April 4th, 2006 - AVerMedia has been made aware that Terratec ( www.terratec.com ) has been releasing many press releases in Germany claiming AVerMedia has infringed Terratec's Germany Utility Patent ( Nr. 20 2005 017 348.7 ). AVerMedia hereby vigorously rebuts Terratec's claim based on the following facts:

1. Terratec's Germany Utility Patent Nr. 20 2005 017 348.7  was filed on Nov. 3rd, 2005 and granted in Feb. 2 nd , 2006. The application took less than 3 months to be registered and was not actually examined by Germany Patent Office.
   
   
2. The product, a hybrid USB stick TV tuner, described in Terratec's patent writings was already developed and announced in IFA Show during 2-7 September, 2005 at Berlin, Germany by other companies. The industry had known about such designs two months before Terratec filed for the patent in question. It is AVerMedia's belief that upon German Patent Office's actual examination on evidences of prior arts, Terratec's patent will very likely be invalidated.
   
   
3. As a matter of fact, AVerMedia has not yet started selling such a product that Terratec claims to be covered by their patent. AVerMedia will wait until the validness of Terratec's patent clarifies.
   
   
4. AVerMedia invests heavily on original product research and development. AVerMedia has more than 50 patents grants world wide, including in Germany, and have more than 100 patents pending globally. AVerMedia fully respects Intellectual Property Rights and will follow up with vigorous legal actions to protect her due reputation and actively claim damages resulted from false allegations made by Terratec.