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Press release from Business Wire

Illumina Announces Outcome of First Phase of Its Patent Litigation Against LadaTech, LLC

Thursday, March 01, 2012

Illumina Announces Outcome of First Phase of Its Patent Litigation Against LadaTech, LLC16:15 EST Thursday, March 01, 2012 SAN DIEGO (Business Wire) -- Illumina, Inc. (NASDAQ: ILMN) announced today that a federal jury in Wilmington, Delaware, found that certain of Illumina's TruSeq sample preparation and cluster generation kits and products infringe U.S. Patent No. 6,107,023, owned by LadaTech LLC, a patent holding company. Other Illumina sample preparation kits, such as its Nextera kits, were not accused of infringement in the lawsuit. In addition, United States District Court Judge Sue L. Robinson in an earlier order granted summary judgment that Illumina cluster generation kits and products, when used with sample preparation kits made or sold by third parties, do not infringe the patent. The case will now proceed to its next phase in which Illumina will have the opportunity to demonstrate that the jury's verdict should not stand because the patent is unenforceable. The jury's verdict is therefore preliminary, and in the meantime Illumina plans to support its customers with the products that are the subject of the suit. In addition, the damages phase of the case has not been scheduled and will not proceed, if at all, until at least 2013, after all appropriate appeals of the jury verdict have been taken. Illumina does not expect that damages, if any, resulting from this lawsuit would have a significant effect on its consolidated financial position, liquidity or results of operations. Jay Flatley, Illumina's President and CEO, stated: “We disagree with and plan to appeal the present finding of infringement in this lawsuit, and note that this finding was made without consideration of the enforceability of the patent asserted by LadaTech. We continue to feel very strongly about our position that LadaTech's allegations are without merit and we look forward to presenting our unenforceability defense, and ultimately to obtaining a favorable result to that effect. Like many other companies, we respect valid and enforceable intellectual property rights of others. Consistent with our policy, we believe we acted properly with respect to the LadaTech patent and that, ultimately, our position will be vindicated.” About Illumina Illumina (www.illumina.com) is a leading developer, manufacturer, and marketer of life science tools and integrated systems for the analysis of genetic variation and function. We provide innovative sequencing and array-based solutions for genotyping, copy number variation analysis, methylation studies, gene expression profiling, and low-multiplex analysis of DNA, RNA, and protein. We also provide tools and services that are fueling advances in consumer genomics and diagnostics. Our technology and products accelerate genetic analysis research and its application, paving the way for molecular medicine and ultimately transforming healthcare. Forward-Looking Statements This release contains forward looking statements that involve risks and uncertainties. Examples of forward-looking statements include, but are not limited to, statements we make regarding the expected timing, if applicable, of the damages phase and any appeals. Important factors that could cause actual results to differ materially from those in any forward-looking statements are detailed in our filings with the Securities and Exchange Commission, including our most recent filings on Forms 10-K and 10-Q, or in information disclosed in public conference calls, the date and time of which are released beforehand. We do not intend to update any forward-looking statements after the date of this release. Illumina, Inc.Investors:Kevin Williams, MDInvestor Relations858-332-4989kwilliams@illumina.comorMedia:Jennifer TemplePublic Relations858-429-8350pr@illumina.com