Apple (AAPL)

Butzer, et al. v. Apple Computer, Inc.;Wirges v. Apple Computer, Inc.; Blackwell 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 alleged defects in the memory of the computers. The complaint alleged that this purported defect extends to other series of the Company’s portables and stated that plaintiffs reserved the right to amend the complaint to include these other series. Plaintiffs asserted claims for alleged violations of California Business & Professions Code §17200 (unfair competition), California Business & Professions Code §17500 (false advertising), the Consumer Legal Remedies Act (CLRA) and the Song-Beverly Consumer Warranty Act. The complaint sought remedies including restitution and/or damages and injunctive relief. The Wirges action was filed on January 20, 2006 in the United States District Court for the Eastern District of Arkansas, also on behalf of a purported nationwide class, and made similar allegations. Plaintiffs asserted claims for breach of warranties, violation of the Magnuson—Moss Act, strict products liability and unjust enrichment. The complaint sought restitution, damages and other remedies. The Blackwell action was filed on February 10, 2006 in the

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United States District Court for the Northern District of California, on behalf of a purported nationwide class, and made identical allegations to those made in the Butzer case. Plaintiffs asserted claims for breach of express and implied warranties, violation of the CLRA, violation of the Song-Beverly Act, false advertising and unfair competition. The complaint sought restitution, an injunction and other remedies. The Company filed an answer to the Butzer complaint on October 19, 2005 denying all material allegations and asserting numerous affirmative defenses. The Company filed an answer to the Wirges action on February 28, 2006, and also filed a motion to transfer the Wirges case to the Northern District of California. The Company filed an answer to the Blackwell complaint on March 15, 2006 denying all material allegations and asserting numerous affirmative defenses. The Company has reached a settlement with the named plaintiffs in all three cases and these matters are concluded. Settlement of these matters did not have a material effect on the Company’s financial position or results of operations.

Butzer, et
al. v. Apple Computer, Inc.;Wirges v. Apple Computer, Inc.;
Blackwell 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 alleged defects in the memory of the computers.
The complaint alleged that this purported defect extends to other series of the
Company’s portables and stated that plaintiffs reserved the right to amend the
complaint to include these other series. Plaintiffs asserted claims for alleged
violations of California Business & Professions Code §17200 (unfair
competition), California Business & Professions Code §17500 (false
advertising), the Consumer Legal Remedies Act (CLRA) and the Song-Beverly
Consumer Warranty Act. The complaint sought remedies including restitution
and/or damages and injunctive relief. The Wirges action was filed on January 20,
2006 in the United States District Court for the Eastern District of Arkansas,
also on behalf of a purported nationwide class, and made similar allegations.
Plaintiffs asserted claims for breach of warranties, violation of the Magnuson—Moss
Act, strict products liability and unjust enrichment. The complaint sought restitution,
damages and other remedies. The Blackwell action was filed on February 10,
2006 in the

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United States District
Court for the Northern District of California, on behalf of a purported
nationwide class, and made identical allegations to those made in the Butzer
case. Plaintiffs asserted claims for breach of express and implied warranties,
violation of the CLRA, violation of the Song-Beverly Act, false advertising and
unfair competition. The complaint sought restitution, an injunction and other
remedies. The Company filed an answer to the Butzer complaint on October 19,
2005 denying all material allegations and asserting numerous affirmative
defenses. The Company filed an answer to the Wirges action on February 28,
2006, and also filed a motion to transfer the Wirges case to the Northern
District of California. The Company filed an answer to the Blackwell complaint
on March 15, 2006 denying all material allegations and asserting numerous
affirmative defenses. The Company has reached a settlement with the named
plaintiffs in all three cases and these matters are concluded. Settlement of these
matters did not have a material effect on the Company’s financial position or
results of operations.

Butzer, et al. v. Apple Computer, Inc.;Wirges v. Apple Computer, Inc.; Blackwell 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 alleged defects in the memory of the computers.  The complaint alleged that this purported defect extends to other series of the Company’s portables and stated that plaintiffs reserved the right to amend the complaint to include these other series.  Plaintiffs asserted claims for alleged violations of California Business & Professions Code §17200 (unfair competition), California Business & Professions Code §17500 (false advertising), the Consumer Legal Remedies Act (CLRA) and the Song-Beverly Consumer Warranty Act.  The complaint sought remedies including restitution and/or damages and injunctive relief.  The Wirges action was filed on January 20, 2006 in the United States District Court for the Eastern District of Arkansas, also on behalf of a purported nationwide class, and made similar allegations. Plaintiffs asserted claims for breach of warranties, violation of the Magnuson–Moss Act, strict products liability and unjust enrichment. The complaint sought restitution, damages and other remedies. The Blackwell action was filed on February 10, 2006 in the United States District Court for the Northern District of California, on behalf of a purported nationwide class, and made identical allegations to those made in the Butzer case.  Plaintiffs asserted claims for breach of express and implied warranties, violation of the CLRA, violation of the Song-Beverly Act, false advertising and unfair competition.  The complaint sought restitution, an injunction and other remedies.  The Company filed an answer to the Butzer complaint on October 19, 2005 denying all material allegations and asserting numerous affirmative defenses. The Company filed an answer to the Wirges action on February 28, 2006, and also filed a motion to transfer the Wirges case to the Northern District of California.   The Company filed an answer to the Blackwell complaint on March 15, 2006 denying all material allegations and asserting numerous affirmative defenses.  The Company has reached a settlement with the named plaintiffs in all three cases and these matters are concluded.  Settlement of these matters did not have a material effect on the Company’s financial position or results of operations.

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