(Source: Business Wire)

SonoSite, Inc. (Nasdaq:SONO), the world leader and specialist in
hand-carried ultrasound for the point-of-care, announced today that the
company has resolved all pending patent litigation with General Electric
Company (GE). This includes the lawsuit filed by GE in 2008 in the
federal district court in Madison, Wisconsin (case no. 08-cv-298-bbc) to
invalidate SonoSite'sUS Patent No. 5,722,412 (the '412" patent") and a
pending appeals in the Federal Circuit (case nos. 2008-1567, 2008-1568)
of certain rulings in a patent infringement case filed by GE in the same
Wisconsin court in 2007. The settlement also resolves a revocation
action filed by GE in the Federal Patent Court in Germany relating to
the '412 patent.
Under the terms of the settlement agreement, GE willmake an up front
payment toSonoSite of $21 million and pay an ongoing royalty on US
sales and production of hand-carried ultrasound systems weighing less
than ten pounds in exchange for a perpetual nontransferable worldwide
license to the '412 patent family. SonoSite will receive these royalties
until the '412 patent expires in 2016. The terms of the settlement
provides for the dismissal of all pending legal actions between SonoSite
and GE as well as a cross-license to the other party's patents asserted
in the lawsuits. The settlement agreement also includes a dispute
resolution process, designed to avoid future litigation between the
parties.
The companies have also agreed to form in a unique new foundation
aimed at funding clinical research, education and training of best
practices for point-of-care ultrasound. Other terms of the settlement
are confidential.
Commenting on the settlement, SonoSite President and CEO, Kevin M.
Goodwin said, "We are pleased with the outcome of this matter and have
now fully resolved all of our pending litigation with GE. The agreement
with GE is an important milestone in the development of point-of-care
ultrasound. It not only affirms the value of our patents, but also will
enable the expansion of our research program for point-of-care
ultrasound in medicine. We believe that this resolution is positive for
SonoSite, our customers, our partners and the overall ultrasound
industry."
About SonoSite
SonoSite, Inc. (www.sonosite.com)
is the innovator and world leader in hand-carried ultrasound.
Headquartered near Seattle, the company is represented by ten
subsidiaries and a global distribution network in over 100 countries.
SonoSite's small, lightweight systems are expanding the use of
ultrasound across the clinical spectrum by cost-effectively bringing
high performance ultrasound to the point of patient care.
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