GlobeNewswire Inc | Jan 13, 2021 03:00AM EST

January 13, 2021

HONG KONG, Jan. 13, 2021 (GLOBE NEWSWIRE) -- UCLOUDLINK GROUP INC. (uCloudlink or the Company) (NASDAQ: UCL), the worlds first and leading mobile data traffic sharing marketplace, today announced the latest developments in its patent infringement disputes with SIMO Holdings Inc. (SIMO) and/or its subsidiaries in the U.S. and China.

1.U.S. Patent Infringement Case

In 2018, SIMO sued Hong Kong uCloudlink Network Technology Limited and uCloudlink (America), Limited (collectively uCloudlink Entities) for infringing its U.S. Patent No. 9,736,689. The United States District Court for the Southern District of New York (SDNY) found for SIMO and ordered uCloudlink Entities to pay damages amounting to US$ 8,230,654.

Believing the trial judge erred in the construction of SIMOs patent claims, uCloudlink Entities appealed the SDNY decision to the U.S. Court of Appeals for the Federal Circuit (the Federal Circuit). On January 5, 2021, the Federal Circuit reversed the SDNY decision and held that uCloudlink Entities are entitled to summary judgment of noninfringement.

2. China Patent Invalidation Case 1

In 2018, Shenzhen Simo Wireless Technology Co., Ltd. (Shenzhen SIMO), one of SIMOs affiliates in China, filed a lawsuit against Shenzhen uCloudlink Network Technology Co., Ltd. (uCloudlink Shenzhen) for infringing its PRC Patent No.200980103594.6 (the 594.6 Patent). In response, uCloudlink Shenzhen applied to the China National Intellectual Property Administration (CNIPA) for invalidating the 594.6 Patent.

In July 2019, CNIPA entered its decision which invalidated the 594.6 Patent. Dissatisfied with the CNIPA decision, Shenzhen SIMO appealed to the Beijing Intellectual Property Court (the IP Court) for judicial review. In December 2020, the IP Court entered its judgment which upheld CNIPAs invalidation decision.

3. China Patent Invalidation Case 2

In 2019, Shenzhen uCloudlink Technology Limited sued Shenzhen Skyroam Technologies Co., Ltd. (Shenzhen Skyroam), one of SIMOs affiliates in China, for infringing its PRC Patent No. ZL201410497366.4 (366.4 Patent) which is owned and licensed by Hong Kong uCloudlink Network Technology Limited. In response, Shenzhen Skyroam applied to CNIPA for invalidating the 366.4 Patent.

In September, 2020, CNIPA issued an order which invalidated the 366.4 Patent. Currently, Shenzhen uCloudlink Technology Limited is filing a lawsuit at the Beijing Intellectual Property Court to challenge CNIPAs invalidation decision.

4. China Patent Invalidation Case 3

In April 2020, Shenzhen Skyroam Technologies Co., Ltd. (a PRC subsidiary of SIMO) applied to CNIPA for invalidating PRC patent No. 201610513352.6 (the 352.6 Patent) of Shenzhen uCloudlink Technology Limited.

In November 2020, CNIPA issued an order which invalidated the 352.6 Patent. Shenzhen uCloudlink Technology Limited is now preparing to file a lawsuit at the Beijing Intellectual Property Court to challenge CNIPAs invalidation decision.

About UCLOUDLINK GROUP INC.

UCLOUDLINK is the worlds first and leading mobile data traffic sharing marketplace, pioneering the sharing economy business model for the telecommunications industry. The Companys products and services deliver unique value propositions to mobile data users, handset and smart-hardware companies, mobile virtual network operators (MVNOs) and mobile network operators (MNOs). Leveraging its innovative cloud SIM technology and architecture, the Company has redefined the mobile data connectivity experience by allowing users to gain access to mobile data traffic allowance shared by network operators on its marketplace, while providing reliable connectivity, high speeds and competitive pricing.

For more information, please visit: http://ir.ucloudlink.com

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the safe harbor provisions of theU.S.Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as will, expects, anticipates, future, intends, plans, believes, estimates, confident and similar statements. UCLOUDLINK may also make written or oral forward-looking statements in its periodic reports to theU.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about UCLOUDLINKs beliefs and expectations, are forward-looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: UCLOUDLINKs strategies; UCLOUDLINKs future business development, financial condition and results of operations; UCLOUDLINKs ability to increase its user base and usage of its mobile data connectivity services, and improve operational efficiency; competition in the global mobile data connectivity service industry; changes in UCLOUDLINKs revenues, costs or expenditures; governmental policies and regulations relating to the global mobile data connectivity service industry, general economic and business conditions globally and inChina; the impact of the COVID-19 pandemic to UCLOUDLINKs business operations and the economy inChinaand elsewhere generally; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Companys filings with theSecurities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and UCLOUDLINK undertakes no duty to update such information, except as required under applicable law.

For investor and media inquiries, please contact:

In China:

UCLOUDLINK GROUP INC.Bob ShenTel: +852-2180-6111Email: ir@ucloudlink.com

The Piacente Group, Inc.Yang SongTel: +86-10-6508-0677Email: UCL@tpg-ir.com

In the United States:The Piacente Group, Inc. Brandi PiacenteTel: +1-212-481-2050Email: UCL@tpg-ir.com