Free Memorandum in Opposition - District Court of California - California

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MELODY A. KRAMER, SBN 169984 KRAMER LAW OFFICE 9930 Mesa Rim Road, Suite 1600 San Diego, California 92121 Telephone (858) 362-3150 J. MICHAEL KALER, SBN 158296 KALER LAW OFFICES 9930 Mesa Rim Road, Suite 200 San Diego, California 92121 Telephone (858) 362-3151

Attorneys for Plaintiff JENS ERIK SORENSEN, as Trustee of SORENSEN RESEARCH AND DEVELOPMENT TRUST

UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF CALIFORNIA ) ) ) ) ) Plaintiff ) v. ) ) DIGITAL NETWORKS NORTH AMERICA, INC., a Delaware ) ) corporation; LEGACY SUPPORT SERVICES, LTD. d/b/a S2G; and DOES ) ) 1-100, ) ) Defendants. ) ) JENS ERIK SORENSEN, as Trustee of SORENSEN RESEARCH AND DEVELOPMENT TRUST, Case No. 07cv 05568 JSW DECLARATION OF MELODY A. KRAMER IN SUPPORT OF PLAINTIFF'S OPPOSITION TO DEFENDANT DIGITAL NETWORKS NORTH AMERICA, INC.'S MOTION FOR STAY Date: January 18, 2008 Time: 9:00 A.M. Ctrm: 2, 17th Floor Judge: Hon. Jeffrey S. White

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I, MELODY A. KRAMER, declare: 1. I am not a party to the present action. I am over the age of eighteen. I

have personal knowledge of the facts contained within the following paragraphs, and could and would competently testify thereto if called as a witness in a court of law. 2. At all times relevant herein I have been an attorney for Defendant

Sorensen Research and Development Trust ("SRDT"), Plaintiff in the abovecaptioned matter. 3. This Declaration is being submitted in conjunction with Plaintiff's

Opposition to Defendant Digital Networks North America, Inc.'s Motion for Stay. 4. This case involves patent infringement allegations related to U.S. Patent

No. 4,935,184, a process patent relating to multi-shot injection molding of plastics. Common applications of use of this patent are dual plastic ski boots, consumer electronic products, kitchen utensils, and rubberized grips on the handles of power tools. 5. The `184 patent has been licensed for use by such household name

companies as 3M Company, BMW, Newell Rubbermaid, Hitachi-Maxell, MercedesBenz USA, Daimler-Chrysler, Philips Electronics, Robert Bosch, Thales Magellan, Garmin International, Head USA, Nordica USA, Tecnica USA, Rossignol, Atomic Ski, Skil, Irwin Tools, Dremel, Strait-Line, Chicony Electronics, The Stanley Works, Milwaukee Electric, Welch Allyn, Griffin, Stanley Electric, Fluke, Acco, Harper Brush, Woodstream, and Roche. 6. The '184 patent provides a long-sought elegant solution to a pervasive

problem in the injection molding of hollow plastic products: i.e., how to stabilize the mold parts against relative movement during the highly pressurized injection of melted plastic. This mold part relative movement problem causes misalignment of the mold parts and results in products with walls of uneven thicknesses if not adequately controlled. 7. The `184 patented method is directed toward stabilizing the mold parts
2.
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against relative movement during the second injection of injection molding of laminated plastic parts produced sequentially in two cavities made up of at least one common mold part and at least two different complementary mold parts. 8. The `184 patent teaches a method to stabilize the mold parts during the

second or later plastic injection by molding one or more stabilizing regions into the first plastic material component(s) that rigidly secure the two mold parts against displacement during the second or later injection. 9. By stabilizing the mold parts against mold part relative movement

during the injection process, hollow products may be produced having more controlled dimensions. 10. players. 11. Publicly-available new articles state that Rio MP3 players were The products accused of infringement in this case are Rio-brand MP3

originally produced by Diamond Multimedia. Diamond Multimedia was sold to Taiwanese graphics chip company S3. S3 then sold its chip business and morphed into SonicBlue. SonicBlue declared bankruptcy in early 2003. See Exhibit A. 12. Per public records, DNNA was created in July 2003 (apparently by

D&M Holdings Inc.) and acquired the Rio line from the SonicBlue bankruptcy estate. See Exhibit B. 13. Shortly thereafter, in August 2003, DNNA announced the launch of five

new MP3 players and aggressive strategies for building the Rio line. See Exhibit C. 14. However, by summer of 2005, DNNA's parent company announced

that it was selling off most of its Rio technology to SigmaTel, with most of the design and technical personnel being hired by SigmaTel. DNNA has claimed that it ceased sales of the accused MP3 players in September 2005. 1 See Exhibit E. Despite DNNA's claim, sales of the originally accused Rio MP3 players, and other models that also appear to infringe, continue to be sold via DNNA's website (www.digitalnetworksna.com) which links to a website run by co-defendant Legacy Support Services, Ltd., a company doing business as S2G. See Exhibit D.
1

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15.

