SMART Modular Patent Claims Rejected by the United States Patent & Trademark Office

Mon Dec 10, 2012 9:00am EST

* Reuters is not responsible for the content in this press release.

  IRVINE, CA, Dec 10 (Marketwire) -- 
Netlist, Inc. (NASDAQ: NLST), a leading provider of high performance
memory solutions for the cloud computing market, announced today that the
United States Patent and Trademark Office (USPTO) has ordered
reexamination and rejected all of the claims of United States Patent No.
8,250,295 ('295 patent) which have been asserted in a patent infringement
lawsuit filed by Smart Modular Technologies, Inc. ("SMART") against
Netlist. Netlist requested reexamination of the claims on September 15,
2012 by presenting the USPTO with six different combinations of prior art
that had not been considered in the original examination of the '295
patent. After reviewing Netlist's reexamination request, the USPTO
concluded that there is a reasonable likelihood that these claims will be
found invalid based on each of the six combinations and thus ordered
reexamination. The USPTO then followed the order granting reexamination
with an Office Action where it formally rejected the claims based on the
same six prior art combinations. 

    "We are very pleased with the timely decision by the USPTO to reject all
requested claims of the '295 patent in light of six different
combinations of prior art," said Netlist President and CEO C.K. Hong.
"The USPTO's recent decision to reject SMART's claims underscores the
materiality of the prior art that had not yet been considered. In
addition, the new patent law sets a higher threshold for ordering
reexamination than in the past by requiring a reasonable likelihood of
prevailing. For that reason, we feel strongly that the USPTO will
ultimately cancel the claims of the '295 patent, thereby eliminating the
sole basis for SMART's patent infringement lawsuit."

    About Netlist:
 Netlist, Inc. designs and manufactures high-performance,
logic-based memory subsystems for server and storage applications for
cloud computing. Netlist's flagship products include HyperCloud, a
patented memory technology that breaks traditional memory barriers,
NVvault family of products that enables data retention during power
interruption, EXPRESSvault, a PCI Express backup/recovery solution for
cache data protection and a broad portfolio of industrial Flash and
specialty memory subsystems including VLP (very low profile) DIMMs and
Planar-X RDIMMs. 

    Netlist develops technology solutions for customer applications in which
high-speed, high-capacity, small form factor and heat dissipation are key
requirements for system memory. These customers include OEMs that design
and build tower, rack-mounted, and blade servers, high-performance
computing clusters, engineering workstations and telecommunications
equipment. Founded in 2000, Netlist is headquartered in Irvine, CA with
manufacturing facilities in Suzhou, People's Republic of China and an
engineering design center in Silicon Valley, CA. Learn more at 

    Safe Harbor Statement:
 This news release contains forward-looking
statements regarding future events and the future performance of Netlist.
These forward-looking statements involve risks and uncertainties that
could cause actual results to differ materially from those expected or
projected. These risks and uncertainties include, but are not limited to,
risks associated with the launch and commercial success of our products,
programs and technologies; the success of product partnerships;
continuing development, qualification and volume production of
EXPRESSvault, NVvault, HyperCloud and VLP Planar-X RDIMM; the
rapidly-changing nature of technology; risks associated with intellectual
property, including the costs and unpredictability of litigation over
infringement of our intellectual property and the possibility of the
Company's patents being re-examined by the United States Patent and
Trademark office; volatility in the pricing of DRAM ICs and NAND; changes
in and uncertainty of customer acceptance of, and demand for, our
existing products and products under development, including uncertainty
of and/or delays in product orders and product qualifications; delays in
the Company's and its customers' product releases and development;
introductions of new products by competitors; changes in end-user demand
for technology solutions; the Company's ability to attract and retain
skilled personnel; the Company's reliance on suppliers of critical
components and vendors in the supply chain; fluctuations in the market
price of critical components; evolving industry standards; and the
political and regulatory environment in the People's Republic of China.
Other risks and uncertainties are described in the Company's annual
report on Form 10-K filed on February 28, 2012, and subsequent filings
with the U.S. Securities and Exchange Commission made by the Company from
time to time. Except as required by law, Netlist undertakes no obligation
to publicly update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise. 


For more information, please contact:

Brainerd Communicators, Inc. 
Corey Kinger/Mike Smargiassi (investors) 
Sharon Oh (media) 
(212) 986-6667 

Copyright 2012, Marketwire, All rights reserved.