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the Securities Exchange Act of 1934 (Amendment No. )
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240.14a-12
PACIFIC SCIENTIFIC COMPANY
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(Name of Registrant as Specified In Its Charter)
KOLLMORGEN CORPORATION
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Contacts: James A. Eder, Esq.
Kollmorgen Corporation
860-232-3121
or
Roy Winnick/Mark Semer
Keket and Company
212-521-4842 or 4802
KOLLMORGEN TO RECEIVE $27.2 MILLION FOR PATENT SETTLEMENT
WALTHAM, MASS., January 22, 1996--Kollmorgan Corporation (NYSE:KOL) announced
today that FANUC LTD of Oshino-mura, Japan, has agreed to pay Kollmorgen
$27.2 million under a confidential settlement and paid-up licensing agreement
covering certain Kollmorgen motion control patents. The settlement amount,
less applicable Japanese withholding taxes, is expected to be received by
Kollmorgen in the 1996 first quarter.
Gideon Argov, Kollmorgen's President and Chief Executive Officer, said:
"Kollmorgen has an extensive and valuable portfolio of U.S. and foreign
patents in the field of electronic motion control which Kollmorgen recently
began to license to third parties. We are pleased that FANUC LTD is among
the third parties that have obtained a non-exclusive license from us.
"Unfortunately, the unauthorized use of our patent estate has recently become
more widespread. Accordingly, while we have enforced these patents through
litigation in the past, we have now begun the process of offering third
parties the opportunity to obtain licenses from us before commencing
litigation. A number of large domestic and foreign companies have already
been contacted and we are notifying other parties that we believe are
infringing our patents."
Morgan & Finnegan, Kollmorgen's patent counsel for more than twentty-five
years, is assisting the Company in enforcing and licensing these patents.
Kollmorgen's primary business is in the area of high-performance electronic
motion control. Growth in this business area is fueled by the need for
higher productivity in every industrial, commercial, aerospace, and consumer
market segment. Additional information on Kollmorgen can be found on the
World Wide Web at http://www.kollmorgen.com.
SAFE HARBOR STATEMENT
This release contains forward-looking statements as defined in the federal
securities law. Anticipated performance and additional licensing revenues
may not be achieved due to a variety of factors, including, but not limited
to Kollmorgen's inability to enter into licensing arrangements with third
parties or adverse results in future litigations, and other risks detailed in
Kollmorgen's filings with the Securities and Exchange Commission.
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Contacts: James A. Eder, Esq.
Kollmorgen Corporation
860-232-3121
or
Roy Winnick/Mark Semer
Keket and Company
212-521-4842 or 4802
KOLLMORGEN NOTIFIES PACIFIC SCIENTIFIC THAT CERTAIN
PACIFIC SCIENTIFIC PRODUCTS INFRINGE KOLLMORGEN PATENTS
WALTHAM, MASS., January 22, 1998--KollMorgen Corporation (NYSE:KOL) announced
today that it has formally notified Pacific Scientific Company (NYSE:PSX)
that certain of Pacific Scientific's motion-control products, representing a
substantial percentage of Pacific Scientific's motion-control revenues,
infringe Kollmorgen patents.
Kollmorgen said that Pacific Scientific is one of a number of parties on which
it is serving notice in connection with what Kollmorgen believes are clear
instances of patent infringement. Earlier today, Kollmorgen reported that it
will receive a $27.2 million cash settlement from a third party with respect
to Kollmorgen's electronic motion control patents.
Gideon Argov, Kollmorgen's Chairman, President and Chief Executive Officer,
said: "We have put Pacific Scientific on formal notice that we believe
certain of Pacific Scientific's motion-control products, representing a
substantial percentage of their motion-control revenues, infringe Kollmorgen
patents. As we are doing with other parties, we have offered Pacific
Scientific an opportunity to obtain licenses from us."
Mr. Argov continued: "The patent agreement with a third party that we
announced this morning, which represents approximately two dollars per share
of incremental cash, will generate capital that we did not previously count
on receiving, that has not previously appeared in our financial models, but
that increases our liquidity, further strengthens our balance sheet, and
significantly enhances our financial flexibility."
Kollmorgen's primary business is in the area of high-performance electronic
motion control. Growth in this business area is fueled by the need for
higher productivity in every industrial, commercial, aerospace, and consumer
market segment. Additional information on Kollmorgen can be found on the
World Wide Web at http://www.kollmorgen.com.
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