believes that it does not infringe on this patent and that the complaint is simply without merit. Aureal maintains that Creative's and Emu's intent in filing their lawsuit against Aureal is to slow down Aureal's progress in the marketplace. The suit was filed just days after Aureal announced design wins for its AU8820 chip.

''We would rather fight Creative in the marketplace, but they have chosen this venue to attempt to distract us from our progress in the market,'' said Kip Kokinakis, President and CEO of Aureal. ''We are not distracted, and with the upcoming introduction of new technology, hope to widen our technology lead in the areas of PCI audio and positional 3D audio.''

About Aureal

Aureal builds advanced audio semiconductor and software solutions that increase functionality and features for personal computers and consumer electronics devices. Aureal develops audio processing semiconductor chips and also licenses technology designed to define and improve advanced audio standards in the marketplace. For information on Aureal, its products, and its industry leading A3D audio technologies, please call Corporate Communications at 510-252-4582 or visit our Website at www.aureal.com.

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. Investors are cautioned that such forward-looking statements involve risk and uncertainties, including, but not limited to, dependence on the PC and consumer electronics industries and on product lines based on new technologies; foundry capacity, availability and reliability; competition and pricing pressures; and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission.

Note to Editors: Aureal, the Aureal logo, Aureal 3D and A3D are trademarks of Aureal Semiconductor Inc. Other trademarks are properties of their respective owners.

SOURCE: Aureal Semiconductor Inc