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3Com to Receive $70 Million from Realtek to Resolve Patent and Technology Issues


MARLBOROUGH, MASS. — July 2008 — 3Com Corporation (NASDAQ: COMS) today announced that on July 11, 2008 3Com and Realtek Group reached an agreement with respect to certain networking technologies of 3Com that will resolve the long-standing patent dispute between the companies. Under the terms of the agreement, Realtek will pay 3Com $70 million, within the next 45 days.

On April 9, 2008, a jury in the U.S. District Court for the Northern District of California awarded 3Com $45.3 million for past patent infringement by Realtek Semiconductor Corporation (TSE: 2379). The jury found that all six asserted claims of four 3Com patents for network interface technology were valid and had been infringed by Realtek. 3Com filed post-trial motions seeking, among other things, enhanced damages and a permanent injunction. Upon satisfaction of Realtek’s obligations under the agreement, the patent case will be dismissed.

“We are very pleased with the terms of our agreement with Realtek,” said Neal D. Goldman, 3Com executive vice president, chief administrative and legal officer. “The agreement for $70 million puts to rest the lawsuit and enables Realtek to legally use the licensed patents and related technology without disruption. We have a substantial number of networking patents and are willing to license use of those patents as part of our licensing program.”

3Com was represented in the case by Simpson Thacher & Bartlett, LLP.

Safe Harbor
This news release contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including forward-looking statements regarding our agreement with Realtek, Realtek’s future obligations under the agreement (including our receipt of $70 million), dismissal of the patent suit and 3Com’s licensing program. These statements are neither promises nor guarantees, but involve risks and uncertainties that could cause actual results to differ materially from those set forth in the forward-looking statements, including, without limitation, risks detailed in the Company’s filings with the SEC, including those discussed in the Company’s quarterly report filed with the SEC on Form 10-Q for the quarter ended February 28, 2008.

3Com Corporation does not intend, and disclaims any obligation, to update any forward-looking information contained in this release or with respect to the announcements described herein.


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