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MAI SYSTEMS ENJOINED FROM MAKING FALSE OR MISLEADING STATEMENTS TO CUSTOMERS OF COMPETITORS

 SAN FRANCISCO, July 2 /PRNewswire/ -- Today a federal district court judge in Alexandria, Va., enjoined MAI Systems Corp. from making false or misleading statements about its maintenance competitors or about the finality of a court ruling which MAI had obtained in California this past April. The motion for this preliminary injunction was brought by seven independent service organizations which compete with MAI in the business of maintaining MAI minicomputers: Advanced Computer Services of Springfield, Va.; Business Systems Inc. of Marlboro, Mass.; Data Systems Support of Orange, Calif.; Basic Systems Services of San Diego; React Computer Services of Lemont, Ill.; Pacific React Services of Burbank, Calif.; and Total Support Inc. of Clark, N.J.
 The maintenance companies sought the preliminary injunction because they contended that MAI was telling their customers that a court decision which MAI had obtained in California last April prevented MAI's maintenance competitors from even turning on an MAI computer in order to maintain it. Such statements were inaccurate, according to the independent maintenance companies, because the unprecedented California case, MAI Systems Corp. vs. Peak Computer Inc., did not consider certain issues raised by the independent maintenance companies in Virginia; is not a final decision because there is a petition for reconsideration pending; and -- even if it were a final decision -- is authoritative only in the western states where the court which decided it, the Ninth Circuit Court of Appeals, has jurisdiction. MAI opposed the motion for a preliminary injunction on the ground that it had made no such statements.
 The court's order will enjoin MAI "... from preventing Plaintiffs from servicing MAI-brand computer hardware or software by making false or misleading statements about Plaintiffs, or the finality of intellectual property rulings in pending litigation ..." Ronald S. Katz, one of the attorneys representing the independence maintenance companies, said that "this ruling helps to preserve competition in the $100-million market for the maintenance of MAI computers. It is particularly important for the independent service organizations to have obtained injunctive relief because MAI, which petitioned for bankruptcy court protection this past April, is unlikely to be able to pay any money damages."
 -0- 7/2/93
 /CONTACT: Martin Greenstein of Business Systems, 508-624-4600; or Ronald S. Katz of Coudert Brothers, 415-986-1300, for Business Systems/


CO: MAI Systems Corp.; Business Systems Inc. ST: Virginia, Massachusetts IN: CPR SU:

GT-MS -- SF008 -- 8355 07/02/93 18:38 EDT
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Publication:PR Newswire
Date:Jul 2, 1993
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