Cirrus Logic and ATI Make Amends

Two graphics chipmakers have put aside their differences and settled a patent
lawsuit filed earlier this year.

Cirrus Logic and ATI Technologies
Wednesday said they have entered into a cross-license agreement and have
settled all outstanding litigation between the two companies.

In August of this year, Cirrus settled a similar litigation with ATI’s
main rival NVIDIA .

In connection with the settlement, Austin, Texas-based Cirrus Logic will
transfer a portion of its patent portfolio to ATI relating to the former
graphics products group of its PC products division, a business that Cirrus
Logic exited several years ago.

ATI said it will pay Cirrus $9 million in October 2003 for its part
of the settlement.

In May 2003, Cirrus Logic brought suit against ATI in the United States
District Court for the Western District of Texas, Austin Division, for
infringement of a Cirrus Logic patent relating to graphics processor
technology. In addition, a separate patent infringement suit
relating to a different Cirrus Logic patent has been pending in the United
States District Court for the Northern District of California, San Francisco
Division, since July 1998.

Under the settlement agreement, all outstanding claims and counterclaims
in both lawsuits between Cirrus Logic and ATI were dismissed.

However, Markham, Ont.-based ATI is not standing still and recently upped
the ante against NVIDIA with the release of its Radeon 9800 XT and Radeon
9600 XT chips for top-end desktop and workstation systems.

The company also said this week it has scored contracts with the
developer of video-game Half-Life 2 and Taiwanese motherboard maker
Asustek Computer.

ATI shares were also up to USD$15.82 as the company said it expects
revenue of $335 million to $365 million for its upcoming fourth quarter and
higher adjusted net income compared to the third quarter.

In the third quarter ATI achieved revenues of $342.1 million and adjusted
earnings of $17.5 million, or seven cents a share.

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