VRGY Verigy Ltd. (MM)

Verigy (NASDAQ:VRGY), a premier semiconductor test company, today announced that on February 29, 2008, the U.S. District Court for the Northern California District of California, San Jose Division, granted a preliminary injunction prohibiting defendants Romi Omar Mayder, Wesley Mayder, Silicon Test Systems, Inc. and Silicon Test Solutions, LLC from directly or indirectly selling, licensing, distributing, transferring or marketing Defendants� current integrated circuit product, Flash Enhancer, �and any product based on Flash Enhancer� for the next five months. The Court found that Flash Enhancer �is substantially based upon Verigy�s trade secrets.� Defendant Romi Mayder was employed at Verigy until September 2006. While still employed by Verigy, Mayder began a new business venture and started developing an integrated circuit product. The Court found that the product�s features described in �data sheets or other documentation up to September 2006 are likely to belong to Verigy� pursuant to Mayder�s employment agreement. The Court also found that �Verigy has presented evidence that many of the features that defendants assert are new in Flash Enhancer are relatively unchanged from�[when] Mayder was still at Verigy.� The February 29, 2008 order is also binding upon anyone in active concert or participation with Defendants who receives actual notice of the order. The public version of the injunction order may be viewed at www.ecf.cand.uscourts.gov. �As Verigy takes its intellectual property rights very seriously, we are pleased with the court�s decision,� said Ken Siegel, Verigy�s Vice President and General Counsel. �The preliminary injunction protects Verigy�s trade secrets and other intellectual property from unlawful use.� The litigation began in August 2007 when Verigy sued Defendants for breach of contract, trade secret misappropriation, statutory and common law unfair competition, violation of the Computer Fraud and Abuse Act, Electronic Communications Privacy Act, California Penal Code � 502, breach of duty of loyalty, intentional interference with prospective economic advantage, unjust enrichment, violation of the Lanham Act, and for imposition of a constructive trust. On August 24, 2007, the Court issued a temporary restraining order against Defendants, and that order remained in effect until the preliminary injunction was issued. About Verigy Verigy designs, develops, manufactures, sells and services advanced test systems and solutions for the memory and system-on-chip segments of the semiconductor industry. Verigy�s scalable platform systems are used by leading semiconductor companies worldwide in design validation, characterization, and high volume manufacturing test. Information about Verigy can be found at www.verigy.com.