Apple (AAPL)

Butzer, et al., v. Apple Computer, Inc./Wirges v. Apple Computer, Inc.

Plaintiffs filed the Butzer action on August 23, 2005, in the United States District Court for the Northern District of California, San Jose Division, on behalf of a purported nationwide class of all purchasers of the Company’s PowerBook G4 portable computers.  The complaint alleges defects in the memory of the computers.  The complaint alleges that this purported defect extends to other series of the Company’s portables and states that plaintiffs reserve the right to amend the complaint to include these other series.  Plaintiffs assert claims for alleged violations of California Business & Professions Code §17200 (unfair competition), California Business & Professions Code §17500 (false advertising), the Consumer Legal Remedies Act and the Song-Beverly Consumer Warranty Act.  The complaint seeks remedies including restitution and/or damages and injunctive relief.  The Wirges action was filed on January 20, 2006 in the United State District Court for the Eastern District of Arkansas, also on behalf of a purported nationwide class, and makes similar allegations. Plaintiffs assert claims for breach of warranties, violation of Magnuson–Moss Act, strict products liability and unjust enrichment. The complaint seeks restitution, damages and other remedies. The Company filed an answer to the Butzer complaint on October 19, 2005 denying the material allegations and asserting numerous affirmative defenses.  A class certification hearing is set for June 23, 2006. The case is in discovery. The Company’s response to the Wirges action is not yet due.