Intergraph And Intel Announce Settlement Of Alabama Patent Infringement Litigation

HUNTSVILLE, Ala./SANTA CLARA, Calif., April 15, 2002 -- Intergraph Corporation and Intel Corporation have settled the patent infringement suit pending in U.S. District Court in Birmingham, Alabama. Under terms of the settlement, the companies have signed a cross license agreement; Intergraph will transfer ownership of certain unrelated patents to Intel and Intel will pay Intergraph $300 million. Intel will take a one-time charge for approximately half of the payment, which will be reflected in the financial statements for the first quarter, scheduled for release on Tuesday.

A patent suit in U.S. Federal District Court in Marshall, Texas will proceed as planned, but the companies have agreed on liquidated damages depending upon the outcome of the case, including appeal. The liquidated damages range from zero if Intel prevails, and $150 million if Intergraph prevails up to $250 million if Intergraph prevails on appeal. All other terms of the settlement are confidential.

Intergraph Corporation is a worldwide provider of end-to-end technical solutions and systems integration. Intergraph's vertically focused business units develop, market and support software and services for local and national governments and for global industries, including process, power and offshore, public safety, utilities, communications, mapping/GIS, and earth imaging. Intergraph is headquartered in Huntsville, Ala., with offices worldwide. More information can be found on the Internet at www.intergraph.com.

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