January 31, 2005

Zenon initiates new legal action against U.S. Filter Corporation

OAKVILLE, ONT-Zenon Environmental has initiated further legal action against U.S. Filter Corporation, alleging that the latter infringed Zenon's patent on an apparatus for withdrawing permeate using an immersed hollow fibre membrane. This action follows, but is separate from, a preliminary court ruling handed down in November 2004 on an earlier suit filed by Zenon against U.S. Filter. The patent that is the subject of the new action makes claims which are not subject to the issues raised in the preliminary ruling. Zenon's original suit against U.S. Filter, filed in October 2003, sought damages and an injunction to stop the sale, manufacture and use of U.S. Filter's MemJet and CMF-S products. The suit claims these products infringe upon Zenon's intellectual property, protected by patents issued in the United States. The preliminary ruling against Zenon dealt with the meaning of the terms in one of the three patents at issue in the suit. The company has indicated that it intends to appeal the ruling, but must wait until after the trial, which is scheduled for the end of March 2005. Zenon not dropped its claims for monetary damages or infringement, even though U.S. Filter has discontinued the technology covered by one of the patents. More information is available from Zenon chairman and CEO Andrew Benedek, 905/465-3030.

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