Marvell Technology Group to Appeal Patent Decision

              Marvell Technology Group to Appeal Patent Decision

Court denies request for injunction and pre-judgment interest

PR Newswire

SANTA CLARA, Calif., April 1, 2014

SANTA CLARA, Calif., April 1, 2014 /PRNewswire/ --Marvell (NASDAQ: MRVL), a
global leader in integrated silicon solutions, announced that on March 31,
2014, the United States District Court for the Western District of
Pennsylvania issued its judgment on the remaining motions in a lawsuit brought
by Carnegie Mellon University ("CMU") against Marvell and Marvell
Semiconductor, Inc. ("MSI"), Marvell's U.S. operating subsidiary. The Court
rejected CMU's motion for an injunction which would block Marvell from selling
chips that the jury found to be infringing. The Court also rejected CMU's
demand for approximately $326 million in pre-judgment interest, and
substantially scaled back CMU's request for enhanced damages. Based on these
decisions, the Court calculated the damages, including enhancement, to total
approximately $1.54 billion. The Court held that under its decision, CMU is
entitled to post judgment interest and an on-going royalty.

Marvell is a world leader in the development of storage, communications, and
consumer silicon solutions.

Under the schedule set by the Court, the parties now have until April 15, 2014
to propose terms of a final judgment, consistent with the Court's orders.
Once final judgment is entered, Marvell intends to immediately appeal to the
Federal Circuit Court of Appeals. The Court recognized that "the prior
filings related to the parties' bond disputes indicate that Marvell would
likely be qualified for a bond in an amount of $1.5 billion," and stated that
this is "an amount which will cover the current judgment." Marvell has
reached out to sureties who have indicated that they are willing to provide
such a bond without requiring Marvell to post collateral or otherwise harm its
operations. The parties are working with a Special Master to finalize the
terms of the bond.

Marvell and MSI strongly believe the theoretical methods described in the CMU
patents in question cannot practically be built in silicon even using the most
advanced techniques available today, let alone with the technology that was
available a decade ago when Marvell allegedly first used the methods in
question. Rather, Marvell and MSI use their own patented read channel
technology that was developed in house. Among other issues, Marvell and MSI
intend to argue to the Federal Circuit that the patents at issue are invalid,
that even if valid, Marvell did not infringe, and that the Court erred both in
its calculation of the royalty rate and in its novel application of that rate
to chips manufactured, sold, and used abroad.

Marvell has not accrued any liability in its previously issued financial
statements for this lawsuit, nor do we expect to record a liability on our
financial statements given current circumstances. We continue to believe that
a material loss is not probable based on our assessment of the likelihood of a
successful appeal. However, we will continue to evaluate the circumstances in
future filings.

About Marvell

Marvell is a global leader in providing complete silicon solutions enabling
the Smart lifestyle. From mobile communications to storage, cloud
infrastructure, digital entertainment and in-home content delivery, Marvell's
diverse product portfolio aligns complete platform designs with
industry-leading performance, security, reliability and efficiency. At the
core of the world's most powerful consumer, network and enterprise systems,
Marvell empowers partners and their customers to always stand at the forefront
of innovation, performance and mass appeal. By providing people around the
world with mobility and ease of access to services adding value to their
social, private and work lives, Marvell is committed to enhancing the human
experience.

Safe Harbor Statement of Marvell under the Private Securities Litigation Act
of 1995:

This press release contains forward-looking statements that involve risks and
uncertainties, including statements regarding the complex nature of the
patents; Marvell's expectations about its business; Marvell's and MSI's
beliefs that the evidence and the law do not support the jury's findings of
infringement, validity and the award of damages; and Marvell's and MSI's
intention to challenge the judgment through all appropriate processes. The
forward-looking statements contained in this release are subject to risks and
uncertainties, which may cause the actual outcomes or results to vary from
those indicated by the forward-looking statements. These risks and
uncertainties include any adverse outcome of the litigation against Marvell
and MSI, and other risks and uncertainties, including those more fully
described in Marvell's latest Annual Report on Form 10-K for the year ended
February 1, 2014, and other factors detailed from time to time in Marvell's
filings with the SEC. Marvell undertakes no obligation to revise or update
publicly any forward-looking statements.

Marvell and the M logo are registered trademarks of Marvell and/or its
affiliates.

For Further Information Contact:
Investor Relations Media Relations

Sukhi Nagesh       Holly Zheng

Tel: 408-222-8373  Tel: 408-222-9202

sukhi@marvell.com  hollyz@marvell.com

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SOURCE Marvell
 
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