----------------------------------------------------------------- STACKER NOTE STACKER NOTE STAC WINS INJUNCTION HEARING STAC FAX 1118 (05-13-1994) ----------------------------------------------------------------- Microsoft Request for Injunction Denied CARLSBAD, Calif., May 13, 1994 -- Stac Electronics (NASDAQ: STAC) a leading supplier of data compression products for doubling the storage capacity of personal computers, announced today that Federal District Judge Edward Rafeedie, in a tentative ruling, has denied Microsoft's request for a permanent injunction against Stac's use of a DOS preload feature in its Stacker* products. As a result, the Company will continue to ship its Stacker products without interruption. The tentative ruling follows a Federal jury's findings on February 23, 1994 that Microsoft infringed two of the Company's patents. In that decision the jury awarded Stac $120,000,000 in compensatory damages. The jury also found in favor of Microsoft on one of Microsoft's seven counterclaims with the result that Microsoft was awarded $13,600,000 in damages for misappropriation of a trade secret identified as a preload function in MS-DOS** 6. In its tentative ruling the court said that evidence presented at trial indicated that the information Stac used in developing its product was no longer subject to trade secrecy protection. Stac Electronics is a leading supplier of high-performance data compression products for personal computers. Implemented in software and silicon, Stac's products are sold direct from the Company and through retail and OEM sales distribution channels worldwide. * Indicates trademark or registered trademark of Stac Electronics. ** Indicates trademark or registered trademark of Microsoft Corporation. Jennings & Company Greg Peverill-Conti (415) 974-6200 ----------------------------------------------------------------- Copyright 1994 Stac Electronics