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<SEC-DOCUMENT>0000840715-09-000019.txt : 20090422
<SEC-HEADER>0000840715-09-000019.hdr.sgml : 20090422
<ACCEPTANCE-DATETIME>20090422141332
ACCESSION NUMBER:		0000840715-09-000019
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20090421
ITEM INFORMATION:		Other Events
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20090422
DATE AS OF CHANGE:		20090422

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			CLEARONE COMMUNICATIONS INC
		CENTRAL INDEX KEY:			0000840715
		STANDARD INDUSTRIAL CLASSIFICATION:	RADIO & TV BROADCASTING & COMMUNICATIONS EQUIPMENT [3663]
		IRS NUMBER:				870398877
		STATE OF INCORPORATION:			UT
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-33660
		FILM NUMBER:		09763495

	BUSINESS ADDRESS:	
		STREET 1:		5225 WILEY POST WAY
		STREET 2:		SUITE 500
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84116
		BUSINESS PHONE:		8019757200

	MAIL ADDRESS:	
		STREET 1:		5225 WILEY POST WAY
		STREET 2:		SUITE 500
		CITY:			SALT LAKE CITY
		STATE:			UT
		ZIP:			84116

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GENTNER COMMUNICATIONS CORP
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GENTNER ELECTRONICS CORP
		DATE OF NAME CHANGE:	19910808
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>form8-k04212009.htm
<DESCRIPTION>CLEARONE COMMUNICATIONS, INC. FORM 8-K DATED 04/21/2009
<TEXT>
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STATES</font></div>
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AND EXCHANGE COMMISSION</font></div>
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D.C. 20549</font></div>
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8-K</font></div>
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REPORT PURSUANT</font></div>
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SECTION 13 OR 15(D) OF</font></div>
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report (Date of earliest event reported): <font style="DISPLAY: inline; FONT-WEIGHT: bold; TEXT-DECORATION: underline">April 21,
2009</font></font></div>
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Inc.</font></font></div>
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Name of Registrant as Specified in Its Charter)</font></div>
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500,</font></font></div>
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975-7200</font></font></div>
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applicable</font></font></div>
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appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:</font></div>
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communications pursuant to Rule 425 under the Securities Act (17 CFR
30.425)</font></div>
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material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
40.14a-12)</font></div>
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communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))</font></div>
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communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
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      <div>
        <hr style="MARGIN-TOP: -5px; COLOR: #000000" noshade size="1">
        <hr style="MARGIN-TOP: -13px; COLOR: #000000" noshade size="4">
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        <div id="FTR">
          <div id="GLFTR" style="WIDTH: 100%" align="left"><font style="DISPLAY: inline; FONT-SIZE: 8pt; COLOR: #000000; FONT-FAMILY: Times New Roman">&#160;
</font></div>
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</font></div>
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</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
8.01 Other Events.</font></div>
      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On April
21, 2009, ClearOne Communications, Inc. (the &#8220;Company&#8221;) issued a press release
titled<font style="DISPLAY: inline; FONT-SIZE: 10pt">&#160;</font><font style="DISPLAY: inline; FONT-STYLE: italic">Federal Court Orders Judgment in
Favor of ClearOne for Approximately $9.7 Million in Trade Secret
Misappropriation Case</font>.&#160;&#160;The full text of the Company&#8217;s press
release is attached hereto as Exhibit 99.1 and is incorporated by
reference.</font></div>
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      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
9.01&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Financial
Statements and Exhibits.</font></div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Exhibits.</font></div>
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      <div>
        <div align="justify">
          <div align="justify">
            <div align="justify">
              <div align="justify">
                <div align="justify">
                  <div align="justify">
                    <table cellpadding="0" cellspacing="0" width="100%">
                        <tr>
                          <td valign="top" width="17%" style="PADDING-BOTTOM: 2px">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline">Exhibit No.</font></font></div>
                          </td>
                          <td valign="top" width="67%" style="PADDING-BOTTOM: 2px">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline">Title of Document</font></font></div>
                          </td>
                          <td valign="top" width="16%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman; TEXT-DECORATION: underline"><font style="DISPLAY: inline">Location</font></font></div>
                          </td>
                        </tr>
                        <tr>
