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Sample Issue - September 2005

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Jury decision reached in BrainLAB patent infringement lawsuit

A jury reached a verdict in the Medtronic Navigation patent-infringement case against BrainLAB, Inc. (Munich, Germany). The jury found that BrainLAB infringed four patents held or licensed by Medtronic, and determined that a reasonable royalty on BrainLAB product sales in the United States amounted to $51 million. Medtronic immediately requested an injunction, however the court declined to rule on this issue at this time. BrainLAB is seeking a modification of the jury's verdict. Final judgment on the case by the District Court is still pending.

"While the outcome is disappointing, we plan to appeal this decision and we are confident the facts and the law will support our position. We also believe that the royalty determined by the jury is unreasonable and completely inconsistent with the evidence presented at trial. We believe the evidence will ultimately show that there was no infringement of any kind, and that the accused surgical navigation tools are unique within the industry, and were developed by our own engineers," said Stefan Vilsmeier, BrainLAB founder and CEO.

The Bucholz patent relates to a method of tracking a medical instrument relative to a patient using an active, microphone-based (acoustic) digitizing system.

The Roberts patent covers a method of tracking an operating microscope relative to a patient using sound-based or magnetic-based digitizing technology. In contrast, the BrainLAB systems use a patented passive optical tracking technology, which is completely different from the Bucholz and Roberts inventions.

The Heilbrun patents relate to certain methods of using static or immovable "machine vision" technology where the digitizing cameras cannot move without re-establishing the relationship of the cameras during surgery. The BrainLAB systems utilize an advanced dynamic technology, which allows the surgeon to reposition the patient and cameras at any time, resulting in a system which is more flexible and practical for surgical use.

As a company dedicated to innovation, BrainLAB invests heavily in research and development, and is committed to respecting the intellectual property rights of others. BrainLAB stands by its products and will continue to develop innovative technologies that benefit patients. Regardless of the ultimate outcome of this case, BrainLAB will work hard to ensure that there is very little if any impact on our customers."

BrainLAB, was founded in 1989 and is specialized in the development, manufacture, and marketing of medical technology for radiosurgery/radiotherapy, orthopedics, neurosurgery, and ENT. Among the products developed by BrainLAB are software and hardware components for image-guided surgery and radiotherapy as well as integrated systems for stereotactic radiosurgery. With almost 1,990 systems installed in over 65 countries, BrainLAB is among the market leaders in image-guided medical technology. BrainLAB employs more than 670 people worldwide and has 15 offices across Europe, Asia, North and South America.

BrainLAB, Inc.
+1-708-486-0114
www.brainlab.com

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