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Intergraph Reaches Patent Agreement With Acer


HUNTSVILLE, AL.- Intergraph Corporation (NASDAQ: INGR), a leading global provider of spatial information management (SIM) software, today announced a patent license agreement between Intergraph's intellectual property subsidiary and Acer Incorporated. Under the terms of the agreement, Acer will make a one-time, fully-paid royalty payment of $7.5 million based upon a 1% royalty on applicable product revenues.

Intergraph expects to record after-tax intellectual property income from this agreement of approximately $4.3 million, net of all fees, expenses and estimated taxes, in the second quarter of 2006. As a result of the patent license agreement, Acer will obtain a fully paid-up worldwide license to Intergraph’s Clipper patents, and Intergraph will obtain an option to license certain Acer patents on royalty-bearing terms.

"We are pleased to have reached a licensing agreement with Acer," said R. Halsey Wise, President & Chief Executive Officer of Intergraph Corporation. "The Acer license

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Chapter II

Definition:
The second, optional phase under the Patent Cooperation Treaty that includes examination of the international application and issuance of an International Preliminary Examination Report.

Domestic Representative

Definition:
A person residing within the United States who is appointed by a patentee or assignee of a trademark application or registration that does not reside in or is not domiciled within the United States.

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