Netlist Files Complaint for Patent Infringement, Antitrust Violations and Trade Secret Misappropriation Against Smart Modular,

Netlist Files Complaint for Patent Infringement, Antitrust Violations and Trade 
Secret Misappropriation Against Smart Modular, Smart
Storage Systems, Smart Worldwide Holdings and Diablo Technologies 
IRVINE, CA -- (Marketwired) -- 08/26/13 --  Netlist, Inc. (NASDAQ:
NLST), a leading provider of high performance and hybrid (DRAM to
Flash) memory solutions for the cloud computing and storage markets,
announced today that it has filed a First Amended Complaint in the
United States District Court for the Central District of California
in Santa Ana, California against Smart Modular Technologies, Inc.,
Smart Storage Systems, Inc., Smart Worldwide Holdings, Inc. and
Diablo Technologies, Inc (Diablo). 
Among other things, Netlist's complaint alleges infringement of five
Netlist patents by the defendants, based in part on the recently
announced ULLtraDIMM memory module. Netlist's complaint also alleges
antitrust violations by Smart Modular and Smart Worldwide, contending
that Smart Modular procured a patent (U.S. Patent No. 8,250,295) with
blatant inequitable conduct at the US Patent and Trademark Office
(USPTO), withheld the patent application leading to the patent from
relevant JEDEC committees for more than eight years, sought to
improperly enforce that patent against Netlist's JEDEC-compliant
HyperCloud(R) product by seeking a preliminary injunction, which was
denied by the Court, and made deceptive statements to the public
about its lawsuit against Netlist. Netlist's complaint also alleges
trade secret misappropriation and trademark infringement against
Diablo, claiming that Diablo misused Netlist trade secrets and the
HyperCloud(R) technology to create the ULLtraDIMM product and other
competing products.  
"Our lawsuit contends that the Defendants have engaged in a long
history of wrongful and deceptive conduct. We have spent years
developing our industry-leading technology, and we intend to seek all
legal recourse to protect our valuable intellectual property against
willful violation by others," said Netlist President and CEO, C.K.
Hong.  
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(R), a patented memory technology that breaks
traditional memory barriers, NVvault(TM) and EXPRESSvault(TM) family
of products that significantly accelerate system performance and
provide mission critical fault tolerance, 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. 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(TM), NVvault(TM),
HyperCloud(R) and VLP Planar-X RDIMM; the timing and magnitude of the
anticipated decrease in sales to our key customer; our ability to
leverage our NVvault(TM) technology in a more diverse customer base;
the rapidly-changing nature of technology; risks associated with
intellectual property, including patent infringement litigation
against us as well as the costs and unpredictability of litigation
over infringement of our intellectual property and the possibility of
our patents being reexamined 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 March 29, 2013, 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.
Aakash Mehta/Mike Smargiassi
NLST@braincomm.com
(212) 986-6667 
 
 
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