Quantum and Riverbed Settle Patent Lawsuits on De-Dup

On September 30, 2008, Quantum Corporation entered into a Mutual Release and Settlement Agreement with Riverbed Technology, Inc. Pursuant to the Settlement Agreement, Riverbed and Quantum agreed to jointly execute and file dismissals of patent infringement actions brought in the United States District Court for the Northern District of California involving United States Patent Nos. 7,116,249; 5,990,810; and 6,622,164.

Pursuant to the terms of the Settlement Agreement, Riverbed will pay Quantum a lump sum of $11 million, and the parties, on behalf of themselves and their affiliates, entered into a perpetual covenant not to sue the other parties, any of their respective affiliates, or, subject to certain qualifications, any of their respective resellers, customers, OEM partners or suppliers

• (i) alleging infringement of any patents relating to data de-duplication that a party or any of its affiliates currently owns, has the right to enforce or will acquire or have the right to enforce within five years following the date of the Settlement Agreement, including the Litigation Patents, or
• (ii) challenging the validity or enforceability of any Subject Patent.

In addition to the Perpetual Covenant, the parties to the Settlement Agreement also agreed, on behalf of themselves and their affiliates, for a period of three years, not to file any patent infringement lawsuits against any other party to the Settlement Agreement, their affiliates, or, subject to certain qualifications, any of their respective resellers, customers, OEM partners or suppliers.

In addition, Riverbed and Quantum released each other from any and all claims, demands, losses, liabilities and causes of action relating to the Patent Infringement Actions or any infringement of any patent based on acts occurring prior to the date of the Settlement Agreement.