Sorenson Media Responds to Lawsuit Allegation

Sorenson Media, a provider of video compression software anddelivery services, made the following remarks following the news that alawsuit has been filed against the company by Apple Computer.

"We are greatly surprised by the presumptive filing of this suitwithout prior discussions or understandings between the parties," saidJim Sorenson, CEO of Sorenson Media. "We are reasonable, and as isusual practice, we are always willing to discuss and work to resolveissues. In the meantime, we remain focused on executing our overallcorporate and product strategy and doing what we feel is best for ourcustomers."

As a result of the release of the Sorenson Spark technology recentlylicensed to Macromedia, Apple claims breach of a distribution agreementof Sorenson Video for QuickTime by Sorenson Media. Sorenson Media saysit considers the claims to be without merit, and if necessary, intendsto mount a vigorous defense against the allegations.