Court enjoins Sokymat from infringing patent, assesses $1 million judgment

FOR IMMEDIATE RELEASE
June 11, 1999

Santa Barbara, CA --
Electronic Identification Devices, Ltd. reported today that the U.S. District Court, Central District of California, Western Division, has found that defendants Sokymat S.A. and Irori infringed on U.S. Patent No. 5,281,855, issued to Trovan, Ltd., and a judgment in the amount of $1,000,000 was issued against them.

The Los Angeles Court also issued a final judgment and permanent injunction against the defendants, which prevents them from making, selling, offering for sale or using any product that infringes on U.S. Patent No. 5,281,855 in the United States. The patent describes direct bonding technology used primarily to connect antenna coils inside the transponders directly to the integrated circuit, eliminating components, and thereby lowering production costs and prices to customers and enhancing the reliability of the product. This technology is the technology of choice in automotive applications such as ignition control systems for vehicles and microtransponders used to identify animals.

The court affirmed that Sokymat S.A. et al. have no rights to U.S. Patent No. 5,281,855.

"The court's decision entitles the Plaintiffs to a comprehensive interpretation of the patent's claims" said Joseph Masin, President of Electronic Identification Devices, Ltd. "The plaintiffs will vigorously protect their intellectual property rights in all markets covered by this patent and its foreign counterparts." Trovan, Ltd. has applied for foreign counterparts in the European Patent Office, among others, including Switzerland, which is the location of Sokymat's manufacturing facility.

"We believe that the court's decision not to consider Trovan's claims of misappropriation of confidential information and title to U.S. Patent No. 5,572,410 was incorrect." said Joseph Masin. U.S. Patent No. 5,572,410, filed by Ake Gustafson, describes a machine used for coil winding and manufacture of transponders. "Based on an Agreement signed between Trovan, Ltd. and Sokymat SA, we continue to maintain that we have certain rights in U.S. Patent No. 5,572,410."

"It appears that there are presently several versions of the directly bonded product on the market," said Joseph Masin. "All versions are currently under review."

Mr. Masin has also announced that Trovan's obligations under the Agreement between Sokymat and plaintiffs dated October 20, 1998, identifying certain products, have been suspended.

For additional information in the United States please contact:
Electronic Identification Devices, Ltd.
Barbara Masin
telephone: 805-565-1288
fax: 805-565-1127
e-mail: BMasin@EIDLtd.com