LG Presents Sharply Different View on Iris Litigation Issues

Business Wire, Oct 17, 2005

JAMESBURG, N.J. -- LG Electronics USA, leader in deployed iris recognition systems worldwide responded today to Iridian Technology's October 5th press announcement commenting on Iridian's litigation with EyeTicket Corporation which is, in LG Electronics' view, a misleading attempt to link Iridian's litigation with EyeTicket to its pending litigation with LG Electronics. E[acute accent]According to LG, the Iridian statement is inaccurate and incomplete. Like other pending litigation involving Iridian and its licensee, Securimetrics Incorporated, the EyeTicket case is pending in a different court, involves different parties, and involves different issues. The EyeTicket case was also settled years ago, and Iridian has simply resisted a recent motion by EyeTicket that sought to hold Iridian in civil contempt of the court's Consent Judgment. The U.S. District Court for the Eastern District of Virginia has resolved none of the issues that are pending in the New Jersey litigation between LG Electronics and Iridian. E[acute accent]Further, Iridian's representation that 'contractual language ... at issue in the EyeTicket case is substantially the same as the contractual language at issue in its litigation with LG Electronics' is in LG Electronics' view, simply untrue. In particular, terms relating to pricing and royalties are in fact, remarkably different. E[acute accent]While the EyeTicket Consent Judgment allowed Iridian to amend "software fees" "from time-to-time" and "at its discretion" the License Agreement between Iridian and LG gives Iridian no such latitude. The LG/Iridian Agreement instead is based on an up-front license fee and royalty payments to Iridian based on pricing schedule reflecting the number of iris imagers sold. No provision in the LG/Iridian Licensing Agreement allows Iridian to amend "software fees" "from time-to-time" or "at its discretion." LG maintains its License Agreement allows Iridian to amend only Schedule A "pricing" -- namely the royalty paid per optical unit (camera) -- only if Iridian makes uniform changes to published prices and complies with other requirements of the License Agreement, and that it was Iridian's attempt to change the royalty structure and business model under which the LG/Iridian License Agreement was concluded, instead of the "pricing," that led to the New Jersey litigation between LG and Iridian.

E[acute accent]ABOUT LG ELECTRONICS-IRIS TECHNOLOGY DIVISION:

E[acute accent]LG Electronics USA, a principal component of South Korea's $80 Bn LG Corp. has been active in iris recognition research, development and production since 1997. In 2002, LG Electronics' US-based Iris Technology Division assumed global responsibility for all strategic planning, operations, marketing, sales and distribution for LG's iris recognition business. LG's IrisAccess(TM) is the leading deployed iris recognition platform in the world. Deployments in Public and Private Sector and by NGO's on 6 continents number in the thousands. E[acute accent]For more information about LG 's interests in iris recognition, visit www.lgiris.com.