PR Newswire -- May 29, 2003

Sale is Largest-Ever IP Deal for BT

LONDON, May 29 /PRNewswire/ -- BTexact, BT's research, technology and IT operations business, and LG Electronics Inc. (LGE), the Korean-based electronics company, today announced the signing of both companies' largest intellectual property deal to date.

This deal involves the sale of BTexact's voice activity detector (VAD) patents to LGE. A VAD detects the presence or absence of voice to prolong battery life in the mobile devices, increase the capacity of the network and to solve other numerous problems encountered in mobile communications. BTexact developed a VAD in the late 1980s that incorporates a patented invention making it simpler than its rivals. This simplicity led to BTexact's patented VAD being selected for use in various telecommunication standards including the GSM standard.

The second family of patents sold to LGE covers a BTexact invention from the early 1990s: an improvement to the VAD, which further enabled detection of signalling tones or information tones (such as an engaged tone). Again, BTexact's patented solution was simple and was selected for incorporation into the various telecommunication standards.

BB Hwang, executive vice president of LGE, said: "BTexact has an international reputation for creating the technology that underpins some of the world's most pioneering commercial applications of telecoms technology. We are looking forward to working with BTexact on an ongoing basis."

Mike Carr, director of research and venturing at BTexact, said: "LGE is already a well-known world leader in manufacturing and servicing wireless telecommunication products including its highly respected mobile phones. However, with its acquisition of this family of essential patents, LGE is poised to put a more impressive imprint on this industry. We are extremely pleased to be associated with this world-class company."

BTexact and LGE have also entered into a cross-licensing deal. This cross-licence will enable LGE to use patents from BTexact's extensive patent portfolio to further develop its offerings in the mobile communications market and will enable BTexact to use LGE's patent portfolio to further develop its range of products and services.

Mike concluded: "LGE's and BTexact's use of each other's intellectual property rights demonstrates the value of the work that goes on at BTexact and LGE and shows their respective commitment to commercialising their work to the benefit of respective shareholders. This cross-licensing deal means LGE and BTexact will have joint access to a formidable bank of patents, which may not be equaled by any other global technology companies."

BTexact was advised on this deal by IPVALUE Management Inc.