Netac and Sony reach court settlement

SHENZHEN, CHINA – Nov., 2006

Netac Technology Ltd. Co. a Shenzhen-based China USB flash drive technology company, and Sony Corporation, based in Tokyo, Japan, have reached an agreement to settle the patent infringement lawsuit that Netac initiated against Sony Wuxi in July 2004. Both parties have amicably agreed to resolve the legal disputes between the parties and each party will focus on its business development from now on.Under terms and conditions specified in the agreement, Netac will withdraw the civil lawsuit and Sony will purchase USB flash drive units from Netac after this settlement is effective.