Statement From Sharman Networks

Statement From Sharman Networks

SYDNEY, Australia, November 25/PRNewswire/ --

- Record company lawyer 'shot himself in the foot,' according to
Judge in Universal v Sharman hearing

The Federal Court of Australia yesterday granted Sharman Networks a
further stay of the injunction ordered on 5 September 2005.

During the hearing Justice Wilcox also expressed anger about the record
companies' technical representatives failing to attend the second
court-ordered technical conference.

Justice Wilcox said that when he had heard that the technical
representatives of the record companies had failed to turn up for the court
ordered conference, he was "extremely angry" and that the behaviour of Mr.
Michael Williams, lead lawyer for Gilbert & Tobin -- the firm which
represents the Australian music industry -- towards the Federal Court
official overseeing the technical process was not acceptable. Justice Wilcox
also said that Mr. Williams had "shot himself in the foot."(1)

A first technical meeting had been held with considerable success and
paved the way for modifications to be made to the Kazaa software to ensure
its continued availability.

Despite objection from the record companies, Sharman Networks was granted
a further stay until late in February 2006 conditional on Sharman modifying
its software. The court also indicated that it was not prepared to make an
order that Sharman give security for damages. Counsel for the record
companies indicated they would be seeking US$200m.

A spokesperson for Sharman said the action of the record companies in
refusing to attend the second court-ordered meeting revealed that their true
intention was not to foster agreement about an acceptable filtering
technology, but to shut down Kazaa and rid themselves improperly of a
competitor.

Accordingly at the conclusion of the hearing Justice Wilcox granted a
further stay. Meanwhile the appeal to the full court will be heard in late
February 2006.

(1) The court in handing down its judgement on 5 September 2005 made a
landmark ruling giving the parties time to agree on a protocol to
allow Sharman Networks to adjust its software so Kazaa could continue
to be distributed.

Contact: Julie Fenwick
ICON International Communications
work: +61-2-8235-7600
mobile: +61-423-174-424
julie.fenwick@iicpr.com

Source: Sharman Networks

Julie Fenwick, ICON International Communications, work: +61-2-8235-7600, mobile: +61-423-174-424, julie.fenwick@iicpr.com/ NOTE EDITORS: Excerpts from the transcript will be forwarded as soon as they become available.

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