Forgent Networks Sues Microsoft for Patent Infringement

AUSTIN, TX -- (MARKET WIRE) -- 04/21/2005 -- Forgent™ Networks (NASDAQ: FORG) announced today that its wholly owned subsidiary, Compression Labs, Inc., has initiated litigation against Microsoft Corporation (NASDAQ: MSFT) for infringement of United States Patent No. 4,698,672 (the '672 Patent) in the United States District Court for the Eastern District of Texas, Marshall Division. On April 15, 2005, Microsoft filed a complaint in the United States District Court for the Northern District of California against Forgent seeking a declaratory judgment of noninfringement, invalidity and unenforceability of the '672 Patent.

"Forgent intends to vigorously pursue its claims for patent infringement against Microsoft. We believe we will prevail in this action as the '672 Patent is valid, enforceable and infringed by Microsoft," said Richard Snyder, chairman and CEO of Forgent. "It's unfortunate that, despite Microsoft's recent inquiries about licensing the patent, they chose to file a lawsuit, leaving us no alternative but to assert infringement claims against it. We are committed to the intellectual property program, and our objective remains to protect our intellectual property assets from infringement, and where appropriate to collect a reasonable royalty fee, thus maximizing shareholder value."

Since its inception three years ago, Forgent's intellectual property program has generated more than $100 million from licensing the '672 Patent to more than 35 different companies in Asia, Europe and the United States. Forgent has also initiated litigation against 44 companies for infringement of the '672 Patent in the United States District Court for the Eastern District of Texas, Marshall Division. In February of 2005, the Judicial Panel on Multidistrict Litigation ("MDL Panel") ordered that these actions arising out of the infringement of Forgent's still-image compression technology, embodied in the '672 Patent, be transferred to the United States District Court for the Northern District of California. Subsequent to filing the litigation, four companies have entered into license or settlement agreements.

The '672 Patent relates to digital image compression, and fields of use include digital still image devices used to compress, store, manipulate, print or transmit digital still images such as digital cameras, personal digital assistants, cellular telephones, printers, scanners, and certain software applications. The company's patent portfolio includes the combined inventions of Compression Labs, Inc., VTEL Corporation, and Forgent Networks, Inc.

About Forgent

Forgent™ Networks (NASDAQ: FORG) develops and licenses intellectual property and provides scheduling software to a wide variety of customers. Forgent's intellectual property licensing program is related to communication technologies developed from a diverse and growing patent portfolio. Forgent's software division, NetSimplicity, provides a spectrum of scheduling software that enables all sizes of organizations to streamline the scheduling of people, places and things. For additional information please visit www.forgent.com.

Safe Harbor

This release may include projections and other forward-looking statements that involve a number of risks and uncertainties and as such, actual results in future periods may differ materially from those currently expected or desired. Some of the factors that could cause actual results to differ materially include changes in the general economy and the technology industry, rapid changes in technology, sales cycle and product implementations, risks associated with transitioning to a new business model and the subsequent limited operating history, the possibility of new entrants into the collaboration management market, the possibility that the market for the sale of certain software and services may not develop as expected; that development of these software and services may not proceed as planned, risks associated with the company's license program, including risks of litigation involving intellectual property, patents and trademarks, acquisition integration, and the ability to consummate certain divestiture transactions. Additional discussion of these and other risk factors affecting the company's business and prospects is contained in the company's periodic filings with the SEC.

Company contact:
Michael Noonan
512.437.2476
michael_noonan@forgent.com

Media contact:
Lee Higgins
512.794-8600
lee@petersgrouppr.com

SOURCE: Forgent Networks