African American-Owned Company Canady Technology to Seek Twenty-Six Million Dollars in Damages against ConMed Corporation and Attorney Fees in Excess of Five Hundred Thousand Dollars against Erbe Elektromedizin GmbH

Business Wire, March 10, 2008

PITTSBURGH -- Despite recent legal decisions against Erbe in the U.S. International Trade Commission and the U.S. District Court for the Western District of Pennsylvania and a prior decision against ConMed in the arbitration it instituted against Canady Technology, negotiations over the last six weeks between Canady Technology, Erbe and ConMed have ended without a settlement of the remaining legal claims. Canady Technology, LLC the first African-American owned biomedical device company in United States has been embroiled in a series of tumultuous litigation battles with ConMed Corporation, Utica, NY and Erbe Elektromedizin GmbH (German family-owned company) and Erbe USA (the US subsidiary of the German company) over the last three years. Canady Technology maintains its position that ConMed and Erbe's strategic plan has been to litigate the African-American company out of business by filing multiple lawsuits against Canady Technology and improperly interfering with its business relationships. Erbe/ConMed has spent literally millions of dollars in legal fees in their attempts to stop the African American company to compete on the market. Canady Technology a small minority owned company with a diverse group of American investors have spent over two million dollars in legal fees defending their right to compete as Americans in the lucrative multi-billion dollar biomedical device market, specifically in plasma technology in medicine. The German family owned company Erbe and the publicly-traded ConMed Corporation have joined their legal teams in attempt to stop Canady Technology. Erbe and ConMed have annual revenues of approximately 120 million and 700 million dollars respectively.

CANADY'S LEGAL VICTORIES AGAINST ERBE AND CONMED

January 2003, U.S. Patent & Trademark Office, Alexandria, Va. Beginning in July 2000, Erbe filed in the U.S. Patent & Trademark Office (USPTO) three requests for reexamination of Canady's U.S. Patent No. 5,207,675. On January 14th, 2003 the USPTO affirmed all thirteen claims in Canady's patent. See U.S. Patent Office Notice of Intent to Issue Ex Parte Reexamination Certificate, January 14th, 2003.

November 2003, European Patent Office, Munich, Germany. Erbe filed an opposition to Canady's European Patent No. 0 595 967 with the European Patent Office (EPO). On November 25th, 2003 the European Patent Office affirmed the validity of Dr. Canady's patent in Europe. Erbe has appealed the decision.

September 8, 2005, European Patent Office, Munich, Germany. In connection with an opposition Jerome Canady, M.D. filed against Erbe's European Patent Application No. 96 932 596.8, the European Patent Office issued a decision revoking Erbe's patent. Erbe has appealed the decision.

July 24(th), 2006 American Arbitration Association: ConMed Corp. and Jerome Canady, M.D., Argon Electro-Surgical Corp., Case #16 122 Y 003365 05 In a stunning legal victory of Canady Technology over the publicly-traded industry giant ConMed Corporation, Canady Technology won the right from ConMed Corporation to sell argon plasma powered "dual mode" endoscopic tools (i.e. argon plasma polypectomy snare, argon sclerosing needle and biopsy forceps). A three-judge arbitration panel ruled in Canady's favor. After a seven day arbitration, in which the testimony of a ConMed witness was found to be "inconsistent" and "otherwise not credible," Arbitrators also ruled that ConMed let the development of the tools lapse "into a corporate limbo," instead of refining and selling the tools. ConMed's actions delayed the production of the probes, thereby preventing this new and innovative technology from coming to market. Under the ruling, the rights to the technology reverted back to Canady Technology. The ruling is final and cannot be appealed.

March 5, 2007 U.S. District Court for the Western District of Pennsylvania, Erbe Elektromedizin GmbH, Erbe USA, Inc & ConMed Corporation, Plaintiff's vs. Canady Technology, LLC AND Jerome Canady, M.D., Defendants Case #2:05-cv-01674-DWA. The U.S. District Court for the Western District of Pennsylvania issued an Order interpreting claims of Erbe's U.S. Patent No. 5,270,745, asserted by Erbe against Canady Technology. The Order interpreted the term "low flow rate" in the patent claims" as meaning a rate of flow of less than about 1 liter/minute and producing flow velocities less than 19 km/hour such that gas existing through the distal end opening forms a non-laminar inert gas atmosphere." The Court also interpreted the term 'less than about 1 liter/minute..." as "less than 1 liter per minute." The company views the Court's decision adopting these definitions asserted by Canady Technology as confirmation of Canady Technology's long-held position that it does not infringe U.S. Patent No. 5,720,745.

December 18, 2007 U.S. District Court for the Western District of Pennsylvania, Erbe Elektromedizin GmbH, Erbe USA, Inc & ConMed Corporation, Plaintiffs vs. Canady Technology, LLC and Jerome Canady, M.D., Defendants Case #2.05-cv-01674-DWA. The U.S. District Court for the Western District of Pennsylvania issued a decision granting Canady Technology summary judgment of non-infringement of Erbe's U.S. Patent No. 5,720,75 and invalidity of Erbe's U.S. Trademark Registration No. 2,637,630 (court ruled that Erbe does not have a valid trademark on blue catheters that deliver argon plasma). ConMed Corporations's claim against Canady Technology for infringement of U.S. Patent No. 4,781,175 with respect to Canady Technology sales prior to the expiration of the '175 patent on April 8 2006 and Canady Technology's counterclaim for tortuous interference with a business expectancy against ConMed and counterclaim for inequitable conduct and invalidity against Erbe remain pending. Erbe and ConMed filed a motions for reconsideration of the decision. The motions for reconsideration were denied and the case is set for trial in May 2008.