Intergraph Wins Federal Court Order in Intel Antitrust Lawsuit, Forcing Intel to Change Business Practices.

HUNTSVILLE, Ala.--(BUSINESS WIRE)--April 13, 1998--

Federal Court concludes "substantial likelihood" of proving

antitrust claims; calls Intel's use of Non-Disclosure Agreements "unconscionable"

Intergraph Corporation (NASDAQ: INGR), a billion-dollar developer of Windows NT-based workstation hardware and technical software applications, made the following statement today in response to a federal court order awarded in favor of Intergraph and against Intel Corporation by the U.S. District Court, Northern District of Alabama. Intergraph is suing Intel for anticompetitive behavior, patent infringement, and antitrust violations of the Sherman Act.

Specific orders from the court assure that Intergraph will have:

-- advanced product information -- advanced microprocessor "chip samples" -- "early production chips," and -- "production chips"

Intergraph CEO Jim Meadlock stated, "This ruling is a very pivotal development, not only for Intergraph but for the entire computer industry. We believe the court is sending an unmistakably clear and far-reaching message to Intel that there's no place for coercive, monopolistic conduct in the computer industry. These decisions are setting a precedent for the industry. They show other computer companies how the courts can protect them should they be unjustly and illegally assaulted by any company wielding an overpowering market dominance." Mr. Meadlock added, "We are confident that our case is very strong and that our patent ownership is solidly established."

In an 80-page order on April 10th, the federal court granted all key items of injunctive and mandatory relief requested by Intergraph in a motion filed November 17, 1997. Among other points, the court stated that:

-- "Intergraph has established a substantial likelihood of

success on the merits on one or more of its claims."

-- Intel is prohibited "from terminating Intergraph's rights as

a `strategic customer in current and future programs,' or from

otherwise taking any action adversely affecting Intel's business

relationship with Intergraph or Intergraph's ability to design,

develop, produce, manufacture market or sell products

incorporating, or based upon, Intel products or information ...".

-- "The Court concludes there is a substantial likelihood that

Intergraph will succeed in proving that Intel has entered into

one or more agreements and contracts in restraint of trade in

violation of S1 [of the Sherman Antitrust Act]" and that

"...Intel's refusal to supply advanced CPUs and essential

technical information to Intergraph likely violates S2 of the

Sherman Act..."

-- Noting that Intel allegedly tried to use access to critical

Non-Disclosure Agreements to coerce patent licenses from

Intergraph, the court stated that, "... the deliberate

termination of the parties' relationship by Intel, under the

terms of the NDAs and RUNDAs, is unconscionable...".

Case Background

In a lawsuit filed November 17, 1997, in the U.S. District Court, Northern District of Alabama, Intergraph alleged that Intel is using its dominant market position in an attempt to coerce the workstation manufacturer into giving up certain key patent rights. These coercive tactics, including withholding vital information and technical support, delayed shipment of various Intergraph Computer Systems' products and have otherwise hindered Intergraph's business. (Intergraph Computer Systems is a wholly-owned subsidiary of Intergraph Corporation.)

Compelled by the merits of the evidence, on December 3, 1997, Intergraph amended its original complaint of November 17 to include a federal antitrust claim against Intel.

Specifically, in its complaint Intergraph says Intel is guilty of wrongful conduct, including interference with business and contractual relations, interference with technical assistance from third-party vendors, breach of contract, misappropriation of trade secrets, negligence, and infringement of computer technology patents owned by Intergraph.

The text of the court's April 10th "Memorandum of Opinion and Preliminary Injunction" is available at (http://www.intergraph.com/intel/).

Editors Note

Information related to this lawsuit - including court filings, a chronology, and numerous news articles - is available for public viewing on the Intergraph Website at www.intergraph.com/intel.stm

Corporate Background Information

A member of the Fortune 1000, Intergraph Corporation (NASDAQ: INGR) provides interactive graphics technology for industry and government. In addition to manufacturing Intel- based workstations and servers, the Company provides Windows- based total solutions for the Process & Building, Infrastructure, Government, Public Safety, and Electronics Design industries. With corporate headquarters in Huntsville, Alabama and more than $1.2 billion in revenue, Intergraph maintains sales and service organizations in 65 countries. For more information, visit www.intergraph.com.

Intergraph Computer Systems, a company of Intergraph Corporation, is the world leader in 3D graphics technology, hardware products, and related services for Windows NT. Intergraph develops, manufactures, sells, and supports computer systems for the creative, business, and technical desktop as well as servers, networking, and interoperability products for IT solutions. Hardware products include Windows(R)/Windows NT-based 2D and 3D graphics workstations and PCs and high-performance servers built with Intel Pentium(R)/Pentium(R) Pro/Pentium(R) II processors.

Intergraph and the Intergraph Logo are registered trademarks of Intergraph Corporation. Intel and Pentium are registered trademarks of Intel Corporation. Windows is a registered trademark of Microsoft Corporation. Other brands and product names are trademarks of their respective owners.

CONTACT: Aggie Frizzell

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Keith Britnell

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Aaron Kwittken

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