No Clearance from U.S. Customs for Importation of Epistar's Phoenix and Aquarius LED Products

In a press released dated September 29, 2007, Epistar erroneously asserted that U.S. Customs and Border Protection has ruled that Epistar’s new Aquarius and Phoenix lines of ultra-bright AlGaInP LEDs are not subject to the Limited Exclusion Order (LEO) issued by the U.S. International Trade Commission (ITC) and presently on appeal to the U.S. Court of Appeals for the Federal Circuit. Discussions with U.S. Customs have confirmed that the agency has issued no such order, and has neither cleared the Phoenix or Aquarius LEDs for importation nor found that they do not infringe Philips Lumileds ’718 patent (U.S. Patent No. 5,008,718). The ITC’s exclusion order prohibits importation of all of Epistar’s LED products that infringe Philips Lumileds’ ’718 patent (U.S. Patent No. 5,008,718), including its OMA I, OMA II, GB I, GB II, MB I, and MB II products, and any other Epistar product, such as the Phoenix and Aquarius LEDs, that may be determined to infringe. The exclusion order further applies to packaged LED products containing the infringing Epistar LEDs and boards consisting primarily of arrays of such packaged LEDs. Companies that use, import, or sell these unlicensed infringing products, even unknowingly, are direct infringers of Philips Lumileds’ patent and subject to the exclusion order. The ITC’s determination is presently on appeal to the U.S. Court of Appeals for the Federal Circuit. Last week the Federal Circuit denied Epistar’s motion to stay the exclusion order for the duration of the appeals process, finding that Epistar had "failed to meet its burden” to justify such an order. The ITC earlier denied a similar request from Epistar on September 11, 2007. Philips Lumileds also has a pending action in U.S. District Court for the Northern District of California, in which it is asserting its patent rights against Epistar’s products and seeking both damages and an injunction. An FAQ regarding this information is available at http://www.lumileds.com/corporate/ip. About Philips Lumileds Lighting Company Philips Lumileds Lighting Company pioneered power LED technology and is the world’s leading provider of power LEDs for everyday lighting applications. The company’s recent records for light output, efficacy and thermal management are direct results of the ongoing commitment to advancing solid-state lighting technology and enabling lighting solutions that are more environmentally friendly, help reduce CO2 emissions and reduce the need for power plant expansion. Philips Lumileds’ LUXEON LEDs are enabling never before possible applications in the automotive, camera flash, display, general lighting, and signage markets. More information about the company’s products and technologies can be found at www.philipslumileds.com. About Royal Philips Electronics Royal Philips Electronics of the Netherlands (NYSE: PHG) (AEX: PHI) is a global leader in healthcare, lifestyle and technology, delivering products, services and solutions through the brand promise of "sense and simplicity”. Headquartered in the Netherlands, Philips employs approximately 125,800 employees in more than 60 countries worldwide. With sales of EUR 27 billion in 2006, the company is a market leader in medical diagnostic imaging and patient monitoring systems, energy efficient lighting solutions, personal care and home appliances, as well as consumer electronics. News from Philips is located at www.philips.com/newscenter.