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TMCNet:  Emulex Files Lawsuit to Defend Itself Against Alleged Anticompetitive Conduct By Broadcom

[November 09, 2009]

Emulex Files Lawsuit to Defend Itself Against Alleged Anticompetitive Conduct By Broadcom

COSTA MESA, Calif. --(Business Wire)-- Emulex (News - Alert) Corporation (NYSE: ELX) today announced that it has filed a lawsuit against Broadcom alleging that Broadcom has acted in an anticompetitive manner in violation of federal antitrust laws, as well as made defamatory statements and engaged in acts of unfair competition in violation of seven separate statutes. The antitrust claims seek actual damages, attorneys' fees and costs, and injunctive relief. The complaint also seeks punitive damages against Broadcom (News - Alert) to punish and make an example of Broadcom for its alleged "malicious" conduct. Emulex intends to vigorously prosecute this litigation to fully redress Broadcom's conduct and statements, and it is hopeful that Broadcom will immediately cease the conduct alleged in the complaint.

On Wednesday, November 4, 2009, Emulex filed its answer to the patent infringement complaint filed by Broadcom, alleging that it believes that the Broadcom patents at issue are invalid or not infringed, or both. Emulex also notes that the patents listed in the complaint are not directed at Emulex's core Fibre Channel business. The alleged infringing Emulex products listed in Broadcom's complaint accounted for approximately seven percent of Emulex's worldwide product revenue for the fiscal quarter ending September 27, 2009.

The complaint filed today and the answer and counterclaims filed on November 4, 2009, are publicly available from the Federal District Court office in Santa Ana, California.

About Emulex Emulex is the leader in converged networking solutions for the data center. Our Connectivity Continuum architecture provides intelligent networking services that transition today's infrastructure into tomorrow's unified network ecosystem. Emulex provides a single framework that intelligently connects every server, network and storage device within the data center. Through strategic collaboration and integrated partner solutions, Emulex provides its customers with industry leading business value, operational flexibility and strategic advantage. Emulex is listed on the New York Stock Exchange (NYSE:ELX) and has corporate headquarters in Costa Mesa, California. News releases and other information about Emulex Corporation are available at http://www.emulex.com.

Emulex Safe Harbor Statement "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: With the exception of historical information, the statements set forth above include forward-looking statements that involve risk and uncertainties. These forward-looking statements include, among other things, statements regarding future events and future performance. Emulex wishes to caution readers that a number of significant factors could cause actual results to differ materially from those in the forward-looking statements. Those factors include changes in economic and industry conditions and the effects of ongoing global economic uncertainty, changes in end user demand for technology solutions; the effect of any actual or potential unsolicited offers to acquire Emulex; Emulex's dependence on a limited number of customers and the effects of the loss of, or decrease or delays in orders by, any such customers, or the failure of such customers to make payments; the rapidly changing nature of technology, evolving industry standards and frequent introductions of new products and enhancements by competitors; the effect of rapid migration of customers towards newer, lower cost product platforms; slower than expected growth of the storage networking market or the failure of Emulex's Original Equipment Manufacturer ("OEM") customers to successfully incorporate Emulex products into their systems; delays in product development; the highly competitive nature of the markets for Emulex's products; Emulex's ability to gain market acceptance for its products; any inadequacy of Emulex's intellectual property protection or the potential for and impact of third-party claims of infringement, including any inability to successfully defend itself against any intellectual property claims, obligations relating to customer indemnification, any failure of suppliers to satisfy indemnification obligations and other potential business disruption; Emulex's ability to attract and retain skilled personnel; and the Emulex's reliance on third-party suppliers. These and other factors which could cause actual results to differ materially from those in the forward-looking statements are also discussed in Emulex's filings with the Securities and Exchange Commission, including its recent filings on Forms 8-K, 10-K and 10-Q. Statements in this release are based on current expectations and Emulex undertakes no obligation to revise or update any forward-looking statements for any reason. All trademarks, trade names, service marks, and logos referenced herein belong to their respective companies.

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