                          <td valign="top" width="17%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">99.1</font></div>
                          </td>
                          <td align="left" valign="top" width="67%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Press
      Release dated April 21, 2009 entitled &#8220;Federal Court Orders Judgment in
      Favor of ClearOne for Approximately $9.7 Million in Trade Secret
      Misappropriation Case.&#8221;</font></div>
                          </td>
                          <td valign="top" width="16%">
                            <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: center" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">This
      Filing</font></div>
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      <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURES</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
      <div>
        <table cellpadding="0" cellspacing="0" width="100%">
            <tr>
              <td valign="top" width="28%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td colspan="2" valign="top" width="45%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">CLEARONE
      COMMUNICATIONS, INC.</font></div>
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      </font></td>
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      </font></td>
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      </font></td>
              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
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      </font></td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Date:&#160;&#160;April
      22, 2009</font></div>
              </td>
              <td valign="top" width="5%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">By:</font></div>
              </td>
              <td valign="top" width="41%" style="BORDER-BOTTOM: black 2px solid">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman"><font style="DISPLAY: inline">/s/ Zeynep Hakimoglu</font></font></div>
              </td>
            </tr>
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              <td valign="top" width="28%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="41%">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Zeynep
      Hakimoglu</font></div>
              </td>
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              <td valign="top" width="28%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
              <td valign="top" width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
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                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">Chairman,
      President and Chief Executive Officer</font></div>
              </td>
            </tr>
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      </font></td>
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      </font></td>
              <td valign="top" width="41%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman">&#160;
      </font></td>
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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>pressrelease.htm
<DESCRIPTION>FEDERAL COURT ORDERS JUDGMENT IN FAVOR OF CLEARONE FOR APPROXIMATELY $9.7 MILLION IN TRADE SECRET MISAPPROPRIATION CASE
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    <div style="DISPLAY: block; TEXT-INDENT: 0pt; TEXT-ALIGN: right">EXHIBIT
99.1<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</div>
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      <div>&#160;</div>
      <hr style="COLOR: black" align="left" noshade size="1" width="100%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Contact:&#160;
ClearOne Communications, Inc</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Investor
Relations</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt; TEXT-ALIGN: left" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
(801) 303-3555</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt">
      <hr style="COLOR: black" align="center" noshade size="2" width="100%">&#160;<br></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">FEDERAL
COURT ORDERS JUDGMENT IN FAVOR OF CLEARONE FOR APPROXIMATELY $9.7 MILLION IN
TRADE SECRET MISAPPROPRIATION CASE</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-STYLE: italic; FONT-FAMILY: Times New Roman">Judgment
includes exemplary damages against all defendants, for willful and malicious
misappropriation of ClearOne&#8217;s trade secrets</font></div>
    <div style="DISPLAY: block; TEXT-INDENT: 0pt"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-WEIGHT: bold">Salt Lake City, UT &#8211; April 21, 2009 &#8211;
</font>ClearOne (NASDAQ: CLRO). A Memorandum Decision and Order (the &#8220;Final
Order&#8221;) was issued by the federal court yesterday, in favor of ClearOne
Communications, Inc., awarding it approximately $9.7 million in
joint-and-several and individual judgments against the defendants. The
defendants include Biamp Systems Corporation (&#8220;Biamp&#8221;) and a group of defendants
sometimes termed the &#8220;WideBand Defendants,&#8221; which group consists of WideBand
Solutions, Inc. (&#8220;WideBand&#8221;); three of WideBand&#8217;s principals &#8211; Dr. Jun Yang (a
former ClearOne employee), Andrew Chiang (previously affiliated with an entity
that sold certain assets to ClearOne), and Lonny Bowers; and a company owned
primarily by Yang, named Versatile DSP, Inc..&#160;&#160;In addition, the court
adopted and upheld the jury&#8217;s finding that all defendants had acted willfully
and maliciously in misappropriating ClearOne&#8217;s trade secrets, and awarded
exemplary damages against each of the defendants.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The Final
