May 12

Sayles Werbner Announces Texas Patent Infringement Lawsuit Against National Semiconductor Corp.

MARSHALL – eTool Development, Inc. and eTool Patent Holdings Corp. announce that on May 9, 2008, the companies filed an action for patent infringement against National Semiconductor Corporation (NYSE: NSM), in the United States District Court for the Eastern District of Texas, Marshall Division.

The complaint charges that National, the semiconductor industry’s premier analog chip company, has directly and indirectly infringed, and is directly and indirectly infringing, U.S. patent 7,113, 919.  The 919 patent is directed to a System and Method for Configuring Products Over a Communications Network.  The complaint alleges that National’s WEBENCH® on-line design tools infringe the 919 patent.

The National WEBENCH® on-line tools are heavily relied upon by National to promote the use and sale of National’s portfolio of power management circuits, display drivers, audio and operational amplifiers, interface products and data conversion solutions.  The WEBENCH® tools are therefore an important contributing factor to the generation of a very large percentage of National’s total revenues, which were reported as $1.93 billion for fiscal 2007.  National’s management has also acknowledged that the WEBENCH® tools are an important contributor to National’s industry-leading gross margin, which now exceeds 60%.

eTool is represented by Haines & Associates of Philadelphia; Sayles Werbner, PC, of Dallas; and Woodcock Washburn, LLP, of Philadelphia.

“The damages that eTool seeks are considerable and clearly very material to National,” said Sayles Werbner’s Richard Sayles.  “The full extent of the eTool’s damages will become apparent during discovery.  However, our preliminary investigation reveals they are accruing at a rate in excess of $100 million per year.”

About eTool

eTool Development, Inc. is a Delaware corporation with offices in Irving, Texas. eTool Patent Holdings Corp. is a Texas corporation which also has offices in Irving, Texas. eTool’s 919 patent provides a network-based technical support solution useful to the chemical, food, industrial gas, pharmaceutical, and semiconductor industries, as well as others.

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