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Peavey Electronics Corporation has defended the failure of several of their products
to meet Federal Safety and Emissions Standards (FCC) by deflecting the allegations
made in US District Court by MUSIC Group. In a statement circulated yesterday, Peavey
has repeatedly claimed that they are engaged in “multiple legal actions” against MUSIC
Group’s brand Behringer, without disclosing either the nature or status of such actions.

In the release, Peavey cited a lawsuit filed against Behringer in 2009 for alleged
patent infringement related to Feedback Location circuitry without disclosing that
the presiding Judge already issued an opinion which rendered the claim as baseless.
As a consequence, Peavey withdrew the claim recently but suppressed the judge’s
finding and the fact that Behringer had in fact patented their own FBQ Feedback
Identification system in multiple countries to defend its own intellectual property.

Another nonsensical lawsuit filed by Peavey centered on a labeling issue whereby the
phrase “Patent Pending” was not replaced by “Patented” on products after the patents
had been granted to Behringer in several countries. In their statement, Peavey also
concealed the fact that they are the subject of a countersuit brought by MUSIC Group
alleging exactly the same mislabeling issue. That case is ongoing.

“It is unfortunate that Peavey would address their declining fortunes in today’s
marketplace by resorting to lawsuits against competitors and more important by
cutting corners on testing and compliance. Their energies would be far better spent
ensuring their products are safe for consumers and that they meet the requirements
of the law rather than engaging in a confused and nonsensical attack on a successful
company”, commented SVP Marketing, Costa Lakoumentas in response.

MUSIC Group has presented independent evidence in the form of test results from
accredited third parties to substantiate the claims that 7 out of 10 Peavey products
tested failed government safety and emissions standards (FCC). The case will be
heard in the District Court of Seattle and the results will be made public as the
case unfolds.

The MUSIC Group holds a substantial amount of intellectual property such as patents
and trademarks. The Company will vigorously defend its rights against Peavey or
anyone else.

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