News Corp./NBC Online Destination Slapped with Lawsuit

RALEIGH/NEW YORK, September 6: Lulu Enterprises, a North
Carolina-based digital marketplace for content owners, has filed a lawsuit
against Hulu, the new video destination from News Corporation and NBC Universal,
citing “trademark infringement, unfair and deceptive trade practices and
federal cyberpiracy.”

The complaint was filed in U.S. District Court in Raleigh,
North Carolina. It alleges that Hulu has “intentionally attempted to create
confusion in the marketplace. Hulu, in name, as a mark and in their business as
a digital content distribution platform, represents a definitive encroachment,”
a company statement says.

The complaint continues, “Hulu's trademark filing, filed on
August 22, 2007, identifies various products and services, many of which are
related to, and even identical to, the services that Lulu provides under its
Lulu marks.”

Bob Young, the CEO of Lulu, stated: "We have spent more
than five years and tens of millions of dollars in investment successfully
building the Lulu brand and website into a place for millions of creators and
consumers to publish, buy, sell and manage digital content. It is clear we are
required to move quickly to protect our intellectual property and defend ourselves
against this infringement before it significantly damages our business."

Launched in 2002, Lulu allows creators to publish content in
a variety of applications. Lulu has almost 1.2 million registered users and
receives more than three million unique visitors per month. Lulu users
currently publish more than 4,000 new pieces of content—books, video,
calendars and music—each week.

On the Hulu website, Jason Kilar, the platform’s CEO, says
the name was chosen because it is “short, easy to spell, easy to pronounce, and
rhymes with itself. Subjectively, Hulu strikes us as an inherently fun name,
one that captures the spirit of the service we're building. Our hope is that
Hulu will embody our (admittedly ambitious) never-ending mission, which is to
help you find and enjoy the world's premier content when, where and how you
want it.”

Hulu’s beta site goes live in October.