Order was issued in the case which was presented to a jury in October and
November 2008 (the &#8220;Intellectual Property Case&#8221;), bringing claims for, among
other things, theft of ClearOne&#8217;s trade secrets.&#160;&#160;On November 5, 2008,
the jury returned a unanimous verdict in the Intellectual Property Case in favor
of ClearOne and against all of the defendants, awarding ClearOne millions of
dollars in damages, and finding that all of the defendants willfully and
maliciously misappropriated ClearOne&#8217;s trade secrets.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By its
Final Order, the court resolved various post-verdict motions filed by ClearOne
and the defendants, including the defendants&#8217; arguments that they should not be
subject to exemplary damages for willfully and maliciously misappropriating
ClearOne&#8217;s trade secrets.&#160;&#160;The court rejected the defendants&#8217;
arguments on exemplary damages, finding &#8220;that an award of exemplary damages
against each of the [d]efendants is appropriate.&#8221;</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As to
defendant Biamp, the court ruled that the finding of willful and malicious trade
secret misappropriation by Biamp was supported because &#8220;Biamp deliberately
ignored numerous warning signs suggesting that the AEC technology offered by
WideBand was not WideBand&#8217;s to sell.&#160;&#160;Given all the facts presented to
Biamp at the time, it could not have held a good faith belief that its use of
the WideBand code was valid,&#8221; and that Biamp earned over $1.5 million &#8220;by
purchasing the WideBand technology at half the price offered by ClearOne and
then selling the technology at the same price it charged when dealing with
ClearOne.&#8221;&#160;&#160;The court also wrote that &#8220;having reviewed the testimony
of Biamp&#8217;s witnesses . . . the court finds that the jury (who has the sole
responsibility to assess witness credibility) reasonably found by clear and
convincing evidence that Biamp&#8217;s behavior was willful and
malicious.&#8221;&#160;&#160;For these and other reasons, the court concluded that &#8220;an
award of exemplary damages against Biamp is appropriate to punish Biamp for
ignoring its due diligence duties in order to profit at the expense of a
competitor and to send a message deterring other companies from engaging in
similar conduct.&#8221;</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As to the
other defendants, the court found that there was evidence of deliberate copying
of ClearOne&#8217;s trade secrets, including evidence that &#8220;showed that secret
elements of the ClearOne Honeybee Code were found on the WideBand Defendants&#8217;
computers and that users of those computers attempted to hide that
fact.&#8221;&#160;&#160;The court also noted that the &#8220;evidence showed that none of
the WideBand Defendants held a good faith belief that the copying and use of
ClearOne&#8217;s Honeybee Code trade secret was proper.&#8221;&#160;&#160;And, although the
court ruled that the &#8220;most egregious instances of a lack of good faith are found
in the behavior of Jun Yang and Andrew Chiang,&#8221; it also held that &#8220;the other
WideBand Defendants (Lonny Bowers, WideBand Solutions, and Versatile) are no
less culpable.&#8221;</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The court
ruled that ClearOne&#8217;s fiduciary duty claims against Chiang and Yang were
preempted by the Utah Trade Secret Act, and therefore set aside the jury&#8217;s
verdict for breach of fiduciary duty and punitive damages, but noted that the
findings of breach of fiduciary duty and the award of punitive damages on those
claims supported the exemplary damages awarded by the court for theft of
ClearOne&#8217;s trade secrets against these defendants.&#160;&#160;The court ruled
that ClearOne was not entitled to prejudgment interest.&#160;&#160;The court
denied a number of other motions filed by pro se defendant Lonny Bowers, and
noted that any post-judgment challenge to the sufficiency of the evidence by
Biamp had been waived by Biamp&#8217;s failure to raise the argument during trial, and
would not have succeeded even if not waived, based on the overwhelming evidence
in the record.&#160;&#160;ClearOne intends to request an additional award of
costs and attorney fees against the defendants.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">While
ClearOne intends to vigorously pursue collection of the damage awards,
collectability of the judgments cannot be guaranteed.&#160;&#160;Furthermore,
the jury's verdict and damage awards are subject to appeal by one or more of the
defendants.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
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and throughout the Intellectual Property Case, ClearOne was represented by the
Utah law firm of Magleby &amp; Greenwood, P.C.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-WEIGHT: bold; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">About
ClearOne</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">ClearOne
is a communications solutions company that develops and sells audio conferencing
systems and other related products for audio, video, and web conferencing
applications.&#160;&#160;The reliability, flexibility, and performance of
ClearOne&#8217;s comprehensive solutions create a natural communications environment,
which saves organizations time and money by enabling more effective and
efficient communication.&#160;&#160;For more information, visit ClearOne&#8217;s
website at <font style="DISPLAY: inline; TEXT-DECORATION: underline">www.clearone.com</font>.</font></div>
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