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Intergraph Reaches Patent Agreement With Acer


HUNTSVILLE, AL.- Intergraph Corporation (NASDAQ: INGR), a leading global provider of spatial information management (SIM) software, today announced a patent license agreement between Intergraph's intellectual property subsidiary and Acer Incorporated. Under the terms of the agreement, Acer will make a one-time, fully-paid royalty payment of $7.5 million based upon a 1% royalty on applicable product revenues.

Intergraph expects to record after-tax intellectual property income from this agreement of approximately $4.3 million, net of all fees, expenses and estimated taxes, in the second quarter of 2006. As a result of the patent license agreement, Acer will obtain a fully paid-up worldwide license to Intergraph’s Clipper patents, and Intergraph will obtain an option to license certain Acer patents on royalty-bearing terms.

"We are pleased to have reached a licensing agreement with Acer," said R. Halsey Wise, President & Chief Executive Officer of Intergraph Corporation. "The Acer license

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International Class - class(es) assigned to a mark under the International Classification of Goods and Services (Nice Agreement); used in the United States since 1 September 1973

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A provisional application for patent is a U. S. national application for patent filed in the USPTO under 35 U.S.C. § 111(b). It allows filing without a formal patent claim, oath or declaration, or any information disclosure (prior art) statement.

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