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Netlist Granted Two Additional Patents Related to New Hypercloud Technology

Tuesday, January 19, 2010

Further Reinforcing Its Intellectual Property Portfolio

Irvine, CA -- Netlist, Inc. (Nasdaq: NLST) today announced that the United States Patent and Trademark Office issued to Netlist Patent No. 7,636,274 for its invention related to memory load isolation and memory rank multiplication, and Patent No. 7,619,912 for its invention related to memory rank multiplication. These fundamental technologies are integral to Netlist's Hypercloud product line which maximizes server utilization by removing memory capacity and bandwidth bottlenecks, thereby improving datacenter performance.

"The issuance of the '912 and '274 patents further reinforces the innovations Netlist is delivering to the market with highly differentiated products," said C.K. Hong, President and CEO of Netlist. "These are foundational patents and with our robust portfolio of intellectual property, we can uniquely address the system challenges our customers face in the datacenter."

About Netlist, Inc.

Netlist designs, manufactures and sells high-performance memory subsystems for the server, storage, and high- performance computing and communications markets. The Company's memory subsystems are developed for applications in which high-speed, high-capacity memory, high reliability and functionality, small form factor, and low heat dissipation are key requirements. The company's customers include leading OEMs producing rack-mounted servers, blade servers, high-performance computing clusters, RAID storage systems, tower-servers, engineering workstations, and telecommunication equipment. Netlist maintains its headquarters in Irvine, California with manufacturing facilities in Suzhou, China.

Safe Harbor Statement

This news release contains forward-looking statements regarding future events and the future performance of Netlist, including enforceability of its patents, the outcome of pending litigation, future opportunities and growth for the company's business. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expected or projected. These risks and uncertainties include, but are not limited to, the rapidly-changing nature of technology; volatility in the pricing of DRAM ICs and NAND; changes in and uncertainty of customer demand, including delays in product qualifications; delays in the Company's and its customers' product releases and development; introductions of new products by competitors; changes in end-user demand for technology solutions; the Company's ability to attract and retain skilled personnel; the Company's reliance on suppliers of critical components; fluctuations in the market price of evolving industry standards; and the political and regulatory environment in the People's Republic of China. Other risks and uncertainties are described in the Company's annual report on Form 10-K, dated March 30, 2009, and subsequent filings with the U.S. Securities and Exchange Commission made by the Company from time to time. Netlist undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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