| TOKYO — Hitachi Group denied violating Translogic Technology Inc.'s patent claim, and said it would appeal a U.S. court ruling if the court orders a damage award. A federal jury in Portland, Ore., last week awarded Translogic $86.5 million in damages. The award is part of a lengthy dispute since Translogic first filed suit in March 1999 claiming that Hitachi infringed it's U.S. patent on a transmission gate multiplexer patent used in Hitachi's SH processors. Hitachi has since spun off its semiconductor business to form Renesas Technology Inc. with Mitsubishi Electric Corp. Renesas took over Hitachi's business, hence Hitachi and Renesas are both defendants in the patent case. In response to the 1999 claim, Hitachi questioned the validity of the patent and petitioned the U.S. Patent and Trademark Office to reexamine it in June 1999. The U.S. reexamination of Translogic's patent application sought by Hitachi continues, according to a Renesas spokesman. The patent office inititally ruled that Translogic's patent claim was invalid. Translogic appealed in July 2003. After the second negative ruling in March 2004, Translogic took the issue to the Board of Patent Appeals and Interference. The board launched a re-examination in February. The investigation is continuing. Renesas and Hitachi said they regreted the jury verdict before the U.S. patent office determines the validity of Translogic's patent claim. Use of the disputed technology in SH products is limited, a Renesas spokesman said. If Translogic seeks an injunction to block the sale of SH products, Renesas said it would seek a suspension order to protect its customers. | 
