FORG Forgent Networks (MM)

Dutton Associates updates its coverage of Forgent Networks (Nasdaq:FORG), maintaining a Speculative Buy rating and a target price of $2.00. The 11-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' successful program of licensing its intellectual property, generated revenue of more than $122.0 million in fees over the past five years. Since our October 10, 2006, Research Report, Forgent�s Intellectual Property program has suffered some setbacks and is now waiting upon possible settlements in the outcome of the pending trial for the �746 patent. In the face of the uncertainty surrounding the �746 Patent litigation, we lowered our rating to Neutral on December 1, 2006. However, considering Forgent�s cash position, the Court�s denial of a motion to stay the �746 Patent litigation pending the outcome of the US Patent Office re-examination of the �746 Patent, its maintaining listing on the NASDAQ Global Market Exchange, and that its common stock has moved up from the first of December price of $0.50 per share to its current level of $1.60 per share on heavy volume (3.2 million daily average shares in the month of December), we reiterate our January 3rd rating of Speculative Buy with a 12-month price target being set at $2.00 per share. We caution investors to consider the risks of the unknown results from the �746 Patent litigation, which is scheduled for trial in May 2007. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 31 senior analysts are primarily CFAs�, and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 140 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in our one-year continuing research program is US $39,500 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. We received $63,000 from the Company for 7 quarterly Research Reports with coverage commencing on 12/21/2004. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.