Ionics, Incorporated Announces Settlement of Patent Infringement Lawsuits

Apr 23, 2001, 01:00 ET from Ionics, Incorporated

    WATERTOWN, Mass., April 23 /PRNewswire Interactive News Release/ --
 Ionics, Incorporated (NYSE:   ION) today announced that three lawsuits brought
 against Ionics by United States Filter Corporation (U.S. Filter) had been
 settled.  The lawsuits had alleged infringement of certain patents relating to
 electrodeionization (EDI) and one patent related to an application utilizing
 reverse osmosis (RO) technology.
     In settling the litigation, Ionics agreed to make certain payments to U.S.
 Filter.  A reserve that is sufficient to cover the financial impact of these
 payments was established by Ionics in the fourth quarter of 2000 and is
 reflected in Ionics' financial statements for that quarter and for the 2000
 year-end.
     Under the terms of the settlement agreement, Ionics gave up no rights with
 respect to its existing EDI technology, which is incorporated in 13 EDI
 patents as well as 40 years of accumulated know-how in the field, and Ionics
 is not restricted from carrying on its current activities in the EDI field,
 including Ionics' right to make, use and sell all of its current products and
 technology relating to EDI.  The terms of the settlement also will have no
 impact on Ionics' manufacture, use or sale of its current RO technology.
     Arthur L. Goldstein, Ionics' Chairman and CEO, stated:  "We are pleased to
 have resolved this litigation in such a satisfactory manner, bringing to an
 end a process that had become both expensive and a burden on management time.
 The settlement will have no future adverse financial impact on the Company,
 and we remain free to continue all of our current activities in the EDI and RO
 fields."  Mr. Goldstein also noted:  "We have been very pleased by the
 commercial success of our EDI products in the microelectronics, power and
 other markets, and we fully intend to continue our long-term commitment to the
 development of this technology."
 
     Ionics is a global separations technology company involved in the
 manufacture and sale of membranes, equipment and own and operate services for
 the purification, disinfection, concentration, treatment and analysis of
 water, wastewater and ultrapure water.  Over a period of more than 50 years
 Ionics has built more desalination plants than any company in the world.
 Ionics has been a pioneer in purified water with its worldwide five-gallon
 brand, Aqua Cool(R) Pure Bottled Water.
 
     Safe-harbor statement under the Private Securities Litigation Reform Act
 of 1995: Forward-looking statements in this news release involve risk and
 uncertainty.  The statements contained in this release which are not
 historical facts are forward-looking statements.  Important factors, including
 overall economic conditions, demand for Company products, raw material
 availability, availability of manufacturing capacity, technological and
 product development risks, competitors' actions, and other factors described
 in the Company's filings with the Securities and Exchange Commission could
 cause actual results to differ materially.
 
      For more information, contact:
 
      Stephen Korn, Vice President
      and General Counsel
      Ionics, Incorporated
      Tel: (617) 926-2510 ext. 450
      skorn@ionics.com
 
      Theodore G. Papastavros, Vice President
      Strategic Planning
      Ionics, Incorporated
      Tel: (617) 926-2510 ext. 221
      tpapastavros@ionics.com
 
      Francine S. Bernitz, Vice President
      Marketing and Corporate Communications
      Ionics, Incorporated
      Tel: (617) 926-2510 ext. 312
      fbernitz@ionics.com
 
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SOURCE Ionics, Incorporated
    WATERTOWN, Mass., April 23 /PRNewswire Interactive News Release/ --
 Ionics, Incorporated (NYSE:   ION) today announced that three lawsuits brought
 against Ionics by United States Filter Corporation (U.S. Filter) had been
 settled.  The lawsuits had alleged infringement of certain patents relating to
 electrodeionization (EDI) and one patent related to an application utilizing
 reverse osmosis (RO) technology.
     In settling the litigation, Ionics agreed to make certain payments to U.S.
 Filter.  A reserve that is sufficient to cover the financial impact of these
 payments was established by Ionics in the fourth quarter of 2000 and is
 reflected in Ionics' financial statements for that quarter and for the 2000
 year-end.
     Under the terms of the settlement agreement, Ionics gave up no rights with
 respect to its existing EDI technology, which is incorporated in 13 EDI
 patents as well as 40 years of accumulated know-how in the field, and Ionics
 is not restricted from carrying on its current activities in the EDI field,
 including Ionics' right to make, use and sell all of its current products and
 technology relating to EDI.  The terms of the settlement also will have no
 impact on Ionics' manufacture, use or sale of its current RO technology.
     Arthur L. Goldstein, Ionics' Chairman and CEO, stated:  "We are pleased to
 have resolved this litigation in such a satisfactory manner, bringing to an
 end a process that had become both expensive and a burden on management time.
 The settlement will have no future adverse financial impact on the Company,
 and we remain free to continue all of our current activities in the EDI and RO
 fields."  Mr. Goldstein also noted:  "We have been very pleased by the
 commercial success of our EDI products in the microelectronics, power and
 other markets, and we fully intend to continue our long-term commitment to the
 development of this technology."
 
     Ionics is a global separations technology company involved in the
 manufacture and sale of membranes, equipment and own and operate services for
 the purification, disinfection, concentration, treatment and analysis of
 water, wastewater and ultrapure water.  Over a period of more than 50 years
 Ionics has built more desalination plants than any company in the world.
 Ionics has been a pioneer in purified water with its worldwide five-gallon
 brand, Aqua Cool(R) Pure Bottled Water.
 
     Safe-harbor statement under the Private Securities Litigation Reform Act
 of 1995: Forward-looking statements in this news release involve risk and
 uncertainty.  The statements contained in this release which are not
 historical facts are forward-looking statements.  Important factors, including
 overall economic conditions, demand for Company products, raw material
 availability, availability of manufacturing capacity, technological and
 product development risks, competitors' actions, and other factors described
 in the Company's filings with the Securities and Exchange Commission could
 cause actual results to differ materially.
 
      For more information, contact:
 
      Stephen Korn, Vice President
      and General Counsel
      Ionics, Incorporated
      Tel: (617) 926-2510 ext. 450
      skorn@ionics.com
 
      Theodore G. Papastavros, Vice President
      Strategic Planning
      Ionics, Incorporated
      Tel: (617) 926-2510 ext. 221
      tpapastavros@ionics.com
 
      Francine S. Bernitz, Vice President
      Marketing and Corporate Communications
      Ionics, Incorporated
      Tel: (617) 926-2510 ext. 312
      fbernitz@ionics.com
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X68283648
 
 SOURCE  Ionics, Incorporated