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MicroStrategy Wins Reinstatement of Key Claim in Litigation Against Business Objects

19 November 2005

MicroStrategy(R) Incorporated (Nasdaq: MSTR), a leading worldwide provider of business intelligence software, today announced that it has won a key issue on appeal in the ongoing litigation against Business Objects for misappropriation of MicroStrategy's trade secrets and other related misconduct. As a result of the ruling today by the United Stated Court of Appeals for the Federal Circuit, MicroStrategy's claim against Business Objects for tortious interference with contractual relations has been reinstated. In its opinion issued earlier today, the Federal Circuit upheld the validity of the non-solicitation provision in MicroStrategy's employment agreement. Holding that the employment agreement is "straight-forward" and "not ambiguous on its face," the Court interpreted the agreement to prohibit Business Objects employees who formerly worked at MicroStrategy "from taking any action that drives MicroStrategy customers away altogether or prompts MicroStrategy customers to buy less (but still some) from the company." The Federal Circuit reversed the ruling of the United States District Court for the Eastern District of Virginia, which had found the non-solicitation clause invalid, and remanded the case to the district court for further proceedings. The litigation against Business Objects arose from the misappropriation of MicroStrategy's trade secrets, as well as its hiring of former MicroStrategy employees who improperly used MicroStrategy's confidential information to solicit customers for Business Objects. More than a year ago, the district court found Business Objects guilty of misappropriation of MicroStrategy's trade secrets, calling Business Objects' conduct "unethical" and "improper." An injunction has been in effect against Business Objects ever since. Conceding its misconduct, Business Objects did not appeal from the judgment that it misappropriated MicroStrategy's trade secrets or the injunction entered against it. With the Federal Circuit's ruling today, MicroStrategy now can pursue its claim that Business Objects tortiously caused former MicroStrategy employees to breach the non-solicitation provision of their employment agreements, notwithstanding the Federal Circuit's rulings in favor of Business Objects on certain patent infringement claims and other issues involved in the lawsuit. In addition, MicroStrategy has filed a separate lawsuit against Business Objects for infringement of three of MicroStrategy's patents. This additional lawsuit, pending in the United States District Court for the District of Delaware, is expected to proceed to trial in May 2006. MicroStrategy is seeking treble damages and an injunction against Business Objects for its willful infringement of MicroStrategy's exclusive patent rights. About MicroStrategy Incorporated Founded in 1989, MicroStrategy is a global leader in business intelligence (BI) technology. MicroStrategy provides integrated reporting, analysis, and monitoring software that helps leading organizations worldwide make better business decisions every day. Companies choose MicroStrategy for its advanced technical capabilities, sophisticated analytics, and superior data and user scalability. More information about MicroStrategy (Nasdaq: MSTR) is available at http://www.microstrategy.com. This press release may include statements that may constitute "forward- looking statements," including its plans for pursuing future legal claims against Business Objects statements containing the words "believe," "estimate," "project," "expect" or similar expressions. Forward-looking statements inherently involve risks and uncertainties that could cause actual results of MicroStrategy Incorporated and its subsidiaries (collectively, the "Company") to differ materially from the forward-looking statements. Factors that could contribute to such differences include: changes the Company's evaluation of the likelihood of success on various claims, the legal costs necessary to pursue such claims and the potential magnitude of any recovery of damages relating to such claims; general economic conditions; and other risks detailed in the Company's registration statements and periodic reports filed with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release. MicroStrategy and MicroStrategy Business Intelligence Platform are trademarks or registered trademarks of MicroStrategy Incorporated in the United States and certain other countries. Other product and company names mentioned herein may be the trademarks of their respective owners. CONTACT: Wende Cover of MicroStrategy Incorporated, +1-703-770-1646, or wcover@microstrategy.com.

Source: PR Newswire