Netlist and SK hynix Enter into Strategic Agreements for Patents, Technology and Product Supply

Rhea-AI Summary

Netlist has announced a strategic agreement with SK hynix for a patent cross-license covering memory technologies. The deal includes access to Netlist's patent portfolio and a royalty agreement from SK hynix. Additionally, both companies will collaborate on developing Netlist's CXL HybriDIMM technology. This agreement aims to resolve all pending legal matters between them in Texas courts. A conference call is scheduled for April 7, 2021, to discuss the announcement further. This partnership marks a significant step in enhancing collaboration and innovation in memory technology.

Positive

• Strategic agreement with SK hynix enhances Netlist's market position.
• Netlist receives royalties from SK hynix, improving revenue prospects.
• Cross-licensing agreement expands access to a broader patent portfolio.

Negative

• None.

IRVINE, Calif., April 5, 2021 /PRNewswire/ -- Netlist, Inc. announced today that Netlist and SK hynix Inc. have reached an agreement for a patent cross license covering memory technologies of both companies and an agreement for the supply of SK hynix products and technical cooperation on Netlist's CXL HybriDIMM technology.

C.K. Hong, Netlist's Chief Executive Officer said, "We are delighted with the recognition of the value of Netlist's intellectual property and very much look forward to partnering with SK hynix, a global leader in memory and storage technology."

The agreements provide SK hynix with access to Netlist's portfolio of U.S. and foreign patents. Netlist will receive a royalty from SK hynix, a cross license to SK hynix's patent portfolio and supply of SK hynix's memory and storage products. The companies also plan to collaborate on Netlist's HD CXL technology for future commercialization.

Netlist and SK hynix have agreed to end all pending matters in the U.S. District Court for the Western District of Texas and the Patent Trial and Appeals Board of the U.S. Patent and Trademark Office.

Netlist will host a conference call to discuss today's announcement at 5:00 p.m. Eastern Time on April 7, 2021. Netlist encourages participants to pre-register for the conference call. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. To pre-register, click here.

For those who would like to join the call but have not pre-registered, they can do so by dialing +1 (412) 317-5443 and requesting the "Netlist Conference Call."

About SK hynix Inc.
SK hynix Inc., headquartered in Korea, is the world's top tier semiconductor supplier offering Dynamic Random Access Memory chips ("DRAM"), Flash memory chips ("NAND Flash") and CMOS Image Sensors ("CIS") for a wide range of distinguished customers globally. The Company's shares are traded on the Korea Exchange, and the Global Depository shares are listed on the Luxemburg Stock Exchange. Further information about SK hynix is available at www.skhynix.com,   news.skhynix.com

About Netlist
Netlist (OTCQB:NLST) is a provider of high-performance SSDs and modular memory subsystems to enterprise customers in diverse industries. The Company's NVMe SSD product line provides industry-leading performance. HybriDIMM™ for CXL, Netlist's next-generation storage class memory technology under development, addresses the growing need for real-time analytics in Big Data applications and high-performance computing. Netlist also manufactures a line of specialty memory products for servers and storage and datacenter customers. Netlist holds a portfolio of patents in the areas of server memory, hybrid memory, storage class memory, rank multiplication and load reduction. To learn more, visit www.netlist.com.

Safe Harbor Statement
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements other than historical facts and often address future events or Netlist's future performance. Forward-looking statements contained in this news release include statements about Netlist's ability to execute on its strategic initiatives. All forward-looking statements reflect management's present expectations regarding future events and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by any forward-looking statements. These risks, uncertainties and other factors include, among others: risks related to Netlist's plans for its intellectual property, including its strategies for monetizing, licensing, expanding, and defending its patent portfolio; risks associated with patent infringement litigation initiated by Netlist, or by others against Netlist, as well as the costs and unpredictability of any such litigation; risks associated with Netlist's product sales, including the market and demand for products sold by Netlist and its ability to successfully develop and launch new products that are attractive to the market; the success of product, joint development and licensing partnerships; the competitive landscape of Netlist's industry; and general economic, political and market conditions, including quarantines, factory slowdowns or shutdowns, and travel restrictions resulting from the COVID-19 pandemic. All forward-looking statements reflect management's present assumptions, expectations and beliefs regarding future events and are subject to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from those expressed in or implied by any forward-looking statements. These and other risks and uncertainties are described in Netlist's annual report on Form 10-K for its most recently completed fiscal year filed on March 26, 2021, and the other filings it makes with the U.S. Securities and Exchange Commission from time to time, including any subsequently filed quarterly and current reports. In light of these risks, uncertainties and other factors, these forward-looking statements should not be relied on as predictions of future events. These forward-looking statements represent Netlist's assumptions, expectations and beliefs only as of the date they are made, and except as required by law, Netlist undertakes no obligation to revise or update any forward-looking statements for any reason.

For more information, please contact:

The Plunkett Group
Mike Smargiassi
NLST@theplunkettgroup.com
(212) 739-6729

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SOURCE Netlist, Inc.

FAQ

What is the recent agreement between Netlist and SK hynix?

Netlist and SK hynix have entered a strategic agreement for a patent cross-license and collaboration on CXL HybriDIMM technology.

How will the agreement with SK hynix benefit Netlist?

Netlist will receive royalties from SK hynix and gain access to SK hynix's patent portfolio, enhancing its revenue potential.

When will Netlist discuss the announcement with investors?

Netlist will host a conference call on April 7, 2021, at 5:00 p.m. Eastern Time to discuss the agreement.

What legal matters will be resolved by this agreement?

The agreement resolves all pending legal matters between Netlist and SK hynix in the U.S. District Court for the Western District of Texas.

What is the significance of the CXL HybriDIMM technology?

The CXL HybriDIMM technology is a next-generation storage class memory technology aimed at improving performance in big data applications and high-performance computing.