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HAYES SETTLES WITH MULTI-TECH LENGTHY TRIAL NOT REQUIRED

 ATLANTA, Jan. 11 /PRNewswire/ -- U.S. modem manufacturer Hayes Microcomputer Products, Inc. today announced that a settlement has been reached between Hayes and Multi-Tech Systems, Inc. of Minneapolis, Minn. This settlement concludes the litigation which was begun in December, 1988, when Multi-Tech initiated patent litigation over the Hayes '302 patent in the United States District Court, Minneapolis, Minn.
 As part of the settlement, an undisclosed amount of money was paid to Hayes and Hayes has agreed to make certain modifications to its White Paper with respect to TIES modems. All claims in connection with the litigation in Minnesota have been dismissed by both parties. All other terms of the settlement are confidential.
 Just two weeks earlier the United States Court of Appeals for the Federal Circuit in Washington, DC affirmed in all respects the validity and enforceability of the Hayes '302 patent, which was the subject of a January 1991 Jury trial held in U.S. District Court in San Francisco, Calif. The ruling fully confirmed both the validity and enforceability of the Hayes '302 Patent and that Hayes had properly proved willful infringement by the three defendants entitling Hayes to additional damages and attorneys' fees.
 "The Jury verdict in the San Francisco litigation and the resulting affirmation of the verdict by the Federal Circuit Court of Appeals in Hayes favor have set the legal precedent which is encouraging companies in our industry to gain a stronger respect for the Hayes '302 patent as well as the United States Patent system," said Hayes President Dennis C. Hayes. "I am also pleased we were able to settle this case with Multi-Tech instead of requiring a lengthy trial."
 Following a series of licensing negotiations, Multi-Tech originally filed suit against Hayes in December 1988 in Minnesota in an attempt to invalidate the Hayes '302 patent. Hayes then filed in February 1989 a counterclaim against Multi-Tech charging willful infringement of the Hayes '302 patent, the same Patent that was involved in the ongoing litigation in San Francisco which began in 1986. Two years later Multi- Tech filed additional claims charging false advertising and unfair competition. In July 1992, again almost two years later, Multi-Tech filed further claims charging false advertising related to Hayes educational campaign about escape sequences. The settlement announced today resolves all matters between the parties.
 With the conclusion of the San Francisco and Minneapolis cases, Hayes will now pursue early resolutions of two patent infringement cases still pending in United States District Court, Atlanta, Ga. against Cardinal Technologies, Inc. of Lancaster, Pa. and Zoom Telephonics of Boston, Mass.
 The Hayes escape sequence technology, first introduced in Hayes Smartmodem products in 1981, was issued as U.S. Patent Number 4,549,302 on 25 October 1985. It is now a data communications feature for modems, ISDN, and other data communications applications, with over 26 million units shipped to date worldwide. The Hayes '302 patent, which has become the industry standard escape sequence due to its proven reliability after 11 years of use, has been licensed by 25 manufacturers.
 Best known as the leader in microcomputer modems, Hayes develops, supplies and supports computer communications equipment and software for personal computer and computer communications networks. The company distributes its products in over 60 countries through a global network of authorized distributors, dealers, mass merchants, VARs, systems integrators and original equipment manufacturers.
 -0- 1/11/93
 /CONTACT: Beth Malanoski or Peggy Ballard of Hayes Microcomputer Products, Inc., 404-840-9200 or, fax, 404-441-1238; or MCI Mail: ACiarloni, PBallard; Product Information: Hayes Customer Service, 404-441-1617 (U.S.), 519-746-5000 (Canada), 0252-775544 (U.K.), 852-887-1037 (H.K.), 33-1-34-22-30-15 (France)/


CO: Hayes Microcomputer Products, Inc.; Multi-Tech Systems, Inc. ST: Georgia, Minneapolis IN: CPR SU:

RA-BR -- AT005 -- 3444 01/11/93 10:05 EST
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Date:Jan 11, 1993
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