AUDI SUCCESSFULLY DEFENDEDJanuary 1, 2002

A trial team headed withattorneys from our firm, andin conjunction with attorneysfrom the New York firm ofDavis & Gilbert, defendedAudi of America and itsadvertising agency, McKinney& Silver of North Carolina, ina copyright infringement casetried in Federal Court for theN.D. of Iowa (Cedar Rapids)November 27 – December 3,2001. Audi was accused ofinfringing a copyright on averse used in television commercialsthat aired for theAudi TT in 1999.The plaintiffwas seeking $31,000,000 indamages prior to trial.Through the granting of pretrialmotions and motionsduring trial, the damageexposure to our clients wasdramatically reduced, and thejury eventually awarded atotal of a little more than$900,000. Post-trial motionswill be filed soon whichcould, if granted, eliminateAudi’s exposure altogether.