Dutton Associates Announces Investment Opinion: Forgent Networks Strong Buy Rating by Dutton Associates

Dutton Associates updates its coverage of Forgent
Networks (Nasdaq:FORG), maintaining a Strong Buy rating and a $5.00
price target. The 10-page report by Dutton senior analyst Richard
West, CFA is available at www.jmdutton.com as well as from First Call,
Bloomberg, Zacks, Reuters, Knobias, and other leading financial
portals.
   Forgent Networks, Inc.'s (Forgent's) aggressive and, thus far,
successful program of licensing its intellectual property continues to
result in the licensing of additional companies for its US Patent No.
4,698,672 (the '672 Patent). Over the past four years, Forgent has
licensed the '672 patent to 50 companies that include a wide variety
of businesses and recorded revenues of $105.0 million in license fees.
Forgent announced on October 3, 2005, reconfirmation of a Markman
hearing date of February 13, 2006 for a lawsuit alleging infringement
of the '672 Patent. Forgent announced on November 9, 2005, it had
received notification that a date in July 2006 had been set for a
Markman hearing on claim construction in Forgent's patent infringement
case involving US Patent No. 6,285,746 (the '746 Patent) relating to a
computer-controlled video system allowing playback during recording.
Considering the possible additional fees that Forgent may receive in
the coming quarters before the trial dates, and assuming a possible
judgment of $100 to $200 million from the '672 patent litigation and a
possible judgment of $50 million to $100 million from the '746 patent
litigation, we believe that our price target of $5.00 per share or a
market valuation of $125 million is a conservative target. At current
price levels, with a market capitalization of approximately $68.5
million, we believe an investment in Forgent presents minimal downside
risk and a most attractive upside potential. We reiterate our Strong
Buy rating.

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   Dutton Associates is one of the largest independent investment
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