Before the filing of this litigation, Defendant's counsel, Mr. Hulbert,

represented to me that the SigmaTel acquisition left DNNA's records in a state of disarray and represented that DNNA would have difficulty finding actual sales numbers of the accused products. 16. Although DNNA appears to still be in business, Dun and Bradstreet

reported an inability to confirm operations as recently as March 2007. See Exhibit F. 17. By letter to co-counsel in February 2006, D&M Holdings USA General

Counsel, Mr. Meisels, stated: The Rio products that were formerly produced by DNNA were manufactured overseas by third-party contract manufacturers. DNNA has requested input from these manufacturers concerning the issues raised in your letter as it relates to the Rio products. Communications with overseas contract manufacturers often move slowly notwithstanding diligent efforts. Not having continuing business with these entities increases the difficulties. See Exhibit G. 18. Neither Mr. Meisels nor DNNA's outside counsel ever confirmed

receipt of information from these manufacturers or otherwise revealed the status of those requests. Plaintiff does not know the identity or contact information for those companies. 19. Plaintiff's counsel, J. Michael Kaler, sent an initial infringement notice

to DNNA in October 2004. I followed up on those efforts both in writing and by telephone with representatives for DNNA. At no time during those communications did DNNA represent that it was claiming that the `184 patent was invalid. To the contrary, at least the last year of communications could be categorized as negotiations over an appropriate licensing/release fee. No agreement was reached and thus this suit was filed.

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20.

I am also counsel for Plaintiff in the patent infringement case involving

the `184 patent against Black & Decker Corporation that is referenced in Defendant's pleadings. 21. Plaintiff commenced patent infringement litigation against Black &

Decker Corporation in August 2006. After almost a year of intense litigation, with a claim construction and trial of affirmative defenses and willfulness already set for November and December 2007, respectively, and within days after entry of an order requiring Black & Decker to turnover documents from its late in-house counsel's files, Black & Decker (U.S.) Inc. filed a request for reexamination of the `184 patent. 22. The reexamination request was accepted by the USPTO and Plaintiff is

awaiting receipt of the first office action. 23. In information obtained pre-litigation, I have learned that there has been

repeated turnover in corporate ownership and personnel of the accused Rio product line, as well as the involvement of overseas manufacturers. 24. Plaintiff's initial infringement notice to DNNA in October 2004 went to

President, Hugh Cooney, at DNNA's Santa Clara, California address. He never responded to that notice. Plaintiff made further attempts to contact DNNA, finally receiving a letter from David Meisels, General Counsel for D&M Holdings US, Inc. (presumably DNNA's parent company) who advised that Mr. Cooney was no longer employed by DNNA. 25. In May 2006, outside counsel for DNNA, Mr. Hulbert, sent Ms. Kramer

a declaration relating to a claimed cessation of sales of the accused MP3 players as of September 2005 signed by Bernie Sepaniak identifying himself as President of Digital Networks North America, Inc. I have been unable to confirm Mr. Sepaniak's capacity, and in fact have since located a press release from D&M Holdings regarding Mr. Sepaniak dated December 2006 that puts into question whether Mr. Sepaniak even was President of DNNA or the Rio line. See Exhibit H.

5.

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26. Additionally, public reports show that a portion of the Rio personnel were transferred to SigmaTel, making them difficult to identify and locate. See Exhibit I.

SWORN TO under penalty of perjury of the laws of the State of California and the United States, this 20th day of December, 2007.

/s/ Melody A. Kramer Melody A. Kramer, Esq. Attorney for Plaintiff [email protected]

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EXHIBIT A

Rio owner quits MP3 player market [printer-friendly] | The Register Case 3:07-cv-05568-JSW Document 34-2 Filed 12/27/2007

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Biting the hand that feeds IT

The Register » Personal » Peripherals » Original URL: http://www.theregister.co.uk/2005/08/30/rio_quits_mp3_arena/

Rio owner quits MP3 player market
By Tony Smith
Published Tuesday 30th August 2005 11:47 GMT

Rio owner D&M Holdings is to quit the mass-market portable music player market, the company said on Friday. The announcement comes as no surprise given that it sold its Rio division's technology and people assets to SigmaTel in July.

