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Splash Technology Sues EFI for Splash Patent Infringement.

Business Editors/High Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--Jan. 10, 2000

Includes Claim of Unfair Business Practices

Splash Technology Holdings, Inc. ("Splash" or the "Company," Nasdaq: SPLH), a leading international supplier of color servers that transform printing engines into powerful networked printers, today announced that it has sued Electronics for Imaging ("EFI") claiming that EFI's products infringe upon Splash-patented technology.

The counterclaim, filed in United States District Court for the Northern District of California, alleges that certain EFI color server products infringe upon a newly issued Splash patent relating to variable data printing technology. The company believes this technology is very important in a number of fast growing, digital printing applications, and the claim seeks to enforce Splash's patent rights in the United States.

"As stated in our announced intent to vigorously defend ourselves against EFI's lawsuit," said John Ritchie, Splash vice president of finance, "we respect other people's intellectual property and expect them to honor ours."

In addition, Splash's claim alleges that EFI has engaged in a continuing pattern of anticompetitive practices in an effort to control the market for color servers, such acts include the filing of baseless lawsuits against competitors timed to have an adverse effect on commercial activities and transactions that EFI perceives as a threat to its attempt to control the color server market. The Splash claim asserted against EFI is pursuant to California Business and Professions Code 17200 which prohibits unfair and unlawful business practices.

Beginning as early as 1995 and continuing up to the present, past EFI filings against competitors such as Radius and, more recently, Harlequin typify the unlawful, bad faith actions by EFI undertaken for improper purposes.

Mr. Ritchie continued: "It is interesting to note that EFI's 1995 suit against Radius pertaining to Splash products was also suspiciously timed, yet was settled in 1998 advantageously to Splash, following both summary judgment and appellate rulings against EFI."

ABOUT SPLASH TECHNOLOGY:

Splash Technology produces color servers that transform printing engines into powerful networked printers. Splash's innovative technology is easy to use and enables high-quality, accurate, and consistent color printing from virtually any desktop computer and application. Advanced product features include color correction, color calibration, separations support, variable data printing, and large format support. Splash ships color servers on both Intel and PowerPC platforms. For more information, visit the Splash Web site at http://www.splashtech.com .

SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995:

Statements contained in this news release that are not historical facts, such as the Company's expectation that others will not misappropriate its intellectual property, that certain EFI color server products infringe upon Splash's patents, and the importance of variable data printing technology, are forward looking statements. The statements concerning misappropriation and infringement are subject to risks and uncertainties inherent in any complex litigation, and the statement concerning variable data printing technology is subject to risks and uncertainties inherent in the exploitation of any new technology, including market acceptance and the development of competitive alternatives. As has been previously disclosed in documents the Company files from time to time with the SEC including the most recent Form 10-K and Form 10-Q, failure to achieve a favorable result in any significant litigation, the failure to prevent the misappropriation of the Company's intellectual property, and the failure to successfully develop and exploit new color printing technologies could have a material adverse effect on the Company's operating results and financial conditions.
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Publication:Business Wire
Geographic Code:1USA
Date:Jan 10, 2000
Words:573
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