Huge Systems, Inc.



Huge Systems, OSA and Michael Anderson File Countersuits Against Medea

(September 21, 2001 - Marina del Rey, CA) Huge Systems, a new manufacturer of RAID 3 Storage Solutions for SDTV and HDTV applications, OSA, Inc., an independent contractor that has done work for both Medea and Huge Systems, and Michael Anderson, chief designer of Huge Systems' products, responded today to the lawsuit filed against them by Medea, Inc. last week. All three parties categorically deny Medea's claims and have asserted a variety of claims against Medea, including breach of contract, fraud, unfair competition, and intentional interference with contractual relationships.

Mr. Anderson made the following statement:

"We regret that Medea has chosen to try to compete against us in the courts rather than in the marketplace. Huge Systems has been very successful in gaining a secure foothold in the storage market by offering superior products and exceptional service and support. We have at all times done so fairly and with our own technology. We categorically deny the irresponsible allegations made against us by Medea, and intend to vigorously defend ourselves and pursue our own, very substantial claims against Medea."

Mr. Anderson formed OSA, Inc. in 1995, before he joined Medea, which was formed in 1997. In 1999, after he left Medea, he again provided services to the storage industry through OSA. In 2000, Medea and OSA entered into a consulting and licensing agreement. This year, after Mr. Anderson had joined Huge Systems, Medea and Huge Systems entered into a consulting and licensing agreement. Although Medea paid consulting fees in both cases, they have not paid any licensing fees to either OSA or Huge Systems.

Among other claims, Huge and OSA are seeking to terminate Medea's right to use OSA's and Huge's code and design concepts, which the suit alleges are incorporated in Medea's VideoRAID RT, VideoRAID FC, AudioRAID and StreamRAID product lines.

Mr. Anderson has also filed a separate lawsuit against Medea related to shares of Medea that Mr. Anderson owned prior to Medea's merger with Storage Concepts. When the merger occurred, Medea accepted 1.7 million Medea shares from Mr. Anderson, but the company has never complied with its statutory obligation to pay him for those shares. Mr. Anderson is seeking millions of dollars of damages as compensation for Medea's conduct, and is asking the court to impose punitive damages on Medea.

Huge Systems has engaged the nationally-known law firm of Gibson, Dunn & Crutcher to assist the company in this matter and intends to hold Medea fully responsible for their misdeeds.

Huge Systems continues to manufacture and sell its recently introduced HugeMediaVault™ and RaIDE Cart™ products and to explore partnerships with leading manufacturers and distributors of compatible products.

# # #

Founded in 2000 and based in Marina del Rey, CA, Huge Systems provides fast, affordable RAID 3 storage systems to the entertainment industry. For more information, Huge Systems can be reached at 310 821 5196 or on the web at

HugeMediaVault and RaIDE Cart are trademarks of Huge Systems, Inc.
All other trademarks and registered trademarks are the property of their respective owners.

Back to Recent L&S Marketing Press Releases