At the time, D&M said it was still "examining additional strategic options for Rio", but reports last week revealed that none of them stand up to scrutiny. Japan-based D&M, which also owns the Denon and Marantz hi-fi brands, has been trying to stem losses at Rio for some time. Rio - originally part of Diamond Multimedia - was a

http://www.theregister.co.uk/2005/08/30/rio_quits_mp3_arena/print.html

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pioneer in digital music hardware. But its Flash-based products were quickly out-evolved by hard disk-based units from a number of rivals, most notably Apple. Being passed from corporate owner to corporate owner to corporate owner didn't help either. Diamond Multimedia merged with S3 Graphics in 1999. S3 sold off the graphics chip business to Taiwan's VIA, effectively becoming Diamond Multimedia again in all but name. In 2000, it named itself SonicBlue and went on to acquire TiVo rival ReplayTV. It was eventually sued by the TV industry for incorporating ad-zapping technology, which ultimately led, in 2003, to a Chapter 11 filing. Rio and ReplayTV were sold to Digital Networks America, part of D&M, in April of that year. The Rio product line was revitalised under Digital Networks, but despite winning reviewer plaudits, it failed to win significant customer numbers - it had simply lost too much brand equity to the iPod, iRiver and Creative's Zen line. During its most recently completed financial quarter, Q1 FY2005, which ended 30 June 2005, D&M reported an operating loss ¥1.04bn ($9.41m), to which the Rio division contributed an operating loss of ¥0.96bn ($8.68m) - more than 92 per cent of the total. D&M reported a net loss of ¥717m ($6.48m) for the quarter. There's still hope for the brand, perhaps. D&M said it was retaining the Rio name, and has a licence to use the MP3 technology now sold to SigmaTel. However, if the name is to be revived, it will almost certainly be pitched at the high end, as are D&M's other brands - now joined by speaker maker Boston Acoustics. ® Related stories Olympus quits MP3 player market (10 November 2005)
http://www.theregister.co.uk/2005/11/10/olympus_quits_mp3_biz/ Flash famine a threat, warns Creative (26 October 2005) http://www.theregister.co.uk/2005/10/26/creative_results_q1_06/ Apple pipped to Nano name by arch-rival (9 September 2005) http://www.theregister.co.uk/2005/09/09/apple_vs_creative_nano/ Music phones no threat to MP3 players (9 September 2005) http://www.theregister.co.uk/2005/09/09/phones_vs_players/ Alienware readies ET-inspired MP3 player (7 September 2005) http://www.theregister.co.uk/2005/09/07/alienware_does_mp3/ iPod Mini to 'drop hard drive, gain colour display' (5 September 2005) http://www.theregister.co.uk/2005/09/05/ipod_mini_forecast/

http://www.theregister.co.uk/2005/08/30/rio_quits_mp3_arena/print.html

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[print version] The day Rio's music died | CNET News.com Case 3:07-cv-05568-JSW Document 34-2 Filed 12/27/2007

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The day Rio's music died
By John Borland http://www.news.com/The-day-Riosmusic-died/2100-1047_3-5843561. html Story last modified Fri Aug 26 12:12:20 PDT 2005

The Japanese company that makes the Rio line of MP3 players is shuttering its portable digital-audio division. Rio parent D&M Holdings said on Friday that the ultra-competitive business no longer fit its market strategy. Although it has only a small market share compared to Apple Computer's iPod, the Rio brand name has been linked with the early days of digital-music history since weathering a lawsuit from the recording industry that aimed to shut down the MP3 hardware business. D&M Holdings--which also owns highend home audio brands including Denon and Marantz, and is close to acquiring Boston Acoustics--said the portable MP3 player business required too much investment, and didn't offer enough return, to warrant continuing. The company said it will stop producing the Rio line of products at the end of
Find the latest tech news at CNET.com ©2007 CNET Networks, Inc. All rights reserved. CNET, CNET.com and the CNET logo are registered trademarks of CNET Networks, Inc. Used by permission.

September. Despite its history of innovative designs, the Rio brand has had a choppy corporate history. Originally produced by Diamond Multimedia, the first Rio-branded MP3 player triggered a lawsuit in 1998 from the Recording Industry Association of America, which at the time viewed MP3 as primarily a format for music pirates. After an initial injunction blocking sales of the product , courts ultimately ruled against the record industry , clearing the way for a digital-audio market that evolved into today's iPoddominated music culture. Diamond Multimedia was purchased not

http://www.news.com/2102-1047_3-5843561.html?tag=st.util.print

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The day Rio's music died
long afterward by Taiwanese graphics chip company S3, which eventually sold its chip business and morphed into Sonicblue , acquiring other consumer technologies, including ReplayTV, along the way. Now on News.com FTC greenlights Google-DoubleClick Desperately seeking Wii Going to the mat for photo copyrights Extra: Six steps to clean lunar living The company's fortunes fell in the middle of the dot-com crash, and Sonicblue declared bankruptcy in early 2003, selling off the Rio assets to D&M Holdings. The last several years have seen several well-reviewed designs from the company, including the hard-drivebased Rio Karma and Rio Carbon players, which respectively competed with the iPod and iPod mini. Neither device, however, was able to gain more than a small fraction of the iPod's market share. Some customers complained about persistent hard-drive problems with the Karma. D&M said it would retain rights to the Rio brand and trademark, and would continue to support retailers and customer service claims.
Find the latest tech news at CNET.com ©2007 CNET Networks, Inc. All rights reserved. CNET, CNET.com and the CNET logo are registered trademarks of CNET Networks, Inc. Used by permission.

