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Sale of Epson Compatibles Halted by Settlement

June 17, 2005

Environmental Business Products Ltd., one of the UK's largest importers and distributors of Epson compatible printer cartridges, has stopped importing and supplying Epson compatible printer cartridges as a result of an out of court settlement reached between it and Seiko Epson Corp. The settlement follows High Court proceedings brought by Epson against Environmental Business Products for infringement of a number of patents and registered designs belonging to Epson in respect of Environmental Business Products' acts of importation and supplying.

The settlement terms include the payment by Environmental Business Products of Epson's legal costs plus a substantial payment in respect of damages. The full terms of the settlement are confidential.

Pat Stead, managing director of Environmental Business Products, said, "We have ceased importing and supplying Epson compatible cartridges because we are not confident of finding Epson compatibles that do not infringe one or more of Seiko Epson's patents or registered designs"

Seiichi Hirano, director and chief executive of Imaging & Information Products Operations Division of Seiko Epson, said, "We will continue the enforcement of our intellectual property to protect our innovative products against importers supplying infringing products."

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