SOURCE: CopyTele, Inc.

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July 10, 2013 14:43 ET

Court Orders Settlement Conference for CopyTele, AU Optronics, and E Ink, and Consolidates Discovery

MELVILLE, NY--(Marketwired - July 10, 2013) -  CopyTele, Inc. ("CTI") (OTCQB: COPY), a company specializing in patent monetization and patent assertion, today announced that the Federal District Court for the Northern District of California has ordered CopyTele, AU Optronics Corp. and E Ink Holdings to attend a settlement conference, before a Magistrate Judge, to be scheduled within the next ninety (90) days. Lead Counsel, and representatives with settlement authority from each of the parties, will be required to attend.

CopyTele filed a lawsuit against AU Optronics and E Ink on January 28, 2013, alleging fraud, antitrust, conspiracy, breach of contract, and other violations, all in connection with the attempted misappropriation of CopyTele's patented technologies. CopyTele also filed a separate patent infringement lawsuit against E Ink. CopyTele and AU Optronics recently agreed to arbitrate CopyTele's claims against AU Optronics.

The District Court declined to grant E Ink Holding's request to be dismissed from the AUO/E Ink lawsuit, and ordered E Ink to participate in the arbitration proceeding agreed to by CopyTele and AUO, for purposes of discovery. By consolidating and coordinating discovery against all parties as part of the arbitration proceeding, the discovery process should be quicker and more efficient. The Court's ruling provides that discovery developed from the arbitration proceeding may be used in later litigation by CopyTele against E Ink.

CopyTele's lawsuit against E Ink will be conditionally stayed, provided that E Ink continues to comply with the arbitrator's discovery rulings. Because issues pending in the arbitration proceeding must first be adjudicated before CopyTele can proceed with its patent infringement lawsuit against E Ink, the District Court dismissed that lawsuit, without prejudice, meaning that CopyTele can re-file the lawsuit, if necessary, following the arbitration.

About CopyTele, Inc.

CopyTele develops and acquires patented technologies for the purposes of patent monetization and patent assertion. The company currently has 6 patent portfolios in the areas of Key Based Encryption, E-Paper® Electrophoretic Display, Nano Field Emission Display ("NFED"), Micro Electro Mechanical Systems Display ("MEMS"), Loyalty Point Conversion Systems, and Window Frame Construction. Additional information is available at www.CTIpatents.com.

Forward-Looking Statements: Statements that are not historical fact may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not statements of historical facts, but rather reflect CopyTele's current expectations concerning future events and results. We generally use the words "believes," "expects," "intends," "plans," "anticipates," "likely," "will" and similar expressions to identify forward-looking statements. Such forward-looking statements, including those concerning our expectations, involve risks, uncertainties and other factors, some of which are beyond our control, which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. These risks, uncertainties and factors include, but are not limited to, those factors set forth in "Item 1A - "Risk Factors and other sections of our Annual Report on Form 10-K for the fiscal year ended October 31, 2012 as well as in our Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. You are cautioned not to unduly rely on such forward-looking statements when evaluating the information presented in this press release.

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