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EXHIBIT B

Division of Corporations - Online Services Case 3:07-cv-05568-JSW Document 34-2

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Visit the Governor | General Assembly | Courts | Other Elected Officials | Federal, State & Local Sites
State Directory | Help | Search Delaware :
Department of State: Division of Corporations

Citizen Services | Business Services | Visitor Info.

HOME About Agency Secretary's Letter Newsroom Frequent Questions Related Links Contact Us Office Location SERVICES Pay Taxes File UCC's Delaware Laws Online Name Reservation General Information Status Validate Certificate INFORMATION Corporate Forms Corporate Fees UCC Forms and Fees UCC Searches Taxes Expedited Services Service of Process Registered Agents Get Corporate Status Submitting a Request

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Entity Details

THIS IS NOT A STATEMENT OF GOOD STANDING File Number: Entity Name: Entity Kind: Residency: 3639752 Incorporation Date / Formation Date: 03/24/2003 (mm/dd/yyyy)

DIGITAL NETWORKS NORTH AMERICA, INC. CORPORATION DOMESTIC Entity Type: State: GENERAL DE

REGISTERED AGENT INFORMATION Name: Address: City: State: Phone: THE CORPORATION TRUST COMPANY CORPORATION TRUST CENTER 1209 ORANGE STREET WILMINGTON DE (302)658-7581 County: Postal Code: NEW CASTLE 19801

Additional Information is available for a fee. You can retrieve Status for a fee of $10.00 or more detailed information including current franchise tax assessment, current filing history and more for a fee of $20.00. Would you like Status Status,Tax & History Information Submit

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DIGITAL NETWORKS NORTH AMERICA, INC. Number: C2435002 Date Filed: 7/2/2003 Status: active Jurisdiction: DELAWARE Address 20400 STEVENS CREEK BLVD STE 100 CUPERTINO, CA 95014 Agent for Service of Process C T CORPORATION SYSTEM 818 WEST SEVENTH ST LOS ANGELES, CA 90017 Printer Friendly New Search
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EXHIBIT C

Five new Rio MP3 players compared - CNET reviews Case 3:07-cv-05568-JSW Document 34-2

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Rio launches five new MP3 players By Eliot Van Buskirk (August 12, 2003) Emerging from Sonicblue's bankruptcy, Rio, now a subsidiary of D&M Holdings, recently announced five new MP3 players with a wide range of capacities and designs, including a true iPod competitor and the first MP3 player to hit the market that takes advantage of the new inch-wide 1.5GB hard drive. Those models, plus three flash players, will all be available within the next month, along with the supercharged Rio Music Manager 2.0 music-organization software, which is backward compatible with older players. Size up the new Rios using the chart below, and find out whether you should preorder one today. Availability Model name August 27, 2003 Rio Cali Sport (128MB or 256MB) Price $199 (256MB) $169 (128MB) The scoop Building on the appeal of last year's popular S35S, Rio is once again targeting the fitness enthusiast with the Cali Sport. This model has a rubberized exterior and a compact, spherical, rugged design that can weather whatever rough treatment you might inadvertently dish out. An armband, a stopwatch, a lap timer, and an FM tuner round out the equation and make the Cali Sport a great gym companion. The unit comes in two capacities (128MB for $169, or 256MB for $199), and its memory can be expanded using SD or MMC media.
Specs: 128MB or 256MB capacity; 2.5 by 2.6 by 0.8 inches; 1 ounce; USB 1.1; expansion slot for SD/MMC media; five-band equalizer; FM tuner; 18-hour battery life from one AAA battery

August 20, 2003

Rio Chiba (128MB or $199 256MB) (256MB) $169 (128MB)

While less groundbreaking than Rio's hard-drive based players, the flash-based Chiba features FM reception and an SD (Secure Digital) expansion slot for adding up to 512MB of memory. The Chiba comes in two capacities: 128MB for $169 (with a white front), or 256MB for $199 (with a black front).
Specs: 128MB or 256MB capacity; 2.7 by 2.4 by 0.8 inches; 1.8 ounces; 18-hour battery life from one AAA battery; FM tuner; five-band equalizer; USB 1.1; expansion slot for SD or MMC media; Windows/Mac/Linux

August 7, 2003

Rio Fuse

$129

With the $129 Fuse, Rio enters the growing market for small flash players that plug directly into any USB port, obviating the need for a USB cable. Unlike its less expensive competition, the MP3/WMA-compatible Fuse features an LCD so that you can read song information and alter EQ and random/repeat settings. And like the rest of Rio's new line, it connects to multiple computers, so it's perfect for ferrying data files between home, work, and school.
Specs: 128MB capacity; 3.5 by 1.5 by 0.7 inches; direct USB connection; 18-hour battery life from one AAA battery; Windows/Mac/Linux

September 1, 2003

Rio Karma (20GB)

