Buffalo Will Not Import or Sell USB Flash Drives, MMC and CompactFlash Cards in the U.S.

In October 2007, SanDisk Corporation filed three separate patent
infringement proceedings including: two lawsuits in the Western
District of Wisconsin and a proceeding in the International Trade
Commission. The Western District of Wisconsin cases have been stayed
pending a decision in the International Trade Commission proceeding.

Buffalo Technology USA, Inc. and its affiliate companies ("Buffalo")
were named as defendants in all three proceedings. The complaints
alleged that Buffalo infringed of US Patent Nos. 6,149,316; 6,757,842;
6,763,424; 6,426,893 and 6,947,332 through the sale of USB Flash
Drives, MMC memory cards or CompactFlash, including products
containing such components. The technology in suit involves the use of
controllers in flash memory devices.

Also named as defendants in the Wisconsin actions and/or the
International Trade Commission proceedings were the following
companies: Phison Electronics Corp., Silicon Motion Technology Corp.,
Silicon Motion, Inc. (Taiwan), Silicon Motion, Inc. (California),
Silicon Motion International, Inc., Synergistic Sales, Inc., USBest
Technology, Inc., Skymedi Corp., Chipsband Microelectronics (HK) Co.,
Ltd., Chipsbank Technology (Shenzhen) Co., Ltd., Chipsbank
Microelectronics Co., Ltd., Zotek Electronic Co., Ltd., Zodata
Technology Ltd., Infotech Logistic LLC, Power Quotient International
Co., Ltd., Power Quotient International (HK) Co., Ltd., Syscom
Development Co., Ltd., PQI Corp., PNY Technologies, Inc., Kingston
Technology Co., Inc., Kingston Technology Corp., Payton Technology
Corp., MemoSun, Inc., Verbatim Corp., Transcend Information Inc.
(Taiwan), Transcend Information Inc. (California, U.S.A.), Transcend
Information Maryland, Inc., Imation Corp., Imation Enterprises Corp.,
Memorex Products, Inc., Add-On Computer Peripherals, Inc., Add-On
Computer Peripherals, LLC, Add-On Technology Co., A-Data Technology
Co., Ltd., A-Data Technology (USA) Co., Ltd., Apacer Technology Inc.,
Apacer Memory America, Inc., Acer, Inc., Behavior Tech Computer Corp.,
Behavior Tech Computer USA Corp., Emprex Technologies Corp., Corsair
Memory, Inc., Dane-Elec Memory S.A., Deantusaiocht Dane-Elec TEO (dba
Intervalle Corp and dba Dane-Elec. Manufacturing), Dane-Elec Corp. USA
(dba Intervalle Corporation and dba Dane-Elec Manufacturing USA), EDGE
Tech Corp., Interactive Media Corp, Kaser Corporation, LG Electronics,
Inc., LG Electronics U.S.A., Inc., TSR Silicon Resources Inc., and
Welldone Co.

Buffalo’s component suppliers are defendants in all three
proceedings. Buffalo is confident that its suppliers will succeed in
proving the patent invalid, unenforceable, and/or not infringed. For
this reason, Buffalo has chosen to end the International Trade
Commission proceeding by agreeing to not import or sell USB Flash
Drives, MMC memory cards or CompactFlash, as well as any products
containing such components until its suppliers are found not to
infringe and/or SanDisk’s patents are found invalid and/or
unenforceable.

Buffalo
Technology (USA), Inc.