U.S. International Trade Commission Drops Patent Infringement Investigation Against Shengyi

May 12, 2009

Guangdong Shengyi Sci. Tech Co., Ltd. is pleased to announce that the patent infringement investigation brought by Isola USA Corp. in the United States International Trade Commission has been terminated. The ITC judge found that there was good cause to terminate the investigation based on withdrawal of certain allegations [against Shengyi] in the Complaint. Acknowledging Shengyi s position that Isola made a concession of non-infringement by its withdrawal of the Complaint, the ITC judge ordered that public policy supports termination. On May 11, 2009, the ITC issued a notice confirming the judge s order and making the termination final.

Shengyi s Chief Operating Officer Renxi Chen, commenting on the investigation, stated: Shengyi has been soundly vindicated. Our company was the subject of completely unfounded charges made by Isola, and we are satisfied that this matter is behind us. Shengyi s reputation as an honorable and innovative company remains solid and unblemished, and our U.S. customers and end users can continue to expect only the highest quality products and service from us.

"By vigorously fighting the U.S. ITC patent infringement case brought against it by Isola, Shengyi was able to demonstrate that it is a first-rate company that is able to compete effectively on a global scale, not just in the marketplace, but in other arenas as well," said Shengyi"s lead counsel, ITC expert Charles Schill.

Mr. Schill explained, "As recognized by the ITC Judge in his order terminating the case against Shengyi, Isola ultimately had to concede that Shengyi"s defense was correct -- its products do not infringe Isola"s patents. I am proud to say that Shengyi is an innovator in its field and relies on its own intellectual property to achieve its competitive position.

Shengyi respects the intellectual property of others, just as it expects others to respect its intellectual property." Further, commenting on the soundness of Shengyi"s strategy, Mr. Schill added that, "Shengyi also showed that a Chinese company sued in a U.S. forum can achieve a favorable result if it is willing to strongly defend the case.

Indeed, Shengyi was able to use the U.S. discovery process -- a process which many foreign companies try to resist -- to its advantage. I am pleased in the result that was achieved for Shengyi."