$399

This $399 player has a 20GB hard drive, like many of the other hard drive-based players out there. What makes it stand out from the crowd is its compact, cubic design. While thicker and slightly wider than the iPod, it's more than an inch shorter in length and can connect to an Ethernet network to act as a digital audio receiver. It's also the first MP3 player to support two burgeoning open source codecs: Ogg Vorbis and FLAC (Free Lossless Audio Codec), the latter of which sounds as good as an uncompressed WAV file. Audiophiles and power users will eat these features up when the player ships on September 1.
Specs: 20GB capacity; 2.7 by 3.0 by 0.9 inches; 5.5 ounces; 15-hour rechargeable battery life; USB 2.0/1.1; Ethernet port; line-out port; docking station; five-band parametric EQ; MP3/WMA/OGG/FLAC codecs supported; Windows only

August 27, 2003

Rio Nitrus (1.5GB)

$299

The $299 Rio Nitrus is one of a new breed of MP3 player; its 1.5GB capacity sits between that of flash players, which typically hold 512MB of music or less, and hard drive-based players, which (until now) have had capacities of 5GB or more. While it can't hold 7,000 songs, the Nitrus is smaller and lighter than any other hard drive-based player released to date and provides ample storage for hundreds of tunes.
Specs: 1.5GB capacity; 3 by 2.4 by 0.6 inches; 2 ounces; MP3/WMA compatibility; five-band equalizer; 16-hour rechargeable battery life; USB 2.0/1.1

http://reviews.cnet.com/4520-6450_7-5062383-1.html

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Stock Quote JP:6735 429 | (3:00 PM) | -4 | -0.924%

PRESS RELEASES
Print Friendly 09.17.2003

[PDF 217.49 KB]
Return to press releases

D&M Holdings Inc. steadily advances strategy to become the leader in the premium home market. Digital Networks North America (DNNA) plays key role in implementing the D&M s through its advanced digital network technology and products.
TOKYO - September 17, 2003--D&M Holdings Inc. (D&M, TSE#6735), parent company of Denon Ltd., M Inc., McIntosh Laboratory, Inc. and Digital Networks North America (DNNA), held a press conference on Tokyo with DNNA Chairman Michael Seedman, who discussed the company's business strategy. "DNNA will drive the strategy and develop the core technologies that will enable the brands within D&M become the leaders in the home networking market," said Michael Seedman. "Regarding the Japanese focus on Rio in the near term," he said. Said Merle Gilmore, Chairman of D&M: "D&M is helping create the digital lifestyle. The brands and digita within DNNA will play key roles in achieving this goal." D&M Strategy D&M's business strategies are to: 1. 2. 3. 4. 5. 6. Acquire leading premium AV brands. Earlier this year, D&M acquired McIntosh Laboratory ,Inc., premium brand in home entertainment systems. Create a single industrial operation to achieve scale. To date, the post merger integration initiativ are progressing globally. Develop core technology (software). D&M has invested in Mediabolic, a San Francisco-based so company, and acquired the Rio, ReplayTV and Escient brands. Strengthen relationships with AV specialty store and custom installers. To date, D&M has been f on area-based AV specialty stores in the US. Divestiture of non-core business.. D&M has completed the sale of three non-core businesses. Improve customer service. Improvement on after-service (operations) is in process.

DNNA(Digital Networks North America) Mission and Strategy - lead the networked home entertainment market and development of core digital technology for D&M DNNA's mission is to establish a North American center of excellence within D&M for networked home e strategies are the following: 1. 2. 3. Establish leadership in network technology and network product development. Develop a strong intellectual property portfolio. Emphasize digital / network product customer support across all D&M brands and give this strat same priority as product development. Drive the introduction of the network technology into D&M brands.

http://www.dm-holdings.com/217_ENG_ASP.asp

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DNNA Brand Strategy (1) Rio - Digital / Network Role Rio represents the portable extension of home entertainment through personal experience -- within and (auto, plane, sports). Its product category is the MP3 portable player that targets the is13-35-year-old ma strengths include device design and styling and high volume design and sales. - Marketing Strategy Rio's value proposition is the introduction of many different and unique industrial designs incorporated w technologies and intuitive software. By launching multiple new products of flash MP3 players and flash & players, Rio's goal is to achieve #1 share in the US flash MP3 player market by the end of Q3 in FY2003 the US HDD MP3 player market by the end of Q4 in FY2003. (2) Replay TV - Digital / Network Role ReplayTV represents the D&M mass-market and big-box retail entry point for PVR (Personal Video Reco (Set Top Box) technology. Its product category is PVR, targeting early adopters and techno-savvies. Its c include end-to-end PVR solution, system and application software expertise, network operations infrastru patent portfolio.

