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On August 6, 2007, Rocket Software, Inc. (“Rocket”) announced that it had been served by CA, Inc. (“CA”) and related entities with process in an action filed in the United States District Court for the Eastern District of New York, alleging that certain Rocket developers misused intellectual property from one of the CA-related entities and improperly incorporated software code from it into certain software products being developed at Rocket beginning in 1999 and 2000, and asserting various causes of action. Rocket believes that the claims are meritless, and will defend the litigation vigorously.