SMART Modular Patent Claims Rejected by the United States

SMART Modular Patent Claims Rejected by the United States Patent &
Trademark Office 
IRVINE, CA -- (Marketwire) -- 12/10/12 --  Netlist, Inc. (NASDAQ:
NLST), a leading provider of high performance memory solutions for
the cloud computing market, announced today that the United States
Patent and Trademark Office (USPTO) has ordered reexamination and
rejected all of the claims of United States Patent No. 8,250,295
('295 patent) which have been asserted in a patent infringement
lawsuit filed by Smart Modular Technologies, Inc. ("SMART") against
Netlist. Netlist requested reexamination of the claims on September
15, 2012 by presenting the USPTO with six different combinations of
prior art that had not been considered in the original examination of
the '295 patent. After reviewing Netlist's reexamination request, the
USPTO concluded that there is a reasonable likelihood that these
claims will be found invalid based on each of the six combinations
and thus ordered reexamination. The USPTO then followed the order
granting reexamination with an Office Action where it formally
rejected the claims based on the same six prior art combinations.  
"We are very pleased with the timely decision by the USPTO to reject
all requested claims of the '295 patent in light of six different
combinations of prior art," said Netlist President and CEO C.K. Hong.
"The USPTO's recent decision to reject SMART's claims underscores the
materiality of the prior art that had not yet been considered. In
addition, the new patent law sets a higher threshold for ordering
reexamination than in the past by requiring a reasonable likelihood
of prevailing. For that reason, we feel strongly that the USPTO will
ultimately cancel the claims of the '295 patent, thereby eliminating
the sole basis for SMART's patent infringement lawsuit." 
About Netlist:
 Netlist, Inc. designs and manufactures
high-performance, logic-based memory subsystems for server and
storage applications for cloud computing. Netlist's flagship products
include HyperCloud, a patented memory technology that breaks
traditional memory barriers, NVvault family of products that enables
data retention during power interruption, EXPRESSvault, a PCI Express
backup/recovery solution for cache data protection and a broad
portfolio of industrial Flash and specialty memory subsystems
including VLP (very low profile) DIMMs and Planar-X RDIMMs.  
Netlist develops technology solutions for customer applications in
which high-speed, high-capacity, small form factor and heat
dissipation are key requirements for system memory. These customers
include OEMs that design and build tower, rack-mounted, and blade
servers, high-performance computing clusters, engineering
workstations and telecommunications equipment. Founded in 2000,
Netlist is headquartered in Irvine, CA with manufacturing facilities
in Suzhou, People's Republic of China and an engineering design
center in Silicon Valley, CA. Learn more at www.netlist.com.  
Safe Harbor Statement:
 This news release contains forward-looking
statements regarding future events and the future performance of
Netlist. These forward-looking statements involve risks and
uncertainties that could cause actual results to differ materially
from those expected or projected. These risks and uncertainties
include, but are not limited to, risks associated with the launch and
commercial success of our products, programs and technologies; the
success of product partnerships; continuing development,
qualification and volume production of EXPRESSvault, NVvault,
HyperCloud and VLP Planar-X RDIMM; the rapidly-changing nature of
technology; risks associated with intellectual property, including
the costs and unpredictability of litigation over infringement of our
intellectual property and the possibility of the Company's patents
being re-examined by the United States Patent and Trademark office;
volatility in the pricing of DRAM ICs and NAND; changes in and
uncertainty of customer acceptance of, and demand for, our existing
products and products under development, including uncertainty of
and/or delays in product orders and product qualifications; delays in
the Company's and its customers' product releases and development;
introductions of new products by competitors; changes in end-user
demand for technology solutions; the Company's ability to attract and
retain skilled personnel; the Company's reliance on suppliers of
critical components and vendors in the supply chain; fluctuations in
the market price of critical components; evolving industry standards;
and the political and regulatory environment in the People's Republic
of China. Other risks and uncertainties are described in the
Company's annual report on Form 10-K filed on February 28, 2012, and
subsequent filings with the U.S. Securities and Exchange Commission
made by the Company from time to time. Except as required by law,
Netlist undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.  
For more information, please contact: 
Brainerd Communicators, Inc. 
Corey Kinger/Mike Smargiassi (investors) 
Sharon Oh (media) 
NLST@braincomm.com 
(212) 986-6667 
 
 
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