- Marketing Strategy ReplayTV's value proposition is to target two different market segments -- lower cost and easy to use an performance. For the two different markets, ReplayTV puts high-end HD STB/PPV (Pay Per View) with i demographic supports price point and feature set, and ultra low-end broadcast PVR with basic functiona general broadcast programming (non-copyright protected). (3) Escient - Digital / Network Role Escient represents the custom installer's choice for "IT Grade Premium" installed AV and home automat also responsible for network interoperability platform development and transfer within D&M. Its core stre network interface technology and backend service provision (EPG, discography, content clearing house,

- Marketing Strategy Escient uses the new DVD management product as leverage to pull sales of the DVD manager and Fire Managers, with focus on the ease of use and the polish of the user interface. In addition, it also improves with premier home automation companies and premium retailers. DNNA Japan Strategy Enhance DNNA's presence primarily with Rio products. Rio intends to lead the MP3 market by adding ne HDD players and maintain the current #1 position in flash category in Japan to establish impregnable po WMA/MP3 player market in the upcoming holiday season. Rio cooperates with TDK Marketing (TMK) as channel to leverage its widespread retailer connection (covering full range of channels, PC shops to CE

http://www.dm-holdings.com/217_ENG_ASP.asp

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About Digital Networks North America (DNNA) Digital Networks North America, Inc. (DNNA) is a wholly owned subsidiary of D& M Holdings U.S, Inc. D the ReplayTV, Rio and Escient branded products, representing the best in digital entertainment devices. developing and building network connected entertainment products. The core technologies developed at introduced across the D&M Holdings line of products in the advanced home theater and home networke Holdings Inc., parent to D&M Holdings U.S., Inc., is a global, publicly traded company on the Tokyo Stoc (TSE II: 6735). D&M Holdings brands include Denon, Marantz and McIntosh Laboratory -- all industry lea specialist home theater, audio/video consumer electronics and professional audio markets. About D&M Holdings Inc. D&M Holdings Inc. (TSE II: 6735) is based in Tokyo and is the parent company of wholly owned subsidia Marantz Japan, Inc. and McIntosh Laboratory, Inc. Denon, Marantz and McIntosh are global industry lea specialist home theater, audio/video consumer electronics and professional audio markets, with a strong standing heritage of manufacturing and marketing high-performance audio and video components. A wh subsidiary of D&M Holdings U.S., Inc., Digital Networks North America, Inc. (DNNA), owns the ReplayTV Escient brands---all representing award-winning technologies in digital home entertainment. Additional in available at http://www.dm-holdings.com/. Statements in this news release regarding D&M Holdings, Inc. that are not statements of historical fact m forward looking statements regarding future events or the future financial performance of the company. W caution you that such statements are just predictions and that actual events or results may differ materia looking statements involve a number of risks and uncertainties surrounding the integration of the compan competitive and industry conditions, targeted cost savings programs, market acceptance for the compan technological changes, developing industry standards and other factors related to the company's busine

Copyright 2007 D&M Holdings Inc. All rights reserved.

http://www.dm-holdings.com/217_ENG_ASP.asp

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EXHIBIT D

Rio Audio : Parts and Accesorries Case 3:07-cv-05568-JSW

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Back to: Home : Company : Parts and Accesorries Parts and Accesorries Rio Accessories and Replacement Parts are available through our Authorized Service Provider S2G at the following address: http://rioaudio.s2gstore.com

Security & Privacy l About Rio l Store Locator l Contact Us Copyright © 2007 Digital Networks North America

http://www.digitalnetworksna.com/rioaudio/s2g.asp

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S2G Rio Audio Store - Home Case 3:07-cv-05568-JSW

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Shopping Cart ($0.00)

Product Categories

Rio Carbon 5GB Player (unit only, factory renewed)
With an ultra-thin and tapered design, and with 25 percent more...

Forge - Silver 1GB
The Rio Forge series is our latest generation of flash-based...

$129.99 $99.99

$199.99 $69.95

Rio Carbon Premium Case
Secure case design that includes a removable belt clip, easy access...

Rio Ce2100 2.5gb with accessories (factory renewed)
With an ultra-thin and tapered design, and with 25 percent more...

$29.99 $19.99
Rio Forge 512 with Accessories (factory renewed)
The Rio Forge series is our latest generation of flash-based sports...

$149.99 $89.99
Rio Forge 256 with Accessories (factory renewed)
The Rio Forge series is our latest generation of flash-based...

$129.99 $49.99

$69.99 $39.99

Rio Sport Headphones

http://system.s2gstore.com/site/RioAudio/index.htm?gclid=CIu0-LuugJACFSBeagod_Ez... 11/28/2007

S2G Rio Audio Store - Home Case 3:07-cv-05568-JSW

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| Login | Register | Checkout |

Shopping Cart ($0.00)

Product Categories

Rio Carbon 5GB Player (unit only, factory renewed)
With an ultra-thin and tapered design, and with 25 percent more...

Forge - Silver 1GB
The Rio Forge series is our latest generation of flash-based...

