Company Announcement to the Danish Financial Supervisory Authority
No. 13-2008, 18 March 2008
FLSmidth's U.S. subsidiaries, FLSmidth-Excel, LLC ("Excel") and Excel
Foundry & Machine, Inc. ("Foundry"), that were acquired in 2005-06,
have been accused of patent infringement and misappropriation of
trade secrets by competitor Metso Minerals Inc., ("Metso"), a U.S.
subsidiary of Metso Corporation.
The lawsuit, which was filed in the Federal Court in Milwaukee,
Wisconsin ("Federal Court Action"), involves specific components of
Excel's popular line of cone crushers. Excel and Foundry have
admitted unintended patent infringement, and in keeping with
FLSmidth's code of business ethics, have committed to providing Metso
with fair compensation for that patent infringement. Foundry has
since ceased selling one of the components accused of patent
infringement and the patent covering the other component has since
expired. Thus, Excel and Foundry believe that the patent infringement
component of the Federal Court Action will have no impact upon
Excel's or Foundry's operations.
Despite Excel's and Foundry's willingness to compensate Metso for the
limited infringement of its patents, Metso has since sought to
enlarge the case by accusing Excel of misappropriation of alleged
trade secrets. Excel is analyzing these new claims and is prepared to
vigorously defend itself against these charges. Lastly, Excel and
Foundry are investigating potential counter-claims against Metso for
possible anti-competitive behaviour.
The Federal Court Action does not alter the expectations for
FLSmidth's earnings for 2008.
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Please address any questions regarding this announcement to Group
Chief Executive Officer Jørgen Huno Rasmussen, FLSmidth & Co. A/S at
+45 36 18 18 00.
For further information about FLSmidth, please visit
www.flsmidth.com.
Yours faithfully
Pernille Friis Andersen
Corporate Communications & Investor Relations