$129.99 $99.99

$199.99 $69.95

Rio Carbon Premium Case
Secure case design that includes a removable belt clip, easy access...

Rio Ce2100 2.5gb with accessories (factory renewed)
With an ultra-thin and tapered design, and with 25 percent more...

$29.99 $19.99
Rio Forge 512 with Accessories (factory renewed)
The Rio Forge series is our latest generation of flash-based sports...

$149.99 $89.99
Rio Forge 256 with Accessories (factory renewed)
The Rio Forge series is our latest generation of flash-based...

$129.99 $49.99

$69.99 $39.99

Rio Sport Headphones

http://system.s2gstore.com/site/RioAudio/index.htm?gclid=CIu0-LuugJACFSBeagod_Ez... 11/28/2007

S2G Rio Audio Store - Home Case 3:07-cv-05568-JSW

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Comfortable Sport Clip Earphones allow you to play...

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$19.99 $14.99

Home - MP3 Players - Accessories - Contacts Copyright © Support Services Group, 2005. All Rights Reserved S2G is the authorized repair center for Rio products. All sales are made exclusively by S2G and all obligations for warranty are provided solely by S2G.

http://system.s2gstore.com/site/RioAudio/index.htm?gclid=CIu0-LuugJACFSBeagod_Ez... 11/28/2007

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Comfortable Sport Clip Earphones allow you to play...

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$19.99 $14.99

Home - MP3 Players - Accessories - Contacts Copyright © Support Services Group, 2005. All Rights Reserved S2G is the authorized repair center for Rio products. All sales are made exclusively by S2G and all obligations for warranty are provided solely by S2G.

http://system.s2gstore.com/site/RioAudio/index.htm?gclid=CIu0-LuugJACFSBeagod_Ez... 11/28/2007

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EXHIBIT E

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For Immediate Release

D&M Holdings Inc. to Sell Rio's Technology Assets to SigmaTel, Inc.
TOKYO--July 26, 2005 - D&M Holdings Inc. (TSE II: 6735) announced today it has signed an agreement to sell certain intellectual property and other technology assets of the Rio® MP3 player business to SigmaTel, Inc. (NASDAQ: SGTL), a leading supplier of integrated circuits (ICs) for the portable digital audio player market. As part of the agreement, SigmaTel will hire most of the technical development personnel of Rio. Rio will retain full access to its MP3 technology that it has agreed to sell to SigmaTel via a no-fee, grant-back license conditioned on its use of the SigmaTel platform in MP3 products. Financial terms were not disclosed. D&M Holdings owns Denon, Marantz, McIntosh Laboratory and the D&M Professional, ReplayTV®, Rio® and Escient® brands. SigmaTel's industry-leading portable digital audio technology can be found within the latest MP3 players made by Rio, Creative, GoVideo, Memorex, Samsung, Thomson RCA and many others. To date, SigmaTel's focus has been on flash-based players, which is the largest segment of the MP3 player market, however, the company also supplies the technology for hard-drive designs by Rio, including the Rio Carbon and Nitrus, and also by GoVideo, Creative and Memorex. "Engineers from Rio and SigmaTel have worked together for years improving MP3 software and creating great value for the consumer," said Vic Pacor, president of D&M Holdings. "We are transferring the Rio technical and engineering resources to SigmaTel, where they can be better leveraged through SigmaTel's considerably larger scale in the MP3 business," he said. "We received an attractive offer for the Rio assets that we are selling, and we have secured access to enabling technology for the MP3 category of products without carrying the full cost of the technology," Pacor said. D&M Holdings publicly disclosed in May that it was examining strategic options to reduce the effect Rio's losses had on the company. D&M Holdings is expected to recognize approximately (US) $7 million extraordinary gain in the second quarter of the 2005 fiscal year. D&M Holdings will not adjust the FY05 profit and loss forecast at this time because it is currently examining additional strategic options for Rio, and the financial impact of such options is unknown.

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About D&M Holdings Inc. D&M Holdings Inc. (TSE II: 6735) is based in Tokyo and owns the Denon, Marantz, McIntosh Laboratory, D&M Professional, ReplayTV®, Rio® and Escient® brands. Denon, Marantz, McIntosh and D&M Professional are global industry leaders in the specialist home theater, audio/video consumer electronics or professional audio markets, with a strong and long-standing heritage of manufacturing and marketing high-performance audio and video components. The ReplayTV, Rio and Escient brands represent award-winning technologies in digital home entertainment. Additional information is available at www.dm-holdings.com.

About SigmaTel, Inc. SigmaTel, Inc., a fabless semiconductor company headquartered in Austin, Texas, designs, develops, and markets proprietary, analog intensive, mixed-signal ICs for a variety of products in the consumer electronics and computing markets, including portable compressed audio players, such as MP3 players, notebook and desktop PCs, DVD players, digital televisions, and set-top boxes. SigmaTel provides complete, system-level solutions that include highly-integrated ICs, customizable firmware and software, software development tools, reference designs, and applications support. The Company's focus is on providing system-level solutions that enable customers to rapidly introduce and offer electronic products that are small, light-weight, power-efficient, reliable, and cost-effective. SigmaTel is ISO 9001:2000 certified and is committed to providing customers with high performance, quality products along with superior customer service. For more information, please visit www.sigmatel.com.

For further information, contact: D&M Holdings, Inc. Zenichiro Ishibashi +1 81 42 748 7700 For D&M Holdings in the US Dobbin/Bolgla Associates Sara Trujillo +1 212 388 1400

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[email protected] For Rio in the US Porter Novelli Hector Marinez +1 408 369 4650 [email protected]

Statements in this news release regarding D&M Holdings Inc. that are not statements of historical fact may include forward looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are just predictions and that actual events or results may differ materially. Forward looking statements involve a number of risks and uncertainties surrounding the integration of the company's acquisitions, competitive and industry conditions, targeted cost savings programs, market acceptance for the company's products, technological changes, developing industry standards and other factors related to the company's businesses ###

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EXHIBIT F

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EXHIBIT G

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EXHIBIT H

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For Immediate Release

D&M Holdings Inc. Names Bernie Sepaniak Chief Technology Officer

MAHWAH, NJ­December 12, 2006 ­ D&M Holdings Inc. (TSE I: 6735) today named Bernie Sepaniak the company's chief technology officer. Mr. Sepaniak currently heads up the digital network business unit at D&M Holdings. In his new position, Mr. Sepaniak will manage the company's intellectual property and patents on a global basis. He also will be responsible for sharing technology across the brands and identifying and evaluating new technologies, including potential acquisitions and partners. "Bernie is uniquely qualified to develop his role into a value-creating asset of D&M Holdings," said Vic Pacor, president and chief operating officer of D&M Holdings. "His strong background in networking, the Internet, metadata delivery services and digital audio/video is the right mix for leading the group charged with expanding our technology portfolio," he added. Reporting to Bernie will be the Technology Research Group in Japan, Intellectual Property Administration and the Advanced Center for Technologies (ACT). D&M Holdings owns the Denon, Marantz, McIntosh Laboratory, Boston Acoustics®, Snell Acoustics, D&M Professional, Denon DJ, ReplayTV® and Escient® brands. D&M Holdings is based in Kawasaki, Japan with North American headquarters in Mahwah, New Jersey. "Our goal at D&M Holdings is to maintain the uniqueness of each brand while collaborating to make sure each company has access to our technologies," Sepaniak said. "I look forward to working with teams around the globe to ensure that we deliver the best technology available for creating compelling entertainment products," he said. Mr. Sepaniak has served as president of Escient, ReplayTV and ACT and prior to D&M Holding's acquisition of Escient, served as president and CEO of Escient and OpenGlobe, an Escient spin-off. Prior to Escient, Mr. Sepaniak was senior vice 1

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president of engineering and chief technology officer of NetFax, Inc., an industry pioneer in Internet facsimile technology. Earlier, Mr. Sepaniak served as director of the Video Business Unit and director of research and development for the Personal Communications Division for 3COM/U.S. Robotics, Inc. Mr. Sepaniak's career includes engineering and management positions at CTS Datacomm and DataTrek, which he co-founded. Mr. Sepaniak earned a bachelor's degree in electrical engineering from the University of Tennessee.

About D&M Holdings Inc. D&M Holdings Inc. (TSE I: 6735) is based in Kawasaki, Japan and owns the Denon, Marantz, McIntosh Laboratory, Boston Acoustics, Snell Acoustics, D&M Professional, Denon DJ, ReplayTV® and Escient® brands. Denon, Marantz, McIntosh and D&M Professional are global industry leaders in the specialist home theater, audio/video consumer electronics or professional audio markets, with a strong and long-standing heritage of manufacturing and marketing high-performance audio and video components. Boston Acoustics, with its signature The Boston Sound, is a leader in premium loudspeakers for home and audio markets. Snell is a super premium speaker brand. The ReplayTV and Escient brands represent award-winning technologies in digital home entertainment. Additional information is available at www.dmholdings.com. Denon and Marantz are registered trademarks of D&M Holdings Inc.; McIntosh is a registered trademark of McIntosh Laboratory, Inc.; Boston Acoustics is a registered trademark of Boston Acoustics, Inc. and ReplayTV and Escient are registered trademarks of Digital Networks North America, Inc. For further information, contact: Adam Weissman DBA Public Relations [email protected] (212) 388-1400

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Statements in this news release that are not statements of historical fact may include forward looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are just predictions and that actual events or results may differ materially. Forward looking statements involve a number of risks and uncertainties surrounding the integration of the company's acquisitions, competitive and industry conditions, targeted cost savings programs, market acceptance for the company's products, technological changes, developing industry standards and other factors related to the company's